You’ve probably heard the saying, “It’s not how much you make, it’s how much you keep.”
That’s a big principle for smart people who want to build long-term financial stability.
It’s not that they never spend money — they’re just ultra-strategic about where it goes.
Many of the successful entrepreneurs I’ve met over the years have pointed out that you can sabotage yourself by wasting cash on stuff that never brings real value.
Here at Small Biz Technology, we often discuss how small decisions add up to big results over time. The same goes for what you choose to buy—or not buy.
Ready to see which purchases savvy folks typically avoid?
Let’s get into 8 things they generally steer clear of, according to the business minds who’ve walked the walk.
1. Expensive brand names with no added value
We’ve all been tempted by a product decked out in a logo that screams luxury.
But successful entrepreneurs, particularly those who’ve had to bootstrap their way up, rarely drop big cash on brands unless there’s actual quality behind the label.
They’ll pay more for durability, a solid warranty, or superior craftsmanship—but they’re not swayed by the brand name alone.
I used to think buying a certain laptop brand made me look more “serious” in my startup days. Turns out, a cheaper alternative with similar specs did the job just as well.
As Warren Buffett has often hinted, paying for flash alone can be a shortcut to draining your bank balance.
The next time a piece of marketing or a stylish logo starts calling your name, ask yourself: does it really provide something extra, or is it just a status flex?
2. “Quick fix” solutions that promise the world
High-earning, financially-savvy people know that true success comes from consistent effort over time, not overnight miracles.
That’s why they don’t shell out on gimmicky programs, courses, or products claiming life-changing results in days.
Whether it’s a sketchy weight-loss shake, a crypto scheme promising guaranteed returns, or a “make six figures in a month” workshop, they see through the hype.
Ray Dalio, the legendary hedge fund manager, emphasizes that real progress follows a principle: identify problems, diagnose them, design solutions, then execute.
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There’s no magic wand here.
Smart entrepreneurs would rather invest in real skill-building or proven systems than blow money on empty promises. If something sounds too good to be true, it usually is, and that means your money is likely better spent elsewhere.
3. Subscriptions they barely use (or forgot they had)
If you’ve ever checked your bank statement and seen multiple subscriptions you didn’t realize you were still paying for, you’re not alone.
It’s that $9.99 a month for a streaming service you never open. Or the specialized software subscription that looked amazing at first but you haven’t touched it in weeks.
These small charges add up fast.
I’ve mentioned this before but there was a time when I was juggling three cloud storage accounts, two separate gym memberships, and random business app subscriptions.
The monthly drain was subtle, but over a year, it was a decent chunk of change.
Cal Newport has advocated for “digital minimalism,” which means being deliberate with our tech choices.
Smart folks do the same with any recurring expense. They review their subscriptions routinely and cut what’s not essential. The savings, both mental and financial, can be pretty significant.
4. Extended warranties for cheap or easily replaceable items
Extended warranties can be tempting—especially when a cashier tries to upsell you at checkout. But most successful people I know skip them for smaller gadgets or budget-friendly items.
If the product’s cost to replace is less than the price of the warranty itself, there’s no sense in doubling down on coverage.
Now, extended warranties can be worthwhile for more expensive gear, like top-tier laptops you rely on for business or big household appliances.
But paying extra to insure a $30 electronic gadget?
Not so much.
If the item isn’t critical to your business or personal life, springing for extra coverage is often unnecessary. In the long run, that money is better off in your savings or invested in something that grows.
5. High-interest credit or “buy now, pay later” traps
Credit cards can be useful—if you know how to wield them responsibly. Successful entrepreneurs often understand this, but they’re careful to avoid piling up debts with skyrocketing interest rates.
The same goes for “buy now, pay later” plans, which can balloon into a monthly burden if you stack too many purchases.
I once watched a friend finance a flurry of electronics for his startup on a high-APR credit card. Within a few months, the interest was eating away at his margins.
The thing is that compound interest works against you when you’re paying 20% or more on a revolving balance.
The golden rule: if you’re using credit, make sure you can clear the balance quickly. Otherwise, it’s a silent money drain.
6. “Keep up with the Joneses” luxuries
It’s easy to blow money on a fancy car or a lavish home renovation because everyone else in your circle is doing it.
But the savviest entrepreneurs typically aren’t driven by peer pressure or envy.
They focus on their own goals rather than impressing neighbors or old classmates on social media.
I get the appeal.
A neighbor gets a new kitchen, you feel a pang of “should I redo mine?” Or a colleague shows off a new luxury SUV, you wonder if your reliable sedan is “too basic.”
The truth is, living below your means—especially in your early wealth-building stages—provides freedom to invest in the things that actually matter.
Wealthy individuals know that flexing too soon can hinder long-term gains.
7. Daily indulgences that hurt more than they help
We all deserve a treat.
But when a small indulgence becomes a daily habit, the costs stack up faster than you think.
Yes, I’m talking about that artisanal coffee you grab on your way to work, the pricey smoothies you order for lunch, or the constant take-out because it’s convenient.
A while ago, I realized my “just a quick latte” routine was adding about $150 a month to my bills.
That’s nearly two grand a year — for coffee.
Simon Sinek has pointed out the importance of checking our impulses. It’s not that you can never enjoy a latte, but if you’re doing it mindlessly every day, it’s a stealthy finance leak.
Smart people usually identify these types of spending patterns and either cut back or find cheaper alternatives. It’s a small tweak that frees up funds to put toward investments, savings, or experiences with a more significant payoff.
8. Invisible fees they don’t pay attention to
Bank fees, ATM fees, mutual fund expense ratios, subscription upgrade fees, roaming charges on your phone plan — the list goes on.
If there’s one thing I’ve learned from my entrepreneurial journey, it’s that every little bit counts.
Smart spenders keep a sharp eye on these hidden or easy-to-miss charges.
I once got hit with a monthly bank fee for dropping below a certain checking balance. It wasn’t huge, but over a year, it added up to a decent sum.
After noticing it, I switched to a fee-free account, and that was that.
Financial experts often suggest auditing your finances regularly to spot and eliminate these sneaky drains on your wallet. It’s not only about saving money — it’s about keeping more of what you earn so you can fund your bigger goals.
Wrapping up
And to round things off (though it’s no small matter) — the road to financial success isn’t just paved by how much you can earn, but by how strategically you can avoid throwing money at things that don’t serve you.
Successful entrepreneurs often have a knack for zeroing in on which expenses add true value and which ones are just fluff.
Take a close look at your own spending habits.
Are you investing in your growth, or are you falling for fleeting thrills or mindless subscriptions?
By making small changes and cutting out what’s unnecessary, you free up resources to pursue your bigger ambitions—without the financial baggage that weighs most people down.
Until next time, friends
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