9 Things I Stopped Buying to Make More Money

Nischa

27 Nov 202207:15

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

00:00

💰 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.

05:00

🤔 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

Financial freedom refers to the ability to live life on one's own terms without being overly constrained by financial obligations or concerns. In the context of the video, the speaker emphasizes making spending decisions that will ultimately lead to financial freedom, rather than spending on liabilities or items that decrease in value over time. The goal is to spend money on assets or investments that generate cashflow and build wealth, allowing for greater financial independence in the future.

💡Minimalism

Minimalism is the practice of living with fewer material possessions and embracing simplicity. The video advocates for minimalism in various aspects, such as avoiding souvenirs, fast fashion, and high-maintenance purchases like frequent hair or nail treatments. The speaker believes that having fewer possessions not only saves money but also frees up mental space and reduces clutter in their living environment.

💡Liabilities

Liabilities refer to things that decrease in value over time or require ongoing expenses. The video specifically mentions brand new cars as liabilities, as they lose a significant portion of their value as soon as they are driven off the lot. The speaker encourages avoiding liabilities and instead investing in assets that can generate income or appreciate in value, ultimately contributing to financial freedom.

💡Quality over Quantity

The concept of quality over quantity refers to prioritizing fewer, higher-quality items over accumulating many lower-quality or disposable items. In the context of the video, the speaker advocates for this approach when it comes to clothing, preferring to invest in well-made, comfortable pieces that last longer, rather than frequently buying from fast fashion brands that produce lower-quality, trend-driven items.

💡Frugality

Frugality is the practice of being economical and avoiding unnecessary spending or waste. Throughout the video, the speaker highlights various ways they practice frugality, such as avoiding souvenirs, not upgrading technology unnecessarily, and opting out of gift-giving traditions that encourage excessive spending. The underlying message is that being frugal and mindful of spending habits can lead to significant savings over time.

💡Opportunity Cost

Opportunity cost refers to the potential benefits or opportunities that are sacrificed when choosing one alternative over another. In the context of the video, the speaker mentions considering the opportunity cost of time spent on high-maintenance activities like getting nails or hair done, as that time could have been spent on more productive or rewarding endeavors. This concept highlights the importance of evaluating trade-offs when making spending decisions.

💡Experiences

Experiences refer to activities or events that create memories and personal growth, rather than material possessions. The video encourages prioritizing spending on experiences, such as travel and leisure activities, over purchasing physical souvenirs or items that may quickly lose value or become clutter. The speaker suggests that investing in experiences can bring greater happiness and fulfillment than accumulating material goods.

💡Mindful Spending

Mindful spending involves being conscientious and intentional about how and where one's money is spent. Throughout the video, the speaker advocates for mindful spending practices, such as avoiding impulse purchases, questioning the true need or value of potential purchases, and aligning spending with personal values and long-term goals. This approach encourages thoughtful consideration before making financial decisions.

💡Delayed Gratification

Delayed gratification is the practice of resisting immediate temptations or pleasures in favor of long-term benefits or goals. In the context of the video, the speaker suggests delaying gratification when it comes to certain purchases, such as waiting to buy a new car until one has the financial means to do so without compromising investment opportunities or financial freedom. This concept emphasizes the importance of prioritizing long-term financial stability over instant gratification.

💡Conscious Consumerism

Conscious consumerism is the practice of making purchasing decisions that are mindful of ethical, environmental, and social impacts. The video touches on this concept when the speaker mentions being mindful of where their money is invested and ensuring that it aligns with their values and ethical beliefs. Conscious consumerism encourages individuals to consider the broader implications of their spending habits and make choices that align with their principles.

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.