8 Things To Avoid Buying in the Beginning of the Year
Written by
Cindy Lamothe
Edited by
Elizabeth Constantineau
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The start of a new year means opportunities to spend are limitless. There are so many offers everywhere promising a newer, happier you. But January is also the time when prices tend to spike, according to experts.
There are some purchases you should refrain from putting your money towards. Here are the top things to avoid buying in the beginning of the year.
Outdoor Equipment
“So, you’re eyeing some new outdoor stuff? Well, heads up — when spring hits and everyone’s buzzing to be outside, prices tend to play hard to get,” said Karina Newman, real estate investor and owner of iBuyers. “But here’s the scoop: hold off a bit, maybe until the end of summer or early fall. That’s when stores want to clear out the summer stash, and you could nab some serious discounts.”
She says a little patience might just be the secret sauce to save some extra bucks.
Travel Packages
If you’re thinking of booking that dream trip right at the beginning of the year, be warned, says Newman. That’s when everyone else is daydreaming about vacations, too.
“Prices? They tend to do a little happy dance, especially during peak times and holidays,” Newman said.
One travel hack, she recommends, is to flex those travel dates a bit.
“Dodge the holiday frenzy, and voila! Sweet deals might just fall into your lap,” she said. “Off-peak times mean not just lower prices but also fewer crowds. So, plan smart, and your wallet will be doing a little victory dance too.”
Linda Schroder, real estate investor and owner of Cash for Houses, notes that by strategically planning your travel during the off-season, such as the spring or fall, you can significantly reduce your travel expenses.
“During these periods, demand for travel services is lower, leading to airlines and hotels offering discounts to attract customers,” Schroder explained. “This strategy allows you to enjoy the same travel experiences at a more affordable price point.”
Appliances and Electronics
“Let’s chat about cool home gadgets. You know when the hype about new models hits the town? Well, that’s when stores want to make room for the shiny and new,” said Newman.
She says that if you’re eyeing a fancy new fridge or a slick washing machine, consider holding off till spring as that’s usually when the newbies arrive.
“Oh, and here’s a little extra goodness,” she adds. “Major holidays, especially the end-of-year ones are like a treasure trove for appliance deals. Black Friday and Christmas sales–they’re the real MVPs, offering hefty discounts. It’s like the universe saying, ‘treat yourself’ to that cool gadget without burning a hole in your pocket.”
Schroder agrees. “Retailers have strategically adapted their sales strategies to coincide with the holiday shopping season,” she said, “culminating in the major sales events of Black Friday and Cyber Monday.”
She adds that during this period, retailers aim to maximize their profits by offering significant discounts on a wide range of products, including electronics. This surge in demand and heightened focus on holiday sales often result in electronics being more expensive in the beginning of the year.
Gym Memberships
With the start of a new year comes the desire to get fit and healthy. However, according to experts, signing up for a gym membership right away may not be the best decision.
“Many gyms offer discounted rates or promotions towards the end of the year, making it more affordable to sign up then,” said Linda Chavez, founder and CEO of Seniors Life Insurance Finder. “So before committing to a pricey gym membership in January, consider waiting until later in the year when you can potentially save some money.”
Winter Clothing
As winter approaches, it’s natural to want to stock up on warm clothing, but buying winter gear at the beginning of the year means paying full price, says Chavez, as retailers know that demand is high during this time.
“Consider waiting until later in the season when stores start to offer sales and discounts on winter clothing,” she said.
Similarly, Jake Hill, CEO of DebtHammer Consolidation says that if snowstorms have you dreaming of new winter apparel or sports gear, do not buy it in January.
“These items are typically discounted in March to mark the end of the season, so you’ll be able to find great deals if you can be patient,” he said.
While it may seem like a good deal, it’s important to evaluate whether you actually need these items. Unless you live in a cold climate or have a specific event coming up, it’s best to avoid buying winter clothing at the beginning of the year.
Furniture
“I would avoid buying furniture,” said David Kemmerer, CEO of CoinLedger. “At the beginning of the year, there aren’t a lot of deals happening since the holidays have just passed. And, Presidents’ Day is coming up in February, so in the time between the holidays and Presidents’ Day, furniture prices will be up.”
He adds that since furniture can be so expensive, he highly advises waiting until a holiday weekend to get the item you want on sale.
New Homes
The most expensive item at the beginning of 2024 will be the housing market, experts say.
“Avoid purchasing a new home, otherwise you risk overspending,” said Ann Martin, director of operations of CreditDonkey. “It’s a seller’s market and will continue to be one for a while.”
Tax Software
As tax season approaches, many people rush to purchase tax software in order to file their taxes quickly and easily. However, this software can be costly and may not be necessary for everyone.
Experts recommend that before purchasing tax software, you consider using free online options or seeking help from a tax expert. This will save you money and ensure that your taxes are filed accurately.
The Bottom Line
By avoiding the above purchases in the beginning of 2024, you can save yourself some money and make smarter financial decisions.
“Remember to always weigh the costs and potential savings before making any big purchases,” said Chavez. “With careful planning, you can start the new year off on the right financial foot.”
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