8 Biggest Money Wasters of All Time, According to George Kamel and Rachel Cruze

Smart Money Happy Hour co-hosts George Kamel and Rachel Cruze recently pinpointed some of the worst purchases that can burn through cash and put people in tough financial positions.

A single purchase on this list may not be enough to create financial hardship, but they can all add up. Furthermore, most of the items on this list are not one-off expenses.

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These are the eight biggest money wasters the co-hosts identified during a recent episode. 

1. Unnecessary Subscriptions and Fitness Products

Kamel and Cruze started their list by covering unnecessary subscriptions and products revolving around fitness. Peloton bikes became extremely popular during the pandemic, and at-home gym equipment gained more traction.

Those same subscriptions and products aren’t very good if you don’t use them. Furthermore, there are viable substitutes, such as going on a run instead of buying an expensive stationary bike. 

2. Self-Care and Beauty Products

Kamel and Cruze practice self-care and use beauty products, but they do it in a budget-conscious way. Luxury brands often tout major improvements if you use their products, even if those improvements are actually minor.

Staying away from mainstream names and finding self-care and beauty products from lesser-known brands can help you save money while getting similar or identical care.

3. Private Colleges

As college tuition goes up and job prospects get more challenging, it gets more difficult to justify the return on private college tuition. Community colleges and in-state public colleges are more affordable options that still give you a diploma. 

You can use your college experience to land new jobs, regardless of whether you want to attend an affordable state college or a high-end private university that resulted in more than $100,000 in student debt.

4. Food Delivery Apps

Food delivery apps have high markups for your favorite orders. These apps are more convenient, but all of those deliveries will add up over time. 

It’s even worse if you use food delivery apps for restaurants instead of groceries. Restaurant food is already more expensive than groceries, and a higher order amount translates into a more expensive markup from food delivery apps. You will save a lot of money by picking up your own groceries.

5. Long-Term Storage Units

Storage units are useful when you are moving and need some time to get everything set up. However, a long-term storage unit is the complete opposite. These units let you store things that you do not need or use while paying more than $100 every month.

It’s better to review the items in your long-term storage unit and determine what you can give or throw away. This purchase can become a large line item in your budget for years to come if you don’t address it now.

6. Fast Fashion

Some people buy trendy clothing and are willing to stash them in the closet once the trend has faded. Some fast fashion apparel also doesn’t last as long as “boring” clothing. It’s better to get clothing that can last than to buy something that was cheaply produced but is hot right now. 

7. Lifted Vehicles

Lifted vehicles are regular trucks, SUVs and jeeps that have been modified to make the ride a little higher. It’s very expensive to make these types of changes, with Kamel and Cruze believing that a lifted vehicle is a bad financial move that is driven more by insecurity or the desire to appear more manly than actual utility. 

8. Lottery Tickets

Lottery tickets may sound like fun since they let people dream for a few days, but Kamel and Cruze were pretty upfront about these tickets. You’re not going to win the lottery, and it is a complete waste of money.

Even worse, lottery tickets can be the beginning of a gambling addiction that causes substantial damage to your finances and life. Lottery tickets can eventually lead to casinos, sports betting and other dangerous activities that can drain your finances and put you deep into debt.

This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.

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