15.5 Things That Are a Complete Waste of Your Money

Summary

This 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.