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I think one normally squanders money on something. The money could come from selling an item, but you have to make that explicit. Try something like:
-- Well, he sold his computer and squandered his profitshis profits the proceeds on drink.
-- Well, he sold his computer and squandered his profits proceeds on drink.
-- Well, he sold his computer and squandered his profits the proceeds on drink.
-- Well, he sold his computer and squandered his profitsprofits proceeds on drink.
-- Well, he sold his computer and squandered his profits on drink.