ACCOUNTANT EXPLAINS: I Stopped Buying These 10 Things and Got Richer

Summary

In this video, the creator shares their journey towards smarter spending by listing ten items they've stopped buying to save money and invest wisely. They discuss the value of knowledge over physical books, the depreciation of new cars, the clutter of souvenirs, the futility of chasing tech upgrades, the psychological tricks of sales, the importance of understanding investments, the pitfalls of fast fashion, the time-consuming nature of high-maintenance beauty routines, the financial stress of gift-giving, and the ego-driven unnecessary spending. The creator advocates for quality over quantity and experiences over material possessions, aiming for financial freedom and a life less cluttered.

Takeaways

• 📚 Digital books and library apps like Libby are preferred over physical books to save space and money.
• 🚗 Avoiding the purchase of new cars to prevent immediate depreciation and focusing on investing in assets.
• 🌍 Traveling continues to be enjoyed, but physical souvenirs are replaced with an online journal to reduce clutter.
• 📱 Questioning the need for the latest tech gadgets and considering whether the cost justifies the marginal improvement.
• 🛍️ Recognizing sales as psychological traps and avoiding unnecessary purchases, even if discounted.
• 💼 Prioritizing understanding investments to ensure they align with personal financial goals and not blindly following advice.
• 👗 Embracing quality over quantity in clothing, opting for durable items over fast fashion.
• 💅 Cutting out high-maintenance beauty routines to save time and money, focusing on productivity.
• 🎁 Proposing a 'prenup' on presents to reduce unnecessary gift-giving and the financial strain during holidays.
• 💸 Refusing to spend money out of habit or to impress others, aligning spending with personal joy and value.

Q & A

Why has the speaker stopped buying physical books?

The speaker has stopped buying physical books to reduce clutter and expenses, opting for digital copies on their Kindle or renting for free through apps like Libby.

What is the speaker's opinion on buying a brand new car?

The speaker believes that buying a brand new car is not financially wise due to the immediate and significant depreciation in value, suggesting investing in assets that grow instead.

How does the speaker approach souvenirs after traveling?

Instead of collecting physical souvenirs, the speaker maintains an online journal to record memories, finding it more valuable than physical clutter.

Why did the speaker stop upgrading tech frequently?

The speaker stopped upgrading tech frequently because the marginal increase in happiness from newer models did not justify the cost, preferring to spend money on experiences or things that bring more joy.

What is the speaker's view on sales and buying items on sale?

The speaker sees sales as a mental trap that can lead to unnecessary spending on items one did not initially need, advising to focus on actual needs rather than discounts.

Why has the speaker stopped investing in things they don't understand?

The speaker emphasizes the importance of understanding where their money is going, advocating for informed investment decisions to protect their financial future.

What change has the speaker made regarding fashion purchases?

The speaker has shifted from fast fashion to quality clothing that lasts longer, believing in quality over quantity and reducing mental energy spent on deciding what to wear.

How does the speaker feel about high maintenance beauty routines?

The speaker has eliminated high maintenance beauty routines, finding them not worth the time or money, and prefers to use that time for more productive activities.

What is the speaker's stance on Christmas gift-giving?

The speaker suggests reconsidering the tradition of gift-giving during Christmas due to the financial burden and proposes finding more meaningful ways to give without the pressure of spending.

How does the speaker approach spending driven by habit or ego?

The speaker refuses to spend money out of habit or to impress others, weighing financial decisions against the potential for financial freedom and long-term wealth building.

Outlines

00:00

📚 Investing in Knowledge Over Physical Books

The speaker begins by discussing their shift from traditional saving methods to a smarter approach that involves spending less to invest more. They emphasize the importance of knowledge as an everlasting investment, contrasting it with material possessions that can deteriorate or become outdated. The speaker shares their personal practice of transitioning from buying physical books to digital alternatives, such as using a Kindle or renting books through apps like Libby, to reduce clutter and expenses while still gaining the same intellectual value from their reading habit.

05:01

🚗 Prioritizing Investments Over New Car Purchases

The second paragraph focuses on the financial implications of buying a new car, highlighting the rapid depreciation that occurs as soon as the car is driven off the lot. The speaker suggests that the initial excitement of owning a new car is often not worth the significant financial loss over time. Instead, they advocate for investing money in assets that appreciate in value, proposing that one can later afford a new car without sacrificing financial stability. The speaker also touches on the psychological aspects of new car ownership and the importance of evaluating whether the experience justifies the financial hit.

Keywords

💡Saving

Saving refers to the act of setting aside money for future use, typically by not spending it on immediate needs or wants. In the video, the speaker acknowledges the importance of saving but argues for a 'smarter approach' that involves spending less to invest more. The concept is central to the video's theme of financial freedom and making conscious decisions about where and how to allocate one's resources.

💡Investing

Investing is the process of allocating resources, such as money, with the expectation of generating an income or profit. The video emphasizes investing as a more effective strategy for financial growth than traditional saving. The speaker suggests that by cutting back on certain expenses, one can free up money to invest in assets that appreciate over time, thus growing wealth.

💡Depreciation

Depreciation is the decrease in the value of an asset over time due to use, wear and tear, or obsolescence. The video uses the example of a new car losing value as soon as it's driven off the lot to illustrate the concept of depreciation. This is used to argue against spending on items that will quickly lose value and instead focus on investments that can grow.

💡Spending Less

Spending less is a strategy of reducing expenses to save money or allocate resources more effectively. The video encourages viewers to spend less on non-essential items and experiences to free up funds for more valuable investments. This concept is tied to the idea of living more intentionally and making purchases that align with long-term financial goals.

💡Clutter

Clutter refers to a state of disorder and untidiness resulting from an accumulation of objects. In the context of the video, clutter is associated with unnecessary possessions, such as souvenirs, that accumulate and detract from the value of living space. The speaker advocates for minimizing clutter by choosing experiences and digital alternatives over physical items.

💡Financial Hit

A financial hit refers to a significant negative impact on one's finances. The video uses this term to describe the immediate and long-term financial losses associated with purchasing a new car. The concept is used to caution against spending on items that may provide short-term satisfaction but lead to long-term financial strain.

💡Upgrade Cycle

The upgrade cycle is the pattern of regularly replacing or updating technology or products as newer versions become available. The video discusses the pressure to stay current with the latest tech gadgets and how it can lead to unnecessary spending. The speaker suggests questioning the value of minor upgrades to avoid falling into the trap of constant consumption.

💡Sales Trap

A sales trap refers to marketing strategies designed to entice consumers into making purchases, often by creating a sense of urgency or value. The video describes how sales can lead to buying items at a discount that one did not initially need, thus still resulting in unnecessary spending. The speaker encourages viewers to be mindful of sales and to avoid buying things just because they are on sale.

💡Fast Fashion

Fast fashion is the rapid production and consumption of inexpensive clothing styles that are quickly replaced by new trends. The video criticizes fast fashion for its low durability and environmental impact, advocating for a shift towards quality over quantity in clothing purchases. The speaker shares a personal anecdote of not buying clothing for six months to illustrate the concept.

💡High Maintenance

High maintenance refers to items or activities that require a lot of time, effort, or money to maintain. In the video, the speaker discusses cutting out high-maintenance beauty routines to save time and money, suggesting that the cost and effort are not worth the benefits. This concept is part of a broader theme of prioritizing value and long-term benefits over short-term pleasures.

💡Ego Spending

Ego spending is the act of making purchases to satisfy one's ego or to impress others, rather than based on genuine need or desire. The video argues against spending money on items or experiences simply to maintain a certain image or status. The speaker encourages viewers to question the motivation behind their spending and to prioritize financial freedom over ego-driven consumption.

Highlights

Embracing a smarter approach to spending less and investing more for financial freedom.

Transitioning from physical books to digital copies or free rentals to reduce clutter and expenses.

Avoiding the depreciation trap of new cars by investing in assets that grow over time.

Cutting out souvenirs in favor of an online journal to preserve travel memories without physical clutter.

Questioning the value of tech upgrades and choosing experiences over material goods.

Recognizing sales as mental traps and focusing on needs over discounts.

Investing with understanding to ensure financial decisions align with personal knowledge and goals.

Choosing quality over quantity in clothing to reduce waste and enhance durability.

Eliminating high-maintenance beauty routines to save time for more productive activities.

Proposing a 'no unnecessary presents' pact to reduce financial strain during the holiday season.

Cutting out spending driven by habit or the need to impress others for a healthier financial mindset.

Weighing financial decisions by considering the trade-off between spending and financial freedom.

Encouraging a shift towards investments that grow and experiences that enrich life.

Inviting viewers to share their own experiences with cutting back on non-essential purchases.

Promoting a thoughtful approach to spending that enhances life quality without unnecessary financial burden.

Transcripts

hey everyone welcome back to the channel

today I'm diving into something a bit

different 10 things I've completely

stopped buying as some of you might

already know I'm not really a fan of

traditional saving don't get me wrong

saving has its place but I believe in a

smarter approach spending less so you

can invest more saving a loan won't get

you as far as you think but when you cut

back on the right things and let your

money work for you that's where the

magic happens it's been a GameChanger

for me I'm able to keep more money every

month without feeling like I'm giving up

the good stuff in life let's get into

the list first up books I love reading

always have it's one of the best

investments you can make in yourself

building up that bank of knowledge that

no one can ever take from you unlike

material things which can wear out or go

out of style knowledge is yours forever

I still keep my all-time favorites in

hard copy but I've moved on from buying

physical books for everything these days

I either grab a digital copy on my

Kindle or rent it for free through an

app like Libby no clutter no extra

expense and I'm still getting the same

value from my reading habit number two a

brand new car if you don't have the

money for it don't do it I mean the

second you drive that shiny new car off

the lot it's already lost about 10% of

its value fast forward a couple of years

and it's down by 60% now I get it

there's something special about the

smell and feel of a brand new car but is

that experience really worth the

financial hit instead I'm waiting in

investing that money in assets that

actually grow later on if I still want a

new car I'll be in a better place to

afford it without the sacrifice number

three souvenirs I love to travel flights

hotels new experiences all that's

staying on the list what's not souvenirs

you see after a while they just become

clutter I live in a small apartment and

I don't need shot glasses from every

single place I've visited piling up in

my cabinets instead I've started keeping

an online Journal since 2016 I've been

jotting down my memories after trip and

let me tell you that journal holds way

more value than any keychain or magnet

ever could number four upgraded tech

tech companies pump out new gadgets

faster than we can keep up with and it's

easy to get caught in the upgrade cycle

when I first got an Apple Watch it was

amazing a real boost to my happiness and

health but a year later I spent more

money on a new version and the increase

in happiness was now I always stop and

ask myself is that slight upgrade really

worth the price tag more often than not

it's better to spend that money on

experiences or things that actually

bring joy number five items on sale

sales are tricky aren't they it feels

like a win 20% off here 30% off there

but let's be real it's often just a

mental trap if you were already planning

to buy that jacket and it's marked down

from $200 to $140 okay you save some

money but if you're buying it because

it's on sale then you're still $140 out

of pocket for something you didn't need

sales are designed to make you justify

spending but in the end the only one

winning is the store number six

Investments I don't understand this one

is huge it's not about buying per se but

I've stopped putting my money into

things I don't fully grasp it's tempting

to follow the crowd especially when a

financial adviser tells you it's a good

move but at the end of the day it's your

money you should have at least a basic

understanding of where it's going no one

is going to care about your financial

future as much as you do and there you

have it six key things I've cut back on

these changes have freed up more of my

income without feeling like I'm missing

out

instead of spending on things that

depreciate or clutter my life I'm

focusing on investments that grow and

experiences that enrich my life what

about you what's one thing you've

stopped buying let's chat about it in

the comments number seven fast fashion

in one of my previous videos I casually

mentioned that I hadn't bought a single

piece of clothing in the last 6 months

to my surprise this raised a few

eyebrows I used to be a regular at fast

fashion stores like Forever 21 misguided

boohoo you name it but when I look at my

closet now not a single one of those

items has survived I spent so much on

clothes I only wore a few times before

they started to unravel or went out of

style lesson learned these days I'm all

about quality over quantity if something

feels great and lasts I don't mind

spending more on it even if it's pricier

than what I would have paid for a trendy

fast fashion item it's not just about

durability though having fewer clothes

actually clears my head I'm no longer

wasting mental energy on deciding what

to wear I rotate between a few tops pops

when I record my videos and it's one

less thing I need to worry about number

eight anything high maintenance let's

talk Beauty routines Nails lashes hair

dye I've cut all of that out don't get

me wrong I love the results but the

maintenance not worth it the price sure

but more importantly the time sitting

there for an hour getting my nails done

meant I couldn't do anything else no

work no multitasking in that hour I

could have been using it to do something

productive something that actually moves

the needle for me now let me be clear I

don't apply this time value thinking to

everything in my life I'm not

calculating the cost of spending time

with friends or family or going on date

nights that would be a bit much but when

it comes to things like Beauty routines

that feel more like a chore than a

pleasure I've decided it's just not

worth the time or money number nine a

prenup on presents this Christmas I'm

signing a different kind of prenup a no

unnecessary present packed every year we

spend so much on gifts for people we

rarely see and honestly with the cost of

living skyrocketing and the longest

recession in UK history looming it feels

like it's time to re-evaluate according

to finder.com comma the average Brit

spends 548 pounds on Christmas gifts and

in the US it's even higher

$990 it's not that I'm anti-g it's just

that we've turned it into a ritual I

often receive things I don't need and

then feel obligated to give something

back instead I think there are more

meaningful ways to give ones that people

will appreciate without feeling the

pressure to spend out of habit number 10

unnecessary spending out of ego here's

the core of my mindset I'm totally fine

spending on things that genuinely bring

me joy or add value to my life but I

refuse to spend just because it's a

habit or because my ego tells me I need

to impress someone if you cut out

spending driven by these two things

habit and ego you'll be in a much better

place financially every financial

decision I make I weigh as a tradeoff if

I'm about to spend money on on something

that's going to lose value I ask myself

is this worth giving up a slice of my

Financial Freedom for example is

spending an extra five grand on a nicer

car worth sacrificing the potential

gains I could make by investing that

money educating myself or building

long-term wealth more often than not the

answer is no thanks for tuning in don't

forget to subscribe if you haven't

already and I'll see you in the next one