21 Things Broke People Waste Money On, According to Frugal Living YouTuber Austin Williams

Curious if your favorite splurge is is costing your more than it needs to? Looking for ways to cut your wasteful spending? Fortunately, frugal living YouTuber Austin Williams is here to help.

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In a his recent video posted on YouTube, Williams categorized the 21 things he believes broke people waste their money on. While there are a number of unnecessary expenditures on the list that are likely unsurprising — cigarettes, alcohol, fast food — there are also reasons that, as Williams puts it, “believe it or not, are not always their fault.”

Click through to see where you could be cutting back, especially if you’re living paycheck to paycheck.

The irony of being broke is that broke people often spend more money than well-off people, simply because they do not have money,” Williams noted. He stated, as an example, that a financially well-off person will simply pay rent on time, while a broke person will put off paying rent because they don’t have the money, and will thus incur late fees.

It’s far easier for a broke person to overspend with their checking account, Williams noted, resulting in an automatic overdraft fee from a bank, which typically averages about $30.

For those who don’t have a lot of money in the bank, financial institutions will often charge a “monthly maintenance fee” for bank accounts with less than a $500 balance.

“Another example of how broke people will pay more than well-off people on the exact same thing is through credit card interest,” Williams explained. Often, a well-off person can pay for an expensive item all at once, even in cash, such as a television; however, a broke person might have to charge it to a credit card on installments, and pay a high interest fee with every payment.

Broke people often need money more quickly — leading to such things as “instant transfers” on platforms like Venmo, which charge a 1.75% fee for instant transfers, while 24-hour transfers remain free.

The system can punish folks for being broke by fining them for things they can’t pay for. In Williams’ example, a broke person’s car might not pass an emissions test, and the driver is unable to pay to fix the issue. This then leads to the car being driven with an expired tag, which could then lead to an expired tag ticket and late fees.

Speaking of cars, they require a lot of maintenance, and people without much money can neglect car issues. his, in turn, can add up to very costly breakdowns.

Williams argued that lottery tickets are another way the government takes advantage of broke people, categorizing lottery tickets as a tax on the poor. “The lottery gives people with little money the split-second thought that their life can change overnight,” he said. “It gives them hope. And hope can cost you a lot of money.”

Another type of gambling is sports betting, which preys on folks with very little money, because it’s an easily accessible gambling parlor in your pocket.

The average price of cigarettes is $8 a day, and can cost pack-a-day smokers approximately $3,000 per year.

A single drink at a bar can cost $8 to $15, while a six-pack at home can cost $10 — alcohol can be very expensive for a broke person, even just for a night.

In Williams’ opinion, people who wait in line all day at dispensaries are “often low-income people who are behind on their bills […] it is a waste of money for people who do not have money.”

Williams noted that most people — both broke and rich — spend too much on their phone plans. While it’s easy for rich folks to overspend, it’s far harder for those with no money.

Speaking of phones, they can be very expensive, with a new iPhone running up a charge over $1,000. Williams noted he bought his phone, used, off of eBay for $150.

People without much money can often work very busy, chaotic lives in which they are out of the house a lot of the time, working and hustling. This can make the temptation to overspend at the drive thru an easy one.

On top of going to the drive thru too often, Williams noted that another costly habit is going out to lunch every single working day, as opposed to saving thousands a year on lunch by bringing your own food to work.

Going to the gas station to buy quick drinks and snacks is another side effect of a busy, hustling lifestyle. However, ot comes at a cost, as gas stations frequently charge high prices for everyday items.

Williams believes that broke people lose money over time by not buying in bulk — instead, saving money in the short-term by buying one item rather than buying in discounted bulk and saving in the long run.

Buying lunch every day can quickly deplete your paycheck. Similarly, broke people will often buy low-quality items to save in the short term, but have to pay more in the long term by replacing them more often.

The more nutritious a food item is, the more expensive it tends to be. Conversely, junk food tends to be cheap. The problem is that copious consumption of junk food can lead to expensive medical problems.

Often, broke people can have a distorted view of what it means to “look rich,” as Williams asserted, spending far too much money on impractical clothes and impractical cars that even the wealthy don’t waste their money on — which is why they still have their money.