Living paycheck to paycheck is the reality for many Americans, which means every dollar counts. Yet, a surprising number of people spend money in ways that don’t actually improve their lives or their financial futures.
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According to Codie Sanchez, entrepreneur, investor and founder of Contrarian Thinking, there’s one habit that stands out as the biggest money waster. Are you guilty of it?
The Biggest Money Mistake: Looking Rich Instead of Being Rich
“People waste money on looking rich instead of being rich,” Sanchez said on the “On Purpose With Jay Shetty” podcast. “That is a cultural phenomenon that I think is eroding our wealth as a society.”
Instead of focusing on building real financial security, many Americans prioritize appearances — often at a steep cost.
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A Costly Example: Coachella and the Illusion of Luxury
Sanchez gave the example of attending the Coachella music festival, which now costs $549 and upwards for a weekend pass alone. Yet most influencers you see flaunting the experience online aren’t paying a dime.
“The dirty secret of Coachella is that most influencers are paid to go, given free tickets, flown out for free and get the clothes for free,” Sanchez said. “They’re not paying anything for a thing that costs thousands of dollars.”
Meanwhile, everyday festival-goers are footing the bill — and often going into debt to do it. Sanchez noted that 64% of Coachella ticket holders couldn’t afford their ticket outright and used buy now, pay later options. And that’s just for admission — not the outfits, food, hotel stays and travel.
“We are basically having credit card debt, which lasts forever, as a trade for Instagram posts, which last for a minute,” Sanchez said.
Why This Habit Keeps You Broke
Trying to keep up with influencers or project an image of wealth can derail your financial goals. Instead of investing in assets or building savings, money gets funneled into fleeting experiences and luxury items that don’t create long-term value.
“The No. 1 thing that you can do to change your financial future is to not buy into what you see on the internet,” Sanchez said.
The Real Key to Wealth: Focus on Success, Not Status
Sanchez said that truly wealthy people are driven by achieving success — not by what they can buy with their financial success.
“If you love what you do, then all of these things are a byproduct,” Sanchez said. “They’re wonderful, but they’re never the goal. And they [can] be taken from you at any point.”
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This article originally appeared on GOBankingRates.com: This Is the Single Biggest Waste of Your Money, According to Codie Sanchez
