RESOLVING THE LEDGER
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See the full story · 1 sourcesVideos on TikTok of users sharing the items they swear are "always" worth the money have racked up hundreds of thousands of views and likes this summer.
The items mentioned in the posts range widely, from skin care products to upgraded airline seats. Sometimes creators make targeted lists, such as purchases that are always worth it for moms or restaurants in New York worth the price.
Of course, what's worth the money for one person may be completely useless to someone else, regardless of the cost. Even the most popular espresso machines will be practically worthless to someone who doesn't drink coffee , for example.
Financial planners tend to avoid giving blanket spending advice because everybody's financial situation is unique. Working with a financial planner who gets to know your long-term goals and personal values can help you decide what big purchases will likely be worth your investment and which you should probably skip.
That said, some purchases generally tend to make more financial sense than others. CNBC Make It asked money pros for items they think are worth the money as well as purchases that sometimes or rarely pay off. Here's what they had to say.
Some of the themes that jumped out from planners' "always worth the money" lists were products and services that can prevent you from costlier expenses down the line or support individuals' overall health and wellbeing .
"Preventive spending is almost always worth the money," says Jordan Gilberti , certified financial planner based in Florida.
He includes medical and dental care in that category as well as maintenance on your home and car that can help shield against costly repairs in the future. In addition to seeing medical professionals, purchases that support your overall health on a daily basis are typically worth it.
"I don't cut corners on any of the following: Good sunscreen and good skin care," says Marguerita Cheng, a Maryland-based CFP and member of CNBC's Financial Advisor Council .
Several planners named an umbrella category of high-quality versions of "anything between you and the ground," as Noah Schwab , a CFP based in Spokane, Washington, puts it. That includes shoes, mattresses, tires and office chairs.
"The cost per use is pennies and the alternative eventually shows up as a medical bill," he says.
Products and services that save you time also appeared on a number of planners' lists. Kelly Klingaman , a CFP based in Austin, Texas says direct flights, bi-weekly housecleaning services and curbside grocery pickup are worth it, for example.
San Francisco-based wealth advisor, Vishal Kumar agrees that paying someone to handle things he doesn't enjoy like cleaning or other administrative tasks is a worthy investment.
"It costs real money, but it hands back hours and a bit of mental space," he says. " Buying back your own time is one of the few purchases that quietly pays you back."
Some of the items planners say are worth the money aren't products you'll buy in a store. Contributing to your workplace retirement account like your 401(k) and getting an employer match , if available, is always worth the money, Reggie Fairchild , a CFP based in South Carolina, says.
There's a level of risk you assume basically anytime you're spending money. And while it's clearer that certain purchases are almost always or very rarely worth it, these items fall right in the middle.
A few planners say life insurance policies, which provide a payout to your beneficiaries in the event of your death, are sometimes worth the money. As with virtually any financial product, it really depends on your personal situation. There are two main types of life insurance — whole and term — and planners say that term life insurance may be worth it for more families than whole.
With term life insurance, you're covered for a set number of years, and policies are generally lower-cost. Florida-based CFP Erin O'Brien says term life insurance is especially worth it if you have a spouse and children who couldn't get by without your income. "[It's] so important to protect your family," she says.
Whole life insurance covers you for life and has a cash value you can access while you're alive.
These policies may be worth the investment for a "narrow set of high-net-worth" families, Schwab says. Whole life insurance plans are often marketed to young families as retirement plans, but are "usually the most expensive way to invest for retirement," and probably not worth it, he says.
Home renovations fall into another category of purchases that are often thought of as investments. After all, if they add more value to your home than they cost, they could theoretically be worth the money. But Schwab says many homeowners fail to recoup the renovation costs when they sell.
Think of home upgrades as "worth it for the years you'll enjoy the space," rather than as a financial investment, he says. For example, if you are a cooking enthusiast who plans to live in the same home for a while, updating your kitchen could be well worth the costs, even if the changes won't increase your home's value by much.
"The return is the years of enjoyment you get from the space, not money you'll ever see back," says Schwab.
Planners say extended warranties on items such as cars and home appliances can sometimes be valuable while others said they're never worth it. Texas-based CFP, Joshua Brooks says extended warranties are often unnecessary, but "can make sense if a repair would significantly disrupt your finances."
Private wealth advisor Brett Hina of New Jersey adds that it really depends on the extended warranty policy and purchase it's protecting. You may already have the appropriate coverage through a factory warranty or sometimes the cost of the extended warranty exceeds the real protection it offers, he says.
Like the "always" category, there may be some exceptions with items planners say are "never" worth the money. But for the most part these purchases may com...
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