My journey from $300,000 in debt to self-made billionaire status has taught me one important lesson: I wasn’t destitute because I didn’t have enough money at the time; rather, I felt broke because I overspent on items that weren’t in line with my financial and health objectives.
I do spend money on things that I enjoy. I enjoy both a well-earned vacation and a fantastic K-pop concert. However, I am also aware that cutting back on wasteful spending in some areas frees up funds for investments, financial stability, and truly joyful experiences.I used to splurge on these six items, which I believe Americans waste too much money on. And now, this is what I do instead.
1. Shopping for groceries in bulk (which is thrown out)
You can save money by buying in bulk, but only if you plan to eat everything you purchase. Let’s be honest. How often have you purchased a large bag of spinach just to discard half of it a week later?
If you throw away half of what you bought for, you’re not getting a good deal.
Even though the bag of avocados or kiwis was less expensive per item at the bulk price, I couldn’t finish them, so I now buy produce every week.
2. Seasonally appropriate decorative home goods
I can appreciate the temptation to visit TJ Maxx and get a new wreath and set of ornamental pillows for each holiday. However, rather than investing in décor that will soon become outdated, try to get classic, high-quality house basics and mix things up with simple, low-cost accents like flowers or candles.
It doesn’t have to be seasonal; I move picture frames and concert memorabilia about my house to give it a new vibe. My revolving display of Broadway playbills has also received a lot of praise.
3. Toys for kids
More often than not, children play with the packaging rather than the actual product. I’ve witnessed parents shell out hundreds or even thousands of dollars for toys that their children get bored of in a matter of weeks.
Less is more. Prioritize experiences over material possessions and rotate toys rather than purchasing new ones.
Let your family members help out if the kids need toys. As an aunt without children of my own, I’m more than happy to occasionally purchase a toy for my nieces and nephews so that their parents can use the money for other needs.
4. Footwear that is unhealthy
I admit to purchasing several pairs of shoes that are stunning but feel like torture devices from the Middle Ages. I no longer purchase shoes that I will only wear once, don’t fit, or don’t support my feet.
A closet full of uncomfortable shoes won’t go you as far as a few well-made, comfy pairs.
One excellent item to use the $1 rule on is shoes: I believe it’s worth the investment to spend $100 on a pair of high-quality shoes that you can wear 100 times, as opposed to a pair of cheap shoes that you’ll use only seldom.
5. Expensive skincare items
The beauty business uses marketing hype to convince individuals that they need a 12-step program and expensive serums. I discovered this the hard way after falling for the K-beauty fad and purchasing a variety of serums and masks before returning to my somewhat less glitzy regimen of using face cleanser and moisturizer from the drugstore.
Use only effective, basic products that have been recommended by dermatologists. Both your skin and your pocketbook will appreciate it.
6. Expensive sportswear
The free t-shirts and $15 warehouse leggings I got are on par with the $100 Lululemon ones. Wearing a fancy garment doesn’t make you perform push-ups, but many love to defend pricey sportswear by claiming it inspires them to work out.
Ironically, I’ve discovered that wearing less expensive clothes improves my exercises because they tend to breathe better because they’re typically looser and composed of natural fiber rather than flashy stuff. I am more concerned with the exercise than with my appearance when I am dressed in clothes I don’t really care about.Invest in functional, not fashionable, exercise equipment. Prioritize comfort and quality over brand names.
Reorganize your priorities to save more money.
In the end, I’m not proposing that living like a monk or giving up all fun makes sense. Start thinking about whether these quick dopamine boosts are actually saving you money over time, though, if you want to accumulate wealth.
Whether it’s for debt repayment, investment growth, or financing a peaceful life, every dollar you don’t spend is a dollar you don’t have to labor for.