About the Author, Marc Summers: I help you through simple, clear, and practical advice and work hard to ensure you’re getting quality instead of clickbait junk. I focus heavily on mindset, common sense, controlling emotions and behavior, communication, and leadership – key areas that make you happier and make your life better. If you have feedback, questions, or comments, you can reach me here.
Broke people wonder why their money runs out so fast. The truth is, small, wasteful choices and habits add up fast and keep you stuck. The top 10 things broke people waste their money on can cost hundreds or even thousands of dollars every year. These choices feel normal in the moment, but they make it harder to pay bills, save, or get ahead. In this article, we look at the top 10 things broke people waste money on and how you can fix these mistakes in your own life. You’ll see real costs, why they happen, and easy ways to stop them. Changing, even a few, can free up a lot of cash you need right now.
1. Fast Food and Eating Out
One of the biggest things broke people waste their money on is fast food and eating out. A quick burger or drive-thru meal, just for themselves, costs $6 to $13. Do it three times a week and you’re spending over $1,000 a year. Tons of low-income families spend EVEN MORE because they grab lunch or dinner out when time feels short. It adds up fast and leaves less for groceries at home.
Why this happens: Fast food is “faster” and tastes good when you’re tired and hungry after a long day. But, home-cooked meals cost way less per plate. You can make a big pot of rice and beans for under $5 that feeds you and the family FOR DAYS. Is it the always the party in your mouth that you want? No, but it makes your bank account less lame and that’s what you should be most excited about.
Fix it: Plan simple meals on weekends. Meal prep and pack lunch for work the night before. Small changes like this eliminate one of the top things broke people waste money on and puts real money back in your pocket. You’ll be surprised how much cheaper AND HEALTHIER it is to buy chicken, veggies, and rice and make yourself food for the ENTIRE WEEK rather than eating random things each day. Your body and bank account will thank you for it and you’ll feel better.
2. Daily Coffee Shop Drinks
Fancy coffee, like Starbucks, is another top thing broke people waste their money on. Some people are so dumb that they buy the most expensive coffee as a status symbol. Just so you can see them walk in with it and think they’re somebody with grown up money. A $5 – $10 latte every morning adds up to about $1,800 – $3,600 a year. Some people spend EVEN MORE with extra trips on weekends. It feels like a small treat that makes you feel less poor and broke, but that money could cover A LOT of other things that are way more important.
Broke people grab coffee on the way to work because they’ve made it part of their morning routine. Spending the money is automatic and they don’t feel the pain of $7 at a time.
Fix it: A simple coffee maker at home costs 10X – 30X LESS per cup. Brew your own and save $1,500, or more, each year. Bring a travel mug with you to work or order fancy coffee cups with lids on Amazon that LOOK like you stopped to buy it. It’ll be your secret. This swap alone destroys another one of the big things broke people waste their money on. Does it make you FEEL rich? Not really BUT, you’ll actually BE richer – and that’s what matters.
3. Lottery Tickets and Gambling
Lottery tickets and scratch-offs rank high on the list of things broke people waste their money on because being right just once can change everything. Unfortunately, you have a better chance of dying in a plane crash THIRTY TIMES than you do winning life-changing money. On average, low-income and poor people spend about $600 – $1000 a year on tickets – 4X more than rich people. The odds of winning stay tiny, but the hope feels strong when money is tight.
Many buy tickets thinking one big win COULD happen to them. In reality, that $5 or $10 each week adds up to hundreds, and even thousands, lost.
Fix it: Skip the tickets and put that money in a jar or move it to your savings account. Watch it grow. Dropping lottery and scratch-off spending is one of the smartest ways to stop wasting money like broke people.
4. Cigarettes, Vaping, and Alcohol
Smoking and drinking are still at the top of the list for things broke people waste money on. A pack-a-day smoker, gross, spends $3,000 a year or more. A few drinks at the bar or six-pack at home several times a week adds another $1,000 quickly. You hurt your health and money at the same time.
Stress, worry, and anxiety is usually the excuse. Yet, you should worry JUST AS MUCH about staying broke.
Fix it: Look for free quit-smoking help at local clinics or apps. Cut back one drink at a time. The money you save can pay for your emergency fund. This change hits hard and you’ll feel better.
5. Bank Fees and Late Payments
Bank fees sneak up on broke people who waste money on because they don’t pay attention to them. Overdraft charges, late fees, and account fees cause them to throw away hundreds of dollars a year. One missed payment snowballs fast when you live paycheck-to-paycheck, you buy wants before needs, and you don’t make sure priorities get paid FIRST.
How it works: If your bank doesn’t give you a $100 overdraft protection before they charge fees, then the charges will add up quickly. You’re $1 over – $35 overdraft charge. Another $5 – another 35$ overdraft charge. It keeps going until you bring the balance back up past $0. Even though you spend $6, you’re now -$76.
Fix it: Switch to a bank with no fees or that waives overdraft charges under $100. Set up free alerts on your phone so you know when your balance is low. Spend less money on BS, track your income and expenses and, of course, pay bills on time. This stops the financial bleeding and one of the most common things broke people waste money on.
6. Unused Subscriptions and Gym Memberships
Broke people waste money on gym memberships because they get super pumped to go and then get quit going when it gets boring and monotonous. Just like everything else, they quit going when consistency is challenging and no longer fun. Would you believe 67% of gym memberships go unused? It’s true. With streaming apps and services, they pay for all the ones they WANT, only watch 2 of them regularly, forget about the rest, and never cancel the ones they don’t watch. 33% of people do this as well. This, combined with the unused gym membership, easily amounts to over $700 a year spent on NOTHING. They sign up hoping to use them, but then life gets busy. It happens. But, forgetting about them costs money.
Fix it: Check your bank statement for what you’re getting charged for monthly and cancel what you don’t use. Share streaming accounts with family or a friend if possible. This frees up cash and turns into another thing you’re not wasting money on like a broke person.
7. Designer Clothes and Brand-Name Items
Spending money you barely have on designer and name-brand clothes, shoes, and accessories so you look wealthy is another one of the dumbest things broke people do with money. “Looking” like they have more money is more important. It makes them FEEL better about themselves and their situation. They like how they’re perceived. Even though it looks almost the same as everything else, it costs 2x – 5x more.
The pressure to fit in, mixed with ego and identity issues. causes it to quickly spiral out of control.
Fix it: Want designer clothes or name brand? Since you can’t realistically afford to buy “new”, look at discount stores and thrift shops. Look at Facebook Marketplace. No one will know and you’ll be surprised what you find. Buy only what you need and wait for things to go on sale. Get the app for the stores you like and enable notifications for sales and discounts. This habit change can save $300 to $800 a year and cuts one of the top things broke people waste their money on.
8. New Phones and Expensive Plans
Needlessly upgrading to the latest phone every year just to flex, get noticed, or look like they’re doing well is another silly thing broke people waste their money on. New phones cost $1,000 + and fancy plans add $100 a month. On top of that, the new case, screen protector, etc. makes it even more. As long as older phones still get modern updates, there’s no need to upgrade and waste your money.
Broke people feel they need the newest model to stay in the lead or keep up. They care too much about what other broke people think and want to be “doing” better or on the same level.
Fix it: Switch to a cheaper plan, keep your current phone longer, and save $800 to $1,200 a year. NO ONE KNOWS AND NO ONE CARES that your phone is older. Also, they also don’t care as much as you think that you have newest phone and expensive plan. It’s one of the easiest broke people problems to fix.
9. Impulse Buys and Convenience Items
Impulse buys are THE BIGGEST PROBLEM for broke people who waste money. They’re walking down the aisle, in the checkout line, or scrolling late at night and can’t resist buying that “tasty”, “cool”, or “nice” thing. Emotions take over, they get excited, and can’t say “no”. The more they want it, the more they justify buying it. That $10 snack here, a $20 gadget there, and $100 “sale” item adds up to $500 – $1,000, or more, each year.
Stores strategically place tempting items right where you pay because they know it works. They know where your hands and eyes will be and make it as easy as possible to grab it and pay for it without thinking.
Fix it: Make a list before you shop and stick to it. Move quickly from item to item so you’re not looking at and buying things not on your list. Most stores now have apps with built-in lists that tell you EXACTLY which aisle and bay your item is on. Without a list, you’re likely to spend 25% more through impulsive buying.
If it’s not on the list, wait 48 hours before buying it. Most of the time, you’ll forget about it because it wasn’t THAT important.
10. Bottled Water and Convenience Drinks
Bottled water and soda from gas stations are quiet money-wasters. A $2 bottle twice a day costs $1,400 a year and a $3 soda each day is $900 a year.
It’s convenient when you are on the go, but not convenient for your bank account.
Fix it: Fill a reusable bottle at home instead. You’ll save hundreds, cut plastic waste, and eliminate microplastics from littering your body. This small switch helps you stop wasting money like broke people and you can start today.
How to Stop Wasting Money and Get Ahead
The top 10 things broke people waste money on rob you of the ability to invest for a better life. Each habit alone may not seem huge, but together, they keep you stuck. Start small. Pick one or two from this list, stop spending money on them, and track what you save for a month. The change will be noticeable.
Stop the death by a thousand card taps and swipes. Make a simple budget on paper or a phone app. Write down every dollar you spend. Look for the patterns making you broke. Cook at home, brew your own coffee, and cancel unused subscriptions. Pay bills on time to avoid fees. These steps add up fast.
Over time, you’ll have extra money for your emergency fund, a small vacation, or even paying down, or off, debt. The key is to stay aware. You get more control over these 10 things broke people waste their money once you notice them. You don’t need a big raise or lottery win. You just need to make small changes and remain consistent.
Start today: Look at your last bank statement and circle, IN RED, any of these wastes. Put it on your wall or fridge where you’ll see it every day. Then, take action by saying “no” to things this week. You deserve to keep more of your money. Breaking these habits is how you finally move forward.
