7 Things To Stop Buying In 2025 To Get Rich In 2026

To build wealth, it's crucial to stop unnecessary spending and redirect that money towards investments. The speaker highlights seven areas where individuals can cut back, starting with the "stupid tax," which includes spending on weed, alcohol, lottery tickets, cigarettes, and overdraft fees. These are framed as expenses that offer no real value.

Next, the video emphasizes the financial drain of financing cars, explaining it as a "triple whammy" due to interest, depreciation, and the cycle of continuous payments. Instead of opting for luxury vehicles financed over time, the suggestion is to buy a more affordable car with cash. This approach frees up significant monthly funds that can then be invested, potentially leading to millions over decades.

Other areas to curtail spending include avoiding premium grocery stores when starting out, resisting the urge to constantly upgrade to the latest iPhone, and forgoing designer clothing and extended warranties. Finally, the importance of conducting a monthly money audit is stressed to identify where money is being spent and to find opportunities for savings without drastically altering one's lifestyle, ultimately freeing up capital for long-term wealth building through investment.

• Investing $100 a month for 45 years at a 10% annual return can lead to over $1 million.
• Investing $1,000 a month under the same conditions can result in over $10 million.
• The "stupid tax" includes weed ($100/month), alcohol ($50/month), lottery tickets ($25/month), cigarettes ($200/month), and overdraft fees (average $27/instance).
• Financing a $50,000 car can lead to monthly payments of around $800 for years, whereas buying an $8,000 car with cash frees up that $800 for investment, potentially yielding over $1.5 million in 30 years.
• A monthly money audit can reveal wasted spending on subscriptions or overpaying for items, allowing for savings without lifestyle changes.

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The Power of Investing Early [00:00]

• Investing $100 a month for 45 years at a 10% annual return can result in over $1 million.
• Investing $1,000 a month under the same conditions can yield over $10 million.
• Wealth accumulation is directly proportional to the amount invested.

This section highlights the immense potential of consistent, long-term investing, even with small amounts, to achieve significant financial milestones.

Well, the more money you invest, the wealthier you can become.

Item 1: The Stupid Tax [00:45]

• This category includes weed, alcohol, lottery tickets, cigarettes, and overdraft fees.
• These are expenses that do not add value to one's life.
• Average spending on weed: over $100 a month.
• Average spending on alcohol: around $50 a month.
• Average spending on lottery tickets: around $25 a month.
• Average spending on cigarettes: literally $200 a month.
• Average overdraft fee: about $27 last year.
• Eliminating these expenses can save thousands of dollars annually. For example, weed costs $1,200/year, alcohol $600/year, lottery $300/year, cigarettes $2,400/year, and overdraft fees can add an additional $300/year.

This segment identifies seemingly small, habitual expenses that, when combined, represent a significant drain on finances, preventing individuals from investing and building wealth.

This is what I call the stupid tax. This is money that you are just stupidly blowing on things that do not add any value to your life.

Item 2: Financing Your Car [02:25]

• Financing a car is described as a "triple whammy" because of interest, depreciation, and its limited lifespan.
• An example contrasts buying a $50,000 new car financed with an $8,000 cash purchase of a used car.
• The financed car could result in an $800 monthly payment, leading to a cycle of car payments for decades.
• Over 30 years, this financing cycle results in no accumulated wealth, only a car.
• Conversely, buying the $8,000 car with cash and investing the saved $800 monthly payment for 30 years at a 10% return can lead to over $1.5 million.
• The choice is between "looking rich" and "actually becoming rich."

This section strongly advocates against car financing, illustrating how it perpetuates debt and hinders wealth creation, while opting for a cash purchase of a more affordable vehicle enables significant investment opportunities.

So, what do you do? You go buy the car. You put $8,000 down. And now you have a monthly payment. Your monthly payment will be around $800 a month, assuming that you got some decent credit. Well, now this $800 a month is what you're going to be paying for the rest of your life.

Item 3: Stop Shopping at Whole Foods [06:31]

• When starting an investment journey, smart spending is crucial to have money for investments.
• Initially, it might be necessary to buy regular groceries instead of organic or premium items.
• Price comparison:
  • Avocados: Walmart $0.68 each, Whole Foods $1.99 each.
  • Frozen broccoli: Walmart $1.49, Whole Foods $2.49.
  • Bacon: Walmart $5.12, Whole Foods $6.69.
• The advice is to shop at more affordable stores like Walmart to save money for investment, and then transition to premium stores once wealth is established.

This point advises prioritizing financial growth over immediate gratification, suggesting that choosing more economical options for everyday purchases can free up substantial funds for investment.

If you don't have money to invest, well, go to Walmart, save that money, take the extra money, invest it, build that wealth, then go to Whole Foods.

Item 4: Your iPhone [07:59]

• Constantly buying the newest iPhone on monthly payment plans is a significant expense.
• A $1,200 phone can be paid off with $50-$80 monthly payments, making it seem affordable.
• This strategy leads to never letting go of monthly payments and often results in buying new accessories like cases and chargers.
• Keeping a phone for a few years, or buying a used phone, saves substantial money.
• The monthly payment plan for a new phone every year can amount to much more than the phone's actual cost over its lifespan.
• Buying phones with cash and keeping them for 2-5 years saves money and avoids additional accessory purchases.

This segment critiques the cycle of upgrading smartphones through payment plans, arguing that a more patient approach with devices saves significant money that can be directed towards investments.

Because the whole idea behind keeping you on these payment plans is when you keep making these small little payments, it adds up to a whole lot more money when you keep paying this money for the rest of your life.

Item 5: Buying the Gucci [11:02]

• Many people prioritize "looking rich" over "being rich."
• During the pandemic, there was a surge in spending on luxury items like Gucci, Louis Vuitton, and Rolex with pandemic-era money.
• Financing luxury items with credit cards is easier than becoming genuinely wealthy, which requires sacrifice.
• To become wealthy, one must sometimes appear "poor" or "broke" temporarily to save and invest money.
• The advice is to delay purchasing designer clothes and luxury items until wealth is achieved, then buy them with cash.

This point addresses the societal pressure to display wealth through luxury goods, contrasting it with the disciplined approach required to actually build wealth through saving and investing.

The majority of Americans would rather look rich than be rich.

Item 6: Extended Warranties [12:36]

• Extended warranties are presented as an unnecessary additional expense for items like furniture, TVs, and blinds.
• The speaker, as a licensed attorney, points out that these warranties come with long contracts and often have many exclusions, meaning they may not cover common issues like accidental damage or spills.
• Companies selling these warranties profit because they know most people won't use them or their claims will be denied.
• It's better to have emergency savings to cover potential repairs than to pay for extended warranties.

This section advises against purchasing extended warranties, highlighting their often-limited coverage and the profitability for the seller, suggesting that self-insuring with an emergency fund is a more practical approach.

And I know that if something breaks, I have the money to be able to fix it. And I rather not just keep shelling out more money for all these extended warranties because you got to understand their business as well.

Item 7: A Money Audit [14:51]

• A monthly money audit is recommended for everyone to improve financial management.
• This involves gathering all financial statements (bank, credit card, debit card) at the beginning of each month.
• All income sources and expenses must be meticulously recorded, preferably on a spreadsheet (Google Sheets or Excel) for easy categorization.
• This process helps identify unknown subscriptions, price increases on existing services, and unnecessary spending.
• The audit allows for cutting back on expenses without significant lifestyle changes, freeing up money for investment.
• The initial audits may take 2-3 hours, but subsequent ones take about an hour and yield a high return on investment.

This final point emphasizes the critical importance of understanding where money is going through regular tracking and analysis, enabling informed decisions to reduce wasteful spending and increase savings for investment.

But you need to write down every penny of where your money went because until you see it, it's impossible for you to improve it.