digest
Short Summary
Main recommendation: Stop buying certain everyday expenses like haircuts, fast food, gym memberships, parking, new clothes, and the latest iPhone each year, and substitute cheaper or free alternatives. Graham Stephan says that marginally cutting back on these areas could save at least a thousand dollars a year with minimal effort. The video also covers shopping around for car insurance, growing your own herbs and fruit, and skipping cat toys in favor of cheaper playthings.
Key Points
- The video names 10 things Stephan stopped buying: (1) haircuts, (2) fast food, (3) gym membership, (4) car insurance overspending, (5) parking, (6) new clothes, (7) Gucci/designer bags (a joke), (8) rental properties this year, (9) common fruits and herbs from stores, (10) the latest iPhone or new tech each year, (11) cat toys.
- Stephan gave up paying for haircuts by buying $70 buzzers and having his girlfriend cut his hair, which he says saves $35 per visit plus travel and wait time.
- He cut fast food and frozen dinners, citing a claim that the average American spends $1,200 a year on fast food and his statement that fast food can be more expensive than eating at home.
- He replaced his gym with home weights, a bench, home workouts, and daily cardio and walks, which he says cost nothing.
- He switched to an electric scooter to avoid Los Angeles parking costs, which he says can run $10 to $20 at the beach, and cites an estimate that time spent searching for parking is worth $1,735 a year.
Details Worth Noting
- Concrete instructions:
- Haircuts: Buy a pair of buzzers (he paid $70 on Amazon) and scissors, cut slowly with patience, and expect a decent result for the price of those tools. Stephan adds a disclaimer that he is not responsible for bad haircuts.
- Car insurance: Shop around your rates, since the video cites ValuePenguin's finding that loyalty keeps people from comparing. If you drive less, tell your insurer so you do not overpay; this can take a five-minute email or call, or an afternoon of comparison shopping.
- Clothing: Wear and rotate what you already own, wash and store it properly, and accept gifts you will use.
- Tech: Buy last year's model, upgrade only every other year if needed, and sell your old phone to recoup cost. He notes iPhone upgrade packages of $30 to $60 a month, about $500 a year.
- Gardening: Plant herbs and fruit at home (he grew mint, basil, rosemary, passion fruit, lemons, and strawberries), which he says is easy in a warm climate like Los Angeles.
- The video cites a claim that the average American spends about $1,200 a year on fast food and that drivers overspend on car insurance by an average of $330 a year, based on a $37 billion industry-wide estimate.
- The gym swap requires self-discipline, as Stephan admits it is harder to motivate yourself at home.
- Stephan's cat Ramsay ignores cat toys and prefers boxes and straws; the cat was named after Dave Ramsey.
Bottom Line
Small recurring cuts and a few do-it-yourself substitutions can free up meaningful yearly savings, but the biggest gains come from the expenses you pay most often.
