The 15 WORST Purchases To Make (Don't Waste Your Money!)
Number 1
All right, let's jump right into it.
The number one thing you should never waste your money on is unused gym memberships.
If you go to the gym six days a week and use every piece of equipment available, more power to you; you should probably keep your gym membership because you're getting the maximum value from it.
However, if you can't remember the last time you stepped into your gym, it may be time to cancel your membership.
Try exercising for free at home by following YouTube videos.
If you need resistance, use your body; people have been doing push-ups and body squats as resistance exercises way before the invention of gyms.
Number 2
The number two thing you should never waste your money on is high expense ratios.
These are the fees that investment firms charge you to operate your mutual fund or ETF.
They not only directly cut into investment returns, but many firms charge way too much, and worse, without much to show for it.
Investing in low-cost broad market index funds and paying rock-bottom expense ratios while still getting full exposure to the stock market is key.
My favorite is the Vanguard S&P 500 ETF, also known as VOO, which has an expense ratio of 0.03%.
Another one with a focus on tech is the Invesco NASDAQ 100 ETF, also known as QQQM, has an expense ratio of 0.15%.
To put this in perspective, this comes out to $3 or $15 in expenses for every $10,000 you invest in each fund.
If you can make this one crucial decision in your investment journey, it will literally save you thousands, if not hundreds of thousands of dollars over your lifetime.
Number 3
The number three thing you should never waste your money on is fast fashion.
It's tempting to buy cheap clothes - why spend $50 on a shirt when you can get something similar for $5?
However, the low-quality materials used in fast fashion result in garments that wear out very quickly.
I've experienced it personally; it looks great when you first bring it home, but after one wash, it looks like you've already worn it for a month.
So, you're needing to buy a replacement every few months or so.
Additionally, because fast fashion relies on rapid production cycles and very cheap materials, it contributes to excess waste and the depletion of natural resources.
Bottom line: not great for the environment.
There are things where quality doesn't matter as much; however, when it comes to clothes, consider investing in quality and avoid fast fashion.
Number 4
The number four thing you should never waste your money on is late fees.
Being charged a late fee because you're late with your payment is a complete waste of money, not to mention the negative impact it can have on your credit report.
Never be late on a bill again by setting up automatic payments online.
Do this for your credit card, internet, and other bills.
If the supplier or the company that you're working with doesn't allow for automatic payment, it may be time to look for a new supplier.
Number 5
The number five thing you should never waste your money on is bank account fees.
Many banks still charge a monthly maintenance or service fee to keep your checking or savings accounts open, and they're sneaky about it too.
Usually, it gets automatically deducted from your account without you ever being notified.
You might also be thinking the amount is so small, only $10 or $15 a month.
However, these add up to $120 or $180 a year.
Imagine what you can do with an extra couple of hundred dollars.
Avoid this fee by reading the account requirements.
Many banks waive this fee if you maintain a certain minimum balance, make a certain number of transactions each month, or arrange a direct deposit.
Number 6
The number six thing you should never waste your money on is lottery tickets.
We buy lottery tickets because we all want to dream of a new future, a future where we don't have to worry about money and where we can live like the rich and famous.
However, the odds of actually winning the lottery are not good.
For one of the most popular lotteries in the United States, Mega Millions, your odds of winning are about 1 in 176 million.
If you're playing a single-state lottery like the California Super Lotto, your odds increase slightly to 1 in 42 million.
Personally, I'm not sure if I like those odds.
Also, most of the time, winning the lottery can actually be a curse rather than a blessing.
According to the National Endowment for Financial Education, 70% of lottery winners will go bankrupt within a few years because they don't have the financial habits to manage that amount of money.
So, don't waste your hard-earned money on lottery tickets.
The facts just don't line up in your favor, no matter the result.
Number 7
The number seven thing you should never waste your money on is extended warranties.
Getting an extended warranty on that new cell phone or laptop could sound like a great idea; however, don't waste your money.
Again, the numbers just don't add up.
Let's look at an example with a cell phone.
For a monthly premium of $8 and a deductible of $200 for a smartphone, cell phone insurance will replace your phone if it's broken, lost, or stolen.
If you have your phone for a year with the cell phone extended warranty, you would have paid about $96 in premiums.
Then, if your phone breaks, you'll need to pay the $200 deductible and probably receive a refurbished phone as a replacement.
You can purchase a refurbished phone for less than the insurance policy deductible from eBay or any other phone resellers.
Ignore extended warranties; they make tons of sense for the company selling them but not for us.
Number 8
The number eight thing you should never waste your money on is buying coffee out every day.
Now, buying coffee once in a while is totally fine; I do this often to get some work done outside the house.
However, buying one every day can quickly add up.
$5 a day for 365 days a year adds up to more than $1,800, almost $2,000.
I would say invest that money in a nice latte machine.
You'll have money left over, and the bet is that once you learn how to operate that latte machine, your coffee will actually taste better than the one from Starbucks.
Additionally, nothing will impress your guests more than your ability to make lattes at home.
Number 9
The number nine thing you should never waste your money on, similar to buying coffee every day, is buying lunch out every day; this can quickly add up when done every day.
An average person works around 260 work days a year.
If you spend $15 every day for 260 days, it adds up to $3,900.
Now, again, I'm all for eating out here and there to enjoy good food and good company.
However, doing it every day because you're not being intentional is a waste of money.
Meal planning and packing your lunch to work not only is good for your wallet, but it also tends to be better for your waistline.
I've been doing this for over a decade; I can tell you from experience it has saved me tens of thousands of dollars over that period.
Also, when I do eat out occasionally, I actually enjoy it because it's a once-in-a-while treat rather than a regular event that I got used to.
Number 10
The number 10 thing you should never waste your money on is buying too much food.
Collectively, we waste a lot of food.
According to the Natural Resources Defense Council, up to 40% of food in the United States is never eaten.
This is most often due to the fact that we buy excess groceries, which is a direct byproduct of lack of planning.
You may not think much about throwing away unused groceries and leftovers here and there, but understand that every time we throw away excess food, we're literally throwing away money.
Create a running list of exactly what you need from the grocery and for what purpose.
When you go to the grocery store, stick to the items on that list.
Another tip is to never go grocery shopping when you're hungry.
We humans naturally don't have good self-control if we don't fill our stomachs before entering the grocery store; I guarantee we'll walk out with way more food than we need.
Number 11
The number 11 thing you should never waste your money on is bottled water.
Not only is this bad for the environment, but buying them regularly is a complete waste of money.
Get yourself a solid reusable water bottle.
I've had mine for the past 10 years, and not only does it prevent me from buying bottled water, but it also keeps my water cool, which motivates me to drink more water throughout the day.
Number 12
The number 12 thing you should never waste your money on is underutilized subscriptions.
Many businesses now operate on a subscription model.
You want to watch a movie? You need a Netflix and a Hulu subscription.
You want to listen to music? You need a Spotify subscription.
Gone are the days when you pay once; companies want that recurring revenue stream, and they'll ask for it whenever they can.
Now, if you're getting maximum value from the subscription, then that's great.
My wife and I use Spotify every single day, and the monthly $15 is totally worth it.
The issue is the unused subscription.
We sign up for a 30-day free trial with the intention to cancel within 30 days, but we forget about it.
So, scrub your credit card statement and understand exactly what subscriptions you're paying for, and ask yourself if you're getting full value from them.
If not, don't hesitate to cancel. You can always easily sign up again if you want to.
Number 13
The number 13 thing you should never waste your money on is physical magazines and newspapers.
It's a no-brainer on this one.
We're living in the 21st century, the digital age.
Your favorite magazine or newspaper is easily accessible via an app on your iPad.
Not only is this cheaper, but it's also better for the environment.
There's no need to have a large pile of magazines or newspapers sitting around your house waiting to be recycled.
Number 14
The number 14 thing you should never waste your money on is cable.
Again, we're living in the 21st century.
You may not get the specific shows you're used to on your cable service, but there are plenty of entertainment options available through services like Netflix, Hulu, and HBO.
Also, most Americans who pay for cable TV aren't getting the full value from it.
It's physically impossible to watch all available programs given the sheer volume.
So, don't waste your hard-earned money and cut that cable.
Number 15
The number 15 thing you should never waste your money on is expedited shipping.
When you're at the checkout at Amazon, have you noticed this option for an extra $2.99?
You can get your toothpaste in the next 2 hours.
Why wait 2 days when you can get it right away?
Who cares if you don't need toothpaste until next week?
I say don't fall for the temptation.
Most often, we're paying a premium for expedited shipping because of our lack of planning.
"I need it now"
because I didn't realize I needed toothpaste until this morning.
Avoid this by planning ahead and don't waste your money on expedited shipping.
Thank you for reading and if you enjoy the content, make sure to share it with your family and friends, cheers!
- Ivan