What are the worst investments and spendings?
Ok, so we know what are good investments, stock, housing, mutual funds, retirement. But where does most of our money go wasted? After eating and renting and gas, where do you see yourself, or most Americans waste money on?
Books? Movies? Junk food? Education they didn’t need? Travel? Timeshares? Certain bills? Excessive taxes?
I’m asking for two reasons, if I can know what people waste money on, I can avoid them. Secondly, if I can know what’s profitable and people are stupid enough to buy, why would I let it pass me?
Yes, I know “waste” is subject, but I think most people once in debt and need of money, would agree (in 20/20 hindsight) that lots of luxuries such as pets, cars, books, tipping waiters, eating out are things they ‘wasted’ and probably better spent if they saved it and prepared for times of unemployment or pay cuts.
Also, we have every right to say people are wasteful or stupid just a they have every right to ignore our opinion. Luckily from environments like these, we can remain anonymous and just tell stories (maybe even some fake ones) that can be advice or lesson to others.
On June 13th, 2008 at 12:24 am
For young people, the single biggest waste might be a fancy car. The payments and insurance go on for years. Probably the second biggest waste is frittered away at places like Starbucks, designer label clothing and other such status symbols.
On June 15th, 2008 at 6:17 pm
Trying to stay in STYLE (clothing), NEW CAR WHEN YOU CAN’T AFFORD IT, over spending on vac with a credit card. Being married to someone that doesn’t value money.
On June 15th, 2008 at 6:33 pm
#1: a master’s degree in the arts/humanities
On a smaller scale, I’d say going out to restaurants eats up a lot of spending money, as well as things like beauty products and services (hair cuts, manicures, etc.), coffee, and cigarettes.
On June 16th, 2008 at 7:12 pm
Other than spending more than you take home each week/month/year, the answer to your question is really a personal one that requires some insight into the meaning of (your) life.
Be careful that you use “Waste” as an insight into your own life and not as a value judgment against others about whom you know nothing . IF the other man (or women of course) makes his own choice to spend or not spend money, why do you think you or I have the right to tell him he is “wasting” his money?
Americans spend enormous amounts of money on childcare, pet care, and cars every year — each is a waste of money if it done in a thoughtless way that doesn’t bring joy and happiness to the person spending the money. Each is part of the joy and meaning of life when it brings happiness to the person spending the money.
I say this in part because all three (of the above) are a big waste of money in my book . Books, dinners out, and travel are the meaning of life — but that’s me.
Waste is real. But it is based on the purpose and plan for YOUR life as design by YOU.
On June 19th, 2008 at 6:04 am
worst == lottery tickets odds too high
best == great educaton — give me some one you can learn and i can teach him to do anything!!!
On June 21st, 2008 at 11:43 am
Whole or Universal life insurance……..its a SCAM and a ripoff. Drop me an email sometime and I’ll explain fully why…. Buy TERM insurance and invest the premium difference in an index fund, and you will ALWAYS ALWAYS come out ahead of the insurance “value”… ALWAYS…
Annuities…. a monkey deal too….
Good buys… a ROTH IRA… MATCHING 401K’s ( because the “match” is an IMMEDIATE return on investment).
To avoid pitfalls…. look at your purchases. Are they what you NEED, or what you WANT or are they what you’d “like to have”????
If you gauge you expense outflows on the above criteria…. NEED—-then WANT— then “like to have”, you will find yourself spending more money on the NEED part, which if you are diligent in keeping with that mantra, you will pretty much stop spending on anything else but NEED… and guess what… you end up with more and more $$$ in your pocket to save for your future!!!
Good Job!! You ARE thinking wisely about how you should NOT spend your money….
On June 21st, 2008 at 9:38 pm
check this link its good
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On June 23rd, 2008 at 7:45 pm
Buying produce and then letting it rot in your fridge.