11 Things Smart People Never Waste Their Money On
Financial literacy is more about intentionality than intellect.
iona didishvili | Shutterstock Around 80% of Americans admit they were taught financial literacy growing up, whether it was at home with their parents or in the classroom, according to an Edward Jones study. While other people are saving money, staying knowledgeable about investments, budgeting to maximize their cash, and setting themselves up for financial comfort, others are simply getting by, unsure of how to take the first step towards stability and freedom.
While there are millions of different ways to manage your money, there are certain things smart people never waste their money on. Despite the occasionally small and unsuspecting expenses the average person might invest in without a second thought, they add up to make a big difference for intelligent and financially literate people. You never know — by being just a little bit smarter and more intentional with your daily and monthly purchases, you could be setting yourself up for financial freedom down the road.
Here are 11 things smart people never waste their money on
1. Late fees
Moon Safari | Shutterstock
Intelligent people who had the privilege of learning financial literacy growing up often do more than simple budgeting when they're managing their money. They also learn how to effectively pay their bills, grow their credit, and save money while still investing into entertainment and fun in their lives.
One of the things smart people never waste their money on is late fees — no matter what or how they need to get it done, they're going to pay their bills on time. While there are certain protections for consumers, specifically to cap late fees for credit card holders, intelligent people often have a schedule and plan for paying their bills on time anyway.
From setting up a calendar for payments, to ensuring they're signed up for auto pay, and budgeting in their monthly expenses, they set themselves up for success.
2. A brand new car
ViDI Studio | Shutterstock
Rather than spend the money on a brand new car right from the lot, many financially literate people prefer to invest in a used car, and they do their research to find the best price and steal.
Especially considering many brand new cars lose around 20% of their original value in the first year of ownership, according to Progressive, it hardly ever makes sense to buy a brand new car.
Not only are you setting yourself up to lose money when you decide to sell it or trade it in, there's little difference between a brand new car and one that's been driven for around two years — except you'll avoid depreciation almost entirely with the used car.
It's small and intentional choices like this that, despite our consumerist and luxury-forward culture's ideas, truly make a difference in setting you up for financial comfort and stability.
3. Repair services they could do themselves
PeopleImages.com - Yuri A | Shutterstock
From plumbing services, to small car repairs, and even things like changing their tires or doing their own lawnwork, many smart people prefer to invest time into learning skills rather than continually spending money on them.
While it might seem unsuspecting, many people who adopt these daily tasks and make time for getting outside — walking the dog, cleaning their cars, or mowing the lawn — benefit physically and emotionally as well.
From leveraging the emotional benefits of getting outdoors, to safeguarding their physical longevity with intentional movement, it's not just financial stability and saving money that helps these intelligent people.
4. Credit card interest
Dragana Gordic | Shutterstock
While many of the things smart people never waste their money on are subtle and unsuspecting, credit card interest can take more thought to avoid, especially for people already living paycheck-to-paycheck, relying on their credit card balances to get them through the month.
Considering nearly half of all credit card holders carry their debt from month to month, according to a 2024 Bankrate survey, it's clear that avoiding interest fees isn't as easy as it might sound. Smart people, who also have the financial means to do so, often avoid credit card interest by paying off their credit cards in full every month.
While it takes much more planning, often from the very start of owning a credit card, to afford and budget for these monthly costs, it can save consumers a great deal of money in the long run on compounded interest and fees.
5. Flashy luxury brands
maxbelchenko | Shutterstock
Many smart people craft their closets and accessories around longevity, sustainability, and functionality, alongside personal expression and self-identity. Rather than trying to keep up with the ever-changing consumerist trend cycle, purchasing clothing, shoes, or bags that will inevitably go "out of style" again, they invest in pieces they'll wear often and always.
If they're looking for luxury, they opt for second-hand items or thrifted alternatives, many of which prove to be more sustainable and long-lasting than modern day designer items anyway.
While young people like Gen Zers and millennials may be "doomspending" on luxury goods to cope with their financial uncertainty and lack of long-term financial goals or investments, according to a report by Bain & Company, these brand names are one of the things smart people never waste their money on.
6. Subscription services
Drazen Zigic | Shutterstock
According to data presented by financial journalist Jake Safane, the average consumer spends around $1,000 per year on subscriptions alone, despite only using a fraction of the ones they pay for.
While the summation of these monthly subscriptions may be unsuspecting to the average consumer, they're one of the things smart people never waste their money on because they see the bigger picture.
By cutting back on these monthly costs and only investing in the ones they use regularly, intelligent people with financial literacy skills can save hundreds, if not thousands of dollars every year.
7. Constantly eating out
Alliance Images | Shutterstock
While getting into the habit of going out to eat is about much more than simply eating, as isolated people yearn for a sense of social belonging, interaction, and community by going out in public to a shared space, many spend thousands of dollars investing in this behavior.
While for some, it's an investment worth making — with a survey conducted by OnePoll suggesting more than 50% of people who eat out do so more than twice a week. However, this is one of the things smart people never waste their money on.
While they may go out every once in a while for convenience or to celebrate something, on a weekly basis, they're more intentional about their food costs. Whether it's meal prepping, intentional grocery shopping, or using leftovers, a frugal and financially conscious person avoids unnecessary costs, so they have more money to spend and more stability to enjoy down the road.
8. Impulse purchases
AYO Production | Shutterstock
While advertising often plays a large role in influencing people to impulse shop, there's a number of other financial and emotional factors that encourage people to overlook their financial stability to make a purchase, like instant gratification and small doses of satisfaction that may otherwise be difficult to find in a chaotic routine.
Despite still being prone to emotional coping strategies, impulse spending is one of the things smart people never waste their money on. Not only are they more pragmatic about their financial picture, saving and spending intentionally to meet money goals and protect their sense of stability, smart people are also more cognizant of marketing and advertisement tactics that may lure the average consumer in.
9. The newest technology device
fizkes | Shutterstock
While many of us may be tempted to continuously swap out our old devices for the new and flashy thing, paying to keep up with the tech trend cycle is one of the things smart people never waste their money on.
In addition to using their tech products until they're impossible to use anymore, many financially literate people plan out their tech expenses — alongside other big investments — to make sure they're making the best decision and getting the best price.
By avoiding tech discourse and distraction, like the newest iPhone fad or misleading advertisements, and considering all their other expenses, smart people make the most informed decision without an impulsive reaction.
10. Last-minute travel
Natee Meepian | Shutterstock
While smart people can be spontaneous and impulsive, on a regular and consistent basis they're not spending more money on travel simply because they made a last minute decision.
When they're planning vacations, they're cutting costs where they can, and while it might seem frugal to some, it's what makes the difference between their later financial freedom and stability today.
According to Expedia travel expert Christie Hudson, passengers who book their accommodations and flights within a week of traveling tend to spend at least $100 more than those who book a month out.
Sometimes, you may not have a choice to plan last-minute travel, especially in emergency situations or with a rigid work schedule, but there's always room to cut costs. Whether you're packing food for the airport, asking for a friend to drive you to the airport, or booking your flights in advance, consider the ways you can be intentionally and comfortably frugal.
11. Extended warranties
Max Kegfire | Shutterstock
While they might seem like a financially conscious choice, a report from Consumer Reports argues that investing in an extended warranty — for things like a new tech device or large investments like a car — may not be worth the money. Not only do the majority of consumers not actually use them after purchasing, financial experts like Dave Ramsey argue they're overpriced.
Instead of spending on an extended warranty, one of the things smart people never waste their money on, they may instead opt to build an emergency fund for repairs on investments like their vehicles.
Zayda Slabbekoorn is a staff writer with a bachelor's degree in social relations & policy and gender studies who focuses on psychology, relationships, self-help, and human interest stories.