Investments that can become a fixed expense if you don’t know how

Accumulating the largest amount of properties, cars, latest technology items can derive other extra expenses or become fixed expenses that harm us, far from being a good investment to increase our assets.

An example according to this idea is that many millionaires prefer to rent properties to acquire them, thus avoiding the devaluation of the property over time. In addition to not dealing with maintenance, it decreases its profitability, and not have to deal with its difficult sale at some time.

Some of the main investments that can generate extra expenses, since they consume resources at the end of the day, are housing, cars and technology.

This does not mean that it is not advisable to buy a house, or that you should live without a cell phone. It has to do with a better management of our purchases, according to the resources we have, or, to consider other alternatives before “investing”.

Buy several mortgages

Buy several mortgages

If you want to buy a house successfully, you have to analyze many aspects, having two or three additional properties in mind, you will have to analyze much more.

If this will be the family heritage, it is a great idea; But if you plan to extend your assets and decide to buy a house on the beach, or take advantage of a second approved credit, you must analyze specific aspects.

For example, the costs of having a house on the beach to which you will go relatively little, and where you will have to pay a maintenance, which is not little money, since this type of property needs special care to avoid its deterioration. In any case, you might consider buying it along with some other family members, optimizing its use and dividing expenses.

Think that the more properties you accumulate, it will be necessary to invest more time and money, or hire someone to run your administration. All this if you want it to be profitable and suppose a gain for your provisional income.

If not, it will only become the sum in various monthly payments, multiplied by the number of properties you have.

Purchase of a new car as a way of investment

Purchase of a new car as a way of investment

To consider the purchase of a new car as a way of investment, already supposes an idea far from reality. A new car, in Mexico, is devalued by at least 20% when leaving the agency, and a little more every year, or with each sale.

As with the purchase of a home, supposing having many cars does not ensure a profitable investment, if you do not have the ability to maintain them.

A good option could be to spend a few years with a car and sell it before it loses most of its value.

Or see the option that has little time in Mexico, is called “Leasing” already run by various dealers, where you pay for the prolonged use of a car, but not for your property.

Finally you can only rent it for special or really necessary occasions, and opt for public transport, motorcycle or bicycle.

Always have the latest smartphone

Always have the latest smartphone

Many people wait months for the announced release of the latest version of their favorite brand in technology, much more in the area of ​​smartphones. But is it really a smart idea to always buy the latest version? As an investment it really is not, models such as Samsung and iPhone, the highest-end, are more expensive every day.

The most advisable if you want to be up to date without assuming a fixed expense, is to acquire in cash the model of a previous year, which still does not suffer such a large devaluation.

So you can have a trend phone if you have to pay long contracts for always wanting to buy the newest cell phone, and in the end you pay twice the cost.

It seems that Mexico does not yet have mobile leasing plans, but they would certainly be a great option for lovers of the latest technologies.

conclusion

conclusion

In many of these different investments using most of our money will not always be the best alternative, we must diversify, in addition to choosing those options that do not generate a fixed expense.

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