Examples of Wasteful Spending

As stated many years ago, we live in a global economic environment. Events that occur hundreds or thousands of miles away can have a direct impact on us as individuals and as a nation. That’s why you should pay attention and carefully weigh relevant options before making significant decisions, especially when it pertains to your financial obligations. Therefore, you may consider what we are discussing in this blog to be preachy, directive, judgmental, ‘boomer logic’ and just plain ‘old school.’ Well, it’s your choice to feel that way, but remember that we ‘old people’ have experienced a myriad of challenges and overcame them in order to have sufficient experience to provide this information to young adults. Nevertheless, everything written below is our opinion. There are no guarantees that you will save money by taking any of the actions described here. Despite those facts, our hope is that you will not repeat all the mistakes that we made on your road to a better financial future.

Here are some examples of Wasteful Spending that you can reduce or eliminate from your budget:

Frequent entertainment events.
Expensive phones and frequent upgrades.
Multiple subscription services.
Expensive restaurants since it is always cheaper and healthier to buy ingredients at a supermarket and cook at home.
Not taking leftovers home from a restaurant with the exception of when you are going to another place where refrigeration is unavailable.
Agreeing to split the cost of restaurant meals when dining with friends and family. Instead, state upfront that you are only paying for what you order (aka insist on having a separate check) and then be sure to avoid eating any of the shareable appetizers or pouring yourself a drink from a bottle of wine or from a pitcher of some other beverage. Note that many restaurants assess mandatory gratuity percentages for large groups so please accept the fact that separate checks may not always be possible.
More than one expensive trip or expensive vacation per year. You can save money by lodging at state parks so consider buying a sleeping bag and then renting or buying a tent. Practice pitching a tent at home so that you are proficient before heading to a campsite.
Delivery services, especially if used as a result of being lazy or due to forgetting to purchase everything needed when you were out.
Trendy clothes; just buy basic, classic clothing.
Exorbitant rents to live in buildings that offer luxurious amenities. As a young adult, all you need in regard to housing is a place that is quiet enough for you to relax, safe day and night, well-maintained, and within a reasonable budget. If that requires a long commute, then make sure to get enough sleep when you are home.
Obligating yourself to excessive debt in order to purchase an expensive house, especially as a way to impress your friends and family (wow-factor, snob appeal). You can always find a lower priced fixer-upper and then employ sweat equity to make it grand over time.
Cigarettes, cigars and drugs including edibles.
Alcohol, poppin’ bottles, bottle service, buying rounds, ‘buying the bar,’ and any other platinum/VIP experiences, especially if purchased at restaurants, clubs and events.
Airline tickets, especially when driving is much cheaper and usually less hassle.
Do you live in a city with safe, reliable public transportation convenient to your home and work? If so, are you avoiding using it during weekday business hours 8-5 because you think that public transportation is for poor people?
Upgraded and expensive vehicles when you only need a safe, reliable basic vehicle. Realize that you can always rent dream vehicles for the weekend or special occasions so there is no reason to purchase one since the majority of your time is spent working and sleeping with a small amount of time spent driving.
Major college sports and pro sports because it’s always cheaper to watch at home and/or attend lower division games such as Division II and minor league.
Frequent purchases of sugary beverages and snacks.
Going into debt because you think that love is measured by how much money you spend on someone. Understand that there is nothing wrong with expensive gifts; it just doesn’t make sense to dive into debt in an attempt to ‘win’ someone’s love. For example: Using credit card debt to pay for expensive date nights that are not celebrating a specific achievement that you have earned. Regardless of how attractive your partner is, if you want to be financially responsible and your partner has the opposite view on money, then that relationship will be contentious. Experience proves that financial alignment is beneficial to both a business relationship and a romantic relationship. If you refuse to overspend on dates, then you may be accused of being cheap or stingy. Realize that there is a difference between being financially responsible and being cheap or stingy. While we do not advocate for being cheap or stingy, we do recommend being financially responsible.
Taking out excessive amounts of student loans to pay for degrees in low-paying college majors. Same principle applies to obligating yourself to expensive student loan debt to pay for high-paying majors in career fields that have a very low demand. While society may tell you to follow your passion, reality is that with the exception of the truly wealthy, your education and training will need to result in a job that pays enough for you to live the lifestyle you desire. Although it may have been true in the late 1980’s, in today’s global economic competition environment, you will not automatically achieve a high quality of living as a result of just going to college. Although this may sound harsh, individuals who obligate themselves to student loan debt to earn degrees in low-paying career fields and then complain about what they can’t afford is indicative of someone who has a victim mentality instead of a responsible leader mentality. There are numerous, free online resources that forecast career field demand and salary surveys so there is no reason for a college student to select a college major without first knowing the projected demand for that major in different states and the corresponding salary ranges for that specific major. Understand that everyone is free to study whatever they decide, but if the higher education decision leads to a low-paying job, then it is unprofessional to complain. Therefore, we believe that it is critical for young adults to accept the ‘adult level’ sacrifices and make the correct, long-term decision regarding your post secondary education and training. If you are willing to earn a college degree, then you should also be willing to accept (without complaining) that you may need to relocate away from family and friends in order to get a job that suits you. For example, if you study business, then you can find a job anywhere; if you study marine biology, then you job prospects will be limited. Additionally, as a college student, you need to commit to the amount of academic engagement time required in order to rank in the top 10% of those in your major because companies can search worldwide for talent so they will either avoid hiring low performers or offer low performers low pay. Bottom line: no one is owed a specific job or a high salary just because they want it. Yes, favoritism exists within hiring decisions, but global and local market forces control hiring decisions.
Failing to recoup money from rebates. If do not explicitly follow the directions on rebate forms or submit the forms after the rebate expiration date, then you will not get the money. Do not put off claiming rebates—submit the forms on the same day as the purchase!
Overpaying for products, events and services because you feel that you deserve the best. In other words, crush the entitlement mentality associated with purchasing things that you cannot afford. Remember that there is usually a lower-priced alternative that is a better value. Although it is a difficult habit for some people to break, we urge you to avoid feeling embarrassed for selecting a lower-priced alternative or feeling that you ‘settled.’ In reality, staying on budget is demonstration of financial stewardship and that’s how individuals (and businesses) get ahead. Furthermore, there is no such thing as settling as a result of staying on budget. Think long-term—you can always wait and then purchase a higher level product or service once your financial situation improves.
Paying full price for retail products when suitable alternatives are available for less in other stores, at online sites and at thrift stores.
Buying expensive pets and/or possessing pets that require expensive food, grooming, boarding, and/or health care. Nothing wrong with expensive pets, just not while you are trying to curb wasteful spending.
Expensive hobbies and activities: gambling, betting, wagering, lottery tickets, golf, collectibles, memorabilia, jerseys, sneaker collections, unnecessary shopping, gadgets, expensive entertainment events and shows.
Purchasing new retail jewelry.
Payday loans, Buy-Here Pay-Here, and any other high interest loans.
Non-functional home decor (aka knickknacks).
Impulsive purchases including items displayed at store checkout lines.
Pretending to be rich (snob appeal) by going into debt to pay for fun/entertainment events or occasions including engagement rings, weddings, destination weddings, honeymoons, bachelorette parties, bachelor parties, birthday parties, anniversary celebrations, graduation celebrations, and holiday celebrations. Understand, there is nothing wrong with deciding to do any of those things; just that none of those things warrant having to payoff credit card debt over several months and perhaps years. In regard to marriage, we at Overton Leadership Associates have all been married at least once so we know that society impresses upon couples that money should not be an object when it comes to rings, weddings and honeymoons. Realize that by rejecting ideas associated with frivolous spending on rings, weddings and honeymoons and instead employing prudent decision making, those important events can be memorable without obligating the newlyweds to years of debt. Stated explicitly, you will be better off long-term by saving money first and then paying cash for rings, a wedding and a honeymoon.

Herb