{"id":90708,"date":"2025-08-23T19:53:16","date_gmt":"2025-08-23T19:53:16","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/90708\/"},"modified":"2025-08-23T19:53:16","modified_gmt":"2025-08-23T19:53:16","slug":"8-things-that-are-complete-wastes-of-money-according-to-ramit-sethi","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/90708\/","title":{"rendered":"8 Things That Are Complete Wastes of Money, According to Ramit Sethi"},"content":{"rendered":"

A March 2025 Clever Real Estate survey<\/a> found that 95% of respondents were worried about price increases over the next year. While 58% were cutting back on nonessential purchases, many were also reducing their spending<\/a> on essentials, like groceries.<\/p>\n

Read Next: Warren Buffett: 10 Things Poor People Waste Money On<\/a><\/p>\n

Find Out: The New Retirement Problem Boomers Are Facing<\/a><\/p>\n

If you\u2019re also looking to cut back and boost your savings, you might not know which spending areas you should focus on. A recent YouTube video<\/a> from money expert Ramit Sethi highlighted several things that are complete money wasters. Here are eight purchases and spending habits to reconsider<\/a>.<\/p>\n

Trendy Fitness Equipment<\/p>\n

An expensive Peloton bike or a Bowflex gym may seem like a smart purchase for your health. But it becomes a big waste of money if you let the equipment sit unused once the novelty wears off.<\/p>\n

Sethi explained that consistency is more important than the workout gear you buy and suggested cheaper options, such as walking around your neighborhood or getting an affordable gym membership. Save the fancy equipment for after you\u2019ve made exercising a consistent habit.<\/p>\n

Check Out: 5 \u2018Necessities\u2019 Frugal People Don\u2019t Buy, According To Frugal Living Expert Austin Williams<\/a><\/p>\n

Extended Warranties<\/p>\n

While retailers often prompt you to get an extended warranty for your new gadget or appliance to have some peace of mind, Sethi said this purchase is usually a waste of your money.<\/p>\n

\u201cStatistically speaking, most electronics and appliances do not break within the extended warranty period, and even if they do, that cost of repair often isn\u2019t worth what you paid upfront,\u201d he explained.<\/p>\n

Some better moves include carefully researching these expensive items before buying them, checking the return policy and sticking with brands known for their reliability. Sethi said you might also qualify for a free extended warranty through your credit card company. Just keep your receipts and card statements, and understand the card\u2019s coverage limits and exclusions.<\/p>\n

Cheap Things You\u2019ll Upgrade Later<\/p>\n

If you\u2019re someone who buys cheap items with the idea that someday you\u2019ll afford to get better versions, you\u2019re likely wasting your money<\/a>. Sethi explained that low-quality items might ultimately cost you more due to frequent replacements or poor performance.<\/p>\n

He said that buying the best quality that fits your budget is a smarter move, as well as waiting and saving up for the better, longer-lasting item when possible. You\u2019ll need to think about the purchase\u2019s importance to decide whether going cheap or waiting makes sense.<\/p>\n

Unused Subscriptions<\/p>\n

A recent CNET survey<\/a> found that your unused subscriptions could be costing you<\/a> $205 per year. These can include everything from streaming subscriptions and gaming services to gym memberships and meal kits.<\/p>\n

Sethi explained that those subscriptions you\u2019re keeping \u201cjust in case\u201d are taking money away from more meaningful purchases. He suggested doing quarterly reviews of subscriptions on your credit card statements and aggressively canceling those that aren\u2019t providing value.<\/p>\n

Emotional Spending<\/p>\n

While you might feel like you deserve a spa day after a tiring week, you may be exchanging some brief relief for the stress of a big credit card bill later.<\/p>\n

\u201cIf you can\u2019t afford it, it\u2019s not self-care \u2014 it\u2019s simply stress spending,\u201d Sethi said.<\/p>\n

He recommended determining what self-care means to you and saving enough money beforehand. That way, you can treat yourself without adding debt and interest charges.<\/p>\n

Unaffordable Trucks<\/p>\n

While you need to be careful about budgeting for any new vehicle purchase<\/a>, Sethi explained that trucks can be especially expensive and may not even be necessary for your situation. He gave an example of earning $65,000 and buying a $90,000 truck, which spells financial strain.<\/p>\n

To avoid being stuck with unmanageable monthly payments, preparation is key. Sethi recommended carefully evaluating your vehicle needs, including whether a rental could make sense. For example, you may just need a truck to occasionally haul items rather than to use for daily work.<\/p>\n

Overspending for Credit Card Rewards<\/p>\n

Simply using a credit card makes it less painful to spend more. And when you add rewards points or cash back into the mix, the temptation can become even stronger.<\/p>\n

However, Sethi explained that the small rewards (often 1% to 5%) don\u2019t stack up well compared with the high interest rate you\u2019re paying on your credit card debt. Federal Reserve data<\/a> showed that Americans were paying an average credit card APR of 21.16% in May 2025.<\/p>\n

Sethi recommended getting rid of existing debt<\/a> and not carrying card balances moving forward. You\u2019d then want to make only necessary purchases on your card so you can benefit from your rewards. To save even more, reevaluate any premium cards with high annual fees and cancel them if the benefits aren\u2019t paying off.<\/p>\n

Home Renovations for a Payoff<\/p>\n

Sethi explained that some Americans mistakenly view home renovations<\/a> as investments that they\u2019ll someday see a full return on. He described this idea as \u201cdelusional\u201d and said that most renovations are really luxury purchases. That means you should approach them differently.<\/p>\n

\u201cRenovate for joy, not ROI,\u201d Sethi said. \u201cYou want a nice faucet? Go for it, but just admit we\u2019re doing it because we want it.\u201d<\/p>\n

He also advised against using debt to finance your renovations. Saving up over time is wiser.<\/p>\n

More From GOBankingRates<\/p>\n

This article originally appeared on GOBankingRates.com<\/a>: 8 Things That Are Complete Wastes of Money, According to Ramit Sethi<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"A March 2025 Clever Real Estate survey found that 95% of respondents were worried about price increases over…\n","protected":false},"author":2,"featured_media":90709,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[64,63,99,17971,186,67351,184,185,13445,15253,67350,15101],"class_list":{"0":"post-90708","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-au","9":"tag-australia","10":"tag-business","11":"tag-credit-card","12":"tag-finance","13":"tag-money-expert","14":"tag-personal-finance","15":"tag-personalfinance","16":"tag-ramit-sethi","17":"tag-spending-habits","18":"tag-warranties","19":"tag-warren-buffett"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/90708","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=90708"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/90708\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/90709"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=90708"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=90708"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=90708"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}