15 Things People Who Are Smart with Money Don’t Do

28 August 2021

Do You Think You Know How to Manage Your Money Smartly? Let’s Find Out.

Money makes the world go round yet can’t buy happiness. Cash is king yet the root of all evil. Striking a balance with your relationship with money is not easy and being smart with money doesn’t happen naturally. It’s a skill that is taught, learned, and hopefully retained. 

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Today’s it’s all about 15 Things People Who are Smart with Money Don’t Do.

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Pay Full Price

We’ve all seen it at one point or another – someone bragging about their latest big-ticket item – the thing they “needed” so badly they paid full price just to get it first – and then tell the world how much they spent, like it’s some kind of flex.

There are a few issues with this behaviour – like insecurity – but we’re talking about what people who are smart with money do – and those people shop around.

Someone with money-smarts will compare options to find the best deal – and if they don’t see a better deal, rest assured they will negotiate one. Paying full price just screams “dumb money”.


Upgrading – Just Because

There is absolutely no problem with upgrading something, but it’s a waste of money to upgrade just for upgrading’s sake. If that new purchase is going to benefit you or make your life or job easier – then it’s a good idea. However, if the upgraded benefits are minimal – skip it. It’s not worth the additional financial strain for something that doesn’t bring that much improvement to your life…. And certainly not if the motivation for the upgrade is to…


Keep Up with the Joneses

Dr Seuss aptly said, “Be who you are and say what you feel, because those who mind don’t matter and those who matter don’t mind.” Right, so how does that apply to finances?

Aluxers, trying to compete with people that mean nothing to you is a waste of time and money… both of which are precious resources.

People who are smart with money don’t spend theirs in an effort to  impress anyone, especially not the Joneses – mind your own business, and let them mind thiers – you’ll both be better off

And Aluxers if you want some help understanding what it means to mind your own business why not revisit a classic – Robert Kiyosaki’s Rich Dad, Poor Dad – you can get yourself a free download from our friends at Audible by going to alux.com/freebook.


Buy Friendship

You know that girl that always wants to buy a round of drinks for everyone at the bar, or the guy who insists on paying for everyone’s entry at the club? Sure, maybe these people are just helluh generous – but more often than not they’re only spending money to earn status points among their group of peers.

We’re not saying you should never foot the bill for you and your friends – but people who are smart with money understand there’s a time and a place for it – and know what it looks like to be taken advantage of.

It’s better to make friends by being good to people rather than buying friendships, check out 15 Ways to Be a Better Friend.


Leverage Affection

We’ve spoken about buying friendship, and about keeping up with the Joneses, so what do we mean with affection?

You might be in a relationship that’s not doing too well. Anxiety grips your mind that your S/O is going to up and leave, so you start buying their affection. You spring for expensive dinners, gifts, or whatever else you believe will make that person stay in the relationship.

Two problems off the bat: Firstly, anyone staying in the relationship just for their own gain – IE the recipient of your gifting, is just a sh*tty person and secondly, the relationship will never work if you’re having to buy it.

If it’s that important to you, rather spend that money on therapy – at least that’s a productive choice and one that will leave you better off – even if the relationship doesn’t last.


Do It Purely for Luxury

Yes, you heard that right and no we’re not playing.

Something many people don’t understand is that billionaires don’t get private jets just to take selfies and get an insta-dopamine hit – no they’re smart with their money and understand how saving time means saving money.

There’s a difference between luxury and convenience and billionaires know this. Sure, private jets and helicopter rides to the airport might seem extra – but in actual fact it’s pure convenience, buying you time… okay, and maybe a little luxury now and then. 


Choose Cheaper Alternatives

You loved our video, “15 Things You Should NOT Spend Money On,” where one subscriber, TheColonelBilbaox, mentioned it was a video they could relate to. They said, “One of my rules: buy the best you can afford and take good care of it.”

When it comes to buying cheaper alternatives, we all know the risks involved. It doesn’t last as long, the return policy is flawed, you’ll need to replace sooner than you would normally… but as TheColonelBilbaox said, buy the best you can afford.

And Aluxers, there will come a time when you can afford better than what you’re currently buying – so just keep at it – but do your utmost to not buy the absolute bottom of the barrel because in the long run, you’ll be much better off.


Waste Energy

Our homes use a lot of energy and spending an astronomical amount of money each month for that power usage is not smart.

Instead, people who are smart with money have switched to energy efficient alternatives ages ago and continue to stay on top of their usage.

And while we are not suggesting you pour thousands of dollars into solar or converting your entire abode to green energy, we do suggest making small changes to start saving a little extra each month. Your wallet and mother Earth will thank you.


Buy Into Hype

How many people saw the value of bitcoin rising higher and higher – then sold their house to invest in crypto when it was at an all time high?

Look, if your weird uncle knows about it – it’s already too late. By the time something reaches “hype” status in the mainstream – people who are smart with money have been there, done that and are looking at what’s coming up next. Smart people don’t buy into the hype – they create it. 



It’s time to say a hard “no” to add-ons of any kind.

Car salesperson asks if you’d like paint and fabric protection, you say no.

Flight attendant asks if you’d like to purchase extra baggage allowance, you say no.

Extended warranty on that new laptop? You say no.

Your kid asks for more pocket money, you say no…  just kidding but you get the gist.


Buying vs Renting

We released a video last year highlighting the pros and cons of buying VS renting, and we shared with you that so many people are opting to rent rather than buy a home.

Renting gives people flexibility plus you don’t need to worry about every minor or major repair needed. We get that there are different circumstances, making each rental unique – but the same applies when you purchase a property. You could spend a fortune and then down the line realize you’ve landed with a lemon.



Right, so what do we mean here? Often people try and do a job themselves – either because they’re trying to save money, or they’re trying to save face – whatever the reason, it often ends in failure.

After the failed task at hand, it’s now time to call in the professionals. Now, not only do you need to pay for the job to be done, but you’ve wasted your own time, money, and dignity. People who are smart with money do not need to pay someone to fix their mistakes – they lean into their strengths & outsource their weaknesses!


Believe In State-Sponsored Retirement 

This one right here might be a rude awakening for anyone over 50, but people who are smart with money know that state-sponsored retirement funds are not the saving-grace they’ve been touted to be.

According to a 2020 study from Fidelity Investments, 46% of Americans are at risk of not being able to cover living expenses throughout retirement – which means a lot of people are putting their faith in the government to take care of them when they’re old – but are you really that confident it’ll play out that way? We’re not.

People who are smart with money don’t spend it on retirement – in fact, many don’t ever plan to retire at all – instead they focus on building ever-lasting wealth.



 Netflix released an episode of Explained a couple years back that delved into the world of diamonds, everything from why and how they became a status symbol right through to blood diamonds.

Millennials, and those smart with money, are steering clear from diamonds. This Money claims that by buying diamonds, you are “delving into an unregulated market…”

It’s risky, and many opt to rather use that money for experiences, deposits on property or studying.

But at the end of the day, if you really want that diamond, check out newer lab-created options. Not only are the cheaper and compositionally the same, but you can rest assured there’s no ethical issues attached to it.


Buy the First House They Like

Aluxers, we get it – being in a position to finally buy a home for yourself is exciting and definitely a reason to celebrate, but people who are smart with money never immediately buy the first home that checks all their boxes.
Money-wise individuals will strategically make offers on 10 or more homes – often well below the asking price – in order to get the best deal on what they want.

And before you say low-balling a seller is rude – it isn’t – if the seller isn’t interested in the offer everyone can carry on with their lives – but sometimes that low-ball offer is accepted and the people smart with money understand this.

Aluxers, we hope this list has provided insight into areas of your life that you should definitely not be spending your money. We appreciate you showing us by liking our videos, subscribing to our channel and hitting that bell notification so you always get alerted when we release a new video.


Have you ever thrown money at a problem hoping it would just go away? Did the problem go away? Share you experience with us.