Many people are rethinking their spending habits these days. With the COVID-19 pandemic and now inflation, it has become important, more than ever, to maximise the power of your savings.

But are you sabotaging your attempts at managing your finances by buying these ‘money-wasting’ items?

A user from the social news website Reddit asked Australian Personal Finance forum members what they thought was a waste of money. Obviously, this is going to be up to personal preferences and values.

They said: ‘What is something a lot of people buy but is a waste of money in your opinion? And what is something you can't believe people spend money on?’

They included their answer: ‘For me, it’s cigarettes. They’re basically burning money.’

According to the Australian Institute of Health and Welfare (AIHW), Australians spend an average of $13 per week on tobacco products, which include cigarettes. The main reasons Australians smoked was for personal enjoyment and relaxation. While there has been a downward trend in the frequency of smoking in the past decades, tobacco use is still the leading cause of cancer in the country, holding 44 per cent of the cancer burden.

Using an e-cigarette, or ‘vaping’, has become a popular cigarette alternative. However, it is illegal to sell e-cigarettes with nicotine in the country. Credit: Gustavo Fring/Pexels​

Other Redditors joined the discussion to share their thoughts.

One wrote: ‘For me, it’s expensive clothes for babies and kids. They’re just going to grow out of them in a few months anyway.’

A response to the comment said: ‘I understand from friends that it is incredibly easy to get perfect second-hand baby clothes for this exact reason.’

Having babies is expensive. The Australian Institute of Family Studies found that in the first year, parents have spent between $3,000 to $13,000 on baby essentials. Because of this, many parents are opting to go for secondhand items instead of getting all brand-new products. Others have loved ones who provide hand-me-down clothes, cots, car seats, and other necessary items.

Another Redditor said: ‘Gambling. Hilariously, a sports betting ad is actually showing for me on this thread telling me to “Go on, have a dabble”. No thanks, I’d rather keep my money.’

One user pointed out that gambling is actually a pressing issue: ‘Australians seem to lose the most money per capita to gambling in the world. And the gambling lobby has a lot of money and influence in politics. It's scary. It doesn't help that the government can make good money taxing it, even without lobbying.’

Estimates say that Australians lost approximately $25 billion back in 2018-19, and that was only on legal venues for gambling. But besides the financial losses, gambling can also impact mental health, relationships, and productivity, a toll that was estimated to reach $7 billion in Victoria alone.

However, one Redditor suggests that it is not gambling alone that should be blamed: ‘It depends on how you look at it. If you gamble to win money, like it's some form of income, it's a slippery slope to a very tragic ending.’ For some, gambling can be a form of participation in certain interests: ‘I like to make small bets on sports I'm already watching to make it more interesting. Throwing $2 on anytime a scorer is great, it makes me really want him to get the ball, etc. I basically count the money as spent to increase my engagement with a sport.’

Are we really a nation of gamblers? Watch this ABC feature that discusses just that:

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Another answer said that upgrading gadgets annually is a waste of money. They commented: ‘New iPhones last like four years easily without a problem. I change my iPhone every three years, though, but I could go on for another year easy on it.’

Aussies change their phones every 3.5 years, on average, but Baby Boomers hold onto their phones even longer. This may be a good thing, especially when we see a yearly electronic waste of at least 20-25 million tons. Australians usually replace gadgets once their phone contracts are up, but it’s completely fine to stick with your device as long as it works as needed.

So folks, what do you think? Are they any purchases that you consider to be not worth your dollars? Let us know in the comments below!

 

[Staffordshire Whippet]

Fireworks on NYE. Waste of money and a huge pollutant. What is wrong with a laser light show?

I especially resent the use of Superannuation Fund Members' money for fireworks displays; in fact for all advertising/marketing activities. I was a member of SunSuper (who managed to lose about half the money I'd paid in until then) who formerly sponsored Riverfire in Brisbane. Fourteen years ago I switched to QSuper; blow me down (!), a couple of years ago they not only merged with SunSuper (with a great deal of advertising and direct email soft-soaping to the Members about how great and synergistic it would all be) but also took over the funding of Riverfire... AND HAVE LOST ANOTHER 10% OF MY HOLDING. I do not see any value in Superannuation funds paying for advertising; performance is the only valid selection criterion. I further bitterly resent that QSuper (set up to look after Queensland public employees all over Queensland) should see fit to burn Members' funds in an annual one-night-only extravaganza to entertain people in Brisbane who most likely are not members of the fund in the first place. They need to have a rocket up 'em.....

 

[KaraJenna]

Most of the items mentioned so far are “biggies” - cigarettes, gambling, tattoos … how about alcohol? I’m not talking about for parties, I’m talking about the 3-4 per night consumption. I’ve been amazed at how many of my friends do this!

For me, I’d say craft items. When I start a new hobby, I tend to want “all the things” - then as passion fades or moves on to different skills, I find myself giving away boxes of perfectly usable, often very beautiful items.

Another thing would be getting your nails done weekly or fornightly. I started getting my feet done monthly because mobility issues meant I couldn’t care for my feet properly. I ended up getting fingernails done every 3wks, too. But then I got a fungal infection in both finger- and toe- nails … and CoVid happened. Now I’ve worked through my allergies, including acetone, and I buy a $20 bottle of quality nail glue and use it with $5-10 stick-ons, mostly bought online for my fingers. I get a pedicure about 6wkly, and my daughter applies Sally Hansen nail polish for me.

Food would be another area where *I* think we spend more than we should. When I did the cooking, I shopped to a budget, and cooked for the number in the household. I’d quickly learned that my husband wasn’t good with leftovers! Now, because of my health, he does most of the cooking, and he’s been working from home for near 3yrs, so he’s got much better with eating leftovers, which is great, because he always cooks for an army! Still, I think of my mum, who used every last piece of meat, vegetable, and bread, had a permaculture garden, rendered meat off-cuts, and barely half-filled our old tin garbage can each week, which wasn’t even half the size of our red-topped modern-day garbage bin.

My parents were teenagers-young adults during the Great Depression, and I still think of many of their old sayings to keep me sensible (mostly) with my spending.

I have just been through downsizing and my craft stash was well beyond my ability to use up. Boxes and boxes got sent on their way to where they could be used and I still moved with nearly a room full! Oh the wonder of so many options!