10 Things Smart People Refuse To Spend Money On Because They'd Rather Be Retired
voronaman / ShutterstockMost Americans don’t currently have enough money to retire, according to data from the Economic Innovation Group.
While these widespread struggles often better describe the economy we live in than individual spending habits, sometimes people exacerbate their struggles in search of comfort, status, and convenience. However, there are certain things smart people refuse to spend money on in their daily lives because they’d rather be retired than spend money on things they might buy in order to get attention or comfort.
Here are 10 things smart people refuse to spend money on because they’d rather be retired
1. Food and grocery delivery
While there are certainly days when even the most frugal people need to DoorDash something out of necessity, most of the time they avoid overspending on convenience. They’re not paying double the price to get something faster or to wait for it on their couch when they can put in a little more effort to pick it up themselves or go to the grocery store.
With wasteful spending rising exponentially, it might be difficult to stand out from the pack, but to preserve their emergency and retirement funds, the smartest people avoid these expenses.
2. Minimum credit card payments
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Despite seeming like the most responsible option, paying only the minimum payment on credit cards wastes many Americans' money in the long run. According to debt-relief attorney Leslie Tayne, carrying a balance month to month not only increases the interest rate but also creates large amounts of debt that can spiral out of control quickly.
Instead of storing all their extra money away or spending it on things they don’t really need, the smartest people invest in their future selves by paying more on their loans and credit cards to avoid interest later on.
3. Unused memberships and subscriptions
More than half of Americans spend hundreds of dollars annually on subscriptions and memberships they don’t actually use. Whether it’s free trials or impulsively buying things that they don’t end up actually needing, so many people are wasting money without a second thought.
While it might seem silly to get upset about a $10 charge here and there, over time, these expenses add up. That’s why smart people are not only careful about what they buy in the moment but also about how they manage their money. They review their statements and go line by line through their bills, all to make sure they’re being intentional about their spending.
4. Flashy clothing
When you try to keep up with the Joneses, all you really do is drain your bank account and sabotage your future self. Especially when your self-worth gets entangled with how you spend and what you consume, it becomes even harder to break the cycle of emotional spending.
Even if it seems unrealistic, a 2017 study argues that many people with a low income, specifically those who are extroverts, spend money they don't have seeking status. We want to feel like we belong, but when that belonging comes at a price that we can’t afford, we’re not doing ourselves any favors.
5. Flying business class
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While some people can easily spend money on business-class plane tickets, most of the time, smart people don’t bother paying extra for a little more leg room. Why spend on luxury and convenience now, especially without serious financial security or a set-in-stone retirement plan, when you can invest in your future?
Of course, we never know what our lives will look like, and we shouldn’t put off every nice thing for the future, but sometimes it’s this frugality that actually helps people live long, healthy lives.
6. Coffee shop lattes and convenience store drinks
Most people who are frugal with their money only spend money on food and drinks they consume at home. Especially when mark-ups on coffees and beverages outside the home are so high, it often feels like a complete waste of money, unless, of course, they’re also getting some kind of experience.
Of course, the smartest people don’t isolate themselves completely through this kind of frugality, but they are careful not to go grocery shopping when they’re hungry or to treat themselves to things that actually cost more than they’re worth all the time.
7. New books
Libraries should be at the center of every community, considering all the benefits they offer to everyone who uses them. Yet, they’re underutilized, usually from the same people who spend hundreds at bookstore chains to buy novels they’ll never read.
However, truly smart people who are avid readers still use the library to both save money and connect. It’s one of the few third spaces they still have access to at no cost, and it also saves them hundreds, if not thousands, every year on books they can read for free.
8. Cosmetic services
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The smartest people don’t give up getting their hair done or their nails painted. They just learn how to do them at home or leverage their community to get a discount. Not only are they learning an important skill, but they’re also saving a ton of money on treatments and appointments that can cost upwards of $1,000 per month.
So many people, specifically women, are saving thousands of dollars by investing in their own skills and doing cosmetic work at home. They’re smart and frugal, but they’re also investing in themselves.
9. Replacing things that aren’t broken
Whether it’s a phone upgrade for a device that works or a new car that gets them around, many people end up wasting money over the course of their lives in pursuit of the next best thing. Whether it’s a way of claiming status or proving their worth through flashy expenditures, they waste tons of money that could’ve been better invested.
Why replace something that isn’t broken? Especially when you can invest in a savings account, buy something that truly has value for you, or put money away in retirement for your future self and family.
10. Taxis and Ubers
Sometimes, even if you're not incredibly frugal, spending money on a taxi or an Uber is necessary. Whether it’s getting home from a night out or getting somewhere quickly, sometimes we don’t have a choice. That’s life. It’s unpredictable.
However, for people who have a choice on a daily basis, usually on a commute, to walk, take public transportation, or opt for a cheaper alternative to rideshares in a big city, there are very few reasons why they shouldn’t opt for those. Especially when you could spend thousands of dollars, sometimes within a single month, for the sake of time and convenience, is it really worth it?
For some people, the answer is yes. For others, investing in their future will always be more important.
Zayda Slabbekoorn is a senior editorial strategist with a bachelor’s degree in social relations & policy and gender studies who focuses on psychology, relationships, self-help, and human interest stories.
