We get it. Some expenses are just unavoidable— for instance, house rent, food, utility bills, and maybe some debts like student loans and car repayment. However, let’s be honest too. We also fall victims to expenses that we could’ve avoided completely.
You don’t need to strip your life down of all life’s bare necessities and live like a cave dweller, but you shouldn’t splurge money like a robber baron’s wayward son either. It is important to find the balance between the two.
According to studies, about 94% of millionaires spend less than they make since they focus more on saving and investing, at least to the extent that their investments can cover their bills. But to reach such financial independence, you need to understand how to carefully manage your finances.
Ask yourself these questions: How much money did you receive all throughout your life? How much money did you spend? And how much money is left?
Perhaps, you have spent the majority of your money to support basic necessities, but if you would look back at all your expenditures, a big portion of it was actually spent on trivial things that didn’t add up value to your life. Almost every one of us has been there and done that.
If we would only learn how to manage money more effectively, we would be closer to financial independence way sooner.
Here are the things people regret buying and will never spend money on again:
1. Car
You probably know how expensive owning a car is if you have one. Unfortunately, those who own a car do not understand how much driving a car around costs.
In 2020, the average monthly payment for a new car was around $500. Yet, aside from this are expenses that are often neglected.
It is also necessary to take into consideration the maintenance costs, gas fees, insurance, and other car-related expenses. Not to mention that having your own car gives you the capacity to drive around, even for trivial reasons, which requires gas.
Gas prices are pricey and will cost you fortunes, so you should spend money again on cars— well, unless necessary.
If you live in an area where public transportation is problematic and need to take your kids to school and run various errands, then a car is essential. However, if you are single and don’t stand in need of one, you better save and invest that money for a greater cause.
2. Expensive Personal Care Products
If looking good is one of your priorities in life, you must have spent fortunes trying out multiple brands of skincare products without thinking twice about whether they’re overpriced or not.
You need to know that personal care products are pretty much identical. In fact, a lot of them were mostly produced in the same factories in China and were only sold under different brand names. The prices only vary based on how popular they are. Some products that cost $100 are no different from $20 ones.
The beauty industry’s margins are tremendous, so don’t get yourself fooled by paying $100 for a product that you can get for a much lower price.
3. Spending Money to Impress
Spending money to impress is absolutely a pointless waste. When you are in your teenage years, still navigating life, it is relatively easy to build your life around what people around you think. It’s quite normal to get influenced easily by society in terms of your clothes and the things you have.
Yet, although this pressure is occasionally internal, teenagers are known for chastening each other into conforming to social norms. But this circumstance isn’t limited to teenagers but also to adults. Not only are they compelled to look their best, but they were also propelled to keep up with the Joneses all throughout their adulthood.
Adulthood has its fair share of cliquey rebels, rich kids, and outsiders too. No matter what age, whether 18 or 50, people would want to fit in.
But is it indispensable to give in to peer pressure and squander your hard-earned dollars to be accepted? If you want to achieve financial independence and move to the future with impressive financial standing, the answer should be a big “NO.”
An adult’s opportunity to splurge money is limitless, but if you give in every time, you will only end up draining your bank account. Remember that keeping up and impressing your friends as an adult is just as meaningless as in high school.
4. Investments You’re Not Sure About
Sometimes, knowing a little information about a particular thing makes us feel like we know it all— only to find out how little we know. This is especially true for people who were just starting out.
It’s good to invest, but don’t bet your money on investments you know nothing about. Remember Warren Buffett’s golden rule in investing? Never lose money.
Maybe, it’s even better to get your money to lose its value due to inflation while waiting for the right investment opportunity than lose it all in one snap in a bad investment.
5. Extended Warranties
Getting extended warranties is one good way to waste money. If you would come to think of it, warranties people barely use guarantees, no matter what kind of warranty there is, because spending a lot of time going through the hassles of fixing an item is a big nuisance.
On top of that, there are cases where the warranty doesn’t cover the particular damage your item has! Sometimes, it’s way easier to buy a new one.
6. Energy Drinks
Stopping yourself from indulging in energy drinks isn’t an easy feat— especially if you’re adept to drinking them. However, you need to program your mind that this kind of drink doesn’t do you any good financially.
Setting aside all the marketing expenditures, it would only cost about $0.20 to produce a $4-worth energy drink. It only becomes expensive because companies are spending billions on marketing the product. Still, they make 50% profit on every bottle or can sold.
Getting yourself a few energy drinks a day doesn’t just make you waste money but also sabotage your health.
7. Useless Online Courses
“The best investment you can make is an investment in yourself. The more you learn, the more you’ll earn,” Warren Buffet said.
There’s some truth to this statement, but it’s flawed.
Not all learning resources are created equally. The people who have excelled in their field of expertise aren’t always the best teachers. Although they might be the best in the area, they’re still beginners in teaching.
Online courses built by specialists are created on the assumption that the human brain works like a recording device. But most often, our brain doesn’t acquire things by merely consuming knowledge. So, learning from the best doesn’t guarantee success.
Moreover, many people online have misused the internet to create worthless online courses that don’t honestly give value.
Some online courses have astronomical prices, yet the value they give is the bare minimum and can be learned by watching YouTube videos. So, do extensive research before buying any course.
If you think the course would give you short, straight to the point, and valuable content, it may be worth every penny you will pay. If you believe the course won’t benefit you that much, watching video tutorials on free learning platforms would be better.
Either way, people learn best when they do the work themselves. So aside from taking courses, invest a lot of time honing how to do the job.
