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While most purchases cost more than they used to, some items are exceptionally overpriced. Keep reading for four you might be able to avoid.
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Lately, it feels as if life gets more expensive by the day. While necessary expenses like groceries and housing are difficult to avoid, many people continue to pay high prices for avoidable costs. Every dollar you spend on overpriced things impacts your bank account balance. Keep reading to find out what ridiculously overpriced things people can’t stop buying.
1. New cars
For people across the country, it can be challenging to get around without having a car. Public transportation isn’t always available or reliable, even in some major cities. Unfortunately, it costs a significant amount of money to purchase a new vehicle.
The average new car in the United States sold for $48,043 in June 2023, according to Kelley Blue Book. This is the highest total on record, and the first time the average nationwide new car price topped $48,000. Paying nearly $50,000 for a vehicle sounds painful.
In addition to record-high car prices, interest rates for auto loans are not great, thanks to the Federal Reserve’s interest rate hikes. That means a new car purchase can quickly become more expensive. If you need to replace your car, compare new and used car prices. You may be able to save money by purchasing a used vehicle. But make sure you have it looked over by a mechanic first to avoid costly repairs.
2. Weddings
Weddings are another overpriced thing that people can’t stop buying. Many couples host an elaborate wedding to celebrate their union. But unless you go out of your way to plan an inexpensive event, you could easily overspend on this one-day event.
You may be surprised to find out how much a wedding can cost. According to The Knot, the national average cost of a wedding ceremony and reception totaled $30,000 in 2022. For many couples, that’s a sizable down payment for a home purchase.
If you’re newly engaged, you may want to consider whether you wish to spend thousands of dollars on a wedding or instead plan a more affordable celebration. By hosting a budget-friendly event, you’ll have more ability to prioritize your joint personal finance goals.
3. Food and drinks purchased at events
Attending a musical performance or sporting event can quickly become expensive. Unless you’re able to secure tickets right when they go on sale, you may end up spending a good chunk of cash on ticket costs due to resale markups and added fees.
But another expense that can make your next entertainment outing costly is food and drinks purchased at the venue. When you’re feeling hungry or thirsty while at an event venue, you’ll be stuck paying higher prices. If you’re not careful, you can easily spend more than planned and rack up an expensive credit card bill on food and drink costs.
Last month, I attended two NHL hockey games at two different sporting venues, and I paid more than $18 at each for one beer, before gratuity costs. For this reason, I generally avoid buying food or more than one round of adult beverages when attending concerts and sporting events. I arrive early and have dinner and drinks nearby before the event starts.
4. Caskets
Another item that people continue to overpay for is caskets. Many people have funerals to give their loved ones who have recently passed away a proper goodbye. But a funeral can quickly become expensive, especially when planning a traditional burial service.
According to the National Funeral Directors Association (NFDA), the median cost of a funeral with a viewing and burial was $7,848 in 2021. The median cost of a metal casket that same year was $2,500, while a wood casket was $3,000. That’s a lot of money to spend.
Many people don’t realize they can purchase a casket from an outside source. The Federal Trade Commission (FTC) requires funeral providers to accept caskets purchased elsewhere without charging additional fees.
If you have the time and flexibility to shop around for a casket, it can be a win for your wallet. Purchasing a casket at Costco could save you hundreds of dollars. Some people buy their own casket well before they die to save their loved ones money on funeral expenses.
Keep your finances top of mind
As you make everyday purchase decisions, be sure to keep your finances in mind. Look for ways to save money on expenses to avoid overspending. You could free up extra cash by avoiding some overpriced purchases or opting for affordable alternatives. While you may need to get creative to save money, it can be worth it.
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