7 Insane Ways Americans Waste Money | The Financial Diet

Americans' Insane Money Wasting Habits

In this video, Chelsea from The Financial Diet discusses how Americans tend to waste their money in strange and insane ways. She explores some of the most common spending habits that are unique to American culture and offers tips on how we can be more financially responsible.

Eating Too Much Meat

• Americans consume a lot of meat, particularly red meat, which is not only bad for our health but also expensive.

• A study by the National Institutes of Health-AARP found that people who eat the most red meat and processed meat over a 10-year period were likely to die sooner than those who eat smaller amounts.

• There are many less expensive sources of protein that we could all be opting for at least once a day.

• Despite increasingly being aware of the potential health risks, America's meat obsession seems to only be growing.

Fast Fashion Obsession

• Americans love fast fashion, which has changed rapidly over time. In 1930, the average American woman owned nine outfits, and today, that figure is 30 outfits.

• More traditionally slow retailers like department stores have had to totally change their supply chains as well as their stocking strategies to keep up with Americans' demand for constantly turning over fashion.

Using Credit Cards Too Often

• As Americans, we tend to use credit more than most other nations. While some of that comes from systemic issues such as our lack of universal healthcare, a lot of it does come from spending choices that we do not need to make.

• We have a tendency to live beyond our means and consume as a default option. This can lead to credit card debt, which is not only financially damaging but also emotionally stressful.

• We need to be more conscientious about noticing waste and live a more financially balanced life.

Buying Bottled Water

• Americans spend billions of dollars each year on bottled water, even though tap water is just as safe and often better regulated than bottled water.

• The cost of buying bottled water adds up quickly, especially if you're buying it every day. Investing in a reusable water bottle can save you money in the long run.

Paying for Cable TV

• Many Americans still pay for cable TV even though there are cheaper alternatives like streaming services that offer similar content.

• Cable TV packages can be expensive, and many people end up paying for channels they don't even watch. Switching to a streaming service or cutting the cord altogether can save you money.

Overspending on Weddings

• Weddings are big business in America, with couples spending an average of $33,000 on their big day.

• While it's important to celebrate your love and commitment to your partner, overspending on weddings can put unnecessary financial strain on couples and their families.

• There are many ways to have a beautiful wedding without breaking the bank. Being creative and resourceful can help you save money while still having the wedding of your dreams.

Ignoring Energy Efficiency

• Americans tend to ignore energy efficiency when it comes to their homes and appliances. This not only wastes energy but also costs us money in the long run.

• Making small changes like using LED light bulbs or turning off electronics when they're not in use can add up to big savings over time.

• Being more mindful of our energy usage can help us save money and reduce our impact on the environment.

Conclusion

• As Americans, we have a tendency to waste our money in strange and insane ways. By being more mindful of our spending habits, we can live a more financially and environmentally balanced life.

• We need to be aware of the cultural spending habits that are unique to American culture and make conscious choices about how we spend our money.

The Problem with American Spending Habits

In this section, the speaker discusses how American spending habits have changed over time and how they are affecting the economy.

Fast Fashion and Overconsumption

• Fast fashion has become the fastest-growing segment of the commercial real estate industry in America.

• Americans are accumulating clothes at an unprecedented rate, changing the face of American retail.

• While it may not be feasible to opt out of fast fashion entirely, we can be more conscious about how many items we own.

Things We Don't or Can't Use

• Americans often sign up for things that seem like a good deal but tend not to be cost-effective when broken down into cost per use.

• Gym memberships are an example of this phenomenon, with gyms reporting that only 18% of their clients use their membership consistently.

• Timeshares are another example of this phenomenon, with 85% of timeshare owners expressing regret over their purchase.

Subscription Boxes and College Education

• Subscription boxes can also lead to overspending on items that we wouldn't normally buy if they didn't come in our box.

• College education is a huge expense for many Americans, with tuition costs averaging $34,740 at private colleges and $9,970 for state residents at public colleges. However, even after graduation, one in five college students is still not working a degree-demanding job.

Huge Houses

• Americans have a tendency to buy huge houses, which can be financially and mentally destructive.

The High Cost of American Homes

In this section, the speaker discusses how American homes have become larger over time, despite the shrinking size of families. This has led to increased costs for heating, cooling, and maintaining homes, as well as increased social isolation.

The Size of American Homes

• American homes have become larger over time.

• Despite the shrinking size of families, many homes are built with four or more bedrooms.

• Larger homes lead to increased costs for heating, cooling, and maintenance.

• Increased space between homes and neighborhoods leads to increased social isolation and anxiety among Americans in suburban areas.

The Obsession with Cold

In this section, the speaker discusses how Americans love things to be really cold. This obsession with coldness has significant financial and environmental costs.

Keeping Things Ice Cold

• Americans love things to be really cold.

• About 3/4 of American homes use air conditioning which represents 6% of our overall electricity consumption.

• US air conditioning releases about 100 million tons of carbon dioxide into the atmosphere every year.

• Americans demand out-of-season fruits and vegetables which demands an enormous supply chain of national and even international refrigerated delivery.

Refrigeration Practices

• Americans refrigerate basic daily staples like milk and eggs which other countries do not refrigerate because our pasteurization processes are different.

• We also generally have really big-ass refrigerators about 17.5 cubic feet on average which is the biggest in the world.

• We actually don't shop less frequently than countries with smaller refrigerators.

The Problem with Not Cooking

In this section, the speaker discusses how Americans eat out and consume prepackaged foods at an alarming rate. This has significant financial and environmental costs.

Eating Out

• On average, Americans eat a commercially prepared meal about 18.2 times a month.

• In dollar terms, that translates to an average of $232 spent eating outside the home every single month.

Prepackaged Foods

• Americans also eat an enormous amount of prepackaged foods.

• We actually eat 31% more packaged food than we do fresh food, and we consume more packaged food per person than nearly every other country.

The Problem with Consumerism

In this section, the speaker discusses how consumerism has become a problem in society and how it affects people's spending habits.

The Impact of Prepared Foods

• Eating out or ordering in prepared foods can be expensive.

• Setting a goal to reduce the number of times we eat out or order in per month by half can save thousands of dollars a year for the average American.

Unsustainable Throwaway Culture

• Young people globally have smartphones, and in America, that number rises to about 90%.

• Almost 80% of phone sales correspond to people replacing their phones, even though their phones are still in good working order.

• Manufacturers may slow down or mess up your phone to convince you to get a new one.

• Americans tend to throw everything away now, leading to the vanishing of the entire appliance repair industry.

Bigger, Shinier, Newer is Not Always Better

• Motorists who buy a brand new car typically keep it for about six years.

• Most new cars are designed to run for well over ten years or 200,000 miles.

• Americans owe about $1.2 trillion in outstanding auto debt.

• Culturally, we have become obsessed with what is bigger, shinier, newer, better, quicker and cooler.

Overcoming Consumer Desires

• We can all challenge ourselves to be more conscious and thoughtful about our individual spending cues.

• We can be critical about where our consumer desires are coming from and get over this assumption that bigger or colder is always better.

Credit Repair as an Option

• If you've already gotten yourself into serious trouble with spending and need help repairing your credit score,

• Creditrepair.com is a great option to checkout.

• They help you build a customized strategy for improving your score, work directly with the credit bureaus to dispute any dings on your report, and teach you how to understand both your own score and the rating system.

Overall, consumerism has become a problem in society that affects people's spending habits. However, it is possible to overcome these desires by being more conscious and thoughtful about individual spending cues. Additionally, if someone needs help repairing their credit score, Creditrepair.com is an excellent option to consider.