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20 Years of Helping You Live Richer

Reviewed by Experts

When it comes to spending money, there are countless options. But being financially healthy means distinguishing between reasonable and terrible expenses. Anthony O’Neal, a national bestselling author and personal finance expert, has compiled a list of eight things you shouldn't buy.One of the major contributors to financial stress during the holiday season is purchasing costly gifts for loved ones. O’Neal emphasizes the importance of prioritizing thoughtfulness over extravagance. Homemade candles, personalized photo albums, and handwritten letters are budget-friendly alternatives that show your care without burdening your finances.

Budget-Friendly Gifts: A Wise Choice

These simple gifts have a unique charm that can touch the hearts of your loved ones. A homemade candle fills the air with a pleasant aroma, creating a cozy atmosphere. A personalized photo album allows you to preserve precious memories in a tangible form. And a handwritten letter conveys your emotions in a way that no material gift can. By choosing these budget-friendly options, you can avoid the financial strain of expensive gifts while still showing your love.

Sales: A Double-Edged Sword

Buying items on sale is a great way to save money, but it can also lead to impulsive purchases. O’Neal warns that just because an item is on sale doesn't mean you need it or can afford it. It's important to resist the temptation to buy things you don't actually want or can't afford. Instead, focus on spending your money on items that will bring you long-term value, such as investing or saving for a specific goal.

Travel Souvenirs: Memories Over Material Goods

Traveling is a popular activity, but adding souvenirs to your trip can add to your financial stress. O’Neal reminds us that the experience of traveling is what matters most, not the things we buy along the way. Instead of filling your luggage with trinkets, focus on creating memories that will last a lifetime. You can take photos, try local cuisine, and interact with the local culture to make your trip truly unforgettable.

New Cars: A Financial Pitfall

New cars may look shiny and exciting, but they can be a financial burden. O’Neal points out that a new car's value drops by almost 20% as soon as you drive it off the lot. This depreciation can cost you thousands of dollars and make it difficult to pay off your car loan. If you're considering buying a new car, it's important to think carefully about whether it's a necessary expense and whether you can afford the long-term financial implications.

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Newest Models: The Trap of Technological Upgrades

Technology is constantly evolving, and it's easy to fall into the trap of upgrading your devices every time a new model is released. Businesses market their newest models as must-have items, making us feel like we need to keep up with the latest trends. But the truth is, our current devices are often just fine. According to Consumer Affairs, 11.89% of Americans upgrade their phones each year, and 55.47% upgrade every two or three years. This leads to thousands of dollars spent on new phones with minor technical upgrades. Robbins advises us to resist the urge to upgrade every time something new is available and to make more informed decisions about our technology purchases.

Complicated Investments: The Risks of Ignorance

With the help of social media and the internet, it's easy to hear about seemingly surefire stocks or cryptocurrency coins that are set to skyrocket. Many people are tempted to invest in these things without fully understanding them, which often leads to financial losses. O’Neal notes that over 60% of Americans who don't understand basic financial principles are willing to invest their hard-earned money in these risky ventures. To increase your chances of making a profit, it's important to only invest in things you fully understand and have done your research on.

High-Priced Dates: Quality Over Quantity

According to the New York Post, the average person spent $3,025.12 on dates in the past year. While it's important to impress your date, it's not necessary to break the bank. O’Neal suggests that dates are about getting to know each other, not about showing off how much you can spend. A coffee date, a walk in the park, or a reasonably priced dinner can be just as enjoyable as a fancy restaurant and can save you a lot of money in the long run.

Loans to Loved Ones: A Risky Proposition

When friends or family members are in financial trouble, it can be tempting to lend them money and expect them to pay you back. But O’Neal advises against this. If you decide to help a loved one financially, it's better to give them the money and not expect anything in return. Hounding someone for a debt can strain or even ruin your relationship. By giving what you're willing to part with, you can strengthen your bond with your loved ones.