We all like to splash out on the odd extravagance. Whether it’s something practical like some work on your home, a little treat like a new car, or the start of a new hobby, it’s nice to have something new that you wouldn’t buy every day. But sometimes it’s possible to splash out on something without completely losing money. True, you won’t have your money in cash or a bank balance anymore, but it might be possible to keep or even increase that money tied up in possessions.
It’s nice to refresh your home environment or add something new to your property. Some home improvements will increase the value of your property by a greater amount than you have spent. In terms of your net assets, you will therefore have profited. Kitchen remodelling is one enhancement to your home that will almost certainly justify the expense. It is also possible that a remodelled bathroom or simple change of décor will do the same. Any improvement that adds living space is also likely to make up for the cost with increased property value. This could mean an extension, loft conversion or even a summerhouse.
If you have a weakness for cars, then it would be nice to treat yourself to a new vehicle. But the problem is that cars are a big purchase, and notorious for losing value as they gain age and mileage. However, vintage and veteran cars are a major exception to this rule. Mileage is virtually meaningless in terms of value, and age will only make them more antique and more collectible. As such, you are not likely to lose your investment and it may well increase. Unlike a property, a car will also be easy to sell if you decide you want the money after all. Buying a vintage car that needs work can make an interesting restoration project and be a sound investment at the same time.
Start a Collection
Starting a collection can be an interesting hobby and a safe investment. Countless different items are popularly collected including coins, stamps, watches, rare vinyl records and vintage electronics. Whatever you decide to collect, as long as you research your purchases to ensure you are getting a fair price you are unlikely to lose your money permanently. There will always be demand from collectors to buy any items you choose to sell. Value can go up and down, but almost always trend upwards as items get older. If you do decide to sell, you have a great chance of making your money back or bringing in a profit. However, if you find prices are low when you want to sell you may have to choose between swallowing a small loss or waiting for values to go up again.