15.5 Things That Are a Complete Waste of Your Money
Summary
TLDRThis video highlights 15.5 common ways people waste money, starting with bulk purchases and extending to everything from eyewear, medicines, flights, and travel fees. The speaker provides practical advice on saving money by avoiding unnecessary expenses, using tools like VPNs to lower flight costs, opting for generic drugs, negotiating purchases, and utilizing cashback options. It also shares strategies to reduce spending on things like glasses, travel, and lottery tickets while encouraging smarter financial habits and providing details on an upcoming savings challenge.
Takeaways
- 😀 Buying in bulk might not always be the best option, especially for perishable goods in smaller households, as items can expire before being consumed.
- 💰 Wealth-building is more about savings rate than income, as explained in the book 'The Psychology of Money.' A savings challenge can help people build better habits.
- 🛒 Stores like Target and Costco are designed to tempt customers into buying more by using tactics like strategic store layouts and larger shopping carts.
- 👓 Designer glasses are overpriced due to a monopoly by Luxottica, which controls much of the eyewear market and marks up prices despite using similar materials across brands.
- 👗 The 'Love it or Leave it' shopping strategy encourages buying only things you truly love, which can lead to better quality purchases and fewer unnecessary items.
- 💊 Generic medicines are equally effective as branded ones and can save you up to 85% in costs, as generic drugs are required to meet the same FDA standards.
- ✈️ Using a VPN to change your location can result in cheaper flight tickets, a trick the speaker discovered when booking international flights.
- 📱 Using an eSIM can help avoid expensive roaming fees and make staying connected while traveling easier and more affordable.
- 🧾 Late fees on credit cards can often be waived by simply asking customer service, as companies prioritize retaining customers over collecting small fees.
- 🚗 Negotiating for big purchases like cars is more effective when using data-driven approaches rather than emotional bargaining, and other benefits like better financing can be just as valuable as price reductions.
Q & A
Why does the speaker believe buying in bulk might not always be a good idea?
-The speaker explains that buying in bulk can lead to waste, especially if you live in a smaller household. Items like perishable foods may expire before being consumed, which negates the savings you get from buying in bulk.
What is the key takeaway from the book 'The Psychology of Money' according to the speaker?
-The key takeaway is that wealth is more about your savings rate than your income. Building wealth comes from the money left after your expenses, meaning managing savings is crucial regardless of how much you earn.
What strategy does the speaker recommend to avoid overspending in stores like Target and Walmart?
-The speaker suggests creating a shopping list before entering the store and sticking to it. This helps avoid being tempted by marketing tricks like larger carts, enticing smells, or strategically placed items.
Why are designer glasses and sunglasses considered overpriced according to the speaker?
-Designer glasses are overpriced because a company called Luxottica controls up to 80% of the major brands, allowing them to set high prices. Most glasses are made from the same materials in the same factories, so the higher cost is often just for the brand name.
What is the 'love it or leave it' strategy mentioned by the speaker?
-The 'love it or leave it' strategy is a shopping approach where the speaker only buys items they absolutely love, instead of things they merely like. This reduces impulse purchases and helps them focus on quality over quantity.
How can buying generic medicine save you money according to the speaker?
-The speaker states that generic medicines are legally required to have the same quality and active ingredients as branded versions, but they cost much less because they don't have the high advertising costs of branded drugs.
What trick does the speaker use to get cheaper flights?
-The speaker uses a VPN to change their location to the country they are flying from, which can result in lower ticket prices due to regional pricing differences.
How does using an eSIM save money and time while traveling?
-An eSIM allows you to connect to the internet immediately when landing in a new country, avoiding roaming charges and the hassle of finding a local SIM card. This saves both money and time.
What is the anchoring effect, and how do companies use it to make sales more attractive?
-The anchoring effect is when consumers focus on the original price of an item, making the discounted price seem like a great deal. Companies use this psychological trick by inflating the original price so the discount appears larger.
What method does the speaker suggest for avoiding ATM fees when traveling?
-The speaker recommends using a Charles Schwab checking account because they reimburse ATM fees worldwide. Alternatively, finding a bank with a large ATM network can help avoid these fees.
Outlines
💡 Why Bulk Purchases Might Not Always Save You Money
This paragraph discusses the potential downsides of buying in bulk, especially when it comes to perishable items. The speaker shares their personal experience of overbuying at Costco and explains that, for smaller households, it’s often better to purchase regular-sized items to avoid waste from expiration. The speaker recommends shopping at local supermarkets like Lidl or Trader Joe’s for everyday items.
📈 The Key to Wealth: Focus on Your Savings Rate
The paragraph emphasizes that building wealth isn't just about high income or investments, but about having a strong savings rate. Referencing the book *The Psychology of Money* by Morgan Housel, the speaker explains how joining a savings challenge helped them develop a structured savings strategy. They also promote a free 5-day savings challenge, encouraging viewers to join for a chance to win $11,000.
🛍️ Avoiding Unintentional Spending in Retail Stores
Retail stores like Target and Walmart use psychological tricks to encourage unplanned spending. The speaker gives examples like strategically placed products and sensory cues (e.g., larger carts, fresh bread smells) designed to lure customers into buying more than they intended. The speaker advises making a shopping list beforehand and sticking to it to avoid impulse buys.
👓 The Hidden Truth Behind Expensive Glasses
This paragraph reveals the monopoly Luxottica has on the eyewear market, controlling 80% of all major glasses brands. Despite the price differences, many high-end glasses are made in the same factories as cheaper brands. The speaker points out that customers are often just paying for the brand name, while the materials and quality remain the same across many products.
🛍️ The 'Love It or Leave It' Shopping Strategy
The speaker shares their personal experience with overbuying clothes in the past and now advocates for a ‘love it or leave it’ approach to shopping. This strategy means only buying items you truly love, leading to fewer but higher quality purchases. This approach saves both time and money by reducing the number of items bought and increasing the frequency of use of each item.
💊 Save on Medicine by Going Generic
The speaker learned that buying generic versions of medicines can save significant amounts of money, as they are legally required to have the same ingredients and quality as branded drugs. The only reason branded medicines appear superior is because of their extensive advertising campaigns, whereas generics are cheaper due to a lack of marketing costs.
✈️ Use a VPN to Save on Flights
The speaker discovered a trick to save on flights by using a VPN to change their location. By setting their virtual location to the country they were flying from, they managed to reduce the cost of a plane ticket from $850 to $550. This paragraph also briefly discusses the benefits of using an eSIM to save on international roaming fees while traveling.
🏦 How to Avoid Credit Card Late Fees
Credit card companies made $14 billion from late fees in 2019, but the speaker shares that you can often get these fees waived just by asking. They recommend calling customer service, especially if you rarely incur fees or are a long-term customer. Persistence can pay off, as trying different representatives might result in having fees waived.
🚗 Mastering Negotiations for Big Purchases
The speaker offers tips on how to negotiate effectively for large purchases, such as cars. They suggest separating emotions from the negotiation and focusing on data-driven facts, such as market value and sales trends. They also advise asking for additional benefits like warranties or financing terms instead of just a lower price.
🛒 Beware of the 'Sale' Trap
This paragraph explains how stores manipulate customers with discounts, often inflating the original price to make the sale price seem more attractive. The speaker references *Predictably Irrational* by Dan Ariely to illustrate how customers fixate on the discount, leading them to make irrational buying decisions based on perceived savings.
💻 Get Cashback for Online Purchases
The speaker shares how they use a free plugin called 'Rutin' to get cashback on online purchases. They explain how the plugin allows users to earn rewards from major retailers like Apple, Nike, and Adidas. In one example, they were able to save significantly on an Apple AirTag by using both the cashback promotion and their Apple card.
🎁 Buying Souvenirs That Last
Instead of buying large, impractical souvenirs while traveling, the speaker suggests opting for small, meaningful items like fridge magnets. Magnets are affordable, easy to transport, and serve as great conversation starters. The speaker emphasizes that they are a much better alternative to bulky, expensive memorabilia.
🎟️ The Odds of Winning the Lottery Are Not in Your Favor
The speaker highlights how unlikely it is to win the lottery, with the chances of winning the Powerball being 1 in 292 million. They compare it to the much higher odds of being struck by lightning, humorously noting that people don’t wear ‘anti-lightning suits,’ further emphasizing the futility of buying lottery tickets.
🏧 Stop Paying ATM Fees
ATM fees can add up quickly, with some machines charging up to $5 per transaction. The speaker suggests using a Charles Schwab checking account, which reimburses ATM fees globally. For those who can't open such an account, they recommend finding banks with large ATM networks to avoid fees altogether.
📶 How to Get Free Wi-Fi at Hotels
Many hotels charge for Wi-Fi, but the speaker offers a simple solution: join the hotel's rewards program. Many major chains like Marriott and Hilton offer free Wi-Fi as a perk for members, and signing up is usually free. This can save travelers from paying unnecessary fees during their stay.
Mindmap
Keywords
💡Bulk Purchases
💡Savings Challenge
💡Psychology of Money
💡Spending Without Intention
💡Love It or Leave It Strategy
💡Generic Medicine
💡Dynamic Pricing
💡eSIM
💡Negotiation
💡Anchoring Effect
Highlights
Bulk purchases may seem like a good deal, but they can lead to waste if food expires before consumption.
Wealth is built more through savings than income; your leftover money after spending is what defines wealth.
Participating in a savings challenge can help hold you accountable and build better financial habits.
Big-box stores like Target and Costco are designed to tempt customers into buying more than they planned.
Designer glasses are often priced much higher due to brand names, even though many are made with the same materials in the same factories.
The 'love it or leave it' strategy helps minimize purchases by focusing only on items you truly love and will use frequently.
Generic medications are often much cheaper but are held to the same quality standards as their brand-name counterparts.
Using a VPN to change your location while booking flights can significantly reduce ticket prices due to dynamic pricing models.
eSIMs offer a convenient and affordable way to stay connected when traveling, avoiding costly roaming fees and local SIM card purchases.
You can often avoid credit card late fees by simply calling customer service and politely asking for a waiver, especially if you don't incur fees often.
Negotiation tips include focusing on win-win solutions, using facts and data to back up your offers, and seeking additional benefits if prices are fixed.
Be wary of sales and discounts that trigger the 'anchoring effect,' leading you to believe you're getting a better deal than you actually are.
Cashback plugins can save you money on online purchases by earning back a percentage of your spending from major retailers.
Souvenirs like magnets are a simple and affordable way to remember vacations, avoiding large, impractical purchases.
Lottery tickets have astronomical odds; you're more likely to be struck by lightning than win the jackpot.
Some hotels charge for Wi-Fi, but you can avoid these fees by signing up for free reward programs offered by hotel chains.
Transcripts
here are 15.5 things that I believe are
a complete waste of money starting with
bulk purchases this is a bit
controversial but many people think
buying in bulk is a great way to save
money but it might not always be the
best choice for instance I used to buy
everything from Costco because I was
saving 50 cents per ounce but I live in
an apartment with my girlfriend and I
keep forgetting that we can't eat for a
family of five the issue with buying in
bulk is things expire and it ain't worth
forcing yourself to finish it before
that expiration date Trust me so for a
lot of perishable things like veggies
snacks and meats I'll just buy them in a
regular size from the supermarket like
little or Trader Joe's number two not
knowing the best saving strategy in the
book the psychology of money Morgan hell
says Building Wealth has little to do
with your income or Investments and lots
to do with your savings rate wealth is
just your leftover money after you spend
what you take in you can build wealth
with a high income but you can't without
a high savings rate the problem is most
people don't know how to actually save
and it's something struggled with too
when I first got into personal finance
like I didn't grow with money and I
literally had zero Financial knowledge
but what really changed my financial
trajectory was joining this thing called
a savings challenge where I was held
accountable and had an actual savings
road map to follow which is why I wanted
to give back and host the largest free
5-day savings challenge on October 1st
it's completely free to join with the
link below we had thousands of people in
our last savings challenge and everyone
loved it so much so we're just going to
do it again join the $11,000 savings
challenge with the link below anyone can
join but space is limited so if you
click on the link and it says it's no
longer available then unfortunately we
already reach capacity next spending
without intention and this is something
that I've done more often than I'd like
to admit stores like Target and Walmart
are designed in a way to tempt you to
spend more they make the size of their
carts bigger to make you put more things
in they make their store smell like
freshly baked bread to make you hungrier
or with Costco they know you want the $5
rotisserie chicken so they're going to
put that chicken all the way in the back
so you have to go through all the aisles
all the food samples and deals in order
to get it by the time you get the
chicken you probably picked up some
turkey bacon some mac and cheese and
toilet paper turning your $5 chicken run
into
$764 nowadays before I go into any store
I get very intentional with it I'll just
write down a list of things to buy in my
notes app and I'll stick to that list so
I already committed to my spending
before any external factors can tempt me
number four is design your glasses and
sunglasses in the 1950s rayb bands cost
less than $15 a pair but now some of
their glasses cost more than an Apple
Watch and to thank for all this we have
lexotica lexotica is a company that
controls up to 80% of all major glasses
brands in the world from luxury designer
Brands like these to the $15 pair UCI
Target and since they control so much of
the market they set the prices but
what's really interesting and not many
people know is that over 70% of their
products regardless of the brands are
made in the same exemp exact Factory
using the same materials meaning the
quality is the same and you're just
paying for the logo at the end of the
day glasses are just a piece of plastic
some metal and glass next not following
the love it or leave it strategy this is
something I've been religiously doing
for about a decade now since I didn't
have a lot growing up when I got my
first wheel job I went shopping
literally every other weekend because I
finally could and not surprisingly I
always saw things that I liked so I
bought them H&M shirts Forever 21
sweaters Dollar Tree pants
the problem was I ended up with a lot of
things that I only wore once and then
just got tossed in my closet but now
with the love it or leave it strategy I
now only buy things that I love not just
like which forces me to be more picky
when I go shopping and sure I might
spend more money on each thing but the
higher price tag balances out because I
rarely find stuff that I love forcing
myself to have this higher threshold
before I pull the trigger makes me focus
more on quality than quantity plus I
also save more time because I have fewer
things to choose from and I wear each
item a lot more next medicine and this
is something that I learned only
recently and it's already saved me
thousands of dollars so every spring I
get really really bad allergies just
imagine like a bright red clown nose but
those are my eyeballs instead and the
only thing that gave me some sort of
relief was claron D which cost like 20
to 30 bucks for a 10day supply but I
recently learned from my doctor friend
that I could pay up to 85% less money
for my medicine by buying the generic
version of it it according to the FDA
generic drugs are legally required to
have the same quality and performance
standards as their brand name
counterparts this includes having the
same active ingredients and strength and
I think the only reason we think branded
medicine is better is because they have
the money to invest Millions into
advertising and marketing whereas
generic drugs don't have that kind of
advertising budget which is why you
never hear about them and because they
spend less on marketing they can pass
their savings on to you in the form of
lower prices number seven if you've ever
traveled you notice that the price of
your flight or hotel could be wildly
different at different times of the year
and that's because of dynamic pricing
which apparently fast food chains are
using now but one trick I've been using
that I discovered by accident to get
cheaper prices even during peak season
is this so a few years back I was
looking for a flight from Mexico back to
the US and as I was looking through the
prices it was pretty expensive it was
about $850 for ticket so I decided to
try something I used the VPN that hides
my location and I set my current
location as Mexico and guess what
happened the price for the same ticket
dropped by $300 down to
$550 next and speaking of light
something that has saved me hundreds of
dollars and countless hours while
traveling is using an eim an eim is
basically a digital SIM card in your
phone that lets you connect to the
internet the second you land in another
country so you don't have to worry about
outrageous carrier charges roaming fees
or finding a local SIM card which is a
waste of time and money I've been using
AO for my eims for years now and what's
really funny is they emailed me about
sponsoring this video while I was in
Ecuador using AO eim to check my email
so obviously I said yes like when I
landed in Ecuador I knew my carrier was
going to charge me an arm and a leg in
roaming fees so I was like nah I got on
AOW bought my eim activated in a few
minutes and boom I kept my arm and leg I
called ride service apps from the
airport to avoid getting ripped off I
found the best restaurants and I
continued texting my friends and the
best part I kept my same phone number AO
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easy to sign up and save both time and
money while traveling check out AO with
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importantly if you use code vc3 you get
$3 off your first eim with AO thanks
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number nine late fees if you're not
careful you can get charged up to $41
for missing a single credit card payment
in 2019 alone credit card companies
rigged in $14 billion in late fees but
there is a way to not pay them at all as
someone who's worked in finance I can
tell you that if you don't get late fees
often or you've been a longtime customer
with said company there's a really high
chance that they'll wave your late fees
if you just ask the company doesn't want
to risk having an unsatisfied customer
and potentially losing you over a few
dollars because it costs a lot more
money to acquire a new customer than
just a retained one so just call be
polite and ask if they say no thank them
and hang up and call again sometimes it
just takes a few tries with different
customer service reps to get it waved
next not knowing how to negotiate for
big purchases like I bought my car Ivy
at the lowest reported Price ever based
on Edmund's sales data and it was all
because I knew how to negotiate most
people think negotiation is about
getting the price down but that makes
the negotiation turn into a
confrontation and that's going to get
you nowhere fast in the book getting to
yes author Roger Fischer says you should
think of negotiations like creating a
win-win solution that benefits both
sides in simple terms the best way to
negotiate is to do three things one
separate the people from the problem two
focus on the interest rather than
positions and three invent options for
Mutual gain for instance this is how I
got my car for so cheap and you can do
this literally with any big purchase so
a week before I stepped into the
dealership I would analyze the car's
market value sales Trends and pricing
sellers are way more inclined to
negotiate when your points are based on
facts and data rather than emotion then
I C the local dealerships in my area and
asked if they can match the lowest sales
price that I found online once someone
agreed I called another dealership to
see if someone could beat that price
then and only then did I walk into their
dealership and this is where many people
actually make the mistakes once you have
your price and the seller isn't willing
to go any lower than that price start
thinking outside the box ask them what
other benefits can they offer like
better financing terms longer warranties
or free maintenance service for a few
years all of this can be just as
valuable as reducing the actual sticker
price and it could be a lot easier for
sellers to throw in because sometimes
prices are fixed by management or they
need to hit a sales number next buying
things on sale in the book predictably
irrational author danelli explains how
people often make a rational decisions
when they see a discount sign because of
the anchoring effect in simple terms
when you see something on sale you
fixate on the original price which makes
the discounted price a lot more
attractive for instance when you see a
$1,000 mountain bike on sale for 30% off
your mind immediately thinks that's an
amazing deal I'm saving $300 based on
the original $11,000 price but the
reality is an item that costs $11,000
and is on sale for $700 isn't saving you
$300 it's still costing you
$700 and companies know all about the
anchoring effect which is why Amazon has
been found to fake discounts in sales to
get you to spend like even though an
item might say it's been marked down 50%
from $50 to $25 the item might only have
cost $30 a week ago they artificially
inflate the original price so it could
appear more discounted making you feel
like you're getting a good deal number
12 shopping online without getting cash
back nowadays whenever I buy stuff
online I always make sure I'm getting
the best deal by using this plug-in
called rutin it's 100% free to use and
it allows you to earn cash back from a
bunch of different stores like Nike
Apple Adidas Macy's and a ton more like
last year I bought the Apple Air tag for
.11 directly from apple.com and it was
really straightforward to do so I
basically logged into rutin shopping
portal I clicked on the Apple Store and
I added the air tags and keychain to my
cart the total was
$41.95 but rutin had a $40 cashback
promotion and I used my Apple card to
buy it which gave me another 2% cash
back so in the end thanks to math I only
paid a do 11 for a brand new pair of Air
tags nowadays I don't buy anything
without checking rutin first you can get
the plugin with the link below or go to
Vincent chan. co/ rutin there's
currently a promotion where you can get
a $30 signup bonus I'm not exactly sure
how long this is going to last so check
it out sooner than later next buying
specific types of souvenirs and this is
something we're all guilty of while on
vacation you're having a great time
great food and then it suddenly hits you
that you need to buy a souvenir to
remember your experience and that's how
you end up with a giant replica of King
Arthur sword that you'll never use Touch
or see again because it's tucked away in
some closet so what I do is instead of
getting some really big random thing
that I'll never use again I'll buy
really nice magnets with the name of the
city or the country it's small enough
where I can tuck it away in my carry-on
it's cheap enough that I can get a
couple for myself friends and family and
they look pretty cool in the fridge and
they're also great conversation starters
when people come over next lottery
tickets so I realized a lot of people
have trouble comprehending just how tiny
their odds are of winning the Lottery
the chance of winning the Powerball
jackpot is 1 in 292 million the chance
of winning the mega million's top prize
is 1 in 32 million to put that into
perspective you have a 1 in 15,300
chance of being struck by lightning you
literally have a better chance of
getting hit by lightning than winning
the lottery and I don't see y'all out
there wearing anti-lightning suits next
paying ATM fees a study found that ATM
fees can cost up to $5 nowadays and that
fee can quickly add up but there is a
way to avoid paying these fees even when
the ATM is outside your network for me
the last draw was when I spent more than
$50 US just in Guatemala alone to
withdraw cash immediately after that I
opened up a Charles Schwab checking
account and I now use my Charles Schwab
debit card to withdraw cash from ATMs
the great thing is Charles Schwab would
actually reimburse you for any ATM fees
you get charge with anywhere in the
world if you can't get a Schwab account
your best bet is to look for a bank with
a really large ATM Network so you didn't
get charged a fee number 15.5 and that's
paying for Wi-Fi in hotels I don't know
when this started happening but many
hotels nowadays like the Marriott ihd
Hilton hayatt they'll charge you a fee
to use Wi-Fi in your own hotel room like
what and it's not cheap you can expect
to pay on average $22 for something I
think should already come with the price
of the hotel room so if you don't want
to pay this junk fee here's how you can
get the hotel Wi-Fi for free many of
these hotels have a Rewards program
Marriot has B boy h has Hilton Honors
and basically if you sign up for the
reward programs which is free then you
can use their Wi-Fi for free which leads
me to something you've got to start
accepting it's that even if you're
trying your hardest to save money
sometimes you still might not feel like
you're doing enough and that might be
because you don't know these seven
strategies that let me save 73% of my
income click here for these seven
strategies you need to start doing now
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