We all spend our money on stuff that we want, don’t want, or regardless just need to have. Sometimes we think we’re getting a good deal, sometimes we just have to bite the bullet and deal with the cost no matter the price.
Economists might say that if you’re willing to pay for something at its price, then it has value. But that assumes we make rational decisions. It also assumes we don’t regret our purchases later. This got me thinking about what we really, truly waste our money on. Here’s what I got:
Athletic Clothing: So you’re such an incredible athlete that you need a shirt that helps you sweat less? You need $50 shorts for running and $40 for a shirt with no sleeves at the gym. And don’t get me started on the overpriced Yoga clothes. Unless you’re a professional athlete or have a job where you can wear such clothes all day, garden variety shirts and shorts work just fine.
-Why we buy it: It’s a fashion statement as much as anything.
Live Events: It’s fun to go to football games or Lady Gaga concerts, but the cheap seats are always too far away and not that cheap. The expensive seats get you a great view but at a cost that can hardly be justified to a significant other.
Why we buy it: Hero worship is rarely about rational decision making.
Watches: Any watch below $100 is likely well worth the money. But once you get beyond that you’re really stretching for value. Most manufacturers use the same underlying parts, and none tell time better than any other. Nor do any look particularly different than another. And no, you don’t dive 100 meters deep, you barely know what a meter is.
-Why we buy it: Image, and status.
Cereal: You’ll be hard pressed to find someone that loves cereal more than The Weakonomist. But I mostly love generic cereal because 90% of the generics are perfect replicas of the name brands. Name brands sell well despite being somewhere between 50-100% more expensive.
-Why we buy it: Marketing works, especially on kids.
TVs: The Sheconomist continues to be dumfounded by my lack of desire to invest in TVs. I have a 42″ flatscreen and I like it. But the different HD features are largely meaningless to most consumers. All that really matters is finding a TV that can last for a few years.
-Why we buy it: The same reason we buy big cars and big houses.
Flowers: Don’t mention wedding around most venders when planning one. Prices sometimes triple. But it’s impossible with folks like florists. If paying for a genius florist with designs, you might get your money’s worth. But let’s be honest, whether it’s a $10 bouquet or $10,000 bill for a wedding, it’s all dead in a couple of days.
-Why we buy it: Women pretend not to want them, but they do.
Coffee: Like most of you, I love coffee. I learned to drink it black and unsweetened, but everyone has a preference. Some prefer to spend $2.50 on a cup, while others prefer to make their own. It all tastes the same though. But the best coffee comes from a diner, in an old diner mug, with free refills, and a to go cup.
-Why we buy it: See “Watches” and “Athletic Clothing”.
Political Donations: Political donations are largely a complete waste of your money. Unless your donation gets you a handshake or a phone call from the candidate, you aren’t going to get any return on the investment.
-Why we buy it: We want to support what we believe in, but are too lazy to put any of our time into it.
Hotels: Hotels are one of the worst values out there. Hundreds of dollars just to sleep somewhere for the night. What you’re paying for is the extra capacity that isn’t used and for someone to clean your room. If you don’t want your room cleaned you should get a discount. And luxury hotels really aren’t giving you more for your money.
-Why we buy it: Because cheaper stays overnight involve the backseat of a car or a stranger’s couch.
Airlines: No single culprit is worse than airlines. It doesn’t matter if your ticket is $1000 or $100 your flight is going to get canceled and you’re going to wish you rented a car. Only in first class are you treated like the same species as the people who run the airlines, and no one likes to buy dignity.
-Why we buy it: Half the time someone else is paying for it, the other half we’re just praying it’s going to be worth it this time.
Image: JinglyJon
 By The Weakonomist |
The Weakonomist is the founder of Weakonomics. Clicking the picture of the puppy will tell you more about him. If you like what you're reading consider subscribing to the blog, following him on Twitter, and checking out the related posts below. Please consider a donation if you really enjoy Weakonomics. Also keep in mind that nothing I say can be construed as financial advice. |
