20 Things That Are a Complete Waste of Your Money

I like spending money on the things I love. Look at this, this is a key holder. I keep it in my backpack. This costs me like a hundred bucks. You think I'm gonna sit here and lecture you about buying generic peanut butter?

What I really care about are the things that are quietly draining your money. The ones you think are totally normal. And if you're doing just a few of these things, over your lifetime, you could waste more than $700,000 without even realizing it. And if you had invested that money instead, you could have nearly $3.7 million. Let's not let that happen. Here are 20 things I believe are a complete waste of your money. Let's start with part one, common traps people think are normal.

First up, buying a car based on monthly payments. We've all heard it. What's your monthly budget? That's exactly how car dealerships want you to think. Because when you buy based on monthly payments, they can stretch the loan, sneak in add-ons, and charge you overall much more. You walk out thinking you got a deal, when in reality you often paid thousands more than you needed to, or worse, you bought something you actually can't afford. Here's what you do instead. Decide on the total price you can afford before you ever set foot in the lot. And remember to factor in the total cost of ownership. Not just a sticker price, but also gas, insurance, parking, maintenance, registration. That is your number, negotiate from there.

Number two, trendy fitness equipment that sits in the corner of your house. I know you got inspired, you dropped $2,000 on a Peloton, and three months later it's a freaking coat rack. Back in the early 2000s, you remember what people were buying? Bowflex. Or maybe it's that at-home Pilates reformer machine, or that weighted vest you wore twice. Now listen, I'm guilty of this as well. I had a whole basket of freaking fitness gear. But expensive gear alone does not create consistency. Habits do. A smarter move would be to commit to a walk every morning. Use body weight workouts, join a gym, or a fitness class you'll actually go to. And when you finally need that thing at home, you've already proven that you will use it.

Next up, a new supplement skincare or grooming product every week. Yeah, I've done this too. I've tried a bunch of shampoos and creams, and every one of them felt like it was the one when I bought it. Certainly if you're on skincare addiction on Reddit, or you're following all these folks on Instagram, you are constantly seeing this new holy grail product that's gonna solve everything. But the truth is, if you're constantly chasing the next miracle product, you're just procrastinating. You're looking for some miracle. What I recommend instead, pick one, commit for 30 days. If it doesn't work, cut it, try something else. I'm gonna be really honest, I've tried really expensive stuff. Most of the stuff I use is basically from the drug store now.

Let's now talk about extended warranties on electronics and appliances. Now buying extended warranties sounds responsible, but in general, they are a great way for companies to make money off of you. Statistically speaking, most electronics and appliances do not break within the extended warranty period. And even if they do, that cost of repair often isn't worth what you paid upfront. If you wanna do it the right way, here's another approach. Buy from reputable brands, make sure you check the reviews, understand the store's return policy, skip the upsell, and remember this, if you're buying with a credit card, check your benefits, because many credit cards automatically double the manufacturer's warranty. You may already have more protection than you think, and you don't even need to pay an extra cent.

Here's one we've all done, impulse purchases from Amazon you forget about in two days. I've bought those fitness gadgets, none of them are in my life anymore. In fact, once my wife pointed it out to me, she goes, "You really like gadgets, don't you?" I was like, "Huh?" No, me, I'm so thoughtful, intentional. She goes, "Look at that corner. There was literally a basket full of like 15 fitness gadgets I'd used once and never again." They felt fun at the time, they felt like they were gonna change my life, but I quickly forgot about them. Here's the rich life approach, get clear on your money dials, identify the specific areas where spending money brings you the most joy and turn that up. Whether it's travel, convenience, health, generosity, money dials help you stop feeling guilty about spending in ways that actually make your life better. And once you know your top dials, you can confidently cut back on stuff that doesn't matter and double down, even spend more on the ones that do.

This one hurts. Luxuries disguised as investments. You know that $700 Vitamix you bought last year? That's not an investment. You know that deck you built for Sunrise Coffee and Journaling? That's not an investment. That $2,000 mattress is not an investment either. Neither is the skincare you use, neither is your personal trainer or even gym. People justify big ticket items like this by saying these cute little phrases, sleep is important, it's the best investment in my health. Can we be really honest with each other? If you call a mattress an investment, then a $3,000 pair of shoes can be an investment as well because it makes me feel more confident and it makes my feet feel better too. That's not investing. That's just rationalizing a luxury purchase. I define an investment as something that has the potential to produce a financial return. A mattress does not. It might improve your lifestyle. Great, but it's not an investment. What's really going on here is that we don't feel comfortable admitting we like to spend money on luxuries and a $2,000 mattress is a luxury. Guys, it's okay to spend money on luxuries. You don't have to wrap it up in an investment. Not everything has to be an investment. I spend money on stuff that is a total luxury and I'm perfectly fine with it. But investments is a very specific term. That is why I run the numbers carefully and build all of them into my system. Here's how you fix this. Use real numbers. Before buying anything over a hundred bucks or a thousand dollars, depending on your finances, ask yourself, can I afford this based on my conscious spending plan? Does it fit into my guilt-free spending? You know, realistically, you would not use your investment money to buy a mattress. So be honest with yourself. It comes out of guilt-free spending. Do you have the money for it? Then use the 30-day rule. If you still want it after 30 days and it fits into your conscious spending plan, go for it. But please don't confuse desire with affordability.

Listen to this one closely. Buying cheap now, promising to upgrade later. You tell yourself, I'll just get the cheap version for now and get a nicer one later. But that is often how we end up buying the same item three times. Because it breaks, it underperforms, or it never really works the way you want it to. Here's how to do it right. First off, admit that some things are okay to buy cheap. You don't need to have the best of everything. However, for things that are really important to you, you may want a higher quality version. Now, I have a philosophy that I should buy the best and keep it for as long as possible. Now, the best that I can afford might be different than the best you can afford. And that might be different than the best some multi-billion dollar CEO can afford. The best does not have to be the most expensive. It is the best for you. And if one of those things is out of reach for you today, that's okay, that is your signal to plan and save for it. Remember, one high quality item you love and use can end up being cheaper than three inexpensive versions that you buy and often regret.

Number eight, subscriptions you keep just in case. You signed up once, you forgot about the subscription, you tell yourself, I might use it again, but you haven't actually used it in six months and you're still getting charged for it. These small leaks often feel harmless, but they silently drain your checking account month after month and worse, they actually crowd out room for the things that actually would make you happy. So here you are spending money, but not on stuff that actually matters to you. And over time you wake up and you find yourself saying, where did all my money go? That's where it went to decisions you made 18 months ago. So you're nickel and diming your way through your finances, but you're missing the things that actually matter to you. And that's the real cost of these charges that you lose out on being intentional with your money. So here's what I recommend, check your statements quarterly, read through your credit card statements and bank transactions and decide which subscriptions are useful to you. The ones that you use, the ones that you love and then be ruthless about cutting out the rest.

Everyday money leaks, let's level up. Part two, hot takes. I'm not sure you're gonna like this and some of you might get a little mad, that's okay. We don't always have to agree on everything with money but stick with me because I'm gonna show you how to stop wasting money without sacrificing the things you love.

Number nine, trucks you can't afford, especially when you don't need one. A lot of you cannot afford the trucks you're driving. Why is this controversial to say? I get a whole bunch of people talking to me making 65 or $70,000 a year buying a $90,000 truck. You cannot afford a $90,000 truck when you make $65,000 a year. That is plain math. You simply cannot afford it. I know, we're so rugged. We gotta haul things, my vehicle. Do you know how many freaking people I talk to that are in deep financial trouble because of their truck? It's a lot, it's a lot. And a huge percentage of people in financial trouble own trucks or SUVs they don't actually need. Like Brad and Becca, they make $115,000 and they own a $50,000 truck. And when I asked Brad if he needed it for work, he said, "Nah, but we use it to tow our RV." Okay, hold on a second. You're telling me you bought a recreational RV and now you need to spend another $50,000 to have something to tow it. And how did they decide how much truck they could afford? Brad says, "Monthly payments." This is not a financial strategy, this is a trap. It's one of the biggest clues that you are being unsavy with your money. So here's how to do it right. First off, get clear on your needs before you make a big purchase. It's a little ironic that so many men in America look at women's purchases and say, "Oh, handbags, so frivolous." Then they go and drop $95,000 on a truck. If you don't need it, could you rent it when you need it? Do you really wanna be spending over $1,200 a month in total payments plus all these other phantom expenses? Probably not. If there is a day where a truck fits into your fixed costs, you can easily afford it, fantastic. I'm not against it, but I want you to know if you can afford it.

Emotional spending disguised as self-care or I deserve it. How many of us have ever said, "I had a rough week, I deserve this." Now it could be chili cheese fries, it could be a massage, whatever. But wait a second. I know a lot of you are watching this and going, "Wait a second, is self-care good?" Yeah, self-care is great. If you can afford it, $180 massage or a boozy brunch, if you can't afford it, it's not self-care, it's simply stress spending. And what's worse, you get a temporary high, but that balance goes on your credit card. So here's how to do it the rich life way. Define your real version of self-care. Maybe it's a massage, maybe it's getting your nails done, maybe it's working out at a particular gym. All of those are okay. If those are important to you, you've got to look at your conscious spending plan and decide where is the money coming from. Make a plan because the best way to enjoy self-care is to already have the money set aside. So when you go there, you can truly enjoy it. Now, if you're feeling a little uncomfortable watching this, good, I want that. It means we're getting somewhere.

Next, dumb, over-complicated, or sometimes cult-like investments. Well, there's a lot of complexity when it comes to personal finance. There's crypto, there's infinite banking, there's IUL, there's fire extremists, tax shelters. A lot of these strategies sound complicated and they are on purpose. That's because people can sell complexity. It's much harder to say, "Hey, why don't you pick a very simple index fund? It has a expense ratio of less than 0.1%, automate it and then get on with your life." Huh? That sounds too simple, bro. You must be trying to rip me off. No, your whole life insurance high school friend is the one trying to rip you off, but the guy telling you to pick low-cost index funds is not. Complexity is not a frequent strategy. It's a distraction. Ask anybody at the highest levels of any game. They will tell you the fundamentals are the things that matter. In fact, anyone who tells you that a specific investment is a sure win is probably lying to you. Anyone who tells you they can get you 20% returns is definitely lying to you. These tactics prey on people who feel behind and they are looking for a shortcut to catch up. Ironically, the very thing that led them to avoid working on money in the first place is the very thing that's going to allow them to become preyed upon by some scammer.

All right, also, it's not just the complicated products you need to watch out for. There are now apps that make it seem simple, like Robinhood, that are actually engineered to get you to trade. They gamify trading. Ooh, here's some free stock. Use it. They actually structurally design their apps to get you to trade way more often than you should. And it feels addictive. It feels really addictive, particularly for young men. This has become a source of entertainment. You want entertainment? Watch some TV. If you want to do it the right way, here's what you do. Stick with what works. Follow the ladder of investing. Max out your 401k match, Roth IRA. Automate your investments using things like an index fund or target date funds. You definitely don't need a dozen financial apps. You don't need a whiteboard full of crypto strategies. You don't need to pay yourself like a bank. It's all bullsh--. What you need to do is follow a simple plan that grows your money. Turn off all the noise. That is the way that I've accumulated a lot of wealth. That's the same way that so many of my readers have done exactly the same.

Number 12, personal finance apps that you don't understand that add more noise. You've got four apps trucking every penny, a spreadsheet with 19 tabs, 80 categories, and telling you which credit card to use for gas, Costco, Delta, eating out. Every single possible thing you could do under the sun. But you still have no idea where your money's going. You still have no idea the exact month and year you're gonna be debt free. You have no idea when you have a million dollars. You have no idea what to do with your money. That's not clarity, that's digital clutter. So let's fix this. Instead of an overly complicated spreadsheet that gives you a false sense of control over the world, why don't you just download my free conscious spending template. It's in the description below. Simplify your systems. You only need to track four key numbers, that's it. For most people with your system, that means one checking account, one savings account, one to two investment accounts, and at most, three credit cards. You track those four numbers that actually move the needle, fixed costs, investments, savings, and guilt-free spending, and then get on with your life. The simpler, the better.

This one's sneaky. Aspiration-fueled shopping. I always laugh about this because when I have seen houses on TV being sold, they have this deck, and the realtor always takes you outside and goes, "Look, you can have your coffee and watch the sunrise." Like, when was the last (beep) time you woke up and watched the sunrise in your backyard? Never, get real. Same thing with those bathtubs. Ooh, I want a bathtub, because then I'll soak. I love Epsom salt. $300 planner, $500 meal delivery service, $2,000 ergonomic desk chair. Let's get real, you're not buying that thing. You are buying the fantasy of a better version of yourself. We all joke about middle-aged men having a midlife crisis, buying a Porsche or whatever. They're not really buying the Porsche. They are buying who is inside of that Porsche in commercials. Now, I don't mind if you love a bathtub or you love a Porsche. What I want you to do is go deeper with these big purchases. Here's the move. Get honest with yourself. Do you already have what you need to take action? If yes, maybe you don't need to buy anything else. You wanna watch the sunrise? Go outside in your backyard. Sit on that uncomfortable brick. Take a pillow, put it on the brick. Oh, there you go. You have a beautiful deck. You wanna drive in a Porsche? Rent one for a day. God bless. If you like it, do it the next day. If you really like it, adjust your spending so that a year and a half from now, maybe you can afford it. Maybe five years from now. The point is we don't often need to buy something to get the experience we want.

By the way, if you've made it this far, I hope you can see. I'm not here to tell you to stop spending money on coffee every morning. You wanna do it? Great. You wanna buy a nice phone? Okay, do it. But what I am showing you are these potentially high impact ways that we spend money without even thinking about it. And maybe you've spent money on three things in this video, maybe more. Subscribe now and I will help you spend money in a way that is part of your rich life. And I'm never gonna tell you to cut back on coffee.

Part three, purchases that seem smart until you run the numbers. A lot of people believe these big ticket myths, but they are secretly costing you hundreds of thousands of dollars, even millions.

Number 14, treating your primary residence as an investment. Now buying a house is probably the biggest decision of your financial life, but that does not make it a good investment. Too many people convince themselves they are buying an investment, when in reality, they are buying a luxury. That's because they don't actually run the numbers on the biggest purchase of their life. Between mortgage interest, property taxes, maintenance fees, closing costs, and many other things, your house might be a great place to live, but it often is a way worse investment than you ever thought. Here's what I recommend you do. Get honest with yourself. Are you buying this house because it fits your rich life or because someone told you, renting is throwing money away. Guys, I've rented for over 20 years. I've made far more money renting and investing the difference than I would have made by owning. And that is true in San Francisco, Los Angeles, and New York. So what I want for you is to run the numbers. Start with the numbers, then consider the non-financial factors. Maybe it's living in a particular area or redecorating. If you're buying for lifestyle, fantastic, but you've got to run the numbers.

Here's a big one. Paying a financial advisor a percentage of your assets. Many financial advisors charge using a structure called AUM, assets under management. And it sounds quite harmless. It's often 1%. Doesn't sound like a lot, but let's run the numbers. If you invest $100,000 and that advisor takes 1%, that's $1,000 a year, not bad. But if that portfolio grows to $500,000, that same 1% becomes $5,000 a year. And over the course of your lifetime, listen closely, because this is where the math becomes highly counterintuitive. That 1% fee will grow and grow, and it will consume approximately 28% of your total returns, which can cost you hundreds of thousands of dollars. Do you understand what I'm saying? You've been over here price comparison shopping for the cheapest Ritz crackers. And meanwhile, silently, hundreds of thousands of dollars are getting siphoned away. And you didn't even know it. You thought 1%, oh, it's so nominal. I pay somebody to cut my grass. Why wouldn't I pay somebody to keep an eye on the market? Why don't you run the numbers? When you do, you will be shocked. Remember, financial advisors are not going to beat the market for you. That's not their purpose. They will even admit that. Most people have quite simple financial setups, and many of them can handle their own money on their own. Some people may at times need a financial advisor. I've hired one myself, but I would pay an hourly fee, not AUM. Just ask yourself, that $50,000 or $150,000 in fees you might pay over the course of your life, what could you do with that money? You could have used it to retire early. You could use it to take amazing vacations. There are so many things that you could do by keeping more of your own money. So here's what you do instead. Learn the basics of investing. You can use low cost index funds or target date funds from great companies like Vanguard, Fidelity, or Schwab. Automate your monthly contributions. And if you do want personalized advice, you can pay an advisor by the hour or per project, but not a lifetime commission on your net worth.

Next up, home renovations you assume will pay off. Americans are delusional. They literally believe that if they renovate their house, they will simply get all the money back. Hey honey, I'm going to build a basement. It's gonna cost $50,000. Oops, 75, because I forgot to factor in all this other stuff. But don't worry, babe, it's an investment. How much HGTV have you been watching? Most renovations do not pay for themselves. They are not an investment. They are a pure luxury. They're an emotional decision wrapped up in financial justifications. Come to think of it, that's actually how most luxuries are in America. Because Americans hate to admit that they actually love paying for luxuries, so they always wrap it around as an investment. Why don't you guys stop lying to yourselves and just tell the truth? I want a basement or I want to add a wall here. Okay, because once you did that, you would actually have to change the way that you spend money. Here's the rich life approach. Renovate for joy, not ROI. You want a nice faucet? Go for it, but just admit we're doing it because we want it. And therefore, if you admit that it's a luxury and probably not an investment, you would probably not take out freaking debt to pay for a renovation, which I find mind-boggling. That is absolutely insane. You would also make sure that you can afford it. You would save for months, often years, before you ever renovate anything.

Number 17, using your credit card to earn rewards to justify overspending. How many people have I talked to who are in credit card debt? I'm talking tens of thousands of dollars of credit card debt. And I go, "Hey, how come you keep spending "on this credit card?" And they look at me like I'm insane. They go, "For the points." I know what I'm talking about when it comes to credit card rewards. Paying 27% interest to get points that are worth about a penny is like stepping over $100 bills to pick up a fraction of a cent. And yet so many people find this completely logical. They go, "It's for the rewards, bro." Listen, bro, let's fix this. Here's what you do. Set a simple rule. Pay off your balance in full every month non-negotiable. If you have credit card debt, it's time to use my book. Create a debt payoff plan. Once that's locked in, then and only then should you be optimizing for points, perks, and cashback.

Okay, let's talk about this one. Whole life insurance and infinite banking. You know, Americans love fairy tales. Not just the fairy tales that we read to children, but they love to create their own fairy tales and pretend that they are wealthy. That is why they try to emulate the wealthy with things like, "Oh, hey, everybody. I can go direct to this factory in China and buy what they're doing exactly at the stores on Rodeo." No, you can't. Wait till you get the pants. They look like (beep) And Americans love to pursue highly complex investment strategies. Thinking that if wealthy people do it, now I have access to it as well. Can I tell you guys how it actually works? In reality, most of these alternative investments are complex high commission products that most people don't need. The fees are huge. The returns are underwhelming. The people pushing them basically often have a high school diploma, and they rarely disclose how much they're profiting off of your confusion. Also, one last thing that might shock you. Wealthy people are not particularly smart at investing. Do you know how many wealthy people pay 1.5% to a hedge fund that gets them returns worse than a Vanguard fund? You all need to stop trying to pretend that you are ultra high net worth and do what I recommend instead. For insurance, stick to term life insurance. It's simple, affordable, it protects your loved ones. That's all you need. And insurance is insurance. It's not an investment.

Next up, online courses or conferences that you don't actually implement. I know you had the best intention. You signed up, you watched a few modules, but now the course is there collecting digital dust and your credit card balance is still there. Buying education is not the same as taking action. And if you're in credit card debt, you probably have no business signing up for another course. Also, can I admit that I've done this? The only time I've ever bought something on Instagram was I saw an ad for men who have tight hips and how to stretch. I was like, was this created for me? I freaking clicked it. I read the entire sales page. I'm like, I need this stretching course. It's gonna show me how to stretch my hip flexors. I bought it, never logged in. I'll tell you though, I felt really good. I'm like, I'm the kind of person who puts money aside to improve their hip flexibility. Well, I probably should have just never bought it at all. Okay, a smarter move would have been finish what you already paid for. If I'm already going to the gym, why don't I use some free stretches and first prove that I can actually follow through on free stretches. Then if I wanna get even better, then I can afford something more premium. In fact, for my premium courses, the flagship ones, I actually don't allow anyone to buy them if they still have credit card debt. That costs me millions and millions of dollars. Why? Because you need to first prioritize getting out of debt, not adding more potential solutions. So take action first. Results come from implementation, not inspiration.

Number 20, status credit cards or airline loyalty programs when you don't actually use the benefits. I know everybody loves these thick metal cards, another way that Americans love to pretend, act like they're wealthy. Lounge access, concierge service, priority boarding. Okay, some of those are pretty cool, I'm gonna admit. But if you're not actually using the perks, soften just an expensive ego boost. And that annual fee can add up and it could be redirected to something you actually care about. So if you wanna do the right way, here's what you do. Once a year, audit your benefits. Are you actually using the travel credits, the lounge access, the free hotel nights? If not, don't feel like you have to stick with it. Downgrade to a no fee card, stop paying for the status you don't use. If it's 300, 500, $700 a year, just to feel important at a gate twice, maybe it's not worth it. Take that money, put it somewhere else that you would better value.

Now, some of these things, you'll cut immediately. Others, you'll actually realize you love it and you wanna keep it. That's the point. I'm not here to tell you to stop spending on everything. I want you to spend intentionally and actually spend more on the things you love. Because you'll be amazed at how rich your life becomes when you intentionally direct your money where you actually want it to go. And once you've cut the waste, you'll wanna know how to make the most out of your freed up cash. So watch this video next, how to have better finances than 95% of people in three months. That is your roadmap to finally taking control and building your rich life starting today.