Stop Buying These 5 Items Now to Build Wealth by 2026

Financial educator Jaspreet Singh often emphasizes that small, repeated spending choices compound over time. If your goal is to materially improve your net worth by 2026, start by eliminating five common drains on your budget and redeploying that cash into proven wealth-building habits.

1) Designer and fast-fashion splurges. Paying premium prices for logos or chasing seasonal trends erodes savings. Prioritize quality basics, buy secondhand, or set a clothing budget. Redirect the savings to a taxable investment account or a tax-advantaged retirement plan.

2) Daily coffee shop purchases. A $5 coffee every workday can cost over $1,200 a year. Brewing at home or reducing frequency frees monthly cash flows that can be automatically invested into low-cost index funds or ETFs.

3) New cars when practical alternatives exist. Depreciation is the largest hidden cost of car ownership. If you can extend the life of a well-maintained vehicle or opt for a reliable used model, the difference can fund a sizable emergency cushion or seed an investment portfolio.

4) Extended warranties and unnecessary add-ons. Many of these coverages overlap with existing protections or are unlikely to pay out enough to justify their cost. Instead, build a repair fund in a high-yield savings account and invest regularly.

5) Impulse gadgets and the “latest model” mindset. Tech upgrades can be addictive and expensive. Delay purchases by 30 days; you’ll often find you don’t need the item. Use the freed-up cash to dollar-cost average into diversified holdings.

Beyond cutting these expenses, Singh recommends automating the shift: set up recurring transfers to brokerage or retirement accounts, increase contributions when raises arrive, and treat investing like a recurring bill. Focus on low-cost index funds, maintain a 3–6 month emergency fund, and keep fees and taxes in mind.

There are no guarantees in markets, but disciplined savings plus consistent, low-cost investing improves the odds of meaningful wealth accumulation ahead of 2026. The key is reallocating habitual spending into assets that compound over time.