I Beg You To Quit These 11 Bad Money Habits

Finance-focused summary (“11 bad money habits” + how to fix them)

The video argues that many financial problems come less from low income and more from repeated behavioral “habits” that quietly prevent saving and investing. It uses spending examples involving € and $, then offers practical counters for each habit.

1) Spend to impress others

• Problem: Buying to signal status (e.g., borrowing for a car/clothes/club outfits).
• Example numbers:
  • Borrowed €10,000 for a car, then another €10,000 for designer clothes at about €200 per item.
• Recommendation: Don’t let others’ perceptions drive spending—you pay the cost.

2) “Pay yourself last” (reverse it)

• Problem: Paying bills first, then saving only if money remains.
• Framework (Pay yourself first):
  • Save at least 10% immediately upon payday.
  • Treat savings like a bill due now.
  • Automate transfers (bi-weekly or monthly) to savings.
• Mechanism: Automation removes decision-making, so your spending adjusts to what remains.

3) Shop to feel better (“retail therapy”)

• Problem: Impulse purchases tied to mood; the dopamine hit is temporary, with no lasting improvement.
• Survey stat (retail splurges):
  • In a survey of 100,000+ adults across 23 countries:
    • 80% made a splurge in the past month to boost mood
    • only 42% said they could afford it
• Recommendation: Delay and evaluate:
  • Use a wish list
  • wait (example given: one week) before buying

4) Never track spending

• Problem: No visibility into where money goes.
• What to do instead (expense tracking):
  • Track every expense for a couple of months using a simple spreadsheet.
• Purpose: Improve value alignment and make trade-offs visible (e.g., “hours worked for this—was it worth it?”).
• Disclosed insight (budget-relevant): Spending on groceries was higher than expected.

5) Buy things because they’re on sale (anchoring + urgency)

• Problem: Discounts can trigger “deal thinking,” but you may still overspend.
• Key concept: Anchoring effect (fixation on the original price).
• Recommendation: Ask: “Would I buy this at full price?”
• Math takeaway: A 50% discount on an unneeded item can still mean you spent the equivalent of the full value you shouldn’t have paid—you didn’t truly save; you bought more than you should.

6) Upgrade your phone every year (avoid unnecessary replacement cycles)

• Example numbers:
  • Buying a new iPhone annually could cost about €1,000 per year.
  • The narrator cites saving about €5,000 over 5 years by not upgrading.
• Recommendation: Upgrade only if the phone is broken or can’t run needed apps.
• Allocation implication: Money not spent can go toward an emergency fund, investments, or debt payoff.

7) Buy lottery tickets instead of investing

• Odds stated (US):
  • Mega Millions / Powerball jackpot odds: ~1 in 300 million
• Population framing: With ~340 million people, it implies you’d effectively need to beat everyone in the US.
• Analogy: “Four times more likely” to be hit by an asteroid (as stated).
• Recommendation / caution:
  • Don’t confuse lottery “fun” with investing.
  • If you buy occasionally, keep it small and affordable, not a substitute for a real wealth plan.

8) Use credit cards without a plan to pay off

• Problem: Minimum payments + high interest can trap you in long repayment.
• Key risk point: Credit card debt is described as more expensive than a mortgage or car loan.
• Numerical example:
  • $10,000 credit card balance at 20% APR
  • Paying $200/month takes >9 years
  • Total interest about $12,000, exceeding the principal
• Recommendation:
  • Use credit cards carefully for specific purposes (subscriptions, rentals, etc.)
  • Pay in full immediately when due to avoid interest

9) Never meal plan (food waste becomes financial waste)

• Problem: Last-minute decisions lead to takeout and overbuying, then spoilage.
• Waste stats:
  • US: 31% of food goes uneaten (EPA citation)
  • UK households: 40% of wasted food is because it wasn’t used in time (Wrap citation)
• Recommendation (meal planning framework):
  • Pick recipes
  • make a shopping list
  • batch cook some meals (example: prep out of time, e.g., Sunday)

10) Don’t have an emergency fund (risk management gap)

• Problem: Unexpected events (job loss, medical, repairs) can force high-cost debt.
• Key stats:
  • 40% of Americans can cover only a $1,000 emergency expense
  • 39% of Brits don’t have £1,000
  • 24% of Americans and 60% of Brits don’t have any savings
• Recommendation (emergency fund target + ramp):
  • Typical advice: 3–6 months of living expenses
  • If starting from zero: first build to $1,000 / €1,000
  • Save small amounts (example: $50/month → $600/year)
  • Don’t touch funds except for true emergencies

11) Misunderstand frugality as deprivation

• Problem: People equate “frugal” with joyless living or cheap substitutions.
• Correct framing:
  • Frugality = intentional trade-offs and paying for value that lasts
  • Cheap = minimizing price while sacrificing durability
• Recommendation: Spend intentionally—cut ruthlessly on low-value items, and fund what brings real fulfillment.

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Key “methodologies / steps” explicitly shared

• Pay yourself first
  • Save ≥10% immediately after payday
  • Automate transfers
  • Treat saving as a “bill due now”
• Wish-list delay for impulsive shopping
  • Add items to wish list
  • Revisit after about 1 week
• Expense tracking sprint
  • Track all expenses for a couple months
  • Use results to test “hours worked” vs value alignment
• Anchoring-proof rule for sales
  • Ask: “Would I buy at full price?”
• Phone upgrade discipline
  • Upgrade only when broken or no longer meets app needs
• Emergency fund build (tiered)
  • Target 3–6 months long-term
  • Short-term: reach $1,000 / €1,000
  • Start small (e.g., $50/month)
• Meal planning
  • Choose recipes
  • create a shopping list
  • batch prep (e.g., Sunday)

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Tick ers / assets / instruments mentioned

• None (no stocks, ETFs, bonds, commodities, or crypto mentioned).

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Disclosures / disclaimers

• No explicit “not financial advice” disclaimer appears in the subtitles provided.

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Presenters / sources mentioned

• Presenter / narrator: the speaker (name not given in subtitles)
• Books / authors cited:
  • Rich Dad, Poor Dad — Robert Kiyosaki
  • Your Money or Your Life
• Quotes / references:
  • Will Rogers (quote about spending to impress others)
• Organizations / studies cited:
  • EPA (US food waste stat)
  • Wrap (UK sustainability organization; food waste and clothing usage stats referenced)
  • 2025 wardrobe study (garment ownership/wear stats referenced)
• US lottery entities referenced: Mega Millions and Powerball
• Survey referenced: 100,000+ adults in 23 countries (retail splurge affordability stats; organization not specified)