What Are The Stupidest Things People Overspend On?
There are so many ways to be rich, like starting a profitable business, getting a high-paying job, investing, trading after learning, etc. but in this article, I will teach you how you can be rich by controlling your expenses.
If you researched, imagined, or thought deeply about how some people are rich and some poor have about the same income. It becomes possible when a person controls expenses and creates a budget, but the others spend without any limit, and planning and budgeting.
Without writing or making a budget people overspend on many stupid things that are not for their needs. They overspend on these stupid things due to marketing trends, social media, promotions, offers, etc.
To avoid overspend you have to learn what are the stupidest things people overspend on and why. How to avoid it.
1. LATE PAYMENT FEES
Late payment fees are at the top of the list where people overspend. If you plan your daily life you can avoid late payment fees easily. Mostly people pay lately when they forget to pay on or before the due date. They have cash or balance in their bank accounts but don’t have time to pay.
The second reason for the late payment fees is people receive their receivables after the due dates. They expect that the borrower will pay on time and they plan these receivables for further payment without any gap. As a result, they have to pay late fees.
Many receivers charge so many fees after the due date, sometimes double or triple the actual fees. Many payments are necessary, without these payments we can’t survive or have a large loss. Mostly these are educational payments of students, bank loans, insurance, utility bills, hospital charges, postpaid phones, internet bills, etc.
We can avoid these late payment fees when we start properly making a budget and planning our daily routine. These are not a time-consuming and energy-taking process. Nowadays it’s more easy due to technology. Many online apps are available that plan our payments, budget, and daily routine. You have to build a habit, and routine for it.
2. BANK FEES
We receive and send online payments for our day-to-day routine for business and personal requirements. We also required bank statements, checkbooks, ATMs, and other cards, etc. from banks. Most of the banks receive fees for all and for some of it.
We thought this was not a huge amount, but when we calculate our annual bank fees it might be a large amount. We can purchase other most valuable items for this wasted money.
To avoid these fees you should research banking and bank products. Many banks and many accounts provide these services free of cost. If you choose these banks, you can save a lot of your hard-earned money.
3. CREDIT CARD COSTS.
Credit card costs are not considerable for many people, because they don’t know the calculation or they don’t have knowledge of personal finance. People purchase from credit cards without any need to fulfill their desires. They can purchase the same items after a few days of receiving their salary or income.
Marketing trends, promotions, and offers of different stupidest things along with credit cards also play an important role in using, and expending credit cards and getting credits/loans on credit cards with huge interests.
If you want to save money avoid credit cards, even these are providing discounts. Credit cards will charge the same discounts from you but in other shapes. They want to change your habits by providing discounts in the beginning.
4. STREAMING SERVICES
Getting paid subscriptions of YouTube, Netflix, HBO, Showtime, Hulu, Roku, Amazon Prime, etc. for a middle-class person is not understood. You should get only one of them for learning or enjoying or whatever you want. Many people subscribe to other paid services only for one program, show, drama, or series. You should choose the best one for paid subscriptions.
These paid subscriptions also waste your precious time along with hard-earned money. Research before payment for any of them, where you would learn, enjoy, entertain, etc.
These all services have about the same type of shows and series, but with different characters, names, actors, and actresses. Make a list of what you want to watch, if you want movies and series then subscribe to Netflix, but if something other that are not available on Netflix then choose another option.
To save your precious time and money, try to subscribe to only one of them. Choose the networks where you can learn something new along with entertainment. Subscribing more than one or two streaming services is the stupidest thing people overpaid for.
5. STAYING CONNECTED TO CABLE
Most people stay connected to cable to watch news, series, dramas, and movies, with their families. But they also subscribe to many other paid services like YouTube, Netflix, HBO, Showtime, Hulu, Roku, Amazon Prime, etc. for their personal use. They don’t know if they can connect their mobile to the TV to watch in groups or with families.
Nowadays, almost every TV, LCD, LED or other device has options for connecting with mobile phones, laptops, or tablets. You should avoid double payment to subscribe to streaming services for yourself and cable TV for your family or group.
You can invest this saved money from charges in any profitable scheme every month to know the value and to earn more. This little investment can make you rich but you have to learn to avoid overspending on many stupidest things and investing.
6. GREETING CARDS
People mostly purchase greeting cards for their loved ones on birthdays, anniversaries, patients, promotions, getting success, getting degrees, purchasing luxury homes or vehicles, etc. This is a very profitable and expanded industry. They realize people in their ads, promotions, and offers that providing a greeting card at every event for their loved ones is necessary.
Companies decorate greeting cards with graphics, catchy words, and styling writings. But in reality, these greeting cards put no value in the lives of your loved ones. So, you should avoid presenting greeting cards by replacing any other precious gifts. You can present a book to students or learners, medicines or fruits to patients, sceneries to new houses or business owners, clothes, shoes, or any valuable gift to anyone at any event.
When you start providing beneficial gifts to your loved one, in return they will also do the same. These traditions will input values in everyone’s life and people will also save a lot of money that they overspend on the stupidest things.
7. INSISTING ON LAVISH WEDDINGS
The stupidest thing people overspend on is also a lavish wedding. People invite a lot of guests and purchase flowers, food, luxury clothes, luxury shoes, gifts, greeting cards, etc. These all are expandable items. You can’t use them next time.
So, if you want to save money and want to be rich. Reduce overspending on your wedding. Purchase the clothes and shoes that you can use at some other events. Reduce the list of guests, and the quantity of flowers, vases, greeting cards, and decoration items.
8. GYM MEMBERSHIPS
If you want to build muscle or you want to be a bodybuilder then gym membership, coach fees, and nutrition expenses a best for you but if you stay healthy then gym membership is more costly. If your family have 4 to 7 member and the monthly gym membership is around $300 to $500, calculate how much you will spend on the gym.
If you receive coaching along with a gym membership and other nutrition items you will pay more than your monthly investments or savings. You can save the gym membership money if you start the workout at home. You have to receive advice once from any workout expert, note it, and start working at home with all your family.
You can also get advice online from your favorite exercise or workout expert for a little fee. It will keep you and your family healthy, fit, and stronger. If you want to be healthier and stronger, start the workout, yoga, walking, and running near a natural environment.
These all practices are more beneficial for you and your family’s health and for your finances.
9. BRAND NAME ITEMS
People also overspend money on purchasing branded items or replicas of branded items to show or impress other people. These branded and replicas are very costly. They can fulfill their need for very cheap items. These cheap items have the same qualities and are mostly better than branded items.
You don’t require impressing other people; they always remain in search of faults in your personality. You should focus on achieving success, and when you will be successful; they all will automatically impressed by you. They will not judge what are you wearing, or how costly are you wearing.
Success does not require any brand but it requires hard and smart work, punctuality, consistency, loyalty, time management, and continued learning. Therefore, don’t overspend your hard-earned money on these branded stupidest things.
10. FALSE ECONOMY OFFERS
Many investment companies and institutes have strong marketing networks and teams, and they show their products are the best in the world, you will be rich if you invest in their defined products otherwise you will bear a huge loss.
But in reality, they don’t have so many profitable products or investment, they want to earn money on your investment and their expert marketing team also collect large amount as commission from your investments.
You should research before to be a member or investor in any investment institute. The best options for investment for everyone are stocks, real estate, businesses, and learning. Take as many benefits from them as you can and avoid overspending on the stupidest things like false economy offers.
11. BETTING ON LOTTERY TICKETS / GAMBLING.
Many people bet, purchase lotteries, and gamble in casinos or anywhere else, in the hope they will be rich. But these all schemes are to get your money in many forms. They accumulate money from your pocket as commissions, charges, fees, and taxes, and also don’t let you win.
If you want to be rich in real, invest your money in stocks, real estate, and businesses rather than betting, lotteries, and gambling. As per many studies the people who win the lotteries of huge amounts, lose their money in the next few years.
The lottery or bet winner never remains rich, they have no any knowledge of self-finance, investing, saving, etc. they have only greed and procrastination. They want to be rich in easy ways, but studies and research vivid that no one can become or remain rich with these schemes. Lotteries, betting, and gambling are the stupidest things people overspend on.
12. FOOD DELIVERY AND EATING OUT
The food industry is in profit due to only people prefer to eat out and get food to homes by delivery. They don’t know that they are ruining their health along with their income.
You don’t how the food is cooked that you are eating. Mostly they cook in cheap oil, reused oil, and other cheap products to enhance their profits. They also include so many chemicals, and processed items to make these foods tasty.
Foods from outside homes are the stupidest things people overspend on. If you want to stay healthy and also want to save your money avoid eating out or purchasing cooked foods by home delivery options. These all are the same. You should cook at home with your family members to enjoy, being healthy and to save money.
13. SPECIAL OFFERS
Special offers are the best trap to snatch money from people’s pockets. When people look at offers, the shopkeepers are offering buy one and get one or branded items at lower prices, people don’t hesitate to purchase without any requirements of the products.
Most of the time, they don’t use these purchased items on offer or use them frequently. If you want to save your hard-earned money you should avoid these offers or purchase if you only have requirements to take more advantages.
Special offers are also the stupidest things people overspend on. Many studies declared that most ladies prefer purchasing from special offers to gents.
Therefore, all financial experts emphasize writing down your income and expenses or making a budget. When you make a budget, list of your required products, you will avoid these offers if they don’t exist in your budget or required list.
14. BUYING THE CHEAPEST OPTION
Many people purchase the cheapest products to save money, but they don’t know the cheapest products have low quality; they will repurchase the same after a few days. If they purchase the best quality product at a high price, they will benefit from them for years.
For example, you require a bicycle and you have many options of selecting it from $1000 to $5000. You should focus on quality rather than brand and prices. You can use one bicycle for your whole life but if you purchase low-quality you will repair it every few days and also purchase new one after a few months or years.
Buying the cheapest option is the stupidest thing people overspend on and repurchase the same thing again and again. Save your money to invest in the best option rather than spending on the same product again and again.
15. UNNECESSARY GROCERIES
Groceries are necessary for livelihood, but when a person visits a store or mart then he purchases more than routine or planned. The stores or marts are designed to sell more and more. A layman can’t control himself by purchasing more when looking into new and fancy items.
To control extra buying, you should create a list of required groceries with quantity. Don’t purchase over and above the list or budget. Before purchasing any items excluding the list and budget, you should think about the need and the importance of that item.
Purchase only necessary grocery items and avoid lavish items. You wouldn’t use these lavish items and these will be perished after a few days or months. These lavish groceries are the stupidest things people overspend on.
16. PAPER TOWELS & WASHCLOTHS
Paper towels and washcloths are also the stupidest things people overspend on because these are for one-time use. Experts are designed for traveling or staying away from homes or hotels like hills, parks, spaces, ships, and boats for any reason. But nowadays, people started to use them at homes, hotels, or farmhouses.
Paper towels are costly, people can’t afford them to belong to middle-class income but the richest people can afford and they also have to avoid them to save more money. We all should use cloth towels and proper washable items in homes, or any comfortable places.
17. HOTEL STAYS
Hotel stays are at the top of the list of the stupidest things people overspend on. People who have low incomes also stay in luxury hotels and spend more than their monthly income in a few days. But they have so many options to stay in low-priced hotels, guestrooms, and hostels.
To visit any other country or city is a need that we can’t avoid but we can avoid luxury hotels, and luxury foods while staying far from home. We can save a lot of money and can invest it in profitable places to increase more and for our future.
18. BUYING UNNECESSARY BABY STUFF
Most of the time mother purchase a lot of items for their babies that don’t require in serious; these are all luxury or spare items. Mothers use this stuff for babies seldom. This unnecessary stuff is spare clothes, spare shoes, luxury jewelry, luxury toys, and so on.
If you want to be rich avoid this unnecessary baby stuff. Invest this saved money into the future of the same baby. Unnecessary baby stuff is the stupidest thing people overspend on. Babies don’t require this unnecessary stuff but require money for their future education and business that you can provide them if you will save if you will invest, and if you will avoid overspending.
19. OVER INSURANCE
Insurance is necessary to provide financial support to dependable family members when a leader of the family expires gets serious disability, or isn’t able to earn for their family. But people purchase insurance policies without research and overspend on it.
All the products and insurance companies do not provide benefits; most of them charge high commissions and fees that you don’t know. Most of the insurance is not us but the insurance agents, and representatives sell to laymen due to lake of knowledge about insurance.
Choose only one insurance policy for you to avoid fees, commissions, and charges. But if you want to save money or invest to grow don’t invest in insurance companies’ products. Invest in real estate or stock exchanges to grow rapidly and where commissions and fees are also less than insurance or other financial institutions.
More insurance policies and less beneficial policies are the stupidest things people overspend on.
20. LUXURY HOMES, CARS, AND PHONES
Luxury homes, cars, and phones are also the stupidest things people overspend on. People can save and invest this overspending money for their future. This money should be invested in businesses rather than luxuries homes, cars, and phones.
According to Robert Kiyosaki a finance expert and teacher, the more homes, cars phones, and luxury homes cars are not assets but all liabilities because we regularly spend on them to maintain them.
Which required regular expenses and did not provide any extra income is not assets. You should purchase assets rather than liabilities. Assets are those earned for us but liabilities are those that require expenses from us.
CONCLUSION
As mentioned all the things are the stupidest that people overspend on but there are so many others also available which I will mention in another article. You should think deeply before purchasing these types of stupid things to save money and to be rich. Whether you can survive or live without these stupidest things or not? These stupidest things also encircle large spaces of our houses or stores.
These small savings can make rich any person.
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