Poor. Choices.

I love telling people what to do. Especially when it comes to money. And I’m almost always right. In fact, it would be cruel of me not to give my opinion on these topics because it’s so dang useful. That’s why I’ve got my top 10 list of things NOT to buy, and what to buy instead:

Buy a Used Car with a Warranty, Not a Brand New Car

The simple logic here says you don’t need a brand new car just to prove to your ex-girlfriend that you’re successful. No one thinks as highly of yourself as you do cruising around in a Mercedes that costs more than your mortgage. The sweet spot is a 2 or 3 year old car that just came off lease and is sitting on the dealership lot.

Look for a “Certified Pre-Owned” label or something to that effect. This likely means it will come with some amount of protection against blowing up the minute you drive it off the lot. Add an extended warranty if you can. The extended warranty should cost you a couple thousand dollars and you’ll still come out way ahead of buying a brand new car.

Put the difference into your 401(k) and thank me in 20 years when it’s worth several hundred thousand dollars.

Buy Expensive Tools, Not Cheap Tools

Expensive tools are almost always worth it. Even if you don’t get something top of the line with the bells and whistles, don’t buy the cheapest options or store brands. Cheap tools aren’t made to last and they can make any job twice as difficult by breaking, bending, or lacking some crucial feature. There’s an old saying, “Buy Cheap, Buy Twice“.

Buy Well-Made Clothes, Not Cheap Clothes

Well-made clothes fit better, last longer, and look nicer. This should shock no one. Like cheap tools, cheap clothes that last a season or two before they are unraveling, pilling, stretching, or misshapen get tossed out or donated. Not only is this unsustainable for the environment, it’s tough on your wallet.

If you can only afford a few pieces of nice clothing, go for nice shoes, jackets, and shirts. Shoes get a lot of miles on them. Jackets need to be functional to keep you warm. Shirts are the top half of what people see when they look at you. Makes sense, right?

The better you look, the more confident you will be, too. It tells the world you care about your appearance and probably put similar levels of quality and attention into other areas of your life. Nice clothes have a lot of benefits.

Buy $20 Wine, Not $100 Wine

No one can tell the difference. Not you. Not your pretentious college roommate. Not anyone.

But notice I’m not advocating for a $5 bottle of wine. The really cheap wine stains your teeth and gives you hangovers due to the sugar content. $20 is the level at which the wine is almost guaranteed to be good. Plus, the label designs level-off in terms of quality at $20. And the label design is the only thing you should base your wine choice on anyways. At least that’s what I do.

Buy a Cheap House in a Good Location, Not an Expensive House in a Bad Location

Just kidding, LA, you’re great. But your house prices ain’t.

The reason you should focus on location above all else with your house is that you can’t pick it up and move it. You will habituate to almost everything inside your house or you can change it over time. But you probably won’t habituate to a terrible view, a long drive to get anywhere, and a flood zone.

Buy Index Funds, Not Individual Stocks

Picking stocks takes a lot of time and causes a lot of frustration when you get it wrong. There’s more to life than money (he said unconvincingly given he runs an entire website based on the stuff). Not only do you give up your sanity, you give up diversification in the process, which is one of the best ways to hedge against volatility. Index funds are the one asset I will reliably buy in a bear market. Individual stocks are almost always the thing I sell in a bear market only to watch them rip higher a year later.

If you must pick individual stocks, stay away from penny stocks (defined as any stock under $5 really).

Buy Video Games on Sale, Not Full-Priced Games

Some people can skip this tip because they don’t play video games. In that case, insert whatever hobby you enjoy here and follow the same rule. Bonus tip, right now the Steam Summer Sale is going on with many games going for 25-90% off.

Buy Sunscreen in the Fall, Not Sunscreen in the Summer

Sunscreen is one of the most seasonal items out there in terms of price. You’ll find it marked down starting in September. Watch the expiration dates, but just buy one bottle in the fall. Even if it’s gone by July, at least you will have saved some money.

Buy an Elopement Package, Not an Elaborate Wedding

My wife and I read our vows and exchanged rings on the coast of the pacific ocean, in a canopy of giant redwoods. Then we came home and threw a small reception in our hometown with 75 of only our most favorite people as guests. By my estimate, we spent about half of what a full wedding would have cost us and enjoyed it twice as much as we would have otherwise. We put the money we saved towards our house.

If you aren’t paying for your wedding, go ahead and throw a big, fancy party and invite everyone, but for the rest of us, an elopement is a great way to go.

Buy a Gift for Someone Who Owns a Boat, Not a Boat

It’s the oldest saying in the book, “Keep your friends close and your enemies closer. Especially if your enemies own a nice boat.“

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