15 Dumb Ways to Spend Your Money

Summary

This video script highlights 15 common yet financially unwise spending habits that can drain one's budget, such as late flight bookings, unused subscriptions, hidden fees, expensive daily coffees, and more. It emphasizes the importance of being mindful of spending, cutting out unnecessary expenses, and making smarter financial choices to maintain a healthy budget and achieve long-term financial goals.

Takeaways

• 💸 Booking flights late can significantly increase travel expenses, potentially costing hundreds or thousands more per trip.
• 🏋️‍♂️ Unused subscriptions, like gym memberships, can drain your budget, costing from $20 to over $100 a month, and should be evaluated for regular use.
• 💳 Hidden fees can accumulate unnoticed, leading to hundreds of dollars in unnecessary expenses annually.
• ☕ Daily gourmet coffee purchases can add up to nearly $1,800 a year, impacting larger financial goals like emergency funds or savings for a home.
• 👗 Expensive children's clothes can be a financial strain due to rapid growth and changing sizes, leading to hundreds of dollars spent each season.
• 🎁 Regularly spending on expensive gifts can weigh heavily on your finances and create pressure for recipients to reciprocate.
• 🍇 Food waste from groceries that go bad can cost an average family over $1,500 per year and contribute to environmental issues.
• 🍔 Consuming junk food frequently can lead to significant yearly expenses and potential long-term health costs.
• 🚗 Purchasing expensive cars can lead to substantial debt and high monthly payments, diverting funds from other financial goals.
• 🍽️ Dining out frequently can become a costly habit, with potential monthly expenses exceeding $360 for one person, affecting budget allocations for savings or debt repayment.
• 🛍️ Impulse shopping can lead to significant unplanned expenses, resulting in credit card debt and reduced savings, with many spending hundreds to thousands annually on unnecessary items.

Q & A

Why does booking flights late often result in higher costs?

Airlines typically increase prices as the departure date nears to capitalize on urgent demand, which can result in significantly higher costs for last-minute bookings.

What is the potential yearly cost of maintaining a gym membership that is not frequently used?

A gym membership can cost anywhere from $20 to over $100 a month, which can accumulate to a significant yearly expense if not utilized regularly.

How can hidden fees impact one's financial situation over time?

Hidden fees, though seemingly insignificant individually, can pile up and lead to hundreds of dollars spent over the year, detracting from savings or debt repayment.

What is the annual cost of a daily gourmet coffee habit?

A daily $5 coffee can accumulate to approximately $1,800 a year, which can hinder progress towards larger financial goals.

Why can spending on expensive children's clothes lead to financial strain for families?

Children grow out of clothes quickly, and spending hundreds of dollars each season to keep up with their growth can strain family finances and teach unsustainable consumption habits.

How can regularly buying expensive gifts affect one's budget?

Spending hundreds of dollars on gifts for various occasions throughout the year can add up to a significant portion of one's budget, potentially causing financial discomfort.

What percentage of food does the average family waste, and what is the financial implication?

The average family wastes about 25% of the food they buy, which can amount to over $1,500 thrown away every year.

Why can spending on junk food lead to long-term health and financial issues?

Frequent junk food purchases not only add up financially but can also lead to health issues and associated medical costs in the long run.

What are the potential financial consequences of buying an expensive car?

An expensive car can lead to significant debt due to high purchase prices and interest rates, diverting funds from other crucial financial goals and potentially leading to a cycle of debt.

How does excessive dining out affect one's monthly budget?

Dining out several times a week can lead to spending over $360 per month for one person, which can significantly impact one's budget and detract from savings or debt repayment.

What is the impact of impulse shopping on one's financial health over a year?

Impulse shopping can lead to spending hundreds or even thousands of dollars over a year on unplanned purchases, potentially causing credit card debt and reducing savings.

Why might high-end gym memberships be financially imprudent if not used regularly?

Expensive gym memberships, costing between $100 to over $200 a month, can lead to significant yearly expenses if the gym is not utilized regularly, resulting in financial strain.

What are the potential financial and environmental consequences of spending on trend-driven clothing?

Spending on quickly changing fashion trends can lead to financial waste and a closet full of discarded clothes, contributing to environmental waste as well.

How can investing heavily in hobby supplies without full engagement lead to financial strain?

Investing in expensive hobby supplies without fully committing to the activity can result in spending hundreds or thousands of dollars on gear that may end up unused and gathering dust.

Why can buying unnecessary home gadgets lead to a significant waste of money?

Home gadgets that promise convenience but end up unused or broken can lead to a significant waste of money and contribute to clutter and buyer's remorse.

Outlines

00:00

💸 Unnecessary Spending Habits

This paragraph discusses common financial pitfalls such as last-minute flight bookings leading to higher costs, unused subscriptions, hidden fees, expensive coffee, and costly children's clothes. It emphasizes the importance of spending wisely to avoid financial strain and suggests being honest with oneself about actual usage of services and items to maintain a tight budget.

05:01

🍽️ Food Waste and Expensive Lifestyle Choices

The second paragraph highlights the issue of food waste, pointing out that an average family discards about 25% of purchased food, costing over $1,500 annually. It also touches on the financial burden of eating junk food, the debt associated with expensive cars, and the high costs of dining out frequently. The paragraph encourages planning meals to reduce waste and suggests finding a balance in dining habits to avoid excessive spending.

10:03

🛍️ Impulse Buying and Unnecessary Expenditures

This paragraph delves into the consequences of impulse shopping, the financial strain of high-end gym memberships, the wastefulness of trend-driven clothing, the costs of investing in hobby supplies without commitment, and the allure of unnecessary home gadgets. It stresses the importance of impulse control and thoughtful spending to prevent financial strain and accumulation of clutter.

Keywords

💡Budget

A budget is a financial plan that outlines expected income and expenses for a specific period. In the video, it is mentioned as a tool to manage spending and save for priorities or goals. For instance, the script talks about how buying flights too late can disrupt your budget for other priorities or savings goals.

💡Subscriptions

Subscriptions refer to a business model where customers pay a periodic subscription fee to access a product or service. The script points out that unused subscriptions can lead to unnecessary spending, as they continue to cost money without providing value, such as a gym membership that goes unused.

💡Hidden Fees

Hidden fees are additional charges that are not immediately apparent or are not clearly disclosed. The video emphasizes how these small charges can accumulate and significantly impact one's financial health, as they can silently erode one's bank balance over time.

💡Daily Expenses

Daily expenses refer to the routine costs incurred daily, such as buying coffee. The script uses the example of a daily gourmet coffee, which, when added up over a year, amounts to a significant sum that could have been saved or used for more substantial financial goals.

💡Children's Clothes

Children's clothes are garments designed for children. The video discusses the financial strain caused by purchasing expensive children's clothes, which quickly become outgrown or out of fashion, leading to excessive spending that could be better allocated.

💡Gifts

Gifts are items given without the expectation of payment or anything in return. The script mentions the potential financial burden of buying expensive gifts, which can strain one's budget and create expectations of reciprocation that may not be feasible for others.

💡Food Waste

Food waste refers to the discarding of food that is still edible. The video highlights that throwing away food not only wastes money but also has environmental implications, as it involves the resources used in production and transportation that go to waste.

💡Junk Food

Junk food is food that has little nutritional value but is high in calories, typically from fats, sugars, and salt. The script discusses how the frequent purchase of junk food can lead to a significant yearly expenditure and potential long-term health costs.

💡Expensive Cars

Expensive cars are high-priced vehicles that often come with luxury features. The video points out that buying an expensive car can lead to substantial debt, high monthly payments, and financial strain, as well as the issue of depreciation that affects all cars once they are driven off the lot.

💡Dining Out

Dining out refers to eating at a restaurant or cafe rather than at home. The script explains how the convenience and enjoyment of eating out can lead to a costly habit, with the potential to spend hundreds of dollars per month on meals that could have been prepared at home for less.

💡Impulse Shopping

Impulse shopping is the act of buying goods or services on a sudden, unplanned decision. The video describes how impulse purchases, influenced by promotions or desires, can add up and put a strain on one's budget, leading to credit card debt and reduced savings.

💡Gym Memberships

Gym memberships are subscriptions to a fitness facility. The script notes that signing up for high-end gym memberships that are not frequently used can be a waste of money, as the cost does not motivate consistent attendance and can lead to financial strain.

💡Trend-Driven Clothing

Trend-driven clothing refers to garments that are in vogue for a short period. The video discusses how spending on such clothing can be wasteful due to the rapid change in fashion trends, leading to financial waste and a closet full of outdated clothes.

💡Hobby Supplies

Hobby supplies are materials and equipment used for recreational activities. The script cautions against investing heavily in hobby supplies without fully engaging with the hobby, as this can lead to spending large amounts on activities that may not be pursued long-term, resulting in financial strain and unused equipment.

💡Home Gadgets

Home gadgets are devices designed to improve or simplify household tasks. The video points out the potential waste of money associated with buying home gadgets that end up unused or broken, contributing to clutter and buyer's remorse.

Highlights

Spending money wisely is a challenge many face, as highlighted by the common experience of wondering where one's paycheck went midway through the month.

15 common ways people waste money are discussed, providing insight into spending habits that can be adjusted for better financial health.

Booking flights late can lead to significantly higher costs due to airlines increasing prices as departure dates near.

Unused subscriptions, such as gym memberships or streaming services, can drain finances without providing value.

Hidden fees on bank statements, utility bills, and online purchases can accumulate and erode one's savings.

Daily purchases of gourmet coffee can amount to a significant yearly expense, impacting larger financial goals.

Expensive children's clothes can be a financial burden due to children's rapid growth and the short usage period of each outfit.

Expensive gifts can strain one's budget and create pressure for recipients to reciprocate, leading to potential financial discomfort.

Food waste is both a financial and environmental concern, with an average family wasting about 25% of the food they purchase.

Junk food consumption can lead to significant yearly expenses and potential long-term health costs.

Expensive cars can lead to substantial debt and long-term financial strain due to high purchase and maintenance costs.

Frequent dining out can quickly become a costly habit, impacting one's budget and ability to save or invest.

Impulse shopping, driven by promotions or desires, can lead to significant unplanned expenses and financial strain.

High-end gym memberships that are not utilized regularly can result in wasted money and financial strain.

Trend-driven clothing purchases can be wasteful due to the rapid change in fashion trends and the short lifespan of such items.

Investing heavily in hobby supplies without fully engaging with the hobby can lead to financial strain and clutter.

Unnecessary home gadgets can lead to significant waste of money if they end up unused or quickly break down.

Financial habits reflect our lifestyles and aspirations, and it's important to have control over spending to avoid unnecessary financial strain.

Transcripts

Alex do you ever find yourself like

halfway through the month and wonder

where your paycheck went well you're not

alone okay we all have those moments

where we Splurge a little bit too freely

sometimes in ways that might make us

cringe later on let's face it right

spending money is easy but spending it

wisely well that's a whole other game

why do we so often end up spending too

much on things we don't really need and

what can we do to stop the bleeding

let's look at 15 dumb ways to spend your

money so you can smarten

[Music]

up number one buying your flights too

late you know the drill something comes

up last minute or maybe you've been

hesitant to commit to your travel plans

waiting to book your flight can often

mean paying significantly more as

Airlines typically hike prices up as the

departure date nears to capitalize on

urgent demand this isn't just about a

few extra dollars for international or

even CrossCountry trips this could

hundreds or maybe even thousands of

dollars more spent per trip this kind of

spending can disrupt your budget for

other priorities or savings goals number

two subscriptions you don't use then

there are those subscriptions you don't

really use you know how it goes you sign

up for a gym or maybe a couple of

streaming service memberships thinking

you'll get the most out of them but if

you're not logging in or showing up

regularly your money's just trickling

away

take a gym membership for instance it

can run you anywhere from 20 to well

over $100 a month over a year that's a

serious chunk of change it's not about

trying to squeeze in more visits to get

your money's worth it's about being

honest with yourself about what you

actually use and what you don't maybe

it's time to cut out what doesn't fit

into your day to-day and keep only what

you truly enjoy or benefit from this way

you keep your budget tight and your

spending smart

number three hidden fees those small

sneaky little charges that you don't

spot right away might seem insignificant

but they pile up you might find them

tacked onto your bank account statements

your utility bills or even when you buy

something online what's tricky about

these fees is how they can silently chip

away at your bank balance before you

know it you've paid out a few hundred

over the year that's money you could

have tucked away into savings or used to

knock down some debt always keep an eye

on the fine print or ask directly about

any charges that way you can keep more

of your hard-earned cash where it

belongs with

you number four that really expensive

coffee grabbing a daily gourmet coffee

is such a regular treat it feels like a

small Splurge a nice $5 coffee to

Kickstart your day but here's the catch

okay when you add that up it comes to

about

$1,800 a year that is no small number

this routine doesn't just dip into your

wallet each day it can also Sidetrack

from your bigger financial goals maybe

you're trying to build up an emergency

fund or save for a down payment on a

home think about it okay redirecting the

cost of your coffee habit could really

boost those

savings number five expensive children's

clothes buying expensive children's

clothes could seem like a good idea

because you want the best for your kids

and it's fun to see them dressed up in

cute stylish outfits but children grow

go really fast and they often wear out

their clothes or move on to the next

size up before getting much use out of

them parents can end up spending a lot

on these clothes sometimes hundreds of

dollars each season to keep up with the

growth spurts and changing weather this

spending can lead to financial strain

especially for families managing other

expenses it could also teach children

unsustainable habits regarding

consumption and value considering how

rapidly they outgrow clothes this

spending can be excessive if you're

spending $50 on a single outfit instead

of a more reasonably priced alternative

well you could end up spending hundreds

more each year which adds up especially

if you have more than one

child number six expensive gifts being

generous feels great but regularly

splashing out on expensive gifts can

really start to weigh on your finances

imagine you're dropping hundreds of

dollars for each gift and you do this

several times a year birthdays holidays

and so on it adds up to a major chunk of

your budget before you even know it plus

spending so much might even make things

uncomfortable for the people receiving

the gifts they could feel pressured to

reciprocate in kind which isn't always

possible keeping gifts thoughtful yet

within a reasonable budget is a smart

way to show that you care without

breaking the bank or setting

expectations too high number seven

groceries you don't use and just go bad

in the fridge you know the average

family tosses out about 25% of the food

they buy

25% that can mean over $1,500 thrown

away every year throwing out food is

tough on your wallet and the environment

buying too much groceries that end up

going bad is a common mistake it usually

happens when you shop without a plan or

you buy more than you need thinking it's

better to stock up

when those extra fruits veggies and

perishable items spoil before you use

them it's not just food going to waste

it's your money too it is not uncommon

for families to spend an extra few

hundred each year on food that never

gets eaten this waste can add up

financially and also has environmental

implications considering the resources

used in producing and transporting that

food that just ends up in the trash and

on top of that it's also what you paid

for the energy to store it in your your

fridge and the time you spent cooking it

cutting down on food waste saves you a

chunk of change and helps the planet at

the same time so stick to buying what

you need for those planned meals and

resist impulse buys especially for

perishable items also learning more

about storing different types of food

properly can extend their shelf life and

reduce waste number eight junk food

eating a lot of junk food like snacks

fast food or sugary drinks really adds

up in more ways than one each little

purchase might seem like hey just a few

bucks here and there but put them all

together and you could be spending a

hefty sum every year on snacks and it's

not just about the money right now it's

also the bigger picture to think about

eating poorly can end up costing you

even more down the line in medical bills

if it starts to affect your health it's

something to think about next time

you're tempted to grab that quick

bite number nine expensive cars

many people who spring for an expensive

car end up deeply in debt a high-end car

can cost anywhere from 50,000 to well

over $100,000 and financing that often

with a high interest rate means Hefty

monthly payments that can last for years

and if your financial circumstances

change in the meantime that debt doesn't

just disappear no putting you in a tough

spot this sort of spending can lead to a

cycle of debt that's hard to escape

every dollar that goes into into that

car is a dollar not saved for

emergencies retirement or other crucial

goals people often spend tens of

thousands of dollars more than they

would on a more economical choice

because a car depreciates the minute you

drive off the lot no matter what it is

in the end while the luxury might feel

good in the moment the financial

pressure it brings can be a burden that

lasts a whole lot

longer number 10 excessive dining out we

spend so much money eating out because

it's convenient and gives us a nice

little treat right it's also a social

setting that can be hard to replicate in

your own dining room it's about enjoying

the moment and the company which is why

it's so appealing to many but just like

with clothing finding a balance that

doesn't strain your finances is really

important eating out often can quickly

become a very costly habit while it's

enjoyable to avoid the kitchen and

Sample different Cuisines that you

didn't have to make the expenses stack

up really fast so if you're dining out

several times a week you could easily

spend $30 or more per meal over the

course of a month that could mean over

$360 if you eat out four times a week

and that's just for one person at a

decently priced spot this kind of

spending can seriously eat into your

budget potentially diverting funds from

your savings or your debt repayment plan

it is not uncommon for people to spend

thousands of dollars a year on dining

out alone money that could have

otherwise wise enhanced your financial

stability or go toward future

investment number 11 impulse shopping

making unplanned purchases influenced by

promotions or momentary desires impulse

shopping means buying things

spontaneously often because you see a

sale or just suddenly want something

it's easy to do especially when the ads

and sales are everywhere tempting you

these unplanned purchases whether

they're small items or Big Ticket Goods

can really add up and put a strain on

your budget people often spend a

significant amount on these impulse buys

and it's not unusual to rack up hundreds

or even thousands of dollars over a year

on things that weren't in the budget

this can lead to bigger financial

problems like Rising credit card debt

and dwindling savings plus it often

leads to a home full of things you don't

really need or even want after that

initial excitement Fades the thrill of

impulse buying often comes from the

instant happiness it seems to deliver

acting as a quick way to lift your mood

or relieve stress but the short burst of

Joy doesn't balance out the long-term

Financial strain it

creates number 12 high-end gym

memberships signing up for expensive

fitness centers that you rarely visit

signing up for a high-end gym can feel

like a great step forward toward a

healthier lifestyle but if you're not

going regularly it's a lot of money down

the drain these gyms can be quite pricey

with memberships ranging from 100 to

over $200 a month over a year that's

easily $1,200 to $2,400 spent and that's

significant chunk of money if you are

not making the most of that facility

this kind of spending can lead to

financial strain especially if you're

also juggling other commitments or debts

and it adds to your guilt every month

that payment comes out of your account

reminding you that you are not using

that gym people often sign up for these

expensive memberships under the

impression that the cost is going to

motivate them to work out more but life

gets busy and good intentions don't

always turn into good action to carb

this consider what you really need in a

gym if it's just the basics a more

affordable gym would be just fine

alternatively you could invest in some

home equipment or look for cheaper or

even free ways to stay fit like running

biking or online workout vide

number 13 Trend driven clothing spending

on fashion that is likely to go out of

style quickly spending money on Trend

driven clothing can be a waste because

fashion trends change so fast what's in

today will be out in just a few months

and back in a couple of years the costs

vary widely depending on where you shop

but it's really easy to spend hundreds

or thousands of dollars a year or more

on clothes that you only wear for a

short time this kind of spending can

lead to financial waste and a closet

full of clothes you no longer feel good

about wearing it also contributes to

environmental waste as these clothes

often end up

discarded number 14 expensive hobby

supplies investing heavily in Hobbies

without fully engaging with them

investing heavily in Hobby supplies can

be tempting when you're excited about

starting something new it's common to go

all out buying the best equipment or

materials right away this enthusiasm can

lead to spending a lot of money on

Hobbies you may not stick with long term

people often spend hundreds or even

thousands of dollars on gear for

activities like photography golf or

painting before they fully commit or are

skilled this kind of spending can lead

to a financial strain especially if you

lose interest and all of those expensive

supplies just gather dust it can also

create clutter and waste as unused items

take up space in your home

and lastly number 15 unnecessary home

gadgets buying those home gadgets that

promise to make your life easier and

more efficient is certainly tempting

right but they either end up Gathering

dust or break soon after and their

repair or a place work has to begin they

have little to no practical use they're

just marketed as the next big thing

those high tech juicers smart egg trays

that alert you on how many eggs you have

left or Bluetooth enable Forks designed

to help you eat slower often catch your

eye with these promises of making your

life easier or more interesting you can

spend anywhere from a few dollars to a

few hundred on these gadgets depending

on how complex they are the downside

though is these devices can lead to a

significant waste of money especially if

they end up unused in the back of a

cupboard the accumulation of such

gadgets not only clutters your space but

it can also lead to buyers remorse when

you realize they just don't add that

much value to your daily life at all you

know Alexa it's clear that our financial

habits are more than just numbers right

they're a reflection of our lifestyles

aspirations and sometimes our momentary

lapses in judgment but every purchase

big or small makes a dent that we can

allow to grow bigger or we can R it back

in and have better control over it it

takes a little bit of planning and

preparation some forethought and a lot

of impulse control you never want to be

the person who ticks off all the boxes

of the 15 dumb ways to spend your money

right so let's get back to work