7 Unnecessary Luxuries You Should Stop Paying For in 2024 — And Disney Is One of Them
According to Bain and Company, consumers of luxury goods finally slowed down their spending on luxury items, as revenues only increased about 4% to $387 billion in 2023. There are different ways to define a luxury good, depending on your financial situation, but there are some unnecessary items that you may want to think about cutting from your budget in 2024.
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What are seven unnecessary luxuries you should stop paying for in 2024?
1. Daily Coffee
Your daily coffee consumption could cost you more than you realize when you tally up how much you’ve spent on your morning fix.
“It’s great to treat yourself to a coffee and a pastry once in a while, but when it becomes a sort of reflexive habit, it’s often unnecessary, said Erika Kullberg, personal finance expert, attorney, and founder of Erika.com.
While daily coffee spending may be a normal part of your routine, you could save money and improve your financial situation by making your own and avoiding the temptations that come with entering a local cafe.
“Bring some coffee from home and avoid the temptation to spend extra on sugary food items you don’t need anyway,” Kulberg said.
2. Gym Membership
“There’s really no need to get tied into a 12-month contract with your gym, even if you do go there enough to justify the cost,” Kullberg said. “That’s because there are tons of options out there for free workout classes online.”
You can save money by cutting out that gym membership since many free options exist or you could invest upfront in purchasing training equipment for your home. You also want to be realistic about how often you’ll use the membership and any of the
3. Lavish Brands
One unnecessary luxury that can eat into your savings is spending money on brand-name items when cheaper options exist.
“The biggest unnecessary luxury that people should stop buying is lavish brands,” noted Anthony DeLuca, a CFP and an expert contributor for Annuity.org. “The reality is that you’re buying a status more than buying a quality product.”
Some examples include:
Athletic clothing brands like Lululemon that charge more.
Purchase a Pelaton machine setup instead of a traditional bicycle.
Brand-name watches or handbags that don’t offer any additional value.
Nike shoes or other brands that charge a premium for their products.
You’ll want to assess your spending to ensure you’re not spending money on lavish brands when you don’t have to.
4. Eating Out Too Frequently
Most financial experts agree that dining out frequently is unnecessary, as American consumers struggle with inflated food prices. With take-out food prices shooting up over 25% since the pandemic, dining out is a luxury that most people should consider cutting out. This expense becomes a larger burden if you have a family or if you rely on take-out food for most of your meals.
“To indulge now and then is encouraged, but to make this a lifestyle is detrimental,” DeLuca said. “Eating at local places and avoiding fancy chains is a first step.”
You can also take up cooking as a hobby as it would allow you to save money and improve your options so you don’t get bored.
5. Expensive Vehicles
Purchasing an expensive vehicle or upgrading your car too often is a luxury that should be cut from your budget in 2024. You also have to factor in that an expensive vehicle can come with higher insurance rates and increased maintenance costs.
“For many, cars have become a status symbol and an object of pride,” said Ganesh Pandit, professor and chair of Adelphi University’s Department of Accounting and Law. “However, if you can’t purchase a certain car without borrowing money, it’s a luxury for you that can wait.”
6. Constantly Buying The Latest Gadgets
“Upgrading technology-based gadgets, even if the current version is working fine and serving its purpose, is an unnecessary luxury,” Pandit said.
Large tech companies frequently introduce new versions of phones, watches, tables, and other devices to maximize profits. If your current gadget still serves its purpose, there’s no need to spend money on upgrading it. The newer version will often have marginal improvements in features that aren’t worth the price tag.
7. Expensive Vacations/Disney Trips
One luxury you want to reconsider in 2024 is expensive vacations and family trips to destinations like Disney World. According to a survey by Allianz Partners, a travel insurance company, the average American household plans to spend $2,843 on their summer vacation this year.
“Any vacation that involves taking on a debt, whether credit card debt or personal loan, is a luxury that should be avoided at the current interest rates,” Pandit said. “Even though a vacation creates long-lasting memories for some people, it should never leave a trail of expensive debt installments.”
According to Mouse Hacking, a baseline Disney World vacation for a family of four over five nights is around $6,865. [x] If you’re looking for an upgraded version of this same trip, it would cost the same $10,696. This luxury comes with a steep price tag when you factor in the expenses including flights, hotels, food, park entry and various upgrades.
Other luxuries at Disney that you want to avoid are expensive upgrades like a $275 per person Backstage Magic pass or up to $950 an hour for a private VIP tour. You’ll also want to think twice about spending money on other Disney products, like a $55 top or a backpack that can cost up to $100.
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