9 Things I Stopped Buying to Make More Money
Summary
TLDRIn this insightful video script, the host shares their personal journey of cutting out unnecessary expenditures to achieve financial freedom. They highlight 10 key areas where they've stopped spending, including books (opting for e-books and library loans), brand new cars, souvenirs, upgrading tech before necessity, sale items, investments they don't understand, fast fashion, high-maintenance services, and unnecessary holiday gifts. By prioritizing quality over quantity and investing in experiences and knowledge, the host emphasizes the importance of mindful spending habits aligned with personal values and long-term goals.
Takeaways
- 🤑 The speaker advocates spending below one's means and investing excess money instead of simply saving it.
- 📚 While valuing reading, the speaker prefers e-books or borrowing from libraries over buying new physical books.
- 🚗 Buying a brand-new car is discouraged due to the immediate depreciation and the opportunity cost of not investing that money.
- 🎫 Instead of buying souvenirs, the speaker recommends keeping a travel journal to preserve memories.
- �grade up Upgrading to newer versions of gadgets or technology is not always worth the cost if the improvement in happiness is marginal.
- 🏷️ Sales and discounts can trick people into buying things they don't need.
- 💰 The speaker avoids investing in things they don't fully understand.
- 👗 Fast fashion is rejected in favor of quality, long-lasting clothing items.
- 💅 High-maintenance services like nail, eyelash, and hair treatments are avoided due to cost and time considerations.
- 🎁 The speaker plans to establish a 'no unnecessary present pact' to avoid wasteful gift-giving during holidays.
Q & A
What is the main topic of the video?
-The video discusses 10 things that the speaker has stopped buying in order to save money and spend more mindfully.
Why does the speaker believe in spending below their means?
-The speaker believes that spending below one's means allows them to invest and grow their money, which will make a bigger difference in the long run compared to just saving.
How does the speaker approach buying books?
-The speaker keeps their favorite books in hard copy but buys other books on Kindle or rents them from the library through an app called Libby.
Why does the speaker advise against buying a brand new car?
-The speaker advises against buying a brand new car because it loses a significant amount of value (10% immediately and 60% by the third year) as soon as it's driven off the lot.
What does the speaker say about souvenirs?
-The speaker has stopped buying souvenirs from trips because they are a waste of money and clutter up living spaces. Instead, the speaker recommends keeping a journal or vlog to capture memories.
How does the speaker approach buying updated versions of technology?
-The speaker is cautious about buying updated versions of technology unless the new version provides a significant increase in happiness or utility that is worth the additional cost.
What is the speaker's perspective on buying items on sale?
-The speaker warns against buying items solely because they are on sale, as this can lead to unnecessary purchases. Sales are often used as a psychological trick to justify spending.
Why does the speaker avoid investing in things they don't understand?
-The speaker avoids investing in things they don't understand because they believe it's important to have a basic level of understanding of where their money is going and whether it aligns with their values and ethical beliefs.
What is the speaker's approach to fast fashion?
-The speaker has stopped buying fast fashion items because they are often of low quality and go out of style quickly. Instead, the speaker focuses on quality over quantity and buying fewer, more durable clothing items.
What is a prenup in the context of the video?
-A prenup refers to a 'no unnecessary present pact' that the speaker plans to sign up for during the holiday season to avoid excessive gift-giving and spending.
Outlines
💰 10 Things I've Stopped Buying to Save Money
The speaker discusses 10 things they have stopped buying to save money and spend below their means. These include physical books (instead using e-books or library rentals), brand new cars (due to immediate depreciation), souvenirs from trips (opting for journaling instead), frequently upgrading to newer versions of tech products, items on sale that they don't need, investments they don't understand, fast fashion clothing (favoring quality over quantity), high-maintenance services like nails/hair/eyelashes, and unnecessary holiday gifts (suggesting a 'no unnecessary present pact'). The underlying principle is cutting out expenses that don't add significant value or joy, and prioritizing financial freedom through investing and minimalism.
🤔 Mindful Spending and the Value of Trade-offs
The speaker elaborates on their mindset towards spending, emphasizing the importance of thoughtful trade-offs. They have no problem spending on things that bring genuine joy and value, but avoid spending out of habit or for the sake of impressing others. Evaluating financial decisions in terms of trade-offs is key – spending extra on liabilities or depreciating assets might sacrifice potential investments or opportunities for building wealth and financial freedom. The speaker questions whether short-term indulgences are worth forgoing long-term financial goals. They encourage viewers to watch another video detailing their monthly spending habits and express gratitude for those who watched and subscribed.
Mindmap
Keywords
💡Financial Freedom
💡Minimalism
💡Liabilities
💡Quality over Quantity
💡Frugality
💡Opportunity Cost
💡Experiences
💡Mindful Spending
💡Delayed Gratification
💡Conscious Consumerism
Highlights
Stopped buying books in physical format, instead using Kindle or renting from the library to save money while still valuing the importance of reading and acquiring knowledge.
Avoids buying brand new cars as they lose a significant portion of their value immediately after purchase, and instead aims to invest that money into assets that can generate cash flow for buying a car later in life.
No longer buys souvenirs from trips, as they clutter living spaces and do not capture memories as well as journaling or vlogging about the experiences.
Refrains from constantly upgrading to the latest technology versions, as the additional happiness gained from minor upgrades does not justify the cost.
Avoids buying items solely because they are on sale, recognizing that sales are a psychological trick to justify spending on unnecessary purchases.
Stopped investing in things they do not understand, as no one cares about their money as much as they do themselves.
Abandoned fast fashion and now focuses on quality over quantity when it comes to clothing, even if it means spending more upfront.
No longer gets high-maintenance beauty services like nails, eyelashes, or hair dying, as they are a waste of both money and time that could be better spent on more valuable activities.
Signed up for a 'prenup' (no unnecessary present pact) to avoid the habit of exchanging gifts during holidays, which can be a significant financial burden without adding much value.
Evaluates financial decisions based on trade-offs, considering whether the additional cost is worth sacrificing potential investments or opportunities for building wealth and financial freedom.
Focuses spending on things that truly bring joy and value, rather than spending out of habit or for the sake of impressing others.
Reading is considered a great financial investment for increasing human capital and knowledge, which cannot be taken away.
Traveling, making memories, and experiences are prioritized over material souvenirs.
Having fewer clothes and possessions frees up mental space and simplifies decision-making.
Advocates for giving back in ways that are appreciated without feeling obligated to exchange presents, as holiday gift-giving can be a significant financial burden.
Transcripts
hi guys welcome back to the channel in this video I'm going to go through the 10 things which I've
stopped buying as we've already spoken about I'm not a big believer in Saving but I am a believer
in spending below your means and saving will only get you so far but spending less so that you can
use that money to invest and work and grow for you will make all the difference cutting out
these things has left me with so much more money every month without having to sacrifice on my
quality of life let's get into it number one or books I read a lot and I think reading is super
important and it's a great financial investment to increase your human capital and your knowledge
and that is something that no one can take away from you material items can go out of fashion
they can be stolen looks fade but knowledge once you've acquired it that's yours to keep it will
it'll always stay with you so now what I do is I keep my all-time favorite books in a hard copy
um on my bookshelf and then the ones that I know that I won't be reading again and again and again
I either Buy on my Kindle or I rent it for free through my local library on an app called Libby
number two a brand new car if you don't have money for it just don't buy it the second you put your
key in the ignition and drive that car out of the showroom it loses 10 of its fat and average brand
new car will lose a further 60 by its third year I know some people like the feeling of
having a brand new car but is it really worth that additional amount of money at this point
in your life or can you hold off to invest that money into an asset that will generate the cash
flow to buy that new car later on in your life if that's what you want number three souvenirs
I really love traveling flights hotels making memories these are all things that I'll be buying
more of but why I've stopped buying is souvenirs from every trip more than a waste of money it
also massively Cutters up my living space I live in a two-bedroom apartment with a kitchen that's
the size of a shoe box anyway so the last thing I want is shot glasses from every city I've been to
overflowing from my cupboards if you really want to kind of remember a trip then write in a journal
I've made an online Journal slash Vlog and I've been writing in it after every holiday that I've
been on since 2016 and I just read through it before recording this video and it brought back
so many more memories than any souvenir there ever could number four buying the updated version the
rate in which new technology comes out way exceeds our actual need to replace them but regardless
of this we still do keep buying it I've actually found that the more I have of a particular thing
the less additional happiness it gives me so when I first got the Apple watch there was a
big jump in my happiness and going from no Apple watch to having an Apple Watch it was worth the
money I felt healthier I felt happier with all the workout prompts it did the job that I was
looking for and then a year later a new version came out and I spent a few hundred quid more to
get the upgrade and that maybe five percent increase in happiness that I got from getting
a slightly better version just didn't correlate to the amount of money I spent on it so now whenever
I think we're upgrading something I always ask myself is it really worth spending that 100 000
quid more to upgrade the specific thing or should I rather spend that money on a new experience or a
new item that will correlate more to the amount of happiness I get from it number five items on
sale there's a difference between buying something on sale and buying something because it's on sale
sales can seem like a great way to save money at first because when stores do these 20 off
30 off 40 off sales they're just actually using a psychological trick to make you justify that
spending in your head if there's a jacket that you were going to buy anyway and now it's on
sale from 200 down to 140 then yeah you've saved sixty dollars but if you're buying it because it's
on sale then you've got to look at it like you're 140 out of pocket sales are just a way of buying
things that you wouldn't have otherwise bought and remember it's you against these multi-billion
dollar organizations with huge marketing budgets behind them number six investing in things that
I don't understand this isn't one that I stopped buying but it is one that I've stopped putting my
money in and it's things I don't understand a lot of people put their money into Investments without
really understanding what they're investing in it and even if you do have a financial advisor
you should have a basic level of understanding in where your money is going whether it's ethical
whether you actually want to invest in that thing because no one would care about your money and
where it's going as much as you will number seven and fast fashion I mentioned in one of my other
videos how I haven't bought an item of clothing in the last six months I didn't think this was
anything surprising but it seems to be long story short I used to shop at all the fast fashion shops
you can think of Forever 21 misguided boohoo whatever but when I look at my closet today none
of those fast fashion items that I bought are still in there I used to spend a lot of money
on stuff that I'd wear a few times and then I'd get rid of them because it started frailing or it
went out of fashion now I've learned my lesson and when it comes to clothing I'm so much more about
quality over quantity if something feels really good and it's really comfortable then I'd buy it
even if I'm spending a bit more money than I would have if that was a fast fashion item at Forever
21 or something also I find that having fewer clothes just frees up my mental space I don't have
to spend much time deciding what I'm going to wear and I have like three different tops that I choose
between when I'm recording my YouTube videos and it's just one less thing that I have to worry
about number eight anything high maintenance so that's getting my nails done getting my eyelashes
done getting my hair dyed it's all too high maintenance and it just doesn't happen anymore
and a big part of why I don't get this done is also because of the time it takes to get those
things done when I'm getting my nails done I can't do anything else at the same time I can't get my
work done at the same time so it's for me it's not only the price I pay for getting these things done
but I also think about it as a time value of me sacrificing an hour that I could have spent on
doing something else that would get me a greater return just FYI I don't think of this time dollar
value with everything in my life like seeing my friends family going on date night that would be a
bit outrageous but it is with things that I think are just a waste of time number nine a prenup this
Christmas I'll be signing up to a prenup which is a no unnecessary present pact usually during
Christmas we give presents to an extended list of people but right now we're going through a cost of
living crisis and expecting to see the longest recession in the UK to date and honestly I feel
like holiday gifts are things that we just do out of habit and very often I get things that I don't
even want or need but then I feel obliged to give it back to that person and vice versa according to
find a dot com the average British adult would Fork out 548 pounds of Christmas gifts and the
average American will spend 990 dollars and I'm no Grinch but I think there are three ways to give
back which will still be very much appreciated and that way maybe other people won't feel like
they need to spend on you just for the sake of it either my overall mindset for spending is that I
have absolutely no problem in spending things that really bring me joy and value but I don't
want to spend on things just because it's out of habit or because it's based on my ego and feeling
like I need to impress people I think if you cut out on those two things then you'll be in a pretty
good place financially with all of these things I like to kind of look at my financial decisions in
terms of trade-offs so if I'm buying a liability or something that is going to decrease in value
over time is that extra amount of money that I'm going to pay for this thing worth the trade-off
of potentially sacrificing my Financial Freedom so spending maybe an extra five grand on a better car
right now might not feel like it's a big deal but if it's a choice between spending that five grand
on a nicer car versus spending that 5 Grant on an investment or to educate yourself or to build
wealth that could potentially change your life then is it really worth it if you want to know
how much I spend each month then I've got another video here that I'll link thank you so much for
watching don't forget to subscribe if you haven't already and hopefully see you in my next video
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