You know that feeling. You're standing in the aisle, or maybe scrolling through a sleek landing page at 2 AM, looking at something that costs way more than it should. Your brain is doing gymnastics. It's trying to justify the price. Maybe it’s a "limited edition" espresso machine that looks like it belongs in a NASA lab, or a pair of sneakers that costs more than your first car’s monthly payment. We’ve all been there.
Honestly, we’re surrounded by opportunities to buy too expensive waste money items that promise to change our lives but usually just take up space in the closet.
It’s weird how we do this. Behavioral economists like Dan Ariely have spent years studying why humans aren't the rational "Econs" we think we are. We fall for "anchoring," where a $2,000 watch looks like a bargain because it’s sitting next to a $10,000 one. We fall for "sunk cost," where we keep paying for a luxury gym membership we never use just because we already paid the initiation fee. It's a mess.
The Psychology of High-Price Regret
Why do we do it?
Status is a hell of a drug. Veblen goods—named after economist Thorstein Veblen—are things where the demand actually goes up as the price increases. Think about a $500 white T-shirt. The price isn't about the cotton; it’s a signal. It’s a flag planted in the ground that says, "I have enough resources to burn them on something functionally identical to a $10 Hanes pack."
But it's deeper than just showing off. Sometimes it’s about "aspirational identity." You buy the $3,000 high-end mountain bike because you want to be the kind of person who spends weekends on trails, even if your current reality involves more Netflix than nature. The bike becomes a physical manifestation of a version of yourself that doesn't actually exist yet. When it sits in the garage gathering dust, it stops being gear and starts being too expensive waste money.
Electronics and the Trap of "Future-Proofing"
Technology is the biggest culprit here. Companies are absolute masters at convincing you that the "Pro" or "Ultra" version is the only one worth having.
Take the latest smartphones. For about 90% of people, the base model is more than enough. But we get sucked into the specs. We see "ProRes video recording" or "titanium frames" and think, "Yeah, I need that." Most of us just use our phones for Instagram, emails, and maybe a few casual photos of our lunch. Unless you are a professional colorist or a filmmaker, that extra $400 for the top-tier model is often just money thrown into a digital void.
Then there’s the smart home stuff.
💡 You might also like: Who Started Supreme Clothing: The Guy Behind the Red Box Logo
I’ve seen people spend $500 on a smart toaster. A toaster. Its job is to heat bread until it’s crunchy. Does it really need a touch screen and Wi-Fi connectivity? Probably not. It's a classic example of over-engineering solving a problem that nobody actually had.
Luxury Fashion and the Law of Diminishing Returns
There is a point where quality stops going up and you’re just paying for the logo.
In the world of leather goods, for instance, a $400 bag is usually significantly better made than a $40 bag. The stitching is tighter, the leather is "full grain" rather than "genuine" (which is actually a low-grade industry term), and the hardware won't snap off in a month. But is a $4,000 bag ten times better than the $400 one? Almost never.
The curve flattens out. Hard.
The "Cost Per Use" Fallacy
We often use the "cost per use" argument to justify huge spends. "If I wear these $800 boots 800 times, they only cost a dollar a day!" It sounds smart. It sounds like something a savvy investor would say.
But it’s often a lie we tell ourselves to bypass the guilt of a purchase. Most people don't wear those boots 800 times. They wear them ten times, realize they’re slightly uncomfortable, and then they sit in a box. The reality is that we rarely track our usage patterns with any actual accuracy.
Subscription Creep: The Invisible Leak
This is the sneaky version of too expensive waste money. It’s not one big hit to the bank account; it’s a thousand tiny cuts.
- That $15 "premium" weather app.
- The $30 "elite" fitness platform you haven't logged into since 2023.
- The $12 monthly fee for a delivery service you use once every three months.
Individually, they feel like nothing. Collectively, they can easily account for hundreds of dollars a month. This is "passive spending." It happens while you sleep. Research from companies like C+R Research has shown that consumers often underestimate their monthly subscription spend by hundreds of dollars. People think they spend $80; they're actually spending $240.
When High Cost is Actually Worth It
To be fair, "expensive" isn't always "waste."
There is a concept called "Vimes' Boots Theory of Socioeconomic Unfairness," popularized by author Terry Pratchett. It explains that a rich person can spend $50 on a pair of boots that lasts ten years, while a poor person can only afford $10 boots that last a season. After ten years, the poor person has spent $100 and still has wet feet, while the rich person has spent $50 and has dry feet.
Investing in quality—real, durable quality—can actually save money.
The trick is knowing the difference between a "buy it for life" item and a "buy it for the brand" item. A well-made cast iron skillet for $100? That’s an investment. A designer-branded silicone spatula for $80? That's too expensive waste money.
Breaking the Cycle of Bad Spending
So how do you stop?
First, stop looking at "MSRP." The "Manufacturer's Suggested Retail Price" is a psychological anchor designed to make any discount look like a win. If an item is "50% off" but still costs $300, you aren't "saving" $300. You are spending $300.
Second, the 72-hour rule is boring but it works. If you see something expensive, wait three days. Usually, the dopamine hit of the "find" wears off, and you realize you don't actually want the thing. You just wanted the feeling of buying it.
🔗 Read more: What is a spouse mean? Why the legal definition and reality are miles apart
Third, look at the resale value. Truly high-value items often hold their worth. If you can buy a piece of furniture for $1,000 and sell it for $800 three years later, your "cost" was only $200. If you buy a $600 trendy fast-fashion piece that has zero resale value, you’ve lost the whole $600.
Real Examples of Overpriced Hype
- High-End HDMI Cables: You can find cables for $100+ claiming better signal. They don't provide it. Digital signals are binary. It either works or it doesn't. A $10 cable performs the same as the $100 one in almost every home setup.
- Designer Water: Some brands sell water for $10 a bottle because of the "mineral profile" or the glass design. It’s water.
- Extended Warranties on Small Electronics: Statistically, if a gadget doesn't fail in the first 30 days, it's unlikely to fail within the warranty period in a way that the manufacturer will actually cover.
Actionable Steps to Protect Your Wallet
Start by auditing your automated outflows. Look at your bank statement for the last 30 days and highlight every recurring charge. Be ruthless. If you haven't used it in the last month, cancel it. You can always sign up again later if you truly miss it.
Before any purchase over $100, ask yourself: "Am I buying this for the utility, or for the way I think it will make me look?" If it’s the latter, put it back.
Focus on the "middle of the road" for most purchases. Usually, the cheapest option is junk, and the most expensive option is overpriced branding. The "sweet spot" for value is almost always in the 60th to 75th percentile of price. You get the quality improvements without the "prestige" tax.
Finally, remember that your time is the ultimate currency. If you have to work 40 hours to pay for a gadget that saves you 5 minutes of effort, you haven't saved anything. You've traded a week of your life for a minor convenience. When you look at prices through the lens of "hours worked," the too expensive waste money items start to look a lot less attractive.
Stop buying into the hype. Buy what you need, buy the best quality you can actually afford for things you use daily, and let the rest go. Your bank account—and your future self—will be a lot happier.