Top 6 Guilty Pleasure That Come With Hidden Expenses – Don't get caught off-guard!
Indulging in guilty pleasures can be a tempting escape from the stresses of everyday life. It can bring a sense of joy and excitement to our lives. Whether treating yourself to a great spa day or splurging on designer clothing, these indulgences can provide moments of pure bliss. However, many fail to realize that these guilty pleasures often come with hidden expenses that can catch us off-guard.
Although advertising has led you to believe that businesses offering products and services exist to improve your life, they exist to make money! The main reason for a business venture is to make a profit.
Keep this thought at the top of your mind when considering "amazing" offers. Even though they seem to offer you the best deal, you must ensure you're not being lured into hidden financial obligations.
Hidden expenses can mean the difference between your financial wellness and growing debt.
Take a look at some of the top guilty pleasures below. If you think back, you'll remember being caught once or twice in similar situations! So, buckle up and prepare to face the truth about these hidden expenses – because knowledge is power when managing your finances.
Avoid these "deals," so you aren't faced with hidden expenses down the road:
Financing a brand new car
Flipping through channels on the cable will open your eyes to the awesome offers being extended by automobile manufacturers. "Zero down payments," "No interest for two years," and "Your job is your credit" are some of the offers to convince consumers like you to own the new car of your dreams and eventually trap you into this guilty pleasure.
- In many cases, a destination charge will be applied to your final price. It represents the cost of delivering a car to a dealer. The dealer pays for it and then passes it along to you as a portion of the sales price.
- Auto detailing and adding fluids are some of the activities in what is known as dealer preparation, but these services are not free! It's always a good idea to ask your retailer what their preparation fees are before you sign.
- What can really catch you off guard is sales tax. Depending on your state, you could pay as much as eight percent in sales tax, which adds a huge chunk to your final total!
Using your credit card for family vacations
It's great to take your family on vacation and treat them on a special trip, right? But what are you signing up for when paying for the trip with your credit card? Are you signing up for a guilty pleasure only to haunt you later?
- When the statement is generated, do you have enough income to pay for the vacation in full the next month? Or will you end up being in arrears for months because you couldn't resist that 14-day Mediterranean cruise?
- Paying off your vacation over time costs a huge chunk of money in interest charges. Plus, you'll be stuck with higher credit card payments for months, causing an extra drain on your income.
A rule of thumb is to only use your credit card for purchases you can comfortably make with cash.
Applying for "free" member rewards cards
Everywhere you turn, there's a business offering you a "free" member rewards card. However, promises of no obligations when you sign up often lead to debts later down the road.
Whether it's a department store or your family's favorite amusement park, you'll likely have to spend a minimum amount to benefit from their rewards program.
Often, the rewards pale compared to the amount of money you spend to get them!
So, the next time you see a tempting offer, ask yourself, "What's in it for them?" The answer to that question will surely clue you into what hidden expenses you might expect down the road.
Online Shopping
Online shopping is a popular guilty pleasure that can quickly become expensive. It's easy to get carried away with the convenience and endless options available at your fingertips. However, hidden expenses such as shipping fees, import duties, or return shipping costs can add up. Additionally, impulse purchases and flash sales can tempt you into buying items you don't truly need, leading to overspending.
Eating Out or Ordering Takeout
Treating yourself to a meal at a restaurant or ordering takeout is a common guilty pleasure. While indulging in delicious food without the hassle of cooking is enjoyable, these expenses can quickly accumulate. Hidden costs may include service charges, delivery fees, taxes, and tips. Moreover, frequent dining out can lead to an inflated food budget that may strain your finances if not monitored closely.
Streaming Subscriptions
With the rise of streaming services, binge-watching your favorite shows or movies has become a guilty pleasure for many. While individual subscriptions may seem affordable, subscribing to multiple platforms can quickly add up. It's easy to overlook the cumulative cost of monthly subscriptions, especially if you have subscriptions you use sparingly. Additionally, some services offer premium plans or exclusive content that can tempt you to upgrade, resulting in higher expenses.
Remember, indulging in guilty pleasures is perfectly fine as long as you budget and monitor your spending. Being aware of hidden expenses allows you to make informed decisions and avoid financial surprises.
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