That's terrible because if something goes wrong, you will have to take unnecessary loans

and pay high interest.

Interests on credit cards are insane.

They could go up 20 or even 30 percent.

You have to be a moron to pay that much interest.

But even those who actually save some money reportedly said they don't have much in their

savings account.

When almost 60 percent of the population says that they have less than a thousand dollars

in their savings account, you know that we have a problem because a thousand dollars

is probably not enough to cover the rent.

To be honest, it is difficult to save money today because we are surrounded by so many

things pushing us to spend.

Even before the video started, you probably saw an ad that called you to visit their website

and spend some cash.

That's not entirely bad, because spending drives the economy forward.

But we have to find some balance so that we don't find ourselves paying a 30 percent interest.

People often complain that they can't save because they need to cover their basic expenses.

To these people, I want to say that Starbucks coffee is not a necessity.

You can make a coffee at home for a fraction of that price, but a 4 dollar coffee cap isn't

the most insane thing people waste their money on.

There are other things that people waste a fortune that they could have saved otherwise,

and this video we are going to discover 5 of them.

Hi, Proactive thinkers!

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What?

How is that related to wasting or saving money?

You just have to take a look at how much people spend on alcohol, for example.

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According to the Bureau of Labor Statistics, Americans spend about 1 percent of their gross

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For the average household, that's $565 a year, $5,650 in 10 years, or a whopping $22,600

over 40 years.

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So if you only take into account those who drink regularly, that number would be much

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A few hundred dollars a month is normal for regular drinkers.

The same goes for smoking, gambling, and other bad habits.

The average cost of a pack of cigarettes is $6.28, which means a pack-a-day habit sets

you $188 per month or $2,292 per year.

These numbers might not frighten you, but if you count the opportunity cost, you will

probably get rid of these habits immediately.

The opportunity cost basically means what you could have done with that money if you

haven't spent on drinking or smoking.

If you throw that 2292 dollars every year into an index fund with a 7 percent return,

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Smoking is terrible, but you know what's worst than smoking.

2.

Paying high-interest rates.

Credit cards are great.

It's probably the best way to build your credit score and maintain it.

It is extremely important because it will help you to get loans and lower interest.

But here is when things get terrible.

When you use a credit card to pay for things you cannot afford, what ends up happening

is that, you will not be able to cover your credit card debt at the end of the month and

the interest starts rolling.

Have you ever taken a look at how high credit card interest rates are?

They could go as high as 20 or 30 percent.

The interest on your mortgage would seem like peanuts in front of credit card rates.

That might not seem like a big deal, but 41 percent of credit card users reported that

they are failing to pay their bills on time.

And that's what these banks are counting on.

They want you to forget!

No wonder why total credit card debts have risen to almost a trillion dollars nationally.

So don't ever get a credit if you can't control your spending habits, especially if you have

some really bad habits.

How I keep my credit card interest-free is that I know how much exactly I spend.

I can use a debit card to pay my bills, and I have absolutely no problem with that, but

I use a credit card because I would rather keep building my credit score.

And on the last day of each month, I cover all my debt even though I might have another

few weeks.

If you still forget to pay your debt on time, then whenever you pay your bills or cover

your rent, make sure you include paying for your credit card simultaneously.

One of the trends that have been rising for the last few decades is

3.

Fast Fashion!

And you know what?

I hate fast fashion!

Don't get me wrong.

They do make some good clothes, and there is nothing wrong buying clothes and I personally

love to dress properly, I am a big fan of fashion!

But here is the problem.

Since the market is flooded with cheap clothes, we, on average, started buying more clothes

than need.

Take a look at your wardrobe.

Do you really wear most of your clothes as often as you think?

I am sure that you have 2 or 3 pairs of jeans and a few t-shirts that you were every day.

The rest of your clothes have been lying on your wardrobe, probably for years.

And like everyone else, you have clothes that you never wore but you though you need them

when you were shopping.

The trend has become so popular that some people shop every week.

That's insane!

What I hate about it the most is that, just because the clothes are cheap, you end up

buying more clothes than you need.

The question is, why buy a lot of low-quality cheap clothes?

Instead, of having 10 or 20 pairs of jeans, just get yourself 2 high-quality jeans that

you will feel comfortable wearing, and you would look much better.

And you will end up spending a lot less.

That's not the worst way humanity is wasting money.

No matter how many clothes you buy, they definitely won't harm yourself as the next thing on our

list does.

4.

Eating Garbage What?

Who eats garbage?

Unfortunately, most people literally eat nothing but garbage because most of what's sold on

the shelves of grocery stores is made out of harmful ingredients in many ways.

And if you consider the fact that fast food has become the new norm for years already.

You can imagine how much garbage people are eating.

People spend most of their money on food, and there is nothing wrong with that.

But at least consume quality food that isn't harmful to your body.

Almost all junk food that's sold are filled with different types of sugar to boost your

dopamine when you consume it and create a sense of addiction so that you come back for

it again and again.

And that's done purposefully.

So we ended up developing a habit of always eating junk food, sneakers bar, chips, or

soft drinks.

Some studies even say that a lot of people spend almost 90 percent of their income on

food, which is absolutely insane!

5.

And lastly Unnecessary monthly subscriptions

Businesses realized that it's much better to sell you a subscription that's cost a few

dollars a month than a product with a few hundred dollar price tags.

First, you aren't going to hesitate that much since it's just 10 dollars a month, especially

if you enter your credit card information now.

You will get the first month for free, but later on, you will completely forget about

it, but the company will keep charging you forever.

There is nothing with getting a subscription you use or need, but when you sign up for

the gym but then end up visiting it once or twice a year, I don't think you need to renew

your annual membership.

84% of Americans unaware of how much they spend on subscription services.

Have you realized that everything has recently turned into a subscription, music, video,

movies, apps, games, softwares?

Every few months, audit your spending and get rid of these unnecessary subscriptions

because you will end up paying a fortune for something you don't even use.

And that's your list of insane ways people waste the money they worked to earn with blood

and sweat.

And now it's your turn!

What would you add to this list?

How do you waste money?

Let me know in the comments below.

Other than that, make sure to give this video thumbs.

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Thanks for watching and until next time.