It’s kind of ridiculous how easy it is to overspend. There are just so many things out there that we can choose to spend money on but we end up buying things we don’t need.
In a world of scarcity, choosing one thing means giving up something else. When we spend money on one thing, it’s money that we cannot spend on something else, now or later. So there is an opportunity cost to everything we do.
Especially when finances are tight, it’s important to only spend money on important stuff that we had money put aside already for any emergency cases. So it is important to avoid impulsive buying but rather have a list of important things that need to be dealt with first.
So whether you’re trying to save more money or just get through a financially difficult time, knowing what to look out for can help. That’s why we put together this list of things people waste money on:
1. CREDIT CARDS.
Credit cards are the last things poor people should be touching, it’s like digging yourself deeper in the hole you will never be able to escape. Credit cards are used to trade temporary finance for someone’s time and livelihood.
The moment you go into debt, you no longer working for yourself, your life is no longer truly yours until that debt is fully paid. Poor people max their credit cards like its a hobby and usually on non-essential things.
It’s easy to get caught up in this financial mess that you will never be able to escape
Have you seen the nails and hair cuts on people who can’t even afford to fix their cars, this is one of the most annoying things that keep people from becoming better.
You’ve worked your butt off the entire week and then reward yourself with a new hairstyle that’s going to fade away in two weeks to impress people who are not doing better than yourself.
Ever noticed that almost all rich people have the same simple haircut, have you noticed how none of the successful women entrepreneurs have diamonds or add ons to their nails?
Its an issue of privatization, fix your life and then you will be able to whatever you want with access capital, instead of throwing money out of the window start fixing your door handles
3. IMPULSE PURCHASES.
As consumers, we usually believe that we make conscious choices based on what we need and want. Most of us feel sure about the reasons behind our various purchases – from clothes and furniture, to breath-mints.
We tend to pick up things that make us happy. The thought of immediate, pure pleasure can be insanely powerful; particularly when we are stressed out. Getting something new or getting a treat is a pick-me-up on a bad day, adds spice to a boring one, and can work as a strong incentive for a lazy day.
People who like to shop for fun are more likely to buy on impulse. We all want to experience pleasure, and it can be a lot of fun to go shopping and imagine owning the products we see. Once we start experiencing pleasure as a result of this sense of vicarious ownership, we’re more likely to buy those products so that we can continue to experience that pleasure.
4. FOOD WASTE.
People waste food due to bad taste and a full stomach, but this can also be avoided by taking less quantity at first.
It just the mindset of people.
- Rich people: I’m not talking about everyone. I’m talking about some. When they have money, they don’t care about the resources. Even when I ask them not to waste food. They said, I’m paying for that. I’ll do whatever I want to do.
- Free food: A lot of food waste occurs during parties. Because it’s free so people don’t even care about the quantity while taking in their plates.
- Bad taste: sometimes people take a lot of food and after that, they didn’t find it tasty so they just throw it.
- Too much food: Sometimes people cook too much food and eventually they have to throw it.
5. MIRACLE DIETS AND FITNESS PRODUCTS.
It took you 20 years to get this fat, do you think you can suddenly drop 15% of your weight in three weeks with some miracle tea you saw on some hot Instagram “slay queen” post or a TV ad.
The super-ripped people you see on those youtube videos are personal trainers whose job is to work out 14 hours a day every day that’s what they do for a living, you don’t need miracle pills or supplements.
How many times do you need to get duped by lame products designed to prey on people who are looking for quick and easy ways to lose weight or gain muscles.
The only way to get in shape is to the ownership of the fact that you are out of shape and need to do something about it. You are going to stop eating unhealthy food and you definitely going to go for s run or walk once in a while.
You don’t have to spend a penny or need a product all you need to do is to work on your mindset.
6. LUCKY CHARMS OR SPIRITUAL ITEMS.
Isn’t ironic how poor people spend the little money that they don’t have on lucky charms or stones that’s suppose to bring more wealth into their lives. Everybody can use some extra luck, especially when it comes to money.
All around the world, people still abide by questionable laws and practices to ward off bad fortune and to attract wealth. These culturally popular delusions give people a sense of control over the unpredictability of the future. This false sense of security is what enables superstition to affect human behavior across all societies throughout history.
7. GAMES AND APP-PURCHASES.
Do you think a game developing company will spend a lot of money behind a game to make it and give it to you for free and take no charge for that? But free games do exist don’t they?
However, games with 70+ FPS, high-quality graphics, and complicated storylines with professional voice actors don’t come out of nowhere. Game company’s spend millions of producing a game
- When you want to play a game and you have to purchase it from the store, you do it simply because you want to play this game so badly.
- Buying genuine paid game assures you to have real contents that are virus-free, you will be updated regularly( with bugs fixes and new contents). Crack game don’t get it.
- Multiplayer- Now this is some attraction of every modern game. A game with no multiplayer is not a game of modern times. PC version games that you buy assures you to have multiplayer features of the game you are buying (Note: you can play multiplayer even in FIFA offline with a cracked version but you cannot access its multiplayer mode online).
- Xbox and Playstation platforms will simply ask you to pay ‘Extra money’ monthly or annually just to play games (multiplayer) online. The purchase price of a game is higher in these platforms than their PC version.
Video games are a thing that can help people relax after a long day or give someone something exciting to do during a slow weekend. 20 frames per second action or now the graphic quality is neither relaxing nor exciting for most people who like playing games.
8. LATEST TECH.
Too many people believe all the myths and advertisements that are forever stressing that you always need to get the latest and greatest technology and gadgets.
People whom you know are not doing well financially spend ridiculous amounts of money buying the latest tech every year. You cannot afford the new iPhone, you may the money to pay for it but you can’t afford it there is a difference.
Just like a new car, gadgets depreciate as soon as they are taken for a spin. But that is not to say that we shouldn’t spend on them. In fact, we need to because they make our lives easier. But we need to avoid wasting money on them by being stringent with our purchase.
In the same fashion, you don’t need a large flat-screen TV when your household obviously needs maintenance. It also goes down to the life cycle of a product, people who take care of their belongings enjoy using them for a long period of time.
Thus saving them a lot of money in the form of maintenance costs or the upfront cost of replacing it.
9. BALLING IN THE CLUB.
It feels good popping bottles at the club, people looking at you as the champagne is brought to your table but you know what doesn’t feel good, is going back to that low wage 9-5 for another full month just so that you can feel like that again for a couple of hours.
You are not a boss if you’re throwing money around the club, or when your bill is much higher than the person sitting next to you. You are the product the real boss is monetizing your efforts to look like you are living the life in the eyes of the people who are just broke as you are.
People spend more in the presence of their friends, and straight males spend more in the presence of attractive women. We all want to fit in, and once you’re inside a place like a bar or a nightclub, you don’t want to be “that guy” who doesn’t buy anything.
You might go in planning to buy one drink, but one thing leads to another, and you spend more and more. Casinos, bars, and nightclubs are all carefully designed to encourage this.
So everyone knows that alcohol is overpriced in bars and nightclubs- if you really just wanted value-for-money alcohol, you’d buy it wholesale, or at convenience stores, whatever. You buy it in bars and nightclubs to demonstrate your social worth and to fit.
When people say you gotta spend money to make money they were not talking about lottery tickets. Poor people spend a lot of money on scratch tickets, slot machines, and casinos than everybody else.
Millions of people love to gamble for some, it’s the thrill of the chase – the possibility of winning, and for others, it’s entertainment or a way to escape the day-to-day grind.
If you asked them, they’d tell you they’re not doing anything wrong and that gambling is no different or no more a waste of money than going to a movie, concert, or nice dinner out. Unfortunately, gambling can take a toll on your financial situation and your health
The point of the article is not to make you feel wrong about the way you spend your money but to make you think about how you spend your money. When you know what you can afford, you may find yourself climbing up the socioeconomic ladder.
“15 Things POOR People Waste Money On.” Alux, YouTube. March 2019.
“13 Ways poor people waste money but rich people don’t.” Paula R. Gorman, Ideas Ranking.