Video summary
9 Things I Stopped Buying to Make More Money
Main summary
Key takeaways
Core theme
- The presenter argues that cutting discretionary/low-return spending can free up more monthly cash for investing and wealth building, without reducing “quality of life.”
- Decisions are framed as trade-offs between purchasing liabilities (items that tend to depreciate or don’t grow in value) versus using that money for investing/education.
“9 things I stopped buying” (and why it matters financially)
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Books (with cost-control)
- Books are described as a “super important” investment in human capital/knowledge.
- Approach:
- Keep favorite books as hard copies.
- Use Kindle or rent via the library app Libby for books you won’t reread.
- Key idea: knowledge retains value more than physical items.
-
Brand new cars
- Depreciation-based reasoning:
- A brand-new car loses about 10% immediately (“the second you put the key in the ignition”).
- It can lose another 60% by its third year.
- Implied recommendation: avoid new cars if that cash could be invested instead.
- Depreciation-based reasoning:
-
Souvenirs from trips
- Souvenirs are treated as low-value spending and add storage costs in a small apartment.
- Alternative: preserve memories via an online journal/vlog.
-
Updated/upgraded technology (upgrade only if it’s worth it)
- Example: Apple Watch
- The first Apple Watch purchase created a “big jump” in happiness.
- Upgrading cost “a few hundred quid more,” delivering only about a ~5% increase in happiness—not worth the incremental spend.
- Method: before upgrading, ask whether the extra cost beats spending on something that yields more “happiness per £.”
- Example: Apple Watch
-
Buying because it’s on sale
- Warning against “psychological tricks” of discounts:
- Example: if something drops from $200 to $140, you “saved” $60—but only if you still would have bought it otherwise.
- If you buy because it’s discounted, you’re still spending money: “you’re paying the store’s marketing logic.”
- Sales can lead to purchases you wouldn’t have made without the discount.
- Warning against “psychological tricks” of discounts:
-
Investing in things you don’t understand
- Not a literal purchase category, but a financial caution:
- Don’t allocate money to investments unless you understand what you own, including risk and even ethics/intent.
- Advises basic due diligence even if using an advisor.
- Not a literal purchase category, but a financial caution:
-
Fast fashion
- Mentions avoiding brands/stores such as Forever 21, Misguided, and Boohoo.
- Rationale: prioritize quality over quantity to reduce repeated spending on items that wear out or go out of style.
-
High-maintenance services
- Examples: nails, eyelashes, hair dye.
- Financial angle includes:
- An implied time opportunity cost (e.g., an hour spent on these could be used for higher-return activities/work).
- Emphasizes time-value trade-offs, not just price.
-
A prenup (described as “no unnecessary present pact”)
- Intends to sign a prenup.
- Macro context mentioned:
- “Cost of living crisis”
- Expectation of “the longest recession in the UK to date” (timeline not specified precisely).
- Gift benchmarks used to justify reducing gift pressure:
- Average British adult: £548 on Christmas gifts (source cited: find a dot com)
- Average American: $990
- Recommendation: reduce habitual/obligatory gifting, especially during economic stress.
Method / framework used (behavioral “allocation” logic)
-
Trade-off analysis
- Ask whether a purchase is a liability that decreases in value vs. an investment that benefits the future.
- Compare incremental cost (e.g., upgrading or buying new) against alternatives like:
- investing
- educating yourself
- building wealth
-
Happiness / return-on-money check
- Evaluate whether extra spend produces meaningful incremental benefit.
- Example: Apple Watch upgrade roughly 5% happiness for “a few hundred quid.”
-
Intent filter for discounts
- Only buy when it aligns with a planned need; otherwise treat “sale” framing as marketing that can cause unnecessary spending.
-
Understand-before-allocate (investment due diligence)
- Don’t invest in instruments/strategies you can’t explain in plain terms.
-
Opportunity cost of time
- For time-heavy services, consider what that time could produce elsewhere.
Explicit recommendations / cautions
- Avoid purchases that create depreciation losses (notably new cars).
- Don’t upgrade tech just because a newer version exists—ensure incremental benefit justifies incremental cost.
- Be cautious with on-sale purchases; avoid spending driven by discount framing.
- Don’t invest in products you don’t understand.
- Reduce categories that are high churn/low longevity (fast fashion, high-maintenance routines).
- During economic stress, reduce habit-driven gifting.
Key numbers / metrics mentioned
- Car depreciation
- 10% loss immediately after driving off the showroom
- 60% further loss by the third year
- Apple Watch upgrade example
- Upgrade cost: “a few hundred quid more”
- Incremental happiness gain: approximately 5%
- Christmas gift spending averages
- UK: £548 average British adult
- US: $990 average American
- Other timeline references
- Renting books: via Libby (no specific timeline mentioned)
- Gifting/pact: stated “this Christmas”
- Fast fashion example: avoids clothing purchases for six months (claimed personal example)
Assets / tickers / instruments mentioned
- None explicitly mentioned (no stocks, ETFs, bonds, commodities, or crypto tickers).
Disclosures / disclaimers
- None explicitly stated in the provided subtitles.
Presenter / sources
- Presenter: Unnamed (speaks “hi guys” and “welcome back to the channel”; no name provided)
- Source cited: find a dot com (average Christmas gift spending)