Many consumers have short-term memory loss when the economy is thriving. Rather than saving and preparing for a time when it isn’t so great, they make big purchases they can’t afford. Because the economy is always on a cycle, what goes up must always come down. Dave Ramsey has some strong words for those who spend outside their means.

“When the tide goes out, you can tell who’s been skinny dipping,” he says in this video about consumer debt. If high tide is a good economy, low tide is the exposure of those who didn’t prepare for the shift.

This doesn’t mean you can’t enjoy spending when you have a high-paying job and the economy is thriving. There’s no need to be constantly in doomsday mode but remember that “stupid spending” is often exposed during times of chaos and crisis.

Dave also speaks about consumers who borrow money for purchases even when they have the money to cover it, simply because they don’t want to part with their cash. He states that if you have to go into debt for it, you can’t afford it. The panic comes when you lose the job or commissions aren’t as high. You have to drain your savings and now you can’t make payments on your purchases.

Amazon has made online shopping easy and convenient. With just a quick click, you can have almost anything delivered to your door in two days. Using a debit or credit card isn’t as painful as handing over cash, so it’s easier to spend money.

This method of shopping also encourages big spending on items that aren’t necessary. There’s a difference between buying new tires for a vehicle that needs them and investing thousands of dollars into a stereo system for a new car. We’ve identified some of the highest-priced things on Amazon that you should avoid unless you have the disposable income for them. As Dave says, there’s no need to buy something that ties you down with payments for years.

Collector Items

These are usually a splurge purchase, and it’s easy to get caught up in the “I must have it before someone else does” mentality. For example, Amazon currently has a framed, autographed Kobe Bryant jersey for sale for almost $6,000. To add more to the temptation, there’s an option to pay it off in 48 months. Buying this jersey may make you envied by your friends, but it also leaves you in debt for two full years.

Diamond Earrings

Listed on Amazon for over $60,000, these diamond chandelier dangle drop earrings cost more than the average family vehicle. Even with the 5% coupon code, this isn’t a purchase you want to make even when things are going well. If you are determined to spend that much money on jewelry, you may want to do it in person so you can see it before you buy it.

Expensive Silverware

This stainless steel cutlery set will set you back a cool $9,548, or $377 a month for 48 months. That’s two years you spend paying off something that is only used on special occasions. Save yourself the money, buy an average silverware set, and keep that ten grand in your account.

Massage Chair

For a cool $50K, you can relax in your home in a home massage chair. Unfortunately, you’ll probably spend a good chunk of that time trying to find ways to pay for it, especially if you have a money crisis or emergency. You’re better off paying for a massage occasionally than investing in something that loses its value almost immediately after purchase.

Famous Paintings

Have an extra $37K on hand? If so, you might want to buy this painting on Amazon from famous artist Ryan Williams. You could also pay for a child’s tuition if you opted to save the money rather than spend it.

Robot Vacuum and Mop

Consumers are constantly tantalized with the promise that machines can do those tedious jobs for them. This robot vacuum and mop may keep your house clean, but it’ll cost you $1,400.

Amazon’s Most Expensive Products

The most expensive Amazon products tend to be electronics, jewelry and collector’s items. Dave Ramsey warns against this kind of spending because the value is so low compared to the cost. He encourages consumers to save money and pay cash for everything they buy. If you can’t afford to pay cash for it, then they shouldn’t buy it, according to him.

Before buying things on Amazon, check to see how they’ll retain their value over time. Don’t throw money down the drain for something that won’t hold its value. When times are good and money flows freely, think ahead to the future and the next downswing of the economy. Dave’s advice is to save when you can and avoid frivolous spending for expensive items on sites like Amazon.

 

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