What's the dumbest thing that way too many people spend way too much money on?

I'm thinking of things like:

  • Buying a plain white T-shirt for $100 because of the name on the label inside
  • Getting the biggest mortgage you can, buying a McMansion, and spending an extra $500,000 in interest over the next $35 years

Often we don't realise how much we base purchasing decisions on "everyone is doing it", without researching properly or even just stopping and thinking about it for a second. What other examples can you think of?

Comments

  • +2

    Designer ("Fashion House") bollox
    I'm thinking watches, handbags, shoes etc

    • +3

      Kind of agree but I have a couple of nice watches (Omega, Longines, TAG etc) and whilst they might be overpriced for what they are they are certainly much higher quality that your run-of-the-mill watches. I also like Swiss auto movements and never having to change a battery and the knowledge that there is a 2nd hand market for them if I was ever desperate for cash!

      If anything I would argue that 'fashion' watches are the biggest rip-off'. Fashion watches are those made in the same factory as the $20 petrol station watches, containing the same internal battery powered Quartz movement but have a fashion label stamped on the face and are priced accordingly. Similarly there are watches like Akribos and Stuhrling and Invicta that pretend to be high end swiss watches and present themselves as such using dishonest marketing. They quote a stupid RRP but are always on 80% discount. Reality is that they are no more swiss than I am and their chinese owners simply bought the rights to use the name of an old defunct swiss company that is no longer operating. Everything else in those brands comes from a factory in China. The best jike about them is the one about a brand called 'Swiss Legend' whose watches can best be described as 'neither'.

      • +1

        Agree with Swiss watches. I know that it cost them probably 1percent of the sales price to make but damn i love the beauty of mechanical movement.

  • +4

    Generally anything with a lowercase "i" preceding a noun.

    Premium label blended whiskies like Johnnie Blue. If you're actually into scotch and not just a poser, you'd go for a quality single malt at half the price.

    Coffee from cafes. Honestly don't understand people in the office that go and buy coffee from whatever cafe because they make better coffee than some other place. They drink it diluted with warm milk, sugar, soy, mocha, etc anyway…if they actually like the taste of coffee they would buy a short black. My instant coffee tastes nothing special but does the exact same job for me in the morning for free!

    Breakfast at cafes or from some cute little place in hipsterville! I have a group of friends that love getting breakfast so every now and then I get roped into it. I end up spending similar price if not more than I would for dinner. I'm not a big breakfast eater anyway so I can't justify it.

    Water. The other day I saw a chick in our office buy water from the vending machine in the kitchen area. Our kitchen sink has a chilled filtered water dispenser!

    Handbags with a price tag in the 4 figures…wife's been doing my head in about getting this!

    • +2

      i agree

    • 4 figure handbag is an absolute waste of money. Everyone own one and the resale price is almost nothing. 5 and 6 figure handbag like the birkin however is good investment. Was shock to know you can make serious money selling second hand bag

    • no hipster here, but even Coleworths coffee beans are a big step up from instant. lol

    • +1

      Oh goodness yes to the lunch / breakfast thing. While I don't mind going out to nice places, I do mind being charged arbitrary amounts for what is basically a $5 bacon and egg breakfast. And don't get me started on fad foods like 'paleo' and 'gluten free' - they are not health options and are purely a licence to print money from the stupid.

  • +5

    Migration Agents - Charge you $1000's for something you can easily do yourself.

    Ice Break from the servo.

    • +2

      exactly. my colleague paid $8k to have his skilled migration application done through an agent a few years ago. anyone could have done it easily him/herself for around $3k (back then). It's pretty straightforward to fill out and lodge it online. They tell you which documents you need so just scan and upload. an extra $5k is absolutely insane.

    • Crazy…just crazy I knew a spoilt girl who paid 4k. I could've done it for her for a buffet at the Sheraton lol…

    • anything from the servo.

    • Migration paperwork sucks. Takes so long to actually get it looked at. Do agents speed up the process at all?

      • no.

  • +3

    anything from a vending machine
    coffee
    handbags
    buying mobile phones on contracts
    alcohol
    oakley sunglasses

    • I do agree with most of them, but coffee for me is too hard to quit :P

      phone on contracts — most of the case it's cheaper to buy outright, but last year virgin mobile had a good deal for the iphone ($55pm with $300 calls/texts and 2.3GB). that meant about $17pm for the network if you buy the phone outright. it's still rare to find a plan costing less than $20pm on prepaid for that amount of data.

      and yes, oakley sunglasses are insanely priced, but I do one a pair… with prescription lenses though (obviously shop online for better deals).

      • if you really love your coffee, why not invest in a decent machine? cheaper in the long run.

        i'm wearing oakley prescription glasses with transition lenses that i've been wearing since 2008 :) they do make some good quality stuff that's expensive i.e. titanium frames i'm wearing and m-frame sunnies but they also make crap that's also expensive. and how many pairs do some people need? probably not as many if they took care of their things

    • +6

      I used to agree and tried desperately to avoid Oakley sunglasses. I am a cyclist and used to get very annoyed with 3 other sets of sunglasses slipping down my nose at the worst possible times (75km/hr down a hill) where it could be difficult to reach up and push them back up my face. I tried a few different sets from other brands (Salice, Tifosi, Smith) but none worked. All my cycling buddies told me to get some Oakleys and eventually I did. Problem solved, glasses no longer slip, worth the price to me!

      • I usually wear bolle sidewinder safety glasses (I have them in all three shades - clear, esp and smoke, the first I use in the lab at work, and the other two for cycling). they are cheap as chips (~$15-20 a pair) and I don't care if they get scratched or dropped. They generally last for about 1-2 years.

        But sometimes I hate wearing contact lenses all day staring at the screen, so hence why I got myself the prescription oakleys with transition lenses for cycling to/from work and then switch to normal glasses during office hours.

        ps - typo above (I do own a pair)

        • Transitions are great, nobody wants to carry around interchangeable lenses. I have the Radar Path now but the transition lenses are crazy expensive. My Tifosi glasses were transitions and, aside from the fit on my head and the slipping down my nose they were great. Unfortunately poor fit is a pretty good reason to replace. I have found people on facebook cycling swap groups selling Oakley lenses 2nd hand and have bought a couple, I need to keep my eye out for a good deal on the transitions!

        • @2ndeffort: just beware of fakes on facebook's swap sell pages. I heard from a mate the DFO is a good place to go. there's a pile of "scratched" glasses that they heavily discount. worth a look.

        • @iSamurai: Ye there are fakes around, I have bought face to face with original receipts etc. There are also folks on eBay that manufacture their own compatible lenses for a fraction of the cost. Going to get some clear lenses for those 5am rides when it is still dark!

    • +10

      Except for vending machine items from Japan.

      • +1

        oh yes that goes without saying! :D

  • +1

    just remember every1 if it wasnt for all these people wasting money frivolous stuff our Economy would probably be worse than it currently is lol. not that im saying its BAD but you get the idea.

    • +2

      I doubt that - surely it's better if people spend money on useful stuff that makes them happy?

      Informed spending doesn't have to equal less spending…

      • +1

        agreed, most of these discretionary items are imported too

      • +1

        agree with your post mgowen. but apples and oranges

        most of this stuff is just discretionary spending. not making an informed choice on which is the best TV/fridge etc

        all im saying is if joe blow decides that movie popcorn and coke is stupidly overpriced (which it is) hes just not gonna buy it anymore. all of a sudden the candy bar needs less staff on shifts and that person is looking for a job elsewhere and may have less money to spend themselves which in turn affects others (everyone)

        people who are loose with their money = more money to go around and more to grab hold of for us OzBargainers

        the key is to find ways of being on the other side of the transaction!

    • +1

      just remember every1 if it wasnt for all these people wasting money frivolous stuff our Economy would probably be worse than it currently is lol. not that im saying its BAD but you get the idea.

      Now you realise how fragile this thing we call the economy really is.

  • +10

    Locking up and abusing refugees on Manus island - $400,000 per person per year.

    • -6

      Cheaper in human lives than encouraging the smugglers to risk all those lives on the open seas and see another couple of thousand poor souls die at sea like we did under the former government.

      • +5

        That's bs

        • -1

          Sorry I overstated things, it was only between 1500 and 1600 people that drowned at sea http://theconversation.com/factcheck-did-1200-refugees-die-a… Point being that any policy that encourages poor people to risk their lives by paying organized criminals with leaky boats to try and get them here is a very bad one. A single death is a disaster, encouraging over a thousand is bordering on genocide, in my eyes, Krudd has blood on his hands.

        • +3

          @2ndeffort:

          You mean like making it incredibly hard to seek asylum in Australia? Why do you think people risk their lives getting in leaky boats in the first place? Our policy is to encourage desperate asylum seekers to risk their lives to have a chance at living in Australia. It's because our politicians are too gutless to help people in need. Any politician who came out with support for asylum seekers would be committing political suicide, because they've spent the last ten scoring political points by convincing everyone that anyone who comes by boat is skipping some non existent line and should be locked up, then patting themselves on the back.

          http://www.theguardian.com/commentisfree/2015/jun/15/theres-…

      • …but not nearly as cheap as simply allowing asylum seekers in, keeping the genuine refugees, flying the rest back, and gaoling anyone who endangers people's lives with leaky boats.

        You can't win an election by doing that, though, apparently…

        • +1

          Entice anyone and everyone to jump in a leaky boat and take their chances on the high seas? If they make it we might offer them a home?

          How about instead we get them to apply in the refugee camps where they are now and we check their credentials out and the ones that meet our criteria we safely fly out on planes, how does that sound. Nobody drowns, no criminals get a look-in to making money off the misery of refugees. We dont have to fly anybody back out and we make sure we aren't importing criminals or the next Man Haron Monis! Surely that is cheaper and the refugees themselves don't have to pay people smugglers or bribe corrupt foreign officials. The Australian Taxpayer will foot the bill to fly them here safely. What's wrong with that?

        • +5

          @2ndeffort:

          I like this idea. But:

          in the refugee camps where they are now

          For most people fleeing to Australia, these don't exist. The whole irony of calling them "queue-jumpers", as was popular a decade ago, was that for most genuine refugees, there is no queue.

          You can't jump online, or walk in to an office of your own government (the one that's trying to kill you), and apply to come to Australia on a refugee visa.

        • +1

          I always thought the best way to get rid of the people smuggling was to take it over. And that way there would be no destroying paperwork which you would think would make the whole thing easier.

        • @mgowen: I've never been to a war zone but I've read that near the borders of Turkey, Syria etc there are refugee camps setup by the Red Cross etc to help people fleeing the war zones. There are diplomatic missions that visit these camps from most western countries and accept refugee applications. The frustration comes because the processing of the claims is slow and people either give-up on the official process or don't bother trying because they've heard/been told it is a waste of time so they strike out on their own. I am sure there are plenty that dont bother with the campsand instead just set out for somewhere safe.

          As with anything in life we are generalizing and people are all complex creatures. Among the legions of displaced people there will be genuine folks fleeing tragedy for a safer life. There will be criminals fleeing the authorities and there will be economic migrants looking to move somewhere more profitable. Some will need our support and compassion, others will need to be sent back to the authorities they are fleeing to face justice. The only way to be fair to both the people trying to get here and those already here is to understand each person's background and claims and assess what help they need or what threat they pose. Assuming every refugee is either a victim needing help or that they are all terrorists in waiting are both equally generalist viewpoints and equally wrong.

        • +1

          @2ndeffort:

          That actually sounds really great. Perhaps you could suggest that to the prime minister.

          https://www.pm.gov.au/contact-your-pm

          It'll be much better than what they're doing now. While your at it, how about you suggest that Australia puts all that money that they're wasting on locking up and abusing refugees, into making conditions better for refugees in refugee camps, so that they don't get so desperate that they risk their lives on a boat

        • @2ndeffort:

          Nothing at all besides how many thousands of 8 y.o kids that are trying to coming here on the grounds of politically persecution because of their anti-government activities over a number of a years (I guess they must have started when they was was 4yo). Sure some countries have civil war but for those that arn't join a queue.

      • +3

        Spoken like a marginalised minority who feel threatened by the arrival of outsiders, many of whom have "unrecognisable" traits such as hard work, a willingness to learn, and to assimilate within the society.

        • -3

          A quick scan of the recent news will give good evidence than not all have a strong willingness to assimilate.

        • Will also add that I am a migrant that came here from the other side of the world as a child and have totally assimilated. I was one of the 'outsiders' a long time ago.

        • @2ndeffort:

          A quick scan of the news will show that few news organisations (those not owned by Murdoch) actually show refugees as real people, and don't try and push the xenophobic view down your throat.

        • @mnermner: i was referring to a particular incident a few days ago that, i understand has been reported in all news media, even fairfax and the ABC. Thanks for calling me a xenophobe after missing the point completely!

      • +2

        I think you are ignoring what is driving the illegal migration. They are risking their lives because they have to with the method that they can choose; no one in right mind will risk their life, sell their belonging and move to other country unless it's dire. They will not stop risking their lives to escape even if Australia shoots every illegal immigrants on sight. It will reduce people from coming to Australia, but it will not stop them from risking their lives to move to somewhere else.

        So I call BS on it being ethical for Australia to refuse, you can use all the excuses you want, but in the end, it's simple "We don't want those people in Australia".

        • 'no one in right mind will risk their life, sell their belonging and move to other country unless it's dire'. My father had a good job, lived in a safe country and owned a nice house etc. In 1974 he chose to bring our family here to Australia for the hope of an even better life for his children. We weren't fleeing anything 'dire'. We didn't risk our lives, after going through the process at the Australian embassy we sold our house and flew out here in a Boeing 747. Dad got a new job and we went to a new school.

          I dont think you can generalize, everyone has a different story and it is wrong to assume everyone arriving here has the same reasons for their journey.

        • +4

          @2ndeffort:

          "no one in right mind will risk their life"

          -But you didn't risk your life

          Clearly you were a migrant, not a refugee

        • +1

          @2ndeffort: that's called immigration, you idiot.

    • +5

      You didn't itemise it. The cell is $400,000 per person. The abuse is free.

    • +2

      I would cite Australia's resettlement in Cambodia as quite possibly the largest per capita waste of money I have ever seen.

      $55 million spent, 4 people resettled.

      http://www.theguardian.com/world/2015/aug/31/cambodia-has-no…

      13 million dollars per refugee. It would be far cheaper to hand each refugee a winning lottery ticket.

  • +3

    Parking - especially When your dinner ends up costing the same, and the free parking was another 5-10 mins walk.

    Buying shit from convenience stores. Because in Australia it's 3x the price generally, and the stores certainly aren't convenient.

    • -1

      trying to impress girl
      at end of dinner date, give her shoes to hike back to your car

      ;)

  • +11

    Politicians - $195.130 for a bankbencher alone

    • +3

      Plus money for helicopters and wine tours and all manner of allowances that can be abused.

      Pretty sure they also get budgets for their local electorate offices and staff.

      Then there's the lifetime parliamentary pensions they can fall back on so they can refuse to get a real job after their career in broken promises ends.

  • +5

    Car parts…

    $1600 for new stainless steel 3" turbo back exhaust
    Approx $300 for cold air intake
    Approx $1000 for Dyno tune
    Approx $700 for CF front lip + side skirts

    $3.6k in 6 months…

    Looking at a set of Enkei RPF1 rims + centrecaps + Potenza RE003s @ approx $2.5k in another 6 months

    Have friends who have spent $50k-$100k on car parts…
    (100k person spent it on a track oriented GTR)

    At least nobody here is spending it on cocaine =D

    • +24

      It's an investment mate - you just increased the value of that car by almost $200.

      • +2

        Lol did you mean decrease? If i ever sold the car is probably have to return it to stock or else I would lose more money

    • +4

      Thinking it looks cool: Priceless

    • what ride is it going on? (please don't say Civic or Lancer)

    • Performance cars are money pits.

      My brother has pumped about 10K into his WRX over the past 2 years.

      • Mine is also a WRX (MY11-14)

    • its not a waste .it makes you happy and gives you some thing to do. so if you where not doing this you would be spending money on other things any ways.

      • I dunno why you got negged but it's a valid point. From a financially responsible pov it's probably a waste of money to most… but then again I'm not married yet so I've got more freedom =P

        • read the last page i called people who like to travel always tossers and said that was a waste of money lol but i bet these same people drive to work. your car has a purpose and is useful to many hipsters now days! or you could be like those same people and buy a golf hahaha.

          what car is it?

        • @aussieprepper:

          Lol hipsters would disagree with its fuel economy and no definitely not a golf

          It's a WRX

        • @Serapis: now your set for a bigger turbo and new manifold maybe some new pistons and rods lol

          maybe the hipsters brought the golf TDI the ones with the fuel economy problems lol unlucky for them!

    • Off topic.. i've got the same car and about to do the same.
      what exhaust? how does it sound?
      and which dyno? where they good?
      (same tires when i need new ones as well lol )

  • +3

    Chanel anything- bags, earrings, perfume (impractical compared to Longchamp, pref gold earrings for same price)
    Soy candles- Margin is about 50% when you can make it yourself.
    Makeup remover- Use Olive oil, natural and removes everything
    Cheap crappy souvenir
    Gifts that people don't need or appreciate- I just give money or buy them lunch

  • +3

    LEAGUE OF LEGENDS

  • +2

    Getting the biggest mortgage you can, buying a McMansion, and spending an extra $500,000 in interest over the next $35 years.

    Tell that the people who bought houses in the 90's with very high interest rates. They are laughing right now.

  • +2

    Drugs & Alcohol
    Gym Membership and Personal trainer. Just go outside and run around the block a few times. There are only 2 circumstances where a PA is needed. One to teach you proper form. Can be done in 1 or 2 sessions. Another time is if you are trying to get into bodybuilding.

    • Proper form for running?

      What about the equipment… We have no space for them.

      • What about the equipment… We have no space for them.

        Most people really don't need equipment to train. They need diet and exercise.

        Also, what's the point in building muscles you don't use anyway?

        • I'm pretty sure most people go to get them gainzz.

          So basically, to look "good". Why do people tan? etc.

        • +2

          @inose: Supporting the orange paint industry

    • Well that would put me out of action the whole of winter. I agree with you on the PT point but gym makes for a bit certainty. I can exercise when it's raining or at night (I'm at work during 95% of daylight hours).

      Also as pointed out, need the equipment to build muscle, I would turn into a stick if all I did was cardio…

  • +2
    • Expensive phone plans
    • Trendy "workout meals" or "workout water", people pay a lot of money these premade meals
    • Going out to fancy restaurants alone regularly. People may actually benefit from going out regularly with friends to socialise and catch up even though it's expensive.
    • Non 7/11 or Coles Express coffee
    • Cigarettes
    • Workout/Fitness gear that people use for motivation but still don't workout
  • +6

    Anything from Cash Converters (the few times I have ventured in with friends I have seen so many items selling at above new cost).

  • +16

    Those idiots standing in line to buy a new iPhone every year is the dumbest thing I've seen.

  • +2

    3 ply toilet paper, my bot bot is happy with 2 ply

    • +1

      But… But… It feels so much nicer!

      Won't you, on average, use less if you use three ply instead of two ply?

  • -1

    McLarens. There's definitely cheaper ways to blunt a hammer.

  • +4

    Children

    • +5

      Actually, on serious note, I've seen some parents spending a lot of money (5~6 figures) on their children's education while neglecting other things. The children suffers from pressure and other issues, which the parents neglect. The children in the long run end up with depression, anxiety etc etc.

      I am in no position of judging the parents in this case, since I am one of those kids who've received education that's slightly beyond the parents' income. That said, is it really worth it?

      • In other words, just being asian right?

        • I've seen it with Asian parents, that said, it's not just with Asian parents imo.
          Well, the sentence might change a little, "education" to something else or it might stay as is, that said, I've seen plenty cases where the parents think they are doing something for the child, spending insane amount of money, when they are ruining the child without knowing what they are doing.

        • @Oversimplified: It's also up to the child to utilize that education properly, it sounds cliched but it's not your grades it's who you knew and grew up with. I got sent to a public school while my other siblings went private, matching up as adults I see a wide disparity between our incomes. Of course I'm just one data point. But the right school really nudges your child's odds at success.

        • @Bunnyburger: Eh, I was pointing more on how some parents tend to invest hefty amount of cash with good intention which in fact turns sour. That said, as Madonna sang in a song with Justin Timberlake the old saying goes, the road to hell is paved with good intentions.

    • +3

      Well just 150 years ago having children was your superannuation. They helped out on the family farm/business and looked after you in your old age.

      Nowadays kids tend to play video games and then just party when they're 18. They don't move out and they keep playing video games. They rack HECS/HELP debts but can often end up in a job that didn't need a degree. They get expensive phones and car loans that they can't really afford.

      The elderly today have to pay other people's kids to look after them in nursing homes. And many of these aged care workers are imported from overseas, especially the Philippines.

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