21 Things Broke People Waste Money On

• Today, we're breaking down 21 things broke people waste money on.
• Avoid impulse purchases and focus on financial goals.
• Save on dining out and meal prep for better savings.
• Cut unnecessary expenses like designer clothes and extended warranties.
• Rethink subscriptions and stick to a budget-friendly lifestyle.

[Music] today we're breaking down 21 things broke people waste money on so you can avoid them.

Now see if you can like and subscribe before I get started... too late!

Number one, you missed your chance. Just kidding! You can still click it. I'll wait. Just kidding—we're getting started!

First thing that broke people waste money on: impulse purchases.

We've all been there. You're in line, suddenly that pack of DoubleMint or those limited edition pumpkin candies find their way into your cart. No big deal, right?

But here's the thing: impulse purchases add up fast. In fact, Americans waste almost $2,000 a year on them. A few bucks here, a few bucks there—here a buck, there a buck, everywhere a buck buck. Old McDonald had a farm, but now he's bankrupt!

Think about it this way: every impulse purchase is robbing your future self. Even a mere $6 a day in impulse buys becomes over two grand a year that you could have put toward your financial goals, like crushing debt or building your emergency fund.

So next time you're tempted by an impulse purchase, ask yourself: is this worth delaying my financial goals? I hope the answer is no.

Number two, eating out.

I get it—meal prepping is not glamorous, and it's easier to fire up the old DoorDash for a two-piece battered cod, clam strips, and some hush puppies.

But here's the kicker: the average American drops around $3,600 a year on eating out. You're just helping old Long John Silver make some Long John gold.

Now, your money should reflect your priorities. If you're prioritizing saving 20 minutes on the effort it takes to put on pants over reaching your financial goals, I would encourage you to do some self-reflection.

Number three, paying credit card interest.

This is one of the most common things that broke people waste money on: paying for something you bought months ago and paying more for it. It's like running a race where the finish line keeps moving further away thanks to a 22% APR.

That $30 vegan pistachio candle you bought on sale now costs you $40 thanks to interest. And by the way, pistachios are naturally vegan—okay, you don't have to say it, it's redundant!

Every dollar you pay in interest is a dollar spent paying for the past instead of building for the future. You’ve got to choose whether you're going to pay interest or earn it, and I hope you choose wisely.

Number four, in-app and in-game purchases (a.k.a. microtransactions).

Oh, it's just 2,000 V-Bucks for this Fortnite skin or just $5 for some bonus coins. Well, these microtransactions might seem harmless, but they're designed to be sneaky and addictive.

Suddenly, you spent $75 on digital extras for a game because you couldn't decide if you wanted to look like Peely or Meel—obviously, Peely is the right choice here.

Not to mention that it adds zero tangible benefit to your life. These little money leaks are an easy trap to fall into, so before you click buy, remember: games should be fun, not a drain on your bank account.

Number five, crappy insurance.

Paying way too much for insurance or paying for insurance you don't need is a waste of money, and the worst part is it's actually really easy to get exactly the coverage you need for the best price.

You've got to work with an independent insurance broker, and they can help you shop around to the top companies. If you want help with this, I’ll drop a link below to a free 5-minute quiz to make sure you know what insurance to add, tweak, or drop.

Number six, buying expensive cars.

This is the telltale sign of being fake rich and real broke. Rolling up in your Cybertruck might make you feel like you've made it, but what you've really done is locked yourself into a massive monthly payment for the next six years of your life.

Not to mention the second you drive that new car off the lot, the car's value drops faster than Tesla's stock when Elon tweets pretty much anything.

And here's the truth: actual millionaires drive used, reliable cars. They know that buying used and reliable instead of new is the better money move. So if you want to build wealth, stop impressing people with your car payment and start driving something you own—not something that owns you.

Number seven, little treats.

I mean, who doesn't love a little treat? You've been good all week, you worked hard, and you decide to reward yourself with that pumpkin spice latte or that pint of Cherry Garcia.

Let’s be real: small indulgences here and there aren't evil, but there's a difference between an occasional indulgence and a bad habit. It's about being disciplined so you can enjoy and chase after the American dream and not wind up broke.

Number eight, designer clothing.

Now we all love a fresh fit, but dropping $300 on Air Jordan 7 J2K filberts or $500 on a Gucci belt certainly is not getting you any ROI.

Now, sure, you might feel cool for a minute, but that logo is not going to pay for your CPAP and retirement. So if you're spending more on clothes than on your financial goals, it's time to reassess your life choices.

And that goes for you babies out there too, if you're watching, because number nine is designer baby clothes.

Listen, your baby doesn't care if they're wearing Burberry or something from Target. It's just going to end up covered in yogurt melts and poop either way.

So instead of shelling out cash for designer baby gear, focus on saving for things that will actually matter, like, I don't know, their college fund. No more broke babies bundled in bamboo bodysuits, and that's enough bees for one day—I’m done!

Number ten, expensive phone plans.

Get this: the average monthly phone plan is $141, according to JD Power and his associates. But what if I told you you could save 83% on your phone plan by switching to T?

Not rhetorical—it's not theoretical!

T's unlimited everything plan is just $25, and you didn't hear from me, but they have amazing coverage thanks to piggybacking on T-Mobile's incredible network. And they’ve got plans as low as $5 if Grandma doesn't need all those minutes!

Plus, there’s no contracts. You can upgrade or downgrade whenever you want. You can get $5 off your first month of unlimited everything by going to t.com/Jorge or by clicking the link in the description below.

Oh, and here's a bonus money waster: financing your freaking phone. Okay, that is debt in a terrible disguise!

I know a fake mustache when I see one. As long as you have a phone payment attached to that phone plan, you are in a tiny cellular prison. That’s how they get you. If you’re financing a phone, then you got got—pay in full!

Number eleven: banking fees.

Overdraft fees, maintenance fees, minimum balance fees—oh, the banks love their fees! Why would you pay more money to use your money?

Stop it! It's time to switch to using a high-yield savings account like the one offered by Laurel Road, another sponsor of today's video.

With their savings account, you can earn over 4% APY with no minimum balance, no minimum deposit, and no stupid monthly maintenance fees. Basically, it's one of the easiest ways to make your money work for you.

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Number twelve: vices.

If it's behind the counter at a gas station, it's a horrible money suck. I'm talking cigarettes, vape pens, Zyn pouches—you name it. That $8 pack of smokes—that's almost $3,000 a year!

Vaping on average? Over $11,000 a year! Not to mention the intangible cost of looking like a fool.

Number thirteen: extended warranties.

Now these sound like a good idea, but they're really just a cash grab. Companies make big bucks selling these, knowing most people will never use them.

Think about it: why does your $30 toaster need protection? Instead of wasting money on warranties, just build up your emergency fund. That way, you're prepared for any unexpected expenses without throwing cash at something you statistically will never use.

Speaking of things that go unused... number fourteen: unused subscriptions.

Now we've all signed up for a free trial, forgot to cancel, and now Netflix, Hulu, Spotify, and that random meditation app you downloaded are quietly siphoning $50 or more each month from your account.

The average person has 12 subscriptions and pays $219 a month. So it's safe to say, if you can't even name all your subscriptions by heart, it's time to do a clean sweep and unsubscribe.

Number fifteen: cable TV.

Now with cable, you're paying $100 or more for 500 channels, but you only ever watch three. And let’s be real—it’s mostly Lil’ John wants to do what on HGTV. Holy cow!

Oh, don't forget the commercials, because who doesn't love paying to still watch ads? Cut the cord: grab a couple of streaming services, maybe a digital antenna, and pocket the extra $60 to $100 you save every month.

Number sixteen: car leasing and car payments.

Whether it's a car loan or a car lease—don’t do it! Leasing might seem appealing because you get a brand new shiny car, lower payments, but it's a trap. You're just renting a car you’ll never own.

When the lease is up, you're left with nothing—plus sneaky fees for extra mileage and wear and tear. By having a car payment, you're actively saying, “I don't want to be wealthy. I'd rather look wealthy but stay broke.”

Number seventeen: unused gym memberships.

I can hear my wife rolling her eyes all the way from here as I say this, but I'm preaching to the choir. If you're paying $100 or more for a fancy gym membership and only showing up in January, it's time to rethink your fitness plan!

Plus, if you still want the gym experience, you can downgrade to a budget-friendly option like a $10 a month gym. You don’t need expensive juice bars and Eucalyptus towels to get in shape—although those are nice amenities.

And in case you didn’t know, walking and jogging in your neighborhood is still free—last time I checked!

Number eighteen: sports betting.

Now this one has been in your face, thanks to the ads from a thousand sports betting apps that are trying to get you in the game. But here’s the deal: the house always wins and the odds are stacked against you.

The majority of sports betters lose money over time. Sure, you might hit a lucky streak once in a while, but most of the time, you're just handing your hard-earned cash over to the bookies.

And while we’re at it, number nineteen: lottery tickets.

Another form of gambling. Now there's a better chance of getting hit by lightning while riding a unicycle than winning that Powerball jackpot. That $80 a month you spend on tickets is not funding your millionaire dream—it's funding someone else's!

Think about it: instead of scratching those tickets, if you invested that $1,000 a year, it could turn into almost $700,000 over 40 years thanks to compound growth.

So you don't have to retire broke. You've got a choice: a lottery is not only a form of gambling; it's also a tax on the poor, because lower-income communities disproportionately spend more income on lottery tickets hoping for a life-changing win.

So here’s the deal: wealthy people don't buy scratch tickets or play Kino or Powerball. You will never become wealthy by wasting your time or money on these things.

Number twenty, expensive dates.

We all have a good date night, but do you really need to drop $25 on a cocktail that tastes like lavender or $10 on stale overpriced popcorn at the movies?

Fancy does not always mean better, especially if you're working to get ahead. Try a picnic in the park or a homemade dinner with some candles. Remember: thoughtful beats expensive every time.

And lastly, number twenty-one: peak prices for airline tickets and hotels.

Booking travel last minute during peak season? Congrats! You just paid double for the same flight the person next to you got at half the price.

So here’s a pro tip: plan ahead, be flexible, and do your research! Oh, and if you can, travel during the off-season. You can keep your cash where it belongs—in your pocket.

In my pocket!

There you go! As it turns out, simple things like self-control and having a plan make a huge difference. Again, you're not doomed to being broke forever.

You'll notice I didn't say don't ever have nice things or don't do anything fun. All I want is for you to be intentional about your goals and where you want to be financially, and that way, you create the margin you need to break free from broke.

See how I did there? I know it's possible because I did it! I went from broke to millionaire in 10 years, and you can do this too.

And here's a little secret: it didn’t have anything to do with having a perfect credit score or racking up points on my credit card.

So if you want to know how I did it, keep watching this video to find out or click the link in the description below. Thanks for watching! We'll see you next time.