7 Expensive Money Habits You Need To Stop

alright so in this video I'm gonna show you a number of money habits that can really be quite expensive now look I'm not in my apartment I know last week a lot of people said Nate are your grandma's house no I was in an air B&B in Ireland at this really old lady's house and she made me breakfast every morning it was really nice but now I'm in Spain and so backgrounds a little bit different but the content in this video is so the same so let's get started with this video and let's talk about some of these expensive money habits and I see people doing and you know to be honest sometimes I end up doing these as well but they can really eat into your bottom line if you're looking to save some money then I think you want to certainly take these into consideration and hopefully cut some of these so yeah there's gonna be pretty relaxed video let's just get into it I think you might find some value if you do make sure you subscribe to the channel drop a like if you find value I suppose and yeah let's get start with this let's talk about the first one which is going to be overpaying for vacations now I think a lot of people they want to spend money when they go on vacation makes sense right if you're working for four or five six months in a row and you want to go on vacation somewhere you're going to cruise well might not be the best time you want to cruise right now but maybe you go travel somewhere and people want to spend money when they're on vacation make sense I like to spend money while I'm on vacation too but sometimes I see people spending money when it doesn't really make much sense that maybe they could spend an extra five minutes and find a flight that is literally half the cost if they just put in a little bit more effort into finding those flights finding those hotels finding those air B&Bs that are going to be cheaper for the same value that you're getting I think just a lot of people just kind of jump into vacations with literally just not like like they'll go on to something and just booked something right away or they'll go through a travel agent I think travel agents I don't have fend any travel agents if they're watching this video but I think they're kind of irrelevant in today's world it's so easy to just Google something super quickly and find some very cheap accommodations or things that you can do to get inexpensive flights and vacations so just a quick little thing right here is that if you're looking for tea vacations the best way to do it is trying to travel in an off season so it's March right now like I said I'm in Spain it was really cheap to get here it's like 130 dollars I bought this ticket well before this whole virus thing going on so it was about 130 dollars for when I bought my flight I bought it about six weeks before the flight so it's kind of a premium spot to do it but nobody's really traveling in this time of the year traditionally regardless of virus stuff going on and so it's going to be cheaper versus if you want to travel if you want go on vacation during Christmas or New Year's or Thanksgiving or some big holidays it's gonna be expensive so just try to hopefully try to plan that out but also more flexible with where you're going if you're open to where you're going they're gonna find cheaper accommodations cheaper flights than saying that you wanna go to this exact location on this exact day that's when it gets more expensive when you have things that you need to be in specific places but you know it really depends obviously spending money on vacations certainly something that I like to do and now let's talk about the next one which is going to be a little bit controversial but I want you to hear me out on this and it's by actually buying a home too soon so I think the biggest misconception that people have first of all I have a lot of friends with real estate investors and I'm probably gonna buy some real estate properties in the coming years here so I have nothing against real estate obviously but I think the problem that I think a lot of people face is that people think many people think that if they buy a home they suddenly don't have a cost of living they don't have to pay for rent so therefore they're saving money when they buy a home I just want to warn you on that a little bit because that's not necessarily the case see in just about every place in the world especially in America if you buy a home you're gonna have property tax you might have homeowners insurance you have to have the lawn mowed you're gonna have to take out the trash there's a lot of expenses that are involved with owning homes and I think a lot of people just neglect to realize so sometimes I see people who are maybe paying $1,000 a month for rent then they go buy a home and suddenly their total expenses when they factor in the mortgage and all these other expenses are $2,000 a month there's $2,500 a month for all these various different expenses so if you're going to buy a home make sure that you do your due diligence on it make sure that you can afford not only just the mortgage payment but all of the other various expenses there can be dozens of expenses on a monthly basis that can add up quite a bit for owning a home so make sure you can afford it a lot of people buy houses that are too big they buy too big of houses too soon and it can be really really problematic for people so just in general when it comes to buying homes especially if you're young - just just make sure that you were really doing quite a bit of research on that and you're not overpaying for single-family homes a lot of people do that because they say we just got married we need to buy a home in this neighborhood right now and they just throw down the money without even really negotiating very much and they end up kind of just blowing money that they really could have saved a lot on if they were a little bit smarter about it potentially maybe buying a duplex renting on a unit having that person pay for essentially your rent as well there's a lot of strategies that you can use and a lot of great real estate youtubers out there can make some great content on it so definitely look into that a little bit number three here look we've talked about eating out restaurants how expensive that can be a little bit of a twist here and that is food delivery this one can literally kill your wallet so for example I know a lot of people who will maybe they're at their job and they don't quite have time to make lunch or they don't have time to even go get lunch so they order food at the office so maybe they're working late and they're really hungry this actually happens to me I know I don't work in an office and a nine-to-five but it still happens to me where I'm working working working and I just literally don't have time to make food so I end up just ordering it like uber eats or GrubHub or delivery where ever you are in the world sure you have some type of delivery food delivery service but literally that $10 salad or that $10 sandwich can literally turn into $20 when you factor in a 399 delivery fee and then maybe uber or the service takes another couple dollars and then maybe you want to give the driver a tip because they're not really making that much money they might only make like a couple of dollars per food item that they're dropping off so you want to give them a tip perhaps and then suddenly you're looking at 20 dollars for a sandwich looking at 20 dollars for a salad and it adds up quite a bit because this happens three four or five times a week for people especially if you were working a lot or even when I was in college I found that the first year or my sophomore year in college I was in a location where I was very close to a lot of stores and you know it was 2:00 in the morning and I was really hungry I could just walk downstairs and there was places where I could get food versus the next year in college I was further away from everybody and so because my apartment was far away from any businesses whatsoever it was late at night and I wanted some food and I didn't have any food in my apartment which was a mistake you should always have some food ready to go maybe frozen food just that you've prepared before frozen it and then if you're hungry you can just throw it in microwave really quickly but I was further away and so I ended up ordering food much more often so the money that I was saving in rent because I was so far away from all these other businesses and establishments and grocery stores I was paying more in food delivery bad bad mistake but something that I did know the next one here is trusting other people too much with your money you know it surprises me how many people who maybe the relatives and just a lot of friends of mine who just assumed that because Nate makes YouTube videos about personal finance therefore he must know what he's talking about he must know what he's doing with personal finance there's there's no correlation there there's there's really very little correlation there between knowing what you're doing and and actually just talking about it so maybe if you have a cousin or some type of friend who loves talking about investing and they talk about money and you say you know what this person talks about money a lot they talk about Wall Street a lot I think they know what they're doing I'm gonna trust them they bought the stock so I'm therefore going to buy the stock as well that is probably not a good decision to make I see people doing this all the time so just be careful with that you know if you hear this hot stock tip or if your friend just bought $60,000 when it's in stock and they're super confident in it just make sure that you're doing your own research on this and all you can extend this as far to say that even financial advisors it baffles me how many people will trust their financial adviser so much to the point where they don't even know where their money's getting invested they just let the financial advisors do everything and they don't even know where they have their money in now I think financial advisors are great I think that they're obviously very smart people but it's important to understand okay even if this person is incredibly intelligent even even if my financial adviser is a 150 IQ and they're a genius I need to understand where my money's going and I think a lot of people make that disconnect there where they they just trust others with their money too much and that even goes for this channel that's why I always make some pretty big disclaimers and I say guys even though I talked about how I invest I talk about my strategies that doesn't mean that I'm doing it right it might be working now but it's working for most other people as well we've been in a bull run for ten years straight so just really really remember that going forward so this next one is what we're gonna call the double whammy you know the this is the type that you're spending money on now it's costing you money now but it's get end up literally costing you even more in the future and what I mean by this is things that can cost money now but are deteriorating your health they're hurting your health so obviously a lot of tobacco products cigarettes you know chewing tobacco things that are probably going to lead to some medical problems far down the road no look I can't tell you what to do if you want to smoke you can smoke I don't have anything against you doing that obviously I'm not going to tell other people what they can and cannot do but it might cost $5 a pack well if you're in New York you might cost cost closer to $15 a pack for cigarettes but it can end up costing you a hell of a lot more money in the future when you have to pay for expensive medical bills especially in America and you know that actually is not even just with with with cigarettes or with tobacco but really actually what I'm more concerned about is food in general and just the health of overall people especially in America and we're not gonna go down that road in this video but taking care of your health now is literally going to save you so much more money down the road in the future when you don't have excessive medical bills because you weren't taking care of your health now just something I think is really important I know it's a sensitive topic people don't like to talk about people sweep it under the rug but I just had to bring it up because it is something that really is going to cost a lot of money and honestly some people's lives so ok that got really really depressing fast so let's just let's just move on here and let's talk about the next one which a mistake that a lot of people are making or this habit that people have and this one just really really bothers me a lot is payday loans payday loans scare me I hate when I see those ads I think they're kind of predatory I'm not a big fan of them there's a couple companies that like I see them they're like a gas station and they're like oh I don't get paid till next week but I just got my paycheck today thanks to this payday loan I think this is just oh man this is just a recipe for a disaster when people start borrowing money to to go do their other expenses they start to get into a bigger and bigger hole this obviously goes with all kinds of debt with credit cards with all you know various different types of gun as well but payday loans scare me quite a bit so if you're at a point where maybe you don't get paid til next week but you can't really afford this stuff right now maybe you should find a way to cut this stuff out or start to budget ahead of time so that you don't run into that problem I know if you're a very low-income it can be difficult obviously but just try to avoid payday loans at all costs because they are going to cost you money they're gonna take a percentage in most cases for these payday loans they're obviously making money off of you and so just just be very careful with those I don't like loans in general borrowing in general especially consumer debt credit cards obviously so just be very careful with those one of the worst things you can do is getting into debt so that you can pay off your other debt now there's times when it can work out where for example if you have credit card interest credit card loans and the average APR is 25% you're paying 25 percent interest on those credit cards then you get a personal loan say to to get down to 10 percent to pay off your credit cards it gets really confusing but just just be really careful with that guys so the last habit that I'm gonna leave you with is the habit of making excuses especially when it comes to finances now there's many valid points and many valid reasonings for why people are struggling financially well that's that's not the point of this that's not what we're what we're getting at and sometimes to be honest the math literally does not work out it doesn't matter how much you try if you're making $7.25 an hour and you live in an expensive area and your rent is $1,500 a month the math literally doesn't work and that's hard to fix that problem but what we're really referring to in this case is just kind of in general personal finance the habit of shifting blame to other people I see this all the time but people say I'm in a massive amount of debt it's that person's fault because they're the one who forced me into getting this loan and yeah sure there's a lot of predatory businesses and people out there especially in the credit industry especially in a number of these different financial niches but kind of pointing the blame at other people I don't like doing that I think it's sort of this victim mentality that I just don't like to have because I don't think it really gets you very far I think the best way to do is to take action and so for example I could point the finger at Society or I could point the finger at my guidance counselor when I was 17 years old in high school said Nate you need to go to college you need to take out these student loans and if you don't you you're probably not going to be very successful those were literally the words that most guidance counselors tell their students but I think if you just go and maybe you don't finish college or you end up with not a good job but you listen to your guidance counselor said you should take out student loans I think pointing the finger at the guidance counselor's saying is your fault that I'm in debt right now is your fault I think that's just kind of I don't know I don't like blaming other people I think really at the end of the day it does come down to your decisions that you make and just kind of taking ownership of those decisions even if somebody maybe did kind of manipulate your thinking or or trying to sway your decision making in one way or another at the end of the day it does come down to you signing your name on the dotted line for contracts for loans for buying a new car if the car salesman tried to do something over you and try to get some extra money out of you at the end of the day you're the one who signed the dotted line so just make sure that you are very very careful when you're signing the dotted line especially for contracts but that's kind of the main idea that I wanted to get across here right yeah I don't want to come off too harsh but it's just something that I really do believe in so thanks for watching the video guys appreciate all the support I don't know how many videos we're gonna be putting out the next couple of weeks you know I'm on vacation I'm going to Vienna when's that in like a couple days maybe tomorrow I don't know when this videos coming out and I'm going to Amsterdam and then probably to London I don't know if we gonna do meetup so I was gonna do some meetups but now with this virus stuff going on I don't want like people getting sick and stuff I don't want that on me on my conscience so thanks for watching the video appreciate all support and I'll see everybody at some point in the future

Channel: Nate O'Brien

Views: 229,897

Keywords: nate o'brien, money habits, habits, expensive, save money, make money, financial freedom, personal finance, finance, money, saving money

Id: tMQ4ps5-pCE

Length: 14min 39sec (879 seconds)

Published: Mon Mar 09 2020