There are lots of ways to skin a cat, but there are even more ways to skin your checking account down to zero. With digital marketplaces, thrift stores, retail outlets, and other money-sucking blackholes lurking around every corner of the internet and real world, we’ve earned our honorary doctorates in wasting money.
Even rational people find justification for absolutely ludicrous purchases—I’m certainly guilty, and you probably are too. The first step in correcting poor financial habits is admitting you have a problem. Then, you can change your ways and truly appreciate the absurdity of the ways that others continue to waste their finite funds daily.
Brand Names
Most people know that selecting a brand name over a generic alternative almost always costs more. In fact, simply cooking dinner with generic ingredients over brand-name alternatives would have saved the average shopper $528 in 2022, and that figure is likely higher today due to persistent inflation.
While the stigma of appearing hard-up financially continues to push many shoppers towards brand names, nobody will know if the beans in their chili or the milk in their glass is designer or generic.
The Latest Fashions
Whenever you’re purchasing new clothing, ask yourself whether you’d be comfortable wearing a pair of shoes or pants in ten years. A pair of Cole Haan loafers are likely to stand the test of time, while a neon pink pair of Balenciaga sneakers has far less fashion longevity.
Trend-chasers are almost always money wasters. Because those who “appreciate high fashion” also tend to be fickle and snobbish, trying to achieve the approval of others through your clothing is a (money) losing game. Plus, “fashionable” items tend to come at an unjustifiable markup.
Payday Loans (and Other High-Interest Payments)
There may be exceptions, but many who become mired in the debt cycle of payday loans could have avoided those loans. If you are a fan of personal finance-themed media, you know there’s a substantial portion of payday borrowers who would not need those loans if they had used DoorDash less often or ignored their consumerist instincts.
The typical payday loan comes with the equivalent of an APR of 400%. That makes credit card customers paying a 30% APR seem financially responsible. Factor in the shady tactics that payday lenders are synonymous with, and these are one of the most horrendous expenditures imaginable.
Over-the-Top Weddings
Blame this one on People Magazine. 48% of Americans spend more than $10,000 on their wedding, and the average wedding in Florida—a state with its fair share of blue-collar residents—costs $38,000. In New York, the average ceremony runs $49,000.
If the wedding is going on daddy’s dime, perhaps it’s justifiable. It’s a special day, after all. But what if you found a way to cut wedding expenses in half (maybe subtract a tier from the cake?) and negotiate with dad to put the savings towards a down payment on a home?
Drinks at the Bar
If I were a more patronizing person, I might point out the increasing number of Americans who have cut back their alcohol consumption or ditched the drink altogether. Assuming you like to have a good time, though, I’ll suggest buying your own booze when circumstances allow.
Will you look like a crazy person bringing your own flask to the bar? Sure. But you’ll save substantial funds considering that bars routinely mark up their liquor by 400% to 500%. And we wonder why barflies are so often broke (and broken).
Buy One, Get One (of Items You Weren’t Going to Purchase)
There are two classes of buy one, get one. There are shoppers who go to Wal-Mart intending to purchase Tide Pods, see they’re BOGO, and buy four tubs of Tide Pods to take advantage of the deal.
Then there are those like former Louisiana governor Earl Long, who sees alarm clocks on sale and buys $300 worth of them, despite not having any discernible need for alarm clocks. If you don’t truly need an item on sale, don’t buy one—instead, skip one.
Sports, Lotto Tickets, Blackjack, Slot Machines, and Other Risky Wagers
A whopping 62% of Americans admitted to gambling in the 12 months prior to February 2024. Based on self-reporting, male gamblers averaged $1,294 wagered during that year. You know how gamblers are—odds are, they lost far more than they were willing to admit.
Whether you stop in the local Circle K for the “occasional” scratch-off, use the sports betting apps that have spread across the nation like kudzu, or you like to hit the slots, you’re probably losing money you can’t afford to. Unless your name is Charles Barkley, gambling tends to be a habitual vice that most gamblers can’t justify.
Subscriptions for Which There Is a Free (or Cheaper) Alternative
Do you really need to pay $220 per year on Netflix when you are already paying for Amazon Prime Video? Let alone paying for Hulu, Paramount Plus, and Apple TV+? Prime has more than 24,000 movies and 2,100 TV shows. Have you watched all the good ones?
Are you paying for Audible when you could be listening to countless free audiobooks on YouTube? There are countless examples of paid subscriptions that have a cheaper, or free, alternative.
Books to Add to the Collection of Dust-Collecting Books
It’s hard to knock anyone whose bad habit is buying books. Knowledge is power, and we try not to dump on anyone showing a tendency towards self improvement. That said, if you’re like me, there’s a stack of books including classics, non-fiction, and fiction, and they’re all thoroughly unread.
There’s nothing wrong with making a wishlist of books you’ll eventually order and devour. Just don’t order them until you’re ready to read, as that is money you could invest and grow in the meantime.
Quick Fixes
Whether it’s Ozempic, an exercise bike you’ll probably never use, a flat-screen TV, or a costly new living room rug, we too often make impulse purchases hoping that the money spent will bring us instant happiness.
There is no substitute for community, family, a fulfilling career, and good habits. No single purchase is going to bring the fulfillment and contentment you seek, so stop shopping like it will.
Supplements of Questionable Efficacy
Social media has transformed bloggers, accountants, and other laymen into part-time medicine men overnight. While influencers who expose the dangers of seed oils and the health benefits of baking soda are largely benefiting their followers, going down the supplement rabbit hole can be costly.
Americans spend roughly $45 billion per year on health supplements. Yet, many of the buyers don’t exercise daily, eat like a meteor is hurtling toward the earth, and don’t take other less expensive steps to improve their health. We’re not saying not to invest in vitamins or other supplements. Just be smarter (and more frugal) about it.
Dating Apps
Premium dating apps range anywhere from $10 to $50 per month. If you’ve exhausted dating in the wild and want to test out Hinge+ or Tinder Plus for a month or two, go for it. You can’t put a price on love, after all.
If you’ve been spending $500 per year on a dating app for the past five years, though, isn’t it time to reevaluate your strategy? That’s serious money, and it apparently hasn’t been well spent. Perhaps it’s time to join a church or start asking people out at Kroger.
Little-Used Gym Memberships
You hear lots of jokes about having to hand over your firstborn child if you want to cancel your gym membership. Gyms’ client retention strategies became such a problem that the Federal Trade Commission (FTC) had to take action to make it easier to cancel your Crunch Fitness contract.
Now that it’s far easier to cancel, how can you justify paying a monthly fee for a gym you haven’t entered since 2019? Sure, you plan on going, and have planned on it for six years. Just plan on going for a run instead and save yourself some money.
The Latest Tech Gadgets
You’re not going to impress her because you have the latest iPhone or the latest OLED television hanging on the wall in your 850-square-foot apartment. You’ll impress her with a 401(k) that continues to grow and collect compound interest.
Big Tech has most Americans by the short hairs, and it’s time to cut yourself free of monthly device payments. The thing about tech is that it never stops evolving, so trying to keep up is a losing proposition.
Weekly Haircuts
Rather than paying an additional $60 per month for weekly haircuts, invest in a pair of electric clippers. Clean up the neckline, come to terms with spending an extra week or two without a fresh trim, and put the savings towards debt or investment accounts.
Show me someone who always has a fresh line-up, and I’ll show you someone who’s probably in financial arrears.
