 7 things that the pool waste money on and the rich don't. Do you want to get rich? Of course yes. Do you want to live with all the possible comfort? I'm sure your answer is yes. Then you have came to the right place because in this video I'm going to teach you actually how to better manage your finances and control unnecessary expenses. I will show you 7 things that the pool waste money on according to Warren Buffet, the world's greatest investor. But before I start I just request to hit the like button and subscribe to my channel so that you can watch more videos and let's jump in the video. Number one, poor people buy a house at the beginning of their journey and that house is out of their price range. Even if that is in your price range or in their price range, they can invest that money and make more money. If you do not have the money and buy a house with date, then you are paying high interest rate and get stock in date chains locked with high interest. Owning a house won't make you money. On the contrary, it generates expenses. Warren Buffet doesn't mean that having a house of your own to share with your family is completely wrong. What is wrong is buying a house with a lot of date because that will lead you to bankruptcy slowly. Number two, gambling. Gambling is detrimental to your finances. Although Warren Buffet states that there is nothing wrong with playing once in a while, if you expect to increase your income or generate wealth, it will only lead you to bankruptcy. Understand one thing, every time you play on these machines, actually like slot machines, it is very likely that your ambition will make you want to spend more and more, which will make you spend all your money in a matter of minutes. Lack is for mediocre people. Success is for those who don't rely on lack. Always remember this. Number three, paying for unnecessary subscriptions. According to statistics, around 50% of the gym members in 2002 paid for the membership but didn't go to the gym continuously. Another report shows that almost 70% of the students with memberships stopped using them after the first few months. Most gyms rely on people actually paying their dues and not showing up. Similar to the gyms, there are too many unnecessary subscriptions like Netflix, high-speed Wi-Fi. I know someone who pays around $80 for Wi-Fi in their home and he's always outside. And also, he has phone internet. He kept paying the subscriptions for more than eight months and I told him that, okay, why are you not stopping it? And he stopped after two more months. Subscriptions automatically deduct from your credit cards and end of the month, you only see the total cost. So you need to cut unnecessary subscriptions. Number four, luxury brands. As I mentioned earlier, the poor buy things they don't need regardless of the price. Of course, millionaires can afford fashionable clothes, mansions and luxury cars. They just do not spend their money on actually to prove themselves that they are rich. If you are the one trying to impress other people by spending a lot of money on expensive brands, you will end up broke someday. Only buy things that you need. Once you can afford and becoming a multimillionaire, then go ahead and spend some money on luxury items or lifestyle. That won't affect your wealth. But before becoming rich or spending too much money on brands, that spending behavior will take away all the investment opportunities from you. Number five, buying a new car. Buying a new car is the worst, one of the worst actually financial decisions that new generations make. They buy cars on date and go into date system. At the moment you buy a new car and you sign for the payment, your car loses its value by 10% and I see many people who are buying cars on loans and during five to 10 years paying interest and loans actually to the banks. Instead you can buy a three to five years old car with almost 50% of the price. If you're buying a car, for example, 50K, then you should have already 100K. It means that you should have twice the car price already. Even if you have the total price, according to the rich mindset, you cannot afford to buy that car. Number six, watching TV and playing video games. Play something. An important fact revealed by Warren Buffett is that the middle class and lower class households waste time playing video games and watching TV. This is much more common in these households than in the wealthier homes. He explains that first of all, they waste time and money acquiring the latest TV packages. Secondly, they waste their time playing video games. Instead, you can use it actually for constructive activities or learning how to generate new income streams and grow wealth. For example, people from the top 10% are reading more than the people from the average population. The poor mostly spend time on watching Netflix, playing video games or too often partying. And let's go to the last one and that is number seven, extravagant vacations. Having experiences like traveling is very important. I see poor people are traveling for weeks and going into debt and then working for months to pay the bills. Those types of vacations create post-trip stress and unbalancing your personal finances and even putting people into bankruptcy. Find substitutes for traveling or choose local trips that you do not need to spend a lot of money or start a side hustle and work till you save some money for the trip and then do as you planned. These are the seven things that poor people spend money on and the rich don't until they get wealthy. So do not spend like the rich if you cannot afford it at least at the beginning of your journey. Oh guys, I wish you a prosperous and wealthier life in the future. Okay, don't forget to subscribe to the channel, hit the like button and I will see you in the next video. Thanks and have a good day.