ACCOUNTANT EXPLAINS: I Stopped Buying These 10 Things and Got Richer
Summary
TLDRIn 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
📚 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.
🚗 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.
Mindmap
Keywords
💡Saving
💡Investing
💡Depreciation
💡Spending Less
💡Clutter
💡Financial Hit
💡Upgrade Cycle
💡Sales Trap
💡Fast Fashion
💡High Maintenance
💡Ego Spending
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
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