The DUMBEST Things People Actually Spend Money On!

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Smart Money Happy Hour with Rachel Cruze and George Kamel 40 min 3 speakers 3 chapters transcribed
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What are the dumbest things people spend money on?

George Kamel 0:05
Today, we're talking about the dumbest things that people spend money on. And let me tell you, there was no shortage of content here.
Rachel Cruze 0:11
Oh, and there was a lot.
George Kamel 0:12
Everyone's got their thing. You know, some people, it's their coffee and their lattes. And this time, we're going to roast each other for the things that we spend money on that are dumb.
Rachel Cruze 0:19
Okay, hold on. Let me, like, prepare my sensitive soul. Hey, guys, I'm Rachel.
George Kamel 0:30
I'm George.
Rachel Cruze 0:31
And this is Smart Money Happy Hour. delicate clink today because this drink is very it's doing the most it's delicious well this is the show where two friends who happen to be money experts talk about what you're talking about so everything from pop culture current events and money what are we what are we sipping on
George Kamel 0:54
We are sipping on a sparkling pear mocktail. And I can tell you right now, this might be one of the top three we've had.
Rachel Cruze 1:00
It's really good.
George Kamel 1:01
It's unstoppable. It's a force to be reckoned with. Delicious. So stick around until the end. We're going to give you the rating and review the cost per glass at the end of the episode.
Rachel Cruze 1:09
Yes. So I'll just say this. As we were prepping for this episode, we were like, okay, let's list off a couple of things that, you know, we think are just dumb in general.
George Kamel 1:18
We might step on some toes here. Can you say that?
Rachel Cruze 1:20
Yeah, we could. It's going to hurt some feelings. I know, but we went kind of high level. So like we'll give them like our like, I don't know, high level view of some dumb things. And then it started to get a little personal, George.
George Kamel 1:31
Oh, wow. Like we're going to roast each other at the end?
Rachel Cruze 1:34
Yeah, well, yeah. And then the list after this one is like, oh no, like you've done that or I've done that. I don't know. And then at the end, a total roast of each other because there's stuff that George spends money on that I think is...
George Kamel 1:44
Was this episode just made to be a personal attack on me? Because I am here for it and ready to defend my honor.
Rachel Cruze 1:51
Okay, what are the high level that you and I agree on?
George Kamel 1:54
I think you and I and almost all of the financial space agrees that new cars are one of the dumbest things you can spend money on. And people justify it all the time because they're like, Rachel, I want a reliable, safe car for my family. Why do they sound like that? I don't know. That's the accent.

Why are new cars considered a bad investment?

Rachel Cruze 2:12
But they do. Yeah, new cars.
George Kamel 2:14
Why do we hate new cars?
Rachel Cruze 2:15
Well, because they lose so much value pretty much immediately. Like, once you drive it off the lot... 10% right there. Yeah, and then over the first year, it's like 20%. I mean, it's just... It is something that costs a lot. Right? And a new car these days, George, $50,000? I'm like... And what's wildβ€” Totally normal for 50,000 new cars. Yes. And cars that are not even that glamorous or crazy, that's how high they've gotten in price.
George Kamel 2:40
Yeah.
Rachel Cruze 2:40
So again, you could buy a $40,000 brand new car. We're not even talking like luxury cars. No. Yeah. So all that to say, let someone else take the hit and just buy a two-year-old car. Or, you know, older. I think it's great.
George Kamel 2:55
Yeah, people here will buy a used car in cash and they go, oh my gosh, they want me to buy a $2,000 beater car from 1992? No, there's a gap between 2025 car and 1992. That's right. So buy a five-year-old car, two-year-old, 10-year-old car.
Rachel Cruze 3:10
Get you a 2017. You know what I mean? Like, they're still great. They're still great cars. Now, once you have a million-dollar net worth, then if you have the money, you can buy a new car. And we say that because you can take the hit financially. Right.
George Kamel 3:21
It's not a big part of your financial world.
Rachel Cruze 3:23
But going into debt for a new car and paying interest on something that is going so far down in value so quickly, it's not worth it. Go buy a two-year-old car. And I will say this till the day is long, George. If I am at a stoplight and a car pulls up next to me, name a car, George, go.
George Kamel 3:39
Ooh, Kia Sorento.
Rachel Cruze 3:41
I don't see that Kia Sorento. And I'm not like, ooh, that's a 2025. What a brand new Kia Sorento.
George Kamel 3:49
Sorry, I shouldn't have chosen a cultured name. It's a lot for you right now.

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