For many of us, money is a big topic in our life. Particularly if you don’t have enough to just forget about it. It is vital to be clear about the things you shouldn’t spend money on in that situation.
When I started this business, I was still studying at uni and had no income. In a situation like that you have to be very intentional with your spending.
That’s why I want to share with you the 11 things I did not spend money on when I couldn’t afford it.
These are things that I know other people who are in a similar financial position are spending money on, so chances are high you might be doing it as well.
Read the list with an open mind and be honest with yourself if these are expenses you could cut out of your life until the income flows more steadily.
Read also: 11 Ways To Spend Your Money Wisely
Now, let’s get into it!
1. Cars + fuel
Now, there is something you need to know about me.
I LOVE driving! And I mean, LOVE!
So unsurprisingly, I also adore fast and luxurious cars. Honestly, my car, even though it is “just” a VW Polo, is one of the biggest joys in my life.
Still, as much as I love driving and cars, I don’t spend more money on them then I can afford.
Interestingly enough, I’ve noticed that the parking spots of both of the factories I’ve worked in over the years are full of fancy and tuned cars.
Now, I am aware that you can buy them used and then pay off the price monthly so that the price is smaller than one would think.
Still, from my experience, factory workers are not the best-paid employees out there.
Some do get a decent income but, in my opinion, still not enough to be able to afford to put money into a car that loses its worth with every passing day.
Those seem to be people who don’t plan or work towards a financially better future. Otherwise, that money would be going into investments or savings.
Another thing is fuel. For obvious environmental reasons, you shouldn’t burn much of it.
But also the financial reasons are noteworthy. Fuel is expensive! I really don’t drive much because I don’t have many places to be at, and if I do, they are close by. But even I spend around 50€ a month on fuel.
And if I think back to my last year in school, when all the 18-year-olds one after the other got cars. I remember hearing from some people how much they’ve already driven in one week. It was more than I had driven in two months!!!
And I can assure you it was just for the fun of driving around – which again, I LOVE as well, but not at the expense of my bank account and the environment.
So I urge you to carefully consider what car you get yourself and how much you drive with it. I’m sure there is money to be saved there.
2. Subscriptions
One thing that always makes alarm clocks go off in my head are subscriptions.
It’s one thing to spend your money on something once. It’s an entirely different thing to spend that money each month again and again.
Even though it might not seem like a lot, it will easily compile over the time of a year. In the end, you could have used that money for a business course or tool that could have brought you closer to financial freedom.
If I purchase subscriptions for non-work-related reasons, they are always such that can be canceled at any time.
I often cancel them immediately after subscribing so that I don’t forget about it at the end of the month.
Take a look at your finances. Are there subscriptions that cost you each month? Do you need them?
3. Skincare + Haircare products
I am a curly girl, and I have acne-prone skin. Combined, these things mean I could spend a FORTUNE on skincare and haircare products if I had the financial means to do so.
I regularly find myself researching for better products only to end up finding +20€ products.
Now, this topic has the same problem as the subscription topic has. Cosmetic products are rarely a one time expense.
You have to buy them, again and again, every few months.
If you don’t buy them all simultaneously, you might not realize how expensive they actually are.
But let’s say I buy a cleanser, a toner, and a moisturizer for each 20€ that’s 60€. And over a year, I might have to rebuy them once or twice, so that makes 120-180€ a year for cosmetics.
And that doesn’t even include haircare or makeup products!
I really get the urge of wanting to buy the best products out there. But you have to make a sacrifice if you want to save money in favor of your long-term goal of financial freedom.
Also, you might be surprised at how good cheap products can be.
In recent months, I’ve made an effort to look for non-toxic, ethical, and sustainable products – so products that are vegan, not pore-clogging, have recycled bottles, don’t have microplastic, alcohols, sulfates, parabens, are cruelty-free, and more of these good things.
To my utter surprise, I found products that fit these categories and are incredibly cheap. Like, I’m talking below 10€ if not even below 5€ cheap!
Now, usually, I do believe that quality has a price. Still, I’ve done a lot of research, and these cheap products seem to be much better than the pricier alternatives.
So take some time and do research on cheaper products that fit your needs. You might be surprised what you can find.
4. Premium plans
I know that premium plans often fall under the category of subscriptions mentioned under No. 2.
However, I thought that they deserved a special mentioning because it is a topic worth considering separately.
Premium plans promise you more features compared to the free or limited plans.
“More” always sounds good to us but realistically speaking, more really isn’t necessary most of the time.
I, for example, am still using the free Spotify plan. Why? Well, I mostly use Spotify on my computer at home, so I don’t need the download function most of the time.
And sure, the ads can be annoying, but they don’t bother me too much, so I might as well save myself those additional expenses.
Other examples of premium plans I don’t spend money on are Tailwind and MailerLite.
Each of their premium plans would be nice to have, but if I’m honest, they won’t make a big difference, so I don’t spend money on them.
What premium plans are you spending money on that you might not need?
5. Alkohol + Cigarettes
It’s one thing to waste your money on an unnecessary luxury. But it is an entirely different thing to waste money on something that actually hurts you!
It’s like paying someone to punch you in the face. Why would you even do that?
Sure there might be some short-term benefits from purchasing alcohol and cigarettes. Still, they seem so minuscule compared to the big picture.
If you can’t (read: are not disciplined enough or lack the motivation) to live without them, then at least reduce the amount you consume.
You will be doing yourself not just a financial but also health-wise a favor.
6. The newest phones, tablets, video games, etc.
Each year brings new technological advancements and the latest version of phones, tablets, videogames, etc.
Not rarely do people jump into the bandwagon and buy the newest version of their phone or tablet.
Yet, most of the time, the new technological advantages compared to the old version are simply not worth their price.
Do you really need that slightly better camera or that slightly faster speed? Would you even notice or use it?
And do you have to buy that game the moment of its release, or could you wait 6 months until the price is slightly reduced?
There is a lot of money to be saved if you don’t pursue the newest shiny object.
7. Shipping + Returns
Online shopping is fantastic! You can do it from the comfort of your own home, and you have access to more shops than you could ever find in one place.
However, I know how easy it is to come across shops that are based outside of your country.
If you’re lucky, they offer free shipping. If not, depending on what you want to buy, you might even consider paying the shipping fee.
But careful! How often do you return parts of your order? If it’s clothing, I almost always return half of it.
That means you have to pay for the return shipment as well.
That can get very expensive very quickly.
You should carefully consider if the things you are ordering are worth those expenses.
For me, the answer has pretty much always been no. I only order in shops that offer free shipping and returns.
Even though I fall in love regularly with shops that don’t offer this. And as painful as it is to forget about them, it benefits my wallet.
8. Quick fixes
Suppose someone offers you a product or service that will solve a problem you have (e. g. losing weight, building a business) seemingly overnight or in any ridiculously short time span. In that case, all of your alarm clocks should go off.
In life, there are rarely quick fixes for any problem you have. And if they actually do fix your issue, then chances are high it isn’t a long-term solution.
Quality solutions take time. Therefore don’t waste your money on courses, tools, mentors, or other products and services that make wild promises.
In my experience, you should trust your gut. Take your time to get to know the person behind the product or service. Consume their free content if they have any.
If you feel like you can trust them after a few days or weeks, and you still want that product/service, then go for it.
But don’t spontaneously buy into quick fixes!
Read also: 6 Personal Growth Courses I Want To Take
9. Stocks, Bonds and Cryptocurrency
By now, everyone knows that there is money to be earned on the stock market. That’s why so many people jump into it.
However, the stock market is incredibly complex. You need to have a well-thought-through strategy in place to not lose your money.
Books like Money: Master The Game (see also on my Reading List for Personal Growth) can be a great guide.
Still, I believe it’s wise to hire someone with experience and expertise to look after your investments and counsel you through it all.
Finding the right person to do that is a challenge in itself, considering the multitude of offers on the market. Money: Master The Game gives you some tips on that as well.
Until you find someone, or at least until you have in-depth studied the topic, I believe it wise to save your money instead of potentially losing it through a bad investment.
10. Rental car upgrades
Ok, so this is a fantastic life hack I’ve learned early on.
If you travel to a foreign country and you reserved a rental car for yourself, always turn down the upgrades the guy from the rental car service offers you.
It happened multiple times to my family that the car we had actually rented wasn’t available anymore. So the rental car guy wanted to lure us into paying for a car with better features.
He kept proposing multiple upgrades, but after we had denied them all, he had to relent and tell us that because our car wasn’t available anymore, they had to give us a better car without any additional costs!
Obviously, they can’t give you less than what you reserved just because they failed to keep the car available. So in the end, they’ll give you a better car.
You wouldn’t believe what a fantastic car we once received because of that! It was honestly amazing. And we didn’t pay a cent more than for the cheaper version we had reserved.
Also, if they don’t offer you something amazing, you could still go back and agree to any of the suggested upgrades if you want to. They’ll certainly won’t stop you from paying more.
11. Cheap jewelry
There are so many gorgeous necklaces, rings, earrings, bracelets, and more to buy online.
There is only one issue. Most of them are made of cheap material that oxygenates with time.
This is frustrating. Finally, you’ve found a necklace you love, and you start wearing it regularly only to see it going all black a few months down the line.
Instead of keeping buying cheap jewelry with a short life span, invest in real gold or gold plated jewelry, which can last you years if not decades to come.
That is spending your money wisely.
Alright, there you have it. 11 Things to not spend your money on.
Do you have any additional recommendations? Comment down below!
Until next time.
Sophie
