About buying the cheapest option. We have an old saying in Russian "Stingy person pays twice" meaning if you buy something cheap, it will break soon and you'll have to buy it again and pay again, so you'll end up paying more.
Anya Anti it’s tough though cause nowadays just because something is expensive doesn’t guarantee it will last, especially with designer clothing. It might have been the case 20-30 years ago but definitely not now
@@Artofcarissa it's actually not. there are things in between a cheap fast fashion $10 dress and a designer dress;) you don't need to pay extra for labels and luxury items to be able to find reasonably priced and quality stuff that will last long
Reminds me of the saying "penny proud and pound poor" meaning your saving cents but end up spending dollars. Cheap and frugal are not the same thing, and i think a lot of people struggle with that.
oh hey we have a similar one in spanish it goes 'compra barato, compra cada rato' which just translates to 'buy cheap, buy often'. like you said there is a middle ground between the fast fashion dress and high end designer label dress lol
@@puffpuffjess there's another one in russuian very similar to the one you mentioned, "we aren't so rich to buy cheap things", meaning chip items definitely won't last long and we'll have to buy them again. Although it doesn't mean, expensive ones will 😒
It's expected in today's job sphere. They now call it "Ambition". The days of yore of our Grandparents or parents of staying one place for life is over. It hurts you especially if companies dont keep up with technology or invest in training for employees.
When you hit a ceiling, you hit a ceiling. What we are taught is that loyalty will give rewards. That is simply not true most of the time. We are simply commodities, pieces of the puzzle, and pawns in the chess game. When you are loyal to a job, and you have nowhere to go, as well as no more money to make, you are done. So many people stick around cause they "hope" they move forward, or because they are comfortable with doing what they know. Sometimes you must be honest with yourself and say "I have no place to go in this company", and you can use that past experience to negotiate a new deal with a new and most likely better employer. Then you will finally learn again, make more, and be happier. Job "loyalty" is a BS thing taught to young people so employers can hold them in chains.
I'm learning programming and one of my favourite veteran programmers talks about something called "FU money". I'm not sure if it's originally his concept or not, but it's basically a savings worth about 6-12 months of your salary (or more if you like). This is different from your emergency fund. And it basically gives you the freedom to act like you don't need your employer, your employer needs you. It gives you confidence to negotiate better pay at your current place of work and when the going gets tough it gives you the ability to cut ties immediately without worrying about where money for your bills are going to come. I also remember reading stats that said it's best to leave a certain job roughly every 2 years if you want career progression, but I can't remember where. Just never stay anything longer than 4 years.
yes and he can kick you off when he hops to another company or gets another one or has to fire people due to budget cuts. It was my biggest lesson this year.
1. Setting up automatic savings deposit you can’t actually afford 2. Putting all extra income towards debt when you have no savings / emergency fund 3. Buying bulk items you don’t end up using 4. Buying the cheapest items 5. Buying unlimited memberships 6. Not using credit cards 7. Keeping majority of your money in cash - checking & savings accounts 8. Always maintaining a credit card balance 9. Buying a home as soon as possible
@@alomaalber6514 ahh yes!. today, my aunt called my no name bag a 'grandma" bag. She told me she had a purse I could have. I went to her room to view it. It was a FAKE Louis Vuitton * eye roll*
I think the real lesson on shopping is to periodically do price comparisons on items you buy regularly. This lets you adjust to make the best choice based on price, storage and usage. It doesn’t pay to buy bulk in something you can’t store, regardless of price and usage. Mindless shopping is what costs us in price, clutter or wasted product. Just a little note: I bet you don’t realize that some in your audience are retirement age, but still find your ideas worth implementing. When you find yourself on a fixed income, you start revisiting how you spend, save, and invest. Love your videos!
I love how she emphasizes an emergency fund, even when trying to pay off debt and COVID hits the US literally the week after this video was posted-great advice!
"What happens if you have to get out of an abusive relationship?" You need $3k. $3k is what you need to move out of that abusive home, to a place that is safe, perhaps even in another city, pay 1st month's rent and a deposit and a utilities deposit, probably buy a new phone or at least switch numbers, buy the bare minimum of used furniture off of craigslist and restock your pantry from zero because more likely than not, you will have to start your life over completely from scratch and with whatever fits in your car and that is if you are lucky and if you need to switch jobs you will need 2 weeks of cash set aside until your first check comes otherwise you won't have the money to pay the 2nd month of rent.
Rachael Sills, if you have to get out of an abusive relationship find a Mennonite or Baptist church and ask the minister for help. Even in a new city. If you were to come to our church we would find you a temporary place to stay, then help you look for work, find an apartment, help you furnish it by putting out a call to parishioners, get you groceries, etc. I would let you stay at my house, if you were in my area.
Same with Catholic Churches. There is always an outreach ministry for anyone needing help in escaping from abusive environment, including families with children & pets. Also the Gabriel ministry helps women in crisis while pregnant. My church is part of a coalition of 10 area churches of many denominations who sponsor a Safeway house called the Escape Safeway Home. Open 24/7 for emergency intake, with private rooms for up to 30-day stay, then on-going transitional help with finding a place to live, legal help with restraining orders, child custody and finding jobs. I used to volunteer on weekends with intake calls.
I had to do it in 2015. 4 months unemployed. Having family (mom and brothers) in the family farm (that was not producing anything for lack of investment) was my safe haven. I replayed my debt in 2 years and replayed them in full ater the 3rd year. I had no savings then: now we raise beef cattle, and life is looking good despite corona.
i am no expert but i think it's a good idea to know where a food pantry is, friend's couch, and possibly dv shelter. in case the money runs thin, it's good to have backups in case you need it! also if possible get car maintenance done beforehand. sikh & hindu temples can often feed folks in need with a hot meal 🙂
So happy you talked about the pressure of parents telling you to buy a house. I'm 44 and whenever I hear a young person say they know it's stupid to rent, I tell them owning a home isnt easy. The mortgage is all u think about most of the time. I was single when I bought my home by myself and I still own it. Now I'm looking to downsize because the repair costs and the time I use to be home when things are being repaired is too much. Add in insurance, HOA fees, utilities, etc, it's a lot. I love my house but it's time to move on.
I agree 100% with buying a house. I'm 24 and my mom always told me that she wanted me to have a house by this age. Her reasoning was noble because she wanted me to have security, build equity, and have a home that's paid off before I'm too old. And while I probably could buy a house right now, itd be in an area that I dont want to live in, and I'd feel trapped by the house. I'm not married, I dont have kids, I dont even know what I want to eat for lunch let alone where I want to live lol. I'd much rather rent and save/invest the money.
But you’re paying off someone else’s mortgage when you could be paying off your own. Don’t really see how renting is sensible given how you could be building equity. You can always sell the house and buy in a different area.
@@anguista So right. This is really important though. Most people don't invest the spare money. A house is kind of a "forced savings plan" because you have to pay the mortgage. If you're savvy enough to actually invest the money, the math will work out for renters.
On point number 9, about the feasibility of homeownership: another problem for people of modest means seeking to purchase homes is that, nowadays, they are often in competition with armies of flipppers who can pay cash. A whole genre of TV shows portrays flipping as this wonderful activity which revitalizes neighborhhods and enriches entrepeneurs. Well, flipping also shuts less affluent people out of the housing market. Not only do flippers make affordable homes unaffordable for the sake of profit but, by paying cash, they sideline buyers who need to seek mortgages. Why should a seller wait for a buyer to get mortage approval when a flipper will plunk down a suitcase full of money?
I find not buying bulk cleaning supplies and paper towels actually helps me save A LITTLE BIT more money because I’m more conscious of knowing that I’m on my last roll or last bottle and use them very sparingly. Which causes less use and longevity. If I have a closet full of paper towels I’m ripping through em!
Thank you. This is so important. The last bottle of something always lasts the longest. It depends on the person but for me I always just buy replacement if something is out. Besides toiletpaper I literally have nothing in my house that would cause a real bad problem if it is empty or missing for a day or two, which is really the "worst case" as a quick stop somewhere is possible almost every day for me. Exception are things I use in measured quantities (like a measuring cap of washing powder per machine wash/one of those tab things for one dishwasher load etc.)
@@SynterraSteen He doesn't mean cheap in terms of monetary cost, he means cheap in terms of quality. The video even explains how buying good quality items (such as clothing and furniture) secondhand is the better option than buying lesser quality items brand new.
I have been doing Dave Ramsey's plan for the last year or so. I have the $1,000 saved and have been aggressively paying down my debt. Well, now with Coronavirus, I've lost my second job and only have money to pay my essential bills. My measly $1,000 will get me about half a month of essential living payments....and I'm still stuck with all of my debt. I love Dave Ramsey but I wish I would have saved up an emergency fund first. When things get back to normal, I'm going to build my emergency fund and then hit debt hard.
I'm so sorry you're having a tough time. I started out with $1000 too, but I figured that is JUST covering rent and some food. I took a break aggressively paying down debt to bulk up the emergency. I wish you good luck during this crazy time
Depending on your interest rates, you're at least with less debt than what you started with and not incurring high interest rate debt. Good for you for saving something and the stimulus check should help some. Good luck.
I really wish baby step 1 was updated to instead be 1-2 months worth of expenses rather than just $1,000! I’m so sorry you lost your second job. I hope things look up for you.
I discovered dave Ramsey when I was 23 and about $7,000 in credit debt and $17,000 in student debt. I will be 25 in June. With that being said, I've never trusted him about the $1,000 emergency fund. It is definitely a good place to start, but for me, my backup plan was my 401k which had about $8,000, and I wasnt concerned about losing interest since I'm young enough to bounce back if I truly needed it, even though it was a last resort type of thing. Thankfully I never had to use it, and started throwing money at my debt. My goal was to pay off half of my credit card debt by december 2019 which I did. After that, I decided to save $500 a month and slow down the debt payoff process because if you have cash, there's nothing you cant do, which my mom taught me. Luckily, I saved $3500 by the time the corona hit, which is about 3 1/2 months of expenses. I am also lucky to still have my job, but I live in Las Vegas, where the majority of people lost theirs. I cant help but to think how screwed I'd be if I didnt have that money and I lost my job. Since then I've added another $1,000 to my savings, but I definitely feel like I will NEVER throw all my money at debt. Right now I owe $4,000 in credit cards, but I have $4,500 in the bank. I could pay it off if I wanted to, but I'm not willing to give away that much liquid cash. My new goal is to save $10,000 by the end of the year, which I'm on track to do, as well as have at least $2,000 of the credit cards paid off. I do take a lot of Dave's advice, but access to money will always be more important than paying off debt. The rent for my house is $1400. His plan should at least be updated to $1,000 OR 1 month of expenses, whichever is higher. And you really should be encouraged to save 10% of whatever money is left over.
I purchased my first home at the old age of 22 years. This was the best money decision in my life. I bought a fixer-upper. It didn't require much fixing but it wasn't perfect. I am now 45 years old and unable to work full-time. I came into some money at the age of 25, I paid off my home contrary to buying a new car as my family was pressuring me to do. My tip is to buy a decent home, not an expensive home, in a safe neighborhood and pay it off as soon as possible. I decided that I didn't want to live in the same neighborhood years later, I purchased a second fixer-upper. Now, I am so happy that I made the right financial decisions when I was younger. My family and friends didn't buy themselves a house because they wanted to buy a house in the nice upper class or rich neighborhoods. Each one is renting until this day paying upwards of $600 a month in rent but are jealous of me for having paid off my own home. Unlike them, I don't care about keeping up with the Jones.
My husband and I bought our home and paid it off a few years ago it was also a fixer upper. It is paid off and not having rent or a house payment helps so much.
@@daniellemacgregor6848 Wow! Still, your area should be upper class compared to my working-class neighborhood. I don't envy you because it is just too much.
@@sheylonnaware3005 Yes, you get to enjoy not paying rent while you are alive. Almost everyone that I know who owns a home, will not have it paid off before they die. Their kids and grandkids will get that benefit. They actually look down on my small home but envious at the same time that I don't pay where I live. I love my little cottage.
I think we can all benefit from understanding that a lot of purchases are not "one-time" purchases. A home is a perfect example. Not only do you have to be able to afford the cost or the mortgage, you have to pay for insurance, property taxes, upkeep, etc. I keep saying that owning a home is like having another kid. There is always a lot of keep track of both in and outside of the house.
In my country, the mortgage is a lot cheaper than renting so buying a home is a better decision than renting for years and years. Plus, you can do whatever you want to your own place, while renting is restrictive.
We got really lucky. We sold our previous home, and the difference in what we made on it and what we paid for our current home was enough that we were able to pay cash. We don't have a mortgage for the first time in my adult life! I'm so happy!
@@nonabgo It used to be that way in the US, too. I think it really started to change around the time we had the real estate bubble in '07/'08. It's a shame.
Yes but in most places a mortgage is still a good bit cheaper than rent. As well as you will have something to sell or live in rent free down the road when you are too old to work, unlike renting where you have nothing after paying it for decades.
This channel has helped me a lot, I’m 18 have been watching for a year or so now. I feel when i start working I will be able to prevent making bad decisions due this great advice ty!
Love this! A lot of financial "advice" makes it seem like these things should be followed prescriptively. Everyone is different and you should follow the advice that makes sense for you!
I'm 75, and mostly agree, but I'll quarrel with Chelsea on two items. First, I'm a terrified investor. Financial reps are leeches, and there are no 6% vehicles that are risk-free. If you can afford to lose half or more of your investment, go right ahead. Personally, I put my grandkids' college money in CDs that are insured. Yes, the interest is lower, but there's virtually no risk, and I'm risk-averse. Second, I've lived in most types of housing over the years, and while it's true there are other costs of home ownership that often aren't mentioned, there's also a genuine cost to renting, as well. My current modest tract home in the Midwest costs me (with interest & insurance) less than half of the current rent in the area for an apartment that's literally half the size, and the house appreciates, which is not true of the rental space. Yes, if you're still transitory and want to be able to change neighborhoods or cities quickly, by all means, feel free to rent, but if you can scrape together the downpayment (that's the real financial issue), and think you'll still be there in 5 years, I think buying is more sensible than renting. You have to live somewhere, why not make it a place that's likely to be worth more in 5 years?
In some products this sadly doesn't work because for the same thing one brand use g other ml other fl oz and so on. Looks like they get to an agreement.
I've noticed in our bigger supermarkets (New Zealand), labelling on the store shelves for product & price already include this calculation in the label for customers as well.
@@user-jy8zb2wc8l One of the popular grocer chains in my area does this. Except I've noticed for eggs, some say "per 100g", others "per 10g" and one or two say "per egg". The whole raw chickens now have shelf labels of "1kg-1.25kg" and similar, and the chickens themselves lack pricing on the labels. It was so weird and annoying I stopped shopping there.
@@alecoloxasome stores have a unit price on the shelf near the price, and that’s making it easier to do. If the items are in different formats of being stocked for volume and weight, then they’re not usually the same items, ml is a liquid measure while g is a weight measurement.
"Using credit cards as a good thing" is uniquely American, in my country you are really not advised to use credit cards unless you have no other choice. It's an expense that brings no benefit if you can afford to pay everything you need with a debit card.
American credit card companies make a lot of money when Americans over spend their credit limits. The cards here have much more benefits (from cash back %, extra warranties, travel insurance, hotel and airline points, airport lounge access, etc.) which make people more compelled to spend more on them to receive rewards. Our cash back and mileage reward systems give us much more than that of other countries.
@@CulturePhilter Credit scores don't exist in the Netherlands nor in any other Western European country I know. Most use debit cards, there are very little rewards with our credit cards.
@@CulturePhilter I'm from Portugal. That I know of there's no such thing as credit scores here. Or cash backs. It's just used if you can't afford all your expenses and as such it's usually associated to those who live above their means
One way to get around the “buying in bulk” trap if you’re living in a small household (i.e. alone or just you and a partner) is to split a membership with a group of friends/family. For example, my husband and I can’t justify getting a costco membership for just the two of us - instead we share with my grandma, my cousin and his wife. We’re able to buy dry goods and household products (like toilet paper, soap, diapers for cousin’s baby) in bulk, and for things like fruit and meat, everyone will pitch in money then we’ll spilt the bulk pack between the three households.
I used to do that with my family for a Costco membership. We all went, bought what we needed and split the bill. It actually was cheaper. We don’t do it now as we live in another state, but my mum, Nana and bro still do.
We buy in bulk with our whole street! We have a farmer who sells his left over veggies, bulk is way cheaper! so our neighbour ask what we want (potatoes, leak, tomatoes, carrots etc) and asks a mini pre deposit from each family. Its just to avoid he has to take too much from his own cash to pay the bill. Then buys all we want in bulk (and we get also a lot of good deals) and destributed between all the families. He makes packages and calculates excacly how much everyone still owes him. Ps he's an old professor in mathematics it's always correct! Really good concept and we save so much money and time. We also have a community fridge we're you can leave you left overmeals and someone else can take them for free. You only bring back the box wash it and give back to the family it belongs too. He also take care of that, we split the cost of electricity for the fridge too. Nice concept because I know some single men in our community can't really cook and are happy with a home cooked meal that whould have ended up in the trash anyway. It certainly helped Me in the past when I was hungry and had no money left to buy food. I now give back to my community as much as a can.
Nora Nirvana i don’t know you but when I say that people imagine that I get the shoes that light up when I walk 😂 When I just get quality shoes that look exactly the same as the adult ones.
Realistic savings goals that are still challenging is where I like setting my automatic payments. Also budgeting combined with having your savings in an account that isn't so easily accessible helps grow the savings account without always dipping into it!
I use my Costco membership almost exclusively on toiletries, and basic household items. Laundry soap, toilet paper, razor blades, coffee, etc. I feel that is not just a cheaper way to buy those specific items, but having a year supply of toothpaste, or dish soap, and other items usually means fewer trips to the grocery store, because there are so many times when I go to the store just because I'm out of coffee( another item I buy at costco) or shampoo.
This is a particularly great video, Chelsea. The first one really hit home for me. Last year, as I was getting really into TFD and other financial help videos, I set up a few different savings accounts for different things- for example, I work a retail job (hourly wage + commission) and the location of my store is very very slow in the winter. I set up a “winter survival fund” last winter to make sure that in the next winter I wouldn’t be in such a tough spot financially. However, I started making the auto deposit contributions last winter while it was STILL SLOW, so I kept seeing my money go into the fund, and then had to go in and take it out again so I could, you know... eat. I really had to adjust my auto deposits to all my other accounts at the time too, and it took me a while to accept that they can’t be a consistent amount year round if my income fluctuates so widely by season. Anyway, great vid!
What's worked for me so far for saving is (after I have a buffer in my debt account) I switch my paycheck to go directly into my savings, then just transfer what I need for the month to my debt account. The buffer is definatly necessary incase of emergencies! For me it then feels like I'm giving myself a reward, versus taking money away for savings. Also, the 3 withdraw rule for my savings is good motivation stick to my budget so I don't loss $20 in fees.
Some people just can’t do it even if they want to. Houses and rent have gone up with very little to no pay raises, it’s really hard to keep up. It’s just too pricey living and it shouldn’t be that way.
Those who fly a lot and have the responsibility of paying them off on time and pay attention to the deals will benefit from them. Those who don't, won't.
Hmmm, not sure I agree with that specific Costco/Kroger comparison. After all with those 2 items, Costco is also selling the hamburger patties pre-formed, while Kroger is just selling the ground meat itself. So of course it's going to cost more because of the convenience of it. Would have been better to look at the actual ground meat Costco sells. But I do agree that unless you have a family or can freeze things, many of the perishable items at Costco won't save you much (which is why they're in the back of the store).
@42 jade that's not what I'm saying at all (I rarely even buy ground beef and never premade patties)...What I am saying is that it's not a great one-to-one comparison since one will be more expensive already because it's already formed into patties (thus a higher cost for the convenience), and it would have been better to just compare ground beef at Costco to ground beef at Kroger. And even then I wouldn't be surprised if the cost per ounce was similar or even less at Kroger.
I have a Sam's Club membership myself. I know that even their hamburger patties are cheaper than the same fat content of hamburger on sale anywhere. Just because it's formed into a 1/2 lb patty doesn't mean you have to use it that way either. So I agree that was a bad example. But I think the point she was making was sound. Know the prices per unit that you pay. You often have to do some additional math because I've seen that stores will use different 'per unit' prices that are not comparable.
I agree. This was an inaccurate comparison to prove a point. While it is definitely valid in some cases that the grocery store would be cheaper, in this particular scenario with a straight 1:1 comparison, my costco sells ground beef (88 lean) at
I hated this example. Costco has fresh, pre formed patties in their meat department for the same price (or like 10 cents/lb more) as their giant wad o' ground beef, and it's WAY cheaper than $5.50/lb. I'm sure there are other examples she could have used that were far less misleading than this one.
Regarding the hypothetical H&M dress that disintegrated in the washing machine on the second wash: I have never understood this criticism of fast fashion. What are you people doing to your laundry??? You gotta learn how to launder things in a way that does the least damage and keeps them nice as long as possible. It makes a huge difference in the life of your clothes, even cheaply made fast fashion items.
Thatjillgirl, at least part of the criticism about “fast fashion” - aside from the fact that the clothes are made of cheap material and cheaply constructed - is that the people who make those clothes often exist on slave wages and work in unsafe conditions. Perhaps you heard about Rana clothing factory explosion which killed more than 1000 fast fashion workers a few years ago.
@@wallihaley5194 That is a complaint I can understand. But often when people harsh on fast fashion, they will say something about how the clothes aren't made well and fall apart quickly. There are certainly some worse made items for sale in fast fashion stores, but there is some sturdier stuff in there too that can last for ten years if it's cared for well. The ethical complaints make more sense.
Point 2 with an exception: part of an emergency fund calculation can include payments on loans. If they are not insured (to cover or cancel payments in emergencies), prepaying 3 months (depending on the loan terms) can often save a little interest and some peace of mind. I never miss a payment because I forgot to pay a couple months early. Same goes with rent, insurance, etc. Any Unavoidable expense can be paid ahead As a means of replacing emergency fund cash with a lack of stress. Write down what you want to stay ahead on in this way--so you have it to consider if the time comes and things get tight. I am not tempted to break the bank if I have turned that balance over to someone else. ;)
bank teller here, regulation d allows 3 withdrawals per quarter (every three months) and 6 TRANSFERS per month. otherwise you could receive fees, but you should always check with your bank
The average cost of home ownership increasing is largely because of the mansion boom of the ‘90s. Everyone felt the need to build unnecessarily large houses.
Grazia I agree. I bought a small two bedroom home. I have tried convincing my family and friends to buy a small home. They want the pricey houses that they are not willing to work to get. You can't buy a $100,000 or more house working minimum wage.
I trick myself with my credit card and use it as a prepaid card. I transfer the money, that I allow myself to spend for the month on my credit card and make sure I won't spend it all in one evening. That way I can control my expenses a little more and stick to the limit I set for myself.
I don't understand the Dave Ramsey method of just having a $1,000 emergency fund before paying off debt. I was in the hospital last summer and ended up with a $3,600 bill (after my initial $1,500 payment). If I hadn't had a healthy emergency fund I would have had to put some of those expenses on a credit card....that doesn't make sense to me. My goal for an emergency fund now is my maximum out of pocket for my health plan so I can protect myself from medical emergencies in the future.
Healthcare debt stinks. I have an HSA funds to pay for medical expenses but I don't have enough saved to pay off my son's last emergency visit. No way would I pay it with a credit card nor drain my emergency fund. Hospital will set up a payment plan at 0% apr, and I am stretching it out as much as they allow it. If they can gouge us with ridiculous prices on services they can wait to be paid. Rant over.
@@bridgetlove1884 Yeah, fortunately I am paying 0% interest right now, but still debt is a pain in the ass! which is why short sighted "$1,00 emergency fund is fine pay off all your debts now stupid" advice makes me so mad. Because people are very likely going to have emergencies that cost more than $1,000.
Thanks for the Seattle example! I would like to start collecting some sweet, sweet rental income, but homes in Seattle are TOO expensive for me right now. Renting is super affordable for my boyfriend and me now, so I am aiming for buying in about 10-12 years. I'm on track to be debt free in 2 years and think I'd really like to brag about being debt free for a decade before taking on a mortgage.
Oh how true. Not to mention all the other bills our parents didn't have. I'm 20 plus years older than you. My parents had a landline, mortgage, electric, water, oil, car insurance, food, gas. No cell phone, cable, car payment because cars were cheaper, held on to for loner and paid off sooner and many people only had one and kept it. They didn't have these huge student loans. No video games to buy us, or designer clothes or expensive sneakers. The list goes on and on. Especially where today's kids and all the activities involved and the cell phone bill that parents pay until their kids are 30! Seriously. We have put ourselves down this rabbit hole. Except for the college expenses. That is ridiculous and unnecessary.
You said it yourself, we have put ourselves down this rabbit hole. There is no need for parents to still be paying a 30 yr old’s cell bill. The kids don’t need to be in all the sports activities, one is enough. They don’t need to have every video game. They can get a job once old enough and buy their own. Designer clothes and high priced shoes are not necessities. My children got jobs as soon as they had their drivers license, some even sooner. They got a clothing allowance. If they wanted designer, they saved for it, or worked for it. I now have one who is 25, about to make last payment on student loan, been married for over three years, has one baby, and has almost $20,000 saved for down payment on first house, and no other debt. They know where their priorities are. Another, married 8 months, who is putting as much against student loans as possible so they can start saving for a house too. They have one car, 13 years old paid $1000 cash for. Only my oldest feels entitled. And I feel somewhat responsible for that.
Student loan debt is the morons’ who took it out fault. My daughters busted their ass in hs and college to keep their loans, picked an affordable college even though they were accepted into more expensive colleges to keep their student loans as low as possible. They also worked to pay for their extra needs instead of living off of student loans for their phones and living expenses like too many kids do. As well as they got degrees in something that can be used in the real world instead of joke liberal or fine arts degrees.
@@lysan4878 Exactly. "i'm drowned in debt, and i chose a degree that isn't applicable in the market place. oh well. i might as well rent in NYC for the rest of my life!"
A note on Bulk Buying: Chelsea's clearly not addressing byo container style bulk. This saves money and the environment and most of the items are dry/pantry goods.
I'll fill like 7 spice jars at these types of joints for under 15$ and it's so much cheaper than buying them again from the grocery store. Plus many of the bulk shops only sell organic spices and I get to keep them in my bougie little glass jars without producing more waste. Cant beat it
I have found that certain things even in bulk bins can be way more expensive like cleaning and body supplies which is unfortunate I love trying to be more sustainable.
I'm on a TFD binge lately. I would love to watch a video about how you purchase skincare products. Do you buy the same product over and over? Do you indulge in 'organic' skincare for the long term benefits or just pick out regular products that are much cheaper? How often do you buy skincare products, and how many do you use?
If you like advice from a fellow TFD fan: I didnt use skin care most of my life because my skin was really nice without skin care and I never had any issues. Now I am a little bit older (30), my dad is a dermatologist and I studied biochemistry and I learned a lot about skin care in the last years. I like the youtube videos of Dr. Youn, he is sweet and honest about what you need and what not. CeraVe and La Roche-Poisay are really liked in the US and affordable. I personally tried out Paulas Choice and I freaking love the products. They are not super cheap but still affordable and my skin looks and feels amazing. It’s a really good brand if you can afford it! They also have a 60 days money back program in case you dont like a product. I am 30 and I am often mistaken for 24-27, only if they know my CV they know that I MUST be older :P Things you need: - SPF (50 is best, Anthelios from La Roche is really loved by the community) - Moisturizer (it can be a 2-in-1-product with SPF) - If you need anything extra, then buy a retinol. It reduces wrinkles and increases skin turn over for a fresh look - A chemical exfoliater is better then a physical one. Look for AHA/BHA. If you want to spend more, buy: - A product that combines Vit C, Vit E and ferulic acid and apply in the morning (Paulas Choice has one) - A hyaluronic acid - Collagen powder to eat or mix in smoothies (I use Alpha nutrition) Everything else is a fancy splurge. I live in Germany and I can recommend the following drug store brands: Nø, Daytox, Junglück Otherwise I would take pharmacy quality (like La Roche and CeraVe) or go to Douglas or buy online.
The Costco example you give is not a very good one as you are not comparing apples to apples. The lesson there is to not buy premade burger patties or any prepared food and to make it yourself from scratch. A person who has made the decision to buy premade food WILL save money by buying it in bulk compared to the identical item not purchased in bulk. As long as they eat them all! ;)
I was a the store and there was a large bag of romaine lettuce for $5 but three heads of romaine not cut up was only $2. So basically paying myself $3 of time to cut the heads up or paying the store an extra $3 to have it already cut up. That's the paying for convenience I think she means with the burger patties versus hamburger meat. She maybe could have explained it better in the video.
Key thing is know what your spending habits are, tracking and setting goals, and know your prices. I do like how you apply the idea of knowing your strengths and weaknesses.
I've heard the point about how home buying isn't necessarily our best investment anymore a few times now but do these models take into consideration how quickly rent is increasing as well? For example I rent and have been in my unit 4 years in a controlled rent building, if I were to.move my rent would increase minimum $600/month for the same property as rent has increased that much in my city since I signed my lease. Also even though I'm rent controlled we are the the whim of the local government to change the rules which did happen in our last election and false evictions for selling the unit, family moving in or reno-victions are very common. If I could stay in my unit for the next 30 years I'd be golden but the chances are at some point I'll be forced to move or my rent will take a spike as it's under market value.
Yes, the good ones do. But, it is always a bit of a guess how much rent will increase and how much home equity will increase, and how long before you move. Each market is different, each decade is different. For you, obviously renting where you are now is cheaper. If you move, you can review the rent versus buy and make a decision.
Create a savings/investment acct, separate from your emergency fund, based on a percentage of what your free-market rent might be; could be used as leverage for another rental, or for buying a home/condo. No one can foresee, but it's hard to imagine renting the same place for 30 years. Your life situation may change dramatically to the point that your apt no longer works for you. Failing to plan = planning to fail
I also think about when all ya millennials want to retire, and still have to pay rent or mortgages from buying later in life. I don’t want to have rent/mortgage when I’m older and not be able to retire at a decent age. I have an uncle who is 72 and can’t retire because of poor financial decisions earlier in his life, which resulted in the foreclosure of his home. It terrifies me.
No. Buy a home. Don't be a slave to the government and fucking rent control. Plus, that unit is going to depreciate so fast with more and more government leeches moving in. Do you really want to live there for more than 5 years? Buy a home.
@Chelsea - I would love to hear more in another video about your advice on how to determine whether or not home-buying make sense for one’s lifestyle & goals. Thanks!
Aye the cheapest item thing is so well summed up in Terry Pratchett's Vime's theory of boots: Sam Vimes Theory of Socioeconomic Unfairness, "The reason that the rich were so rich, Vimes reasoned, was because they managed to spend less money. Take boots, for example. He earned thirty-eight dollars a month plus allowances. A really good pair of leather boots cost fifty dollars. But an affordable pair of boots, which were sort of OK for a season or two and then leaked like hell when the cardboard gave out, cost about ten dollars. Those were the kind of boots Vimes always bought, and wore until the soles were so thin that he could tell where he was in Ankh-Morpork on a foggy night by the feel of the cobbles. But the thing was that good boots lasted for years and years. A man who could afford fifty dollars had a pair of boots that’d still be keeping his feet dry in ten years’ time, while the poor man who could only afford cheap boots would have spent a hundred dollars on boots in the same time and would still have wet feet. This was the Captain Samuel Vimes ‘Boots’ theory of socioeconomic unfairness. This is not the only economic theory Pratchett presents in Men At Arms: he also notes that: The very very rich could afford to be poor. Sybil Ramkin lived in the kind of poverty that was only available to the very rich, a poverty approached from the other side. Women who were merely well-off saved up and bought dresses made of silk edged with lace and pearls, but Lady Ramkin was so rich she could afford to stomp around the place in rubber boots and a tweed skirt that had belonged to her mother. She was so rich she could afford to live on biscuits and cheese sandwiches"
Thank you so much for these videos! I feel like so much financial advice is directed at those who already have a lot of money, and... Like, Clark Howard -- he always seemed like he wanted to help people with less money, because that's what he focused on when he gave broad advice. But when he took calls from people, it seemed like it was almost always someone who needed help with their CDs or whatever. Anyway! Buying high-quality items is definitely a point I like, lol. I typically wear the same pair of earrings every day, and cheap ones soon show wear. That's why I just bought myself a nice pair of hoops; nothing crazy expensive, but definitely more than I'd usually pay at like, Anne Taylor Loft or whatever. Oh, but speaking of higher end clothes, ebay is a great resource! Many people sell stuff that's nearly (or completely, sometimes) brand new, for much cheaper than retail. I like Anthropologie clothes, and that's the only way I can really afford them!
One item that I never hear about is saving up for your medical insurance deductible. Our is $2000 per person and $3600 for the whole family. No financial guru has ever brought that up. Or your medical copays for physician annual visit or kids vaccine schedules
This is so true. I often argue with 'you get what you pay for' as an upsell which has only been true about half the time in my life. Many people have phone plans that are more expensive than they need when they already have the internet at home. I read Kiplinger in the 80s and used credit cards to build my financial life. I agree re. buying vs. renting. Many good YT videos on this now. I know too many people who could not take a better job because they could not get out from under their house.
I'm so happy that my university campus sports complex only charges 200 euros for a year of unlimited sporting. Including classes in team sports, kickboxing, swimming in 3 different pools, fitness, and rockclimbing.
I'm having a little trouble with the last suggestion of not buying a home. Renting is often far more expensive monthly than a mortgage payment for a home with the same square-footage. Even if the housing market upon selling the home isn't as good as when you purchased, it's hard to believe you'd lose more money than you would while renting. If you plan on moving a lot or don't have enough for a down payment in a mortgage, then yes, renting is the better option, but even with home repairs and other things, I would think owning a home is the better choice in the long run in most housing markets.
you are correct for like 95% of the country. NYC is.... different. but anywhere outside of major cities, you are definitely better of buying vs renting, provided you plan on living in your home for a while. a lot of people when shopping for a home, don't realize though that when you are calculating your monthly mortgage payments, you MUST factor in insurance, taxes and maintenance cushion. so they end up getting too much of a house. but that doesn't mean once cannot or should not find a house that fits their budget. unless they are in NYC. NYC housing market is hell.
@@Forgefaerie NYC and LA are the two exceptions I can think of. Perhaps some other large cities, too. But in most suburban areas or if you aren't trying to live in the busiest area of downtown, buying would probably be a more financially beneficial choice than renting.
This video popped up on my recommended and I was going into it super cynical like "I bet this all dumb advice and I'm better at getting value", but this is literally everything I live by and then some. Subscribed!
I really loved this video and wanted to thank you especially for the bit about the savings fund interest vs other options! I would love to hear a video about the cards you use for travel credit!
The point about Buying the cheapest items is obviously valid, my mother is super cheap and she has to buy things over and over and over and wastes a ton of money on rather than just listening to me and investing in something quality to begin with. but i also think, when it comes to certain items, specifically clothing, i don't think buying expensive/quality is always a good move (and of course, there are high quality, affordable items at thrift stores etc, but its hard to find certain things there, like small size womens jeans and shoes etc.). We all want to buy high quality, sustainable clothing items, especially when it comes to staples like jeans and sweaters, but think about buying a pair of 10$ jeans from a fast fashion store vs buying a pair of 100$ jeans from Levi made of durable denim. yes, the fast fashion jeans will probably only last a year, but those levi jeans will have to last you 10 years for it to be financially worth it, and you'll have to be the same size in 10 years, which you really can't guarantee. not to mention, some people just *dont* have 100$ to drop on something they could get for less.
It took me 6 yrs to get a 4 yr degree because I did not want student debt. I worked as a waitress for 2 yrs after graduating because I could accumulate a down payment faster. I then bought a 2 bedroom, small house which then let to bigger houses over the next 40 yrs. Today I find my children and grandchildren often want it all, right away.
I save a little every month automatically and what's left at the end of the month goes there as well. I know I can comfortably live within my budget, so I don't need the extra. I can save more automatically as I always put money there at the end of the month, I also know that I really like putting money there and when I overspend during the month, the want to save that little bit extra keeps me from overspending.
I like your perspective, I think it's important to have savings and also pay debt. However if you are putting everything into debt you can be stressed, so it is good to become a little stable first then make bigger jumps in paying off things.
Definitely some good ideas and killing of bad myths here. But i can't agree with your argument on bulk buying. Especially when you have bad comparisons like kroger versus costco ground beef. the coscto beef vice chose were already formed hamburger patties that had extra ingredients. The kroger option was literally just normal 20/80 ground beef. I looked up costco's actual equivelent and it is a full dollar cheaper per pound. To add to this, if an item is freezable (and alot are)... you can pre portion it into cheap freezer safe baggies and then toss them in your freezer for future use. Beef plus baggies from coscto are still far cheaper than ground beef in small amounts from kroger. And if you love the environment then use one baggie and biodegradable paper inbetween portions. Sometimes saving money is in the details, don't overlook them...
Great vid that is full of useful information for everyone! The holding a balance myth is even worse than being neutral to your credit score. Keeping a balance on your account shows over utilization of credit and that is one of the factors that determines and lower credit scores. Pay those cards off when you can!
Agreed on buying cheap, in the long run it's often a bad idea. Some things I've found it's best to splurge on: 1. Comfortable high quality shoes. A great pair of shoes will change your life if you spend a lot of time on your feet. You don't realize what you're missing until you try it. 2. Cooking equipment (be careful because more expensive isn't always higher quality). It'll help cook more instead of eating out, which saves a ton of money in the long run. 3. A chair with good back support. If you spend a lot of time in an office this will not only save you a lifetime of back pain but also thousands in chiropractor bills in the future. 4. Headphones. A pair of high quality headphones will last for years, and the difference in sound quality is very noticeable. They also help block out distractions while working. 5. A reliable car (not a sports/luxury car). I've seen plenty of people find an old fix-er-upper for under $2000. I've also seen these people spend thousands in car repairs when it immediately breaks down, and even lose their job after being late one time too many due to car problems. If you want to advance in your career being on time every day is a must.
A year ago I had an accident that made me unable to do my job until I finished my arm rehabilitation, that whole year my savings kept me afloat, but as soon as I was able to get back to work, BOOM corona strikes and now, while I still have a few savings left, idk what i'm gonna do if this keeps up
A great post! I'm happy to learn that my husband and I are doing many of these things already! I totally agree that credit cards, used carefully, can be great. We pay for most things with two cards and get tons of cash back with one and airline miles which we can use for hotels, too, with the other. We have a budget and stick to it so we're not overspending with them.
Hi Chelsea, I was wondering whether you can do a video around your apartment and share a bit what items you got on a budget, a few that were second hand and perhaps a few that were designer pieces of furniture or clothes (and why you paid extra, like what was the benefit). P.S. Love the paintings in your background 😊😊😊
I've heard the advice to use credit cards on tfd so many times. It just seems bonkers to me that there are countries that choose creditcards over debit cards, and even force people to use them (to build a "credit score"). Here in the Netherlands many people don't own credit cards or only have them if they travel internationally or buy online internationally. We cmdobtbusecthem in everyday life. People use debit cards, because its wise to only spend the money that you actually have, right? What is your view on this?
I agree... I m not from usa.. But i found the encouragement to use credit cards in every tfd money saving. In my country. We are not encouraged to use credit cards.. Even my dad use credit card for specific mean.. Many people cant pay their bill in the end...
@@MesheherKim thank you for your reply, now i have a better understanding. That's why it looks so strange. It seemed to me that they try to make people believe that being in debt is not a bad idea. That's so wrong in my opinion.
@@MesheherKim I totally agree with you. I live in America and I wish I never had to use a credit card. We are basically forced to do so if we ever want to get a loan for a large purchase, such as a home or vehicle, as you can't get one without a credit score. My husband and I recently had to get a cc to build credit, as we plan on possibly buying a home in the near future. I'm a frugal person, so we buy things we would buy anyway, even if we didn't have a card, that we can afford at the moment, and we pay it all off every month. That's the only reason we own a credit card. I abhor the buy buy buy hyper consumerist culture in America. It's so wasteful, harmful and unconscientious. I don't know how people become so brainwashed to think it's a good thing.
I just got (unfortunately due to corporate budget issues) laid off from a very nice professional job that paid me very well for my industry. In the past, I’d buy the cheapest headphones and earbuds cause I just couldn’t afford a nice pair of each. After telling myself that, once I got in better financial shape, I bit the bullet (after A LOT of research this past year on which were the best) and bought the ones I wanted a month ago. I still was able to build up some savings and pay down a huge chunk of credit card debt beforehand too. I still have no idea what I’m gonna do with my old tech accessories but you get to a certain age and income where you just can’t deal with inferior products to save some money...
The comment about buying in bulk is very true. I used to have a BJs membership that I ended up canceling due to the fact that I really wasn't saving any money on groceries. I now shop at Aldi and my grocery bills are much cheaper
I wish I was more financially free when I did bought my house. I had no idea of what boat I was taking. Now it's okay. But it did take years to organise my finances to be able to pay everything.
19:56 honestly on home ownership I think it really depends. Some areas a mortgage is gonna be WAY cheaper than paying rent and you’re saving money in a lot of ways by owning a home. Some areas it’s about the same or more and it really comes down to either that or the extra stuff that comes with if
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About buying the cheapest option. We have an old saying in Russian "Stingy person pays twice" meaning if you buy something cheap, it will break soon and you'll have to buy it again and pay again, so you'll end up paying more.
Anya Anti it’s tough though cause nowadays just because something is expensive doesn’t guarantee it will last, especially with designer clothing.
It might have been the case 20-30 years ago but definitely not now
@@Artofcarissa it's actually not. there are things in between a cheap fast fashion $10 dress and a designer dress;) you don't need to pay extra for labels and luxury items to be able to find reasonably priced and quality stuff that will last long
Reminds me of the saying "penny proud and pound poor" meaning your saving cents but end up spending dollars.
Cheap and frugal are not the same thing, and i think a lot of people struggle with that.
oh hey we have a similar one in spanish it goes 'compra barato, compra cada rato' which just translates to 'buy cheap, buy often'. like you said there is a middle ground between the fast fashion dress and high end designer label dress lol
@@puffpuffjess there's another one in russuian very similar to the one you mentioned, "we aren't so rich to buy cheap things", meaning chip items definitely won't last long and we'll have to buy them again. Although it doesn't mean, expensive ones will 😒
I learned that being loyal to an employer can cost you a lot of opportunities to negotiate wages too. Job hopping pays off.
It's expected in today's job sphere. They now call it "Ambition". The days of yore of our Grandparents or parents of staying one place for life is over. It hurts you especially if companies dont keep up with technology or invest in training for employees.
When you hit a ceiling, you hit a ceiling. What we are taught is that loyalty will give rewards. That is simply not true most of the time. We are simply commodities, pieces of the puzzle, and pawns in the chess game. When you are loyal to a job, and you have nowhere to go, as well as no more money to make, you are done. So many people stick around cause they "hope" they move forward, or because they are comfortable with doing what they know.
Sometimes you must be honest with yourself and say "I have no place to go in this company", and you can use that past experience to negotiate a new deal with a new and most likely better employer. Then you will finally learn again, make more, and be happier. Job "loyalty" is a BS thing taught to young people so employers can hold them in chains.
I'm learning programming and one of my favourite veteran programmers talks about something called "FU money". I'm not sure if it's originally his concept or not, but it's basically a savings worth about 6-12 months of your salary (or more if you like). This is different from your emergency fund. And it basically gives you the freedom to act like you don't need your employer, your employer needs you. It gives you confidence to negotiate better pay at your current place of work and when the going gets tough it gives you the ability to cut ties immediately without worrying about where money for your bills are going to come. I also remember reading stats that said it's best to leave a certain job roughly every 2 years if you want career progression, but I can't remember where. Just never stay anything longer than 4 years.
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yes and he can kick you off when he hops to another company or gets another one or has to fire people due to budget cuts. It was my biggest lesson this year.
1. Setting up automatic savings deposit you can’t actually afford
2. Putting all extra income towards debt when you have no savings / emergency fund
3. Buying bulk items you don’t end up using
4. Buying the cheapest items
5. Buying unlimited memberships
6. Not using credit cards
7. Keeping majority of your money in cash - checking & savings accounts
8. Always maintaining a credit card balance
9. Buying a home as soon as possible
Madison L looks like repeats
Madison L thank you
Thanks
🙌
Wait so we shouldn’t maintain a credit card balance but also shouldn’t be putting all our income to debt? So which is it?
About buying the cheapest items, my mom always say: We are too poor to buy cheap things
Phương Linh Trần Lê I love this comment. I totally agree with your mum.
Aldi is just as good as Costco. how much do you really NEED. also have a chic style but no need to impress others with a label on a handbag. ever.
My dad used to say : I'm not rich enough to buy cheap stuff. He absolutely hated buying things you can't rely on.
We have a saying in Brazil: “o barato sai caro”, meaning the cheap ends up being expensive in the end, bc you have to re-do, buy again etc
@@alomaalber6514 ahh yes!. today, my aunt called my no name bag a 'grandma" bag. She told me she had a purse I could have. I went to her room to view it. It was a FAKE Louis Vuitton * eye roll*
I think the real lesson on shopping is to periodically do price comparisons on items you buy regularly. This lets you adjust to make the best choice based on price, storage and usage. It doesn’t pay to buy bulk in something you can’t store, regardless of price and usage. Mindless shopping is what costs us in price, clutter or wasted product. Just a little note: I bet you don’t realize that some in your audience are retirement age, but still find your ideas worth implementing. When you find yourself on a fixed income, you start revisiting how you spend, save, and invest. Love your videos!
Yes😊
I love how she emphasizes an emergency fund, even when trying to pay off debt and COVID hits the US literally the week after this video was posted-great advice!
"What happens if you have to get out of an abusive relationship?" You need $3k. $3k is what you need to move out of that abusive home, to a place that is safe, perhaps even in another city, pay 1st month's rent and a deposit and a utilities deposit, probably buy a new phone or at least switch numbers, buy the bare minimum of used furniture off of craigslist and restock your pantry from zero because more likely than not, you will have to start your life over completely from scratch and with whatever fits in your car and that is if you are lucky and if you need to switch jobs you will need 2 weeks of cash set aside until your first check comes otherwise you won't have the money to pay the 2nd month of rent.
Rachael Sills, if you have to get out of an abusive relationship find a Mennonite or Baptist church and ask the minister for help. Even in a new city. If you were to come to our church we would find you a temporary place to stay, then help you look for work, find an apartment, help you furnish it by putting out a call to parishioners, get you groceries, etc. I would let you stay at my house, if you were in my area.
Same with Catholic Churches. There is always an outreach ministry for anyone needing help in escaping from abusive environment, including families with children & pets. Also the Gabriel ministry helps women in crisis while pregnant. My church is part of a coalition of 10 area churches of many denominations who sponsor a Safeway house called the Escape Safeway Home. Open 24/7 for emergency intake, with private rooms for up to 30-day stay, then on-going transitional help with finding a place to live, legal help with restraining orders, child custody and finding jobs. I used to volunteer on weekends with intake calls.
Sounds about right, I had to do this 5 years ago, but no furniture required as I had everything.
I had to do it in 2015. 4 months unemployed. Having family (mom and brothers) in the family farm (that was not producing anything for lack of investment) was my safe haven. I replayed my debt in 2 years and replayed them in full ater the 3rd year. I had no savings then: now we raise beef cattle, and life is looking good despite corona.
i am no expert but i think it's a good idea to know where a food pantry is, friend's couch, and possibly dv shelter. in case the money runs thin, it's good to have backups in case you need it! also if possible get car maintenance done beforehand.
sikh & hindu temples can often feed folks in need with a hot meal 🙂
So happy you talked about the pressure of parents telling you to buy a house. I'm 44 and whenever I hear a young person say they know it's stupid to rent, I tell them owning a home isnt easy. The mortgage is all u think about most of the time. I was single when I bought my home by myself and I still own it. Now I'm looking to downsize because the repair costs and the time I use to be home when things are being repaired is too much. Add in insurance, HOA fees, utilities, etc, it's a lot. I love my house but it's time to move on.
@SundayMorning after renting for years you have nothing, after paying mortgage for years you own a property.
I’m 29 and Ive got a mortgage (bought two years ago), it’s hard but I’ll take it over renting anyday!!!
Heard that in Hawai'i, some HOA fees are climbing upwards of 1-2k, like jeez.
That’s true but only if you have a good landlord.
I agree 100% with buying a house. I'm 24 and my mom always told me that she wanted me to have a house by this age. Her reasoning was noble because she wanted me to have security, build equity, and have a home that's paid off before I'm too old. And while I probably could buy a house right now, itd be in an area that I dont want to live in, and I'd feel trapped by the house. I'm not married, I dont have kids, I dont even know what I want to eat for lunch let alone where I want to live lol. I'd much rather rent and save/invest the money.
But you’re paying off someone else’s mortgage when you could be paying off your own. Don’t really see how renting is sensible given how you could be building equity. You can always sell the house and buy in a different area.
@@ElizabethNonsuch Investing the money rather than saving cash for a down payment will get you much, much more money.
Same here Much less headache too
@@anguista So right. This is really important though. Most people don't invest the spare money. A house is kind of a "forced savings plan" because you have to pay the mortgage. If you're savvy enough to actually invest the money, the math will work out for renters.
@@anguista yep 🙌🏻 lot less work too and risk depending on what you invest in
On point number 9, about the feasibility of homeownership: another problem for people of modest means seeking to purchase homes is that, nowadays, they are often in competition with armies of flipppers who can pay cash. A whole genre of TV shows portrays flipping as this wonderful activity which revitalizes neighborhhods and enriches entrepeneurs. Well, flipping also shuts less affluent people out of the housing market. Not only do flippers make affordable homes unaffordable for the sake of profit but, by paying cash, they sideline buyers who need to seek mortgages. Why should a seller wait for a buyer to get mortage approval when a flipper will plunk down a suitcase full of money?
I find not buying bulk cleaning supplies and paper towels actually helps me save A LITTLE BIT more money because I’m more conscious of knowing that I’m on my last roll or last bottle and use them very sparingly. Which causes less use and longevity. If I have a closet full of paper towels I’m ripping through em!
That's so true! Didn't even think about that but I totally do the same!
I do the same!
Agreed. I stop buying bulk cleaning and food items. Only buy what I need and have saved a lot.
lol im always surprised at how im now able to make due using like two squares of toilet paper when i know im almost out
Thank you. This is so important. The last bottle of something always lasts the longest. It depends on the person but for me I always just buy replacement if something is out. Besides toiletpaper I literally have nothing in my house that would cause a real bad problem if it is empty or missing for a day or two, which is really the "worst case" as a quick stop somewhere is possible almost every day for me. Exception are things I use in measured quantities (like a measuring cap of washing powder per machine wash/one of those tab things for one dishwasher load etc.)
My father in law always says that you shouldn't buy cheap transport, bed and shoes. You are always using and being on top of one of those.
I buy all of my clothes secondhand and my shoes are designer. My outfits look like I spent a grand and it was like $5
@@SynterraSteen He doesn't mean cheap in terms of monetary cost, he means cheap in terms of quality. The video even explains how buying good quality items (such as clothing and furniture) secondhand is the better option than buying lesser quality items brand new.
That is so smart
I've heard something similar! "Don't buy cheap in the things that separate you and the ground." ( beds, shoes, car tires)
you're daddy in law doesn't like fixing his transport ig, or his shoes.
I have been doing Dave Ramsey's plan for the last year or so. I have the $1,000 saved and have been aggressively paying down my debt. Well, now with Coronavirus, I've lost my second job and only have money to pay my essential bills. My measly $1,000 will get me about half a month of essential living payments....and I'm still stuck with all of my debt. I love Dave Ramsey but I wish I would have saved up an emergency fund first. When things get back to normal, I'm going to build my emergency fund and then hit debt hard.
I'm so sorry you're having a tough time. I started out with $1000 too, but I figured that is JUST covering rent and some food. I took a break aggressively paying down debt to bulk up the emergency. I wish you good luck during this crazy time
liz t, exactly, which is why right now he’s telling people to put the baby steps on hold and save cash.
Depending on your interest rates, you're at least with less debt than what you started with and not incurring high interest rate debt. Good for you for saving something and the stimulus check should help some. Good luck.
I really wish baby step 1 was updated to instead be 1-2 months worth of expenses rather than just $1,000! I’m so sorry you lost your second job. I hope things look up for you.
I discovered dave Ramsey when I was 23 and about $7,000 in credit debt and $17,000 in student debt. I will be 25 in June. With that being said, I've never trusted him about the $1,000 emergency fund. It is definitely a good place to start, but for me, my backup plan was my 401k which had about $8,000, and I wasnt concerned about losing interest since I'm young enough to bounce back if I truly needed it, even though it was a last resort type of thing.
Thankfully I never had to use it, and started throwing money at my debt. My goal was to pay off half of my credit card debt by december 2019 which I did. After that, I decided to save $500 a month and slow down the debt payoff process because if you have cash, there's nothing you cant do, which my mom taught me. Luckily, I saved $3500 by the time the corona hit, which is about 3 1/2 months of expenses. I am also lucky to still have my job, but I live in Las Vegas, where the majority of people lost theirs. I cant help but to think how screwed I'd be if I didnt have that money and I lost my job. Since then I've added another $1,000 to my savings, but I definitely feel like I will NEVER throw all my money at debt. Right now I owe $4,000 in credit cards, but I have $4,500 in the bank. I could pay it off if I wanted to, but I'm not willing to give away that much liquid cash. My new goal is to save $10,000 by the end of the year, which I'm on track to do, as well as have at least $2,000 of the credit cards paid off.
I do take a lot of Dave's advice, but access to money will always be more important than paying off debt. The rent for my house is $1400. His plan should at least be updated to $1,000 OR 1 month of expenses, whichever is higher. And you really should be encouraged to save 10% of whatever money is left over.
No. 10: Buying a crazy stockpile of hand sanitizer because of the coronavirus. ;P
Cindy Desjardins 😂😂🤣
@Olivia Purcel agree.
I couldn't find it anywhere. It's sold out!
@Olivia Purcel I... was... _joking_ ...
P.S. Sometimes you simply can't access a sink with soap and water.
No.11 buying absurd amounts of toilet paper.
I purchased my first home at the old age of 22 years. This was the best money decision in my life. I bought a fixer-upper. It didn't require much fixing but it wasn't perfect. I am now 45 years old and unable to work full-time. I came into some money at the age of 25, I paid off my home contrary to buying a new car as my family was pressuring me to do. My tip is to buy a decent home, not an expensive home, in a safe neighborhood and pay it off as soon as possible. I decided that I didn't want to live in the same neighborhood years later, I purchased a second fixer-upper. Now, I am so happy that I made the right financial decisions when I was younger. My family and friends didn't buy themselves a house because they wanted to buy a house in the nice upper class or rich neighborhoods. Each one is renting until this day paying upwards of $600 a month in rent but are jealous of me for having paid off my own home. Unlike them, I don't care about keeping up with the Jones.
Homes in my area go for $800 000, and we are not in the upper class area. Homes in the "upper class area" start at 4 million!
My husband and I bought our home and paid it off a few years ago it was also a fixer upper. It is paid off and not having rent or a house payment helps so much.
@@daniellemacgregor6848 Wow! Still, your area should be upper class compared to my working-class neighborhood. I don't envy you because it is just too much.
@JONES Exactly, I don't want to live in an urban area. I am from Arkansas it's mostly rural here. Earning $40,000 per year here you feel upper class.
@@sheylonnaware3005 Yes, you get to enjoy not paying rent while you are alive. Almost everyone that I know who owns a home, will not have it paid off before they die. Their kids and grandkids will get that benefit. They actually look down on my small home but envious at the same time that I don't pay where I live. I love my little cottage.
I think we can all benefit from understanding that a lot of purchases are not "one-time" purchases. A home is a perfect example. Not only do you have to be able to afford the cost or the mortgage, you have to pay for insurance, property taxes, upkeep, etc. I keep saying that owning a home is like having another kid. There is always a lot of keep track of both in and outside of the house.
In most countries, people would not call getting a mortgage as buying.
In my country, the mortgage is a lot cheaper than renting so buying a home is a better decision than renting for years and years. Plus, you can do whatever you want to your own place, while renting is restrictive.
We got really lucky. We sold our previous home, and the difference in what we made on it and what we paid for our current home was enough that we were able to pay cash. We don't have a mortgage for the first time in my adult life! I'm so happy!
@@nonabgo It used to be that way in the US, too. I think it really started to change around the time we had the real estate bubble in '07/'08. It's a shame.
Yes but in most places a mortgage is still a good bit cheaper than rent. As well as you will have something to sell or live in rent free down the road when you are too old to work, unlike renting where you have nothing after paying it for decades.
Please invest in captioning for those who are hard of hearing or deaf please
I second this! TFD, please pay attention and increase access to more people who need this important information!!!!!
Or people who are not native speakers
+
Or allow for viewer submitted captioning.
That's a great idea, Priscilla. 😊
This channel has helped me a lot, I’m 18 have been watching for a year or so now. I feel when i start working I will be able to prevent making bad decisions due this great advice ty!
I wish I had been interested in this sort of thing when I was your age. You are going to be very successful at adulting.
Buying second hand is the way to go!
Regarding bulk buying, it's often cheaper to buy paper goods and toiletries at the drug store with coupons while on sale than going to a warehouse.
Love this! A lot of financial "advice" makes it seem like these things should be followed prescriptively. Everyone is different and you should follow the advice that makes sense for you!
I'm 75, and mostly agree, but I'll quarrel with Chelsea on two items. First, I'm a terrified investor. Financial reps are leeches, and there are no 6% vehicles that are risk-free. If you can afford to lose half or more of your investment, go right ahead. Personally, I put my grandkids' college money in CDs that are insured. Yes, the interest is lower, but there's virtually no risk, and I'm risk-averse. Second, I've lived in most types of housing over the years, and while it's true there are other costs of home ownership that often aren't mentioned, there's also a genuine cost to renting, as well. My current modest tract home in the Midwest costs me (with interest & insurance) less than half of the current rent in the area for an apartment that's literally half the size, and the house appreciates, which is not true of the rental space. Yes, if you're still transitory and want to be able to change neighborhoods or cities quickly, by all means, feel free to rent, but if you can scrape together the downpayment (that's the real financial issue), and think you'll still be there in 5 years, I think buying is more sensible than renting. You have to live somewhere, why not make it a place that's likely to be worth more in 5 years?
Number One Tip!: If there's a number of different brands for one item, check the price per 100g!!
In some products this sadly doesn't work because for the same thing one brand use g other ml other fl oz and so on. Looks like they get to an agreement.
I've noticed in our bigger supermarkets (New Zealand), labelling on the store shelves for product & price already include this calculation in the label for customers as well.
@@user-jy8zb2wc8l One of the popular grocer chains in my area does this. Except I've noticed for eggs, some say "per 100g", others "per 10g" and one or two say "per egg". The whole raw chickens now have shelf labels of "1kg-1.25kg" and similar, and the chickens themselves lack pricing on the labels. It was so weird and annoying I stopped shopping there.
@@alecoloxasome stores have a unit price on the shelf near the price, and that’s making it easier to do. If the items are in different formats of being stocked for volume and weight, then they’re not usually the same items, ml is a liquid measure while g is a weight measurement.
"Using credit cards as a good thing" is uniquely American, in my country you are really not advised to use credit cards unless you have no other choice. It's an expense that brings no benefit if you can afford to pay everything you need with a debit card.
What country is that. Does it not build credit score in your country? And what about cash back/ air miles etc that you can gain?
American credit card companies make a lot of money when Americans over spend their credit limits. The cards here have much more benefits (from cash back %, extra warranties, travel insurance, hotel and airline points, airport lounge access, etc.) which make people more compelled to spend more on them to receive rewards. Our cash back and mileage reward systems give us much more than that of other countries.
@@CulturePhilter Credit scores don't exist in the Netherlands nor in any other Western European country I know.
Most use debit cards, there are very little rewards with our credit cards.
@@AbigailArwen it's the same with Ireland, very few people have credit cards
@@CulturePhilter I'm from Portugal. That I know of there's no such thing as credit scores here. Or cash backs. It's just used if you can't afford all your expenses and as such it's usually associated to those who live above their means
One way to get around the “buying in bulk” trap if you’re living in a small household (i.e. alone or just you and a partner) is to split a membership with a group of friends/family.
For example, my husband and I can’t justify getting a costco membership for just the two of us - instead we share with my grandma, my cousin and his wife. We’re able to buy dry goods and household products (like toilet paper, soap, diapers for cousin’s baby) in bulk, and for things like fruit and meat, everyone will pitch in money then we’ll spilt the bulk pack between the three households.
Yes!
I used to do that with my family for a Costco membership. We all went, bought what we needed and split the bill. It actually was cheaper. We don’t do it now as we live in another state, but my mum, Nana and bro still do.
We buy in bulk with our whole street! We have a farmer who sells his left over veggies, bulk is way cheaper! so our neighbour ask what we want (potatoes, leak, tomatoes, carrots etc) and asks a mini pre deposit from each family. Its just to avoid he has to take too much from his own cash to pay the bill. Then buys all we want in bulk (and we get also a lot of good deals) and destributed between all the families. He makes packages and calculates excacly how much everyone still owes him. Ps he's an old professor in mathematics it's always correct! Really good concept and we save so much money and time. We also have a community fridge we're you can leave you left overmeals and someone else can take them for free. You only bring back the box wash it and give back to the family it belongs too. He also take care of that, we split the cost of electricity for the fridge too. Nice concept because I know some single men in our community can't really cook and are happy with a home cooked meal that whould have ended up in the trash anyway. It certainly helped Me in the past when I was hungry and had no money left to buy food. I now give back to my community as much as a can.
I have small feet so sometimes I buy kids shoes for half the price 👌🏻
Me too!
Nora Nirvana i don’t know you but when I say that people imagine that I get the shoes that light up when I walk 😂
When I just get quality shoes that look exactly the same as the adult ones.
*Cries in size 11 shoes*
Same
lol my mom LOVES doing this!!
Realistic savings goals that are still challenging is where I like setting my automatic payments. Also budgeting combined with having your savings in an account that isn't so easily accessible helps grow the savings account without always dipping into it!
Best quote: “You have to be pretty damn honest with yourself.” 😂😂😂😂😂
Hear me out, a reality tv show about helping people recover their credit score
I'd watch that
That would be a much more useful reality show than most of what is on the air.
“Till Debt Do Us Part” is pretty good for that, its Canadian but its got a bunch of great concepts
Spendaholics on the BBC did this - it’s a bit out of date but it was good as they tackled the emotional side of it too
OMG IT’S NOW ON RUclips
Channel: spendaholics
I use my Costco membership almost exclusively on toiletries, and basic household items. Laundry soap, toilet paper, razor blades, coffee, etc. I feel that is not just a cheaper way to buy those specific items, but having a year supply of toothpaste, or dish soap, and other items usually means fewer trips to the grocery store, because there are so many times when I go to the store just because I'm out of coffee( another item I buy at costco) or shampoo.
Unexpected expenses will happen, we should count on that. The only really unexpected part is exactly what the expense will be.
2020 taught us to have an emergency fund we can stay home on for 6 mos to a year.....or more, and to be always stocked up with tp.
This is a particularly great video, Chelsea. The first one really hit home for me. Last year, as I was getting really into TFD and other financial help videos, I set up a few different savings accounts for different things- for example, I work a retail job (hourly wage + commission) and the location of my store is very very slow in the winter. I set up a “winter survival fund” last winter to make sure that in the next winter I wouldn’t be in such a tough spot financially. However, I started making the auto deposit contributions last winter while it was STILL SLOW, so I kept seeing my money go into the fund, and then had to go in and take it out again so I could, you know... eat. I really had to adjust my auto deposits to all my other accounts at the time too, and it took me a while to accept that they can’t be a consistent amount year round if my income fluctuates so widely by season. Anyway, great vid!
What's worked for me so far for saving is (after I have a buffer in my debt account) I switch my paycheck to go directly into my savings, then just transfer what I need for the month to my debt account. The buffer is definatly necessary incase of emergencies!
For me it then feels like I'm giving myself a reward, versus taking money away for savings. Also, the 3 withdraw rule for my savings is good motivation stick to my budget so I don't loss $20 in fees.
Hey Chelsea, could you possibly make a video talking more about mile- credit cards and who benefits from them and who doesn't?
Thank you! :)
Iryna S. Seconding this request!
Uhh that's a good question!
Yes, please!!!!!!!!!!
Some people just can’t do it even if they want to. Houses and rent have gone up with very little to no pay raises, it’s really hard to keep up. It’s just too pricey living and it shouldn’t be that way.
Those who fly a lot and have the responsibility of paying them off on time and pay attention to the deals will benefit from them. Those who don't, won't.
Hmmm, not sure I agree with that specific Costco/Kroger comparison. After all with those 2 items, Costco is also selling the hamburger patties pre-formed, while Kroger is just selling the ground meat itself. So of course it's going to cost more because of the convenience of it. Would have been better to look at the actual ground meat Costco sells.
But I do agree that unless you have a family or can freeze things, many of the perishable items at Costco won't save you much (which is why they're in the back of the store).
@42 jade that's not what I'm saying at all (I rarely even buy ground beef and never premade patties)...What I am saying is that it's not a great one-to-one comparison since one will be more expensive already because it's already formed into patties (thus a higher cost for the convenience), and it would have been better to just compare ground beef at Costco to ground beef at Kroger. And even then I wouldn't be surprised if the cost per ounce was similar or even less at Kroger.
@42 jade wow you are so unnecessarily aggressive, and insulting. They never said that, you just wanted an excuse to be mean. Get over yourself.
I have a Sam's Club membership myself. I know that even their hamburger patties are cheaper than the same fat content of hamburger on sale anywhere. Just because it's formed into a 1/2 lb patty doesn't mean you have to use it that way either. So I agree that was a bad example. But I think the point she was making was sound. Know the prices per unit that you pay. You often have to do some additional math because I've seen that stores will use different 'per unit' prices that are not comparable.
I agree. This was an inaccurate comparison to prove a point. While it is definitely valid in some cases that the grocery store would be cheaper, in this particular scenario with a straight 1:1 comparison, my costco sells ground beef (88 lean) at
I hated this example. Costco has fresh, pre formed patties in their meat department for the same price (or like 10 cents/lb more) as their giant wad o' ground beef, and it's WAY cheaper than $5.50/lb. I'm sure there are other examples she could have used that were far less misleading than this one.
Regarding the hypothetical H&M dress that disintegrated in the washing machine on the second wash: I have never understood this criticism of fast fashion. What are you people doing to your laundry??? You gotta learn how to launder things in a way that does the least damage and keeps them nice as long as possible. It makes a huge difference in the life of your clothes, even cheaply made fast fashion items.
Thatjillgirl, at least part of the criticism about “fast fashion” - aside from the fact that the clothes are made of cheap material and cheaply constructed - is that the people who make those clothes often exist on slave wages and work in unsafe conditions. Perhaps you heard about Rana clothing factory explosion which killed more than 1000 fast fashion workers a few years ago.
@@wallihaley5194 That is a complaint I can understand. But often when people harsh on fast fashion, they will say something about how the clothes aren't made well and fall apart quickly. There are certainly some worse made items for sale in fast fashion stores, but there is some sturdier stuff in there too that can last for ten years if it's cared for well. The ethical complaints make more sense.
It's so much fun listening to you and Graham Stephan talk. Weird sense of comfort.
I was raised with this gem: “Quality over Quantity”
Point 2 with an exception: part of an emergency fund calculation can include payments on loans. If they are not insured (to cover or cancel payments in emergencies), prepaying 3 months (depending on the loan terms) can often save a little interest and some peace of mind. I never miss a payment because I forgot to pay a couple months early. Same goes with rent, insurance, etc. Any Unavoidable expense can be paid ahead As a means of replacing emergency fund cash with a lack of stress. Write down what you want to stay ahead on in this way--so you have it to consider if the time comes and things get tight.
I am not tempted to break the bank if I have turned that balance over to someone else. ;)
bank teller here, regulation d allows 3 withdrawals per quarter (every three months) and 6 TRANSFERS per month. otherwise you could receive fees, but you should always check with your bank
Same here and it's a hard one to explain to customers 🤪
So you could deposit 6 times in per month but only use it 6 times in half a year?
@@mmtruooao8377 no it's 6 withdrawals from the account
The average cost of home ownership increasing is largely because of the mansion boom of the ‘90s. Everyone felt the need to build unnecessarily large houses.
Its not the skyrocketed price of homes?
Grazia I agree. I bought a small two bedroom home. I have tried convincing my family and friends to buy a small home. They want the pricey houses that they are not willing to work to get. You can't buy a $100,000 or more house working minimum wage.
lol? or because the government has been growing, the dollar has been inflating, and your reliance on both of those has been increasing.
I trick myself with my credit card and use it as a prepaid card. I transfer the money, that I allow myself to spend for the month on my credit card and make sure I won't spend it all in one evening. That way I can control my expenses a little more and stick to the limit I set for myself.
Great idea! I have one card that would let me do this, and one card that wouldn't.
I don't understand the Dave Ramsey method of just having a $1,000 emergency fund before paying off debt. I was in the hospital last summer and ended up with a $3,600 bill (after my initial $1,500 payment). If I hadn't had a healthy emergency fund I would have had to put some of those expenses on a credit card....that doesn't make sense to me. My goal for an emergency fund now is my maximum out of pocket for my health plan so I can protect myself from medical emergencies in the future.
American health care is scary! My "international" insurance was 70€ base +30€ a month so 120€ a year for the year I was abroad.
Healthcare debt stinks. I have an HSA funds to pay for medical expenses but I don't have enough saved to pay off my son's last emergency visit. No way would I pay it with a credit card nor drain my emergency fund. Hospital will set up a payment plan at 0% apr, and I am stretching it out as much as they allow it. If they can gouge us with ridiculous prices on services they can wait to be paid. Rant over.
@@bridgetlove1884 Yeah, fortunately I am paying 0% interest right now, but still debt is a pain in the ass! which is why short sighted "$1,00 emergency fund is fine pay off all your debts now stupid" advice makes me so mad. Because people are very likely going to have emergencies that cost more than $1,000.
His reasoning is you will be uncomfortable with just 1k and it will push you out of debt faster “gazelle intense”. I however agree with you .
Insurance in America sucks but having a FSA/HSA usually helps with medical expenses especially if there's a deductible on the insurance plan.
Thanks for the Seattle example! I would like to start collecting some sweet, sweet rental income, but homes in Seattle are TOO expensive for me right now. Renting is super affordable for my boyfriend and me now, so I am aiming for buying in about 10-12 years. I'm on track to be debt free in 2 years and think I'd really like to brag about being debt free for a decade before taking on a mortgage.
Oh how true. Not to mention all the other bills our parents didn't have. I'm 20 plus years older than you. My parents had a landline, mortgage, electric, water, oil, car insurance, food, gas. No cell phone, cable, car payment because cars were cheaper, held on to for loner and paid off sooner and many people only had one and kept it. They didn't have these huge student loans. No video games to buy us, or designer clothes or expensive sneakers. The list goes on and on. Especially where today's kids and all the activities involved and the cell phone bill that parents pay until their kids are 30! Seriously. We have put ourselves down this rabbit hole. Except for the college expenses. That is ridiculous and unnecessary.
You said it yourself, we have put ourselves down this rabbit hole. There is no need for parents to still be paying a 30 yr old’s cell bill. The kids don’t need to be in all the sports activities, one is enough. They don’t need to have every video game. They can get a job once old enough and buy their own. Designer clothes and high priced shoes are not necessities. My children got jobs as soon as they had their drivers license, some even sooner. They got a clothing allowance. If they wanted designer, they saved for it, or worked for it.
I now have one who is 25, about to make last payment on student loan, been married for over three years, has one baby, and has almost $20,000 saved for down payment on first house, and no other debt. They know where their priorities are. Another, married 8 months, who is putting as much against student loans as possible so they can start saving for a house too. They have one car, 13 years old paid $1000 cash for. Only my oldest feels entitled. And I feel somewhat responsible for that.
In a society where we are driven to consume more and more annually this doesn't surprise me at all
Student loan debt is the morons’ who took it out fault. My daughters busted their ass in hs and college to keep their loans, picked an affordable college even though they were accepted into more expensive colleges to keep their student loans as low as possible. They also worked to pay for their extra needs instead of living off of student loans for their phones and living expenses like too many kids do. As well as they got degrees in something that can be used in the real world instead of joke liberal or fine arts degrees.
@@oliviabird2681 then why are you?
@@lysan4878 Exactly. "i'm drowned in debt, and i chose a degree that isn't applicable in the market place. oh well. i might as well rent in NYC for the rest of my life!"
Dude!! I love ur dining room set up. Those benches are sick!!
A note on Bulk Buying: Chelsea's clearly not addressing byo container style bulk. This saves money and the environment and most of the items are dry/pantry goods.
And, in the exact opposite of Sam's Club/Costco, if you just need a few tablespoons of something you can just buy that much.
I'll fill like 7 spice jars at these types of joints for under 15$ and it's so much cheaper than buying them again from the grocery store. Plus many of the bulk shops only sell organic spices and I get to keep them in my bougie little glass jars without producing more waste. Cant beat it
Yeah, bulk bins are not the same as bulk shopping. Bulk bins are awesome.
I have found that certain things even in bulk bins can be way more expensive like cleaning and body supplies which is unfortunate I love trying to be more sustainable.
Bulk bin stores are not always cheaper though. Especially the eco friendly ones with eco friendly and fair trade items.
I'm on a TFD binge lately. I would love to watch a video about how you purchase skincare products. Do you buy the same product over and over? Do you indulge in 'organic' skincare for the long term benefits or just pick out regular products that are much cheaper? How often do you buy skincare products, and how many do you use?
If you like advice from a fellow TFD fan: I didnt use skin care most of my life because my skin was really nice without skin care and I never had any issues. Now I am a little bit older (30), my dad is a dermatologist and I studied biochemistry and I learned a lot about skin care in the last years. I like the youtube videos of Dr. Youn, he is sweet and honest about what you need and what not. CeraVe and La Roche-Poisay are really liked in the US and affordable.
I personally tried out Paulas Choice and I freaking love the products. They are not super cheap but still affordable and my skin looks and feels amazing. It’s a really good brand if you can afford it! They also have a 60 days money back program in case you dont like a product. I am 30 and I am often mistaken for 24-27, only if they know my CV they know that I MUST be older :P
Things you need:
- SPF (50 is best, Anthelios from La Roche is really loved by the community)
- Moisturizer (it can be a 2-in-1-product with SPF)
- If you need anything extra, then buy a retinol. It reduces wrinkles and increases skin turn over for a fresh look
- A chemical exfoliater is better then a physical one. Look for AHA/BHA.
If you want to spend more, buy:
- A product that combines Vit C, Vit E and ferulic acid and apply in the morning (Paulas Choice has one)
- A hyaluronic acid
- Collagen powder to eat or mix in smoothies (I use Alpha nutrition)
Everything else is a fancy splurge.
I live in Germany and I can recommend the following drug store brands:
Nø, Daytox, Junglück
Otherwise I would take pharmacy quality (like La Roche and CeraVe) or go to Douglas or buy online.
Buying cheap items has burned us many times - especially shoes- this is one area where I will look for sales on higher end items!
The Costco example you give is not a very good one as you are not comparing apples to apples. The lesson there is to not buy premade burger patties or any prepared food and to make it yourself from scratch. A person who has made the decision to buy premade food WILL save money by buying it in bulk compared to the identical item not purchased in bulk. As long as they eat them all! ;)
Isn't the cost per use part following what you wanted to hear?
I was a the store and there was a large bag of romaine lettuce for $5 but three heads of romaine not cut up was only $2. So basically paying myself $3 of time to cut the heads up or paying the store an extra $3 to have it already cut up. That's the paying for convenience I think she means with the burger patties versus hamburger meat. She maybe could have explained it better in the video.
I just bought pre-formed beef patties there days so. I bought 3 lbs worth at a fairly inexpensive store. 12 patties for $7.58. 63 cents a piece.
Woooooo! I binge your videos like crazy and get so happy whenever I see a new one 👏🏻👏🏻👏🏻
Vered Pinhas same! And it makes me feel like I have my life somewhat put together haha
Zully Celis Suazo SAMEE I feel like when I’m done with school and actually have an income I’ll know what to do with it lol
"Buying in bulk for things you don't actually need" Ope, there I am.
Thank you for money advice for people who are struggling, much appreciated
There are some really good points in this video! Very helpful.
We were taught all the wrong things about money in school, liking keeping revolving credit. It's about time we finally wake up!
I feel when she says guru. .it's code for Dave "Life with No Payments" Ramsey
I love Tasha from One Big Happy Life, and you give really good advice.
i used to buy in bulk all the time, but after i started extreme couponing, it's just cheaper for me to buy with coupons.
Key thing is know what your spending habits are, tracking and setting goals, and know your prices. I do like how you apply the idea of knowing your strengths and weaknesses.
I've heard the point about how home buying isn't necessarily our best investment anymore a few times now but do these models take into consideration how quickly rent is increasing as well? For example I rent and have been in my unit 4 years in a controlled rent building, if I were to.move my rent would increase minimum $600/month for the same property as rent has increased that much in my city since I signed my lease. Also even though I'm rent controlled we are the the whim of the local government to change the rules which did happen in our last election and false evictions for selling the unit, family moving in or reno-victions are very common. If I could stay in my unit for the next 30 years I'd be golden but the chances are at some point I'll be forced to move or my rent will take a spike as it's under market value.
also the equity from buying a home
Yes, the good ones do. But, it is always a bit of a guess how much rent will increase and how much home equity will increase, and how long before you move. Each market is different, each decade is different. For you, obviously renting where you are now is cheaper. If you move, you can review the rent versus buy and make a decision.
Create a savings/investment acct, separate from your emergency fund, based on a percentage of what your free-market rent might be; could be used as leverage for another rental, or for buying a home/condo. No one can foresee, but it's hard to imagine renting the same place for 30 years. Your life situation may change dramatically to the point that your apt no longer works for you. Failing to plan = planning to fail
I also think about when all ya millennials want to retire, and still have to pay rent or mortgages from buying later in life. I don’t want to have rent/mortgage when I’m older and not be able to retire at a decent age. I have an uncle who is 72 and can’t retire because of poor financial decisions earlier in his life, which resulted in the foreclosure of his home. It terrifies me.
No. Buy a home.
Don't be a slave to the government and fucking rent control. Plus, that unit is going to depreciate so fast with more and more government leeches moving in. Do you really want to live there for more than 5 years?
Buy a home.
@Chelsea - I would love to hear more in another video about your advice on how to determine whether or not home-buying make sense for one’s lifestyle & goals. Thanks!
Whoa!
Side note.. your hair looks amazing and your skin is glowing😍 you go girl!
Aye the cheapest item thing is so well summed up in Terry Pratchett's Vime's theory of boots:
Sam Vimes Theory of Socioeconomic Unfairness,
"The reason that the rich were so rich, Vimes reasoned, was because they managed to spend less money.
Take boots, for example. He earned thirty-eight dollars a month plus allowances. A really good pair of leather boots cost fifty dollars. But an affordable pair of boots, which were sort of OK for a season or two and then leaked like hell when the cardboard gave out, cost about ten dollars. Those were the kind of boots Vimes always bought, and wore until the soles were so thin that he could tell where he was in Ankh-Morpork on a foggy night by the feel of the cobbles.
But the thing was that good boots lasted for years and years. A man who could afford fifty dollars had a pair of boots that’d still be keeping his feet dry in ten years’ time, while the poor man who could only afford cheap boots would have spent a hundred dollars on boots in the same time and would still have wet feet.
This was the Captain Samuel Vimes ‘Boots’ theory of socioeconomic unfairness.
This is not the only economic theory Pratchett presents in Men At Arms: he also notes that:
The very very rich could afford to be poor. Sybil Ramkin lived in the kind of poverty that was only available to the very rich, a poverty approached from the other side. Women who were merely well-off saved up and bought dresses made of silk edged with lace and pearls, but Lady Ramkin was so rich she could afford to stomp around the place in rubber boots and a tweed skirt that had belonged to her mother. She was so rich she could afford to live on biscuits and cheese sandwiches"
Thank you so much for these videos! I feel like so much financial advice is directed at those who already have a lot of money, and... Like, Clark Howard -- he always seemed like he wanted to help people with less money, because that's what he focused on when he gave broad advice. But when he took calls from people, it seemed like it was almost always someone who needed help with their CDs or whatever.
Anyway! Buying high-quality items is definitely a point I like, lol. I typically wear the same pair of earrings every day, and cheap ones soon show wear. That's why I just bought myself a nice pair of hoops; nothing crazy expensive, but definitely more than I'd usually pay at like, Anne Taylor Loft or whatever. Oh, but speaking of higher end clothes, ebay is a great resource! Many people sell stuff that's nearly (or completely, sometimes) brand new, for much cheaper than retail. I like Anthropologie clothes, and that's the only way I can really afford them!
One item that I never hear about is saving up for your medical insurance deductible. Our is $2000 per person and $3600 for the whole family. No financial guru has ever brought that up. Or your medical copays for physician annual visit or kids vaccine schedules
Your new place is so big and the floors are so shiny that I bet 5 year old Chelsea would be sock skating right now!!!
This is so true. I often argue with 'you get what you pay for' as an upsell which has only been true about half the time in my life. Many people have phone plans that are more expensive than they need when they already have the internet at home. I read Kiplinger in the 80s and used credit cards to build my financial life. I agree re. buying vs. renting. Many good YT videos on this now. I know too many people who could not take a better job because they could not get out from under their house.
I'm so happy that my university campus sports complex only charges 200 euros for a year of unlimited sporting. Including classes in team sports, kickboxing, swimming in 3 different pools, fitness, and rockclimbing.
I love how "some financial gurus" = Dave Ramsey. Yeah, his $1,000 starter emergency fund and credit card advice has always seemed a bit extreme to me.
Wow, I feel like this was finally a financial talk for the new gens. Our parent's way of being financially fit just does not apply anymore
Thanks! So much good food for thought. Happy Holidays.💕🎄💕
I'm having a little trouble with the last suggestion of not buying a home. Renting is often far more expensive monthly than a mortgage payment for a home with the same square-footage. Even if the housing market upon selling the home isn't as good as when you purchased, it's hard to believe you'd lose more money than you would while renting. If you plan on moving a lot or don't have enough for a down payment in a mortgage, then yes, renting is the better option, but even with home repairs and other things, I would think owning a home is the better choice in the long run in most housing markets.
you are correct for like 95% of the country. NYC is.... different. but anywhere outside of major cities, you are definitely better of buying vs renting, provided you plan on living in your home for a while. a lot of people when shopping for a home, don't realize though that when you are calculating your monthly mortgage payments, you MUST factor in insurance, taxes and maintenance cushion. so they end up getting too much of a house. but that doesn't mean once cannot or should not find a house that fits their budget. unless they are in NYC. NYC housing market is hell.
@@Forgefaerie NYC and LA are the two exceptions I can think of. Perhaps some other large cities, too. But in most suburban areas or if you aren't trying to live in the busiest area of downtown, buying would probably be a more financially beneficial choice than renting.
This video popped up on my recommended and I was going into it super cynical like "I bet this all dumb advice and I'm better at getting value", but this is literally everything I live by and then some. Subscribed!
I really loved this video and wanted to thank you especially for the bit about the savings fund interest vs other options! I would love to hear a video about the cards you use for travel credit!
The point about Buying the cheapest items is obviously valid, my mother is super cheap and she has to buy things over and over and over and wastes a ton of money on rather than just listening to me and investing in something quality to begin with. but i also think, when it comes to certain items, specifically clothing, i don't think buying expensive/quality is always a good move (and of course, there are high quality, affordable items at thrift stores etc, but its hard to find certain things there, like small size womens jeans and shoes etc.). We all want to buy high quality, sustainable clothing items, especially when it comes to staples like jeans and sweaters, but think about buying a pair of 10$ jeans from a fast fashion store vs buying a pair of 100$ jeans from Levi made of durable denim. yes, the fast fashion jeans will probably only last a year, but those levi jeans will have to last you 10 years for it to be financially worth it, and you'll have to be the same size in 10 years, which you really can't guarantee. not to mention, some people just *dont* have 100$ to drop on something they could get for less.
It took me 6 yrs to get a 4 yr degree because I did not want student debt. I worked as a waitress for 2 yrs after graduating because I could accumulate a down payment faster. I then bought a 2 bedroom, small house which then let to bigger houses over the next 40 yrs. Today I find my children and grandchildren often want it all, right away.
I assume all that happened when both tuition and bouses in US were orders of magnitude cheaper. Am I correct?
I save a little every month automatically and what's left at the end of the month goes there as well. I know I can comfortably live within my budget, so I don't need the extra. I can save more automatically as I always put money there at the end of the month, I also know that I really like putting money there and when I overspend during the month, the want to save that little bit extra keeps me from overspending.
I like your perspective, I think it's important to have savings and also pay debt. However if you are putting everything into debt you can be stressed, so it is good to become a little stable first then make bigger jumps in paying off things.
Definitely some good ideas and killing of bad myths here. But i can't agree with your argument on bulk buying. Especially when you have bad comparisons like kroger versus costco ground beef. the coscto beef vice chose were already formed hamburger patties that had extra ingredients. The kroger option was literally just normal 20/80 ground beef. I looked up costco's actual equivelent and it is a full dollar cheaper per pound. To add to this, if an item is freezable (and alot are)... you can pre portion it into cheap freezer safe baggies and then toss them in your freezer for future use. Beef plus baggies from coscto are still far cheaper than ground beef in small amounts from kroger. And if you love the environment then use one baggie and biodegradable paper inbetween portions. Sometimes saving money is in the details, don't overlook them...
“financial Gurus” lol just say Dave Ramsey and move on. Great video btw
Great vid that is full of useful information for everyone! The holding a balance myth is even worse than being neutral to your credit score. Keeping a balance on your account shows over utilization of credit and that is one of the factors that determines and lower credit scores. Pay those cards off when you can!
I really like the style & decor of your apartment!
Agreed on buying cheap, in the long run it's often a bad idea. Some things I've found it's best to splurge on:
1. Comfortable high quality shoes. A great pair of shoes will change your life if you spend a lot of time on your feet. You don't realize what you're missing until you try it.
2. Cooking equipment (be careful because more expensive isn't always higher quality). It'll help cook more instead of eating out, which saves a ton of money in the long run.
3. A chair with good back support. If you spend a lot of time in an office this will not only save you a lifetime of back pain but also thousands in chiropractor bills in the future.
4. Headphones. A pair of high quality headphones will last for years, and the difference in sound quality is very noticeable. They also help block out distractions while working.
5. A reliable car (not a sports/luxury car). I've seen plenty of people find an old fix-er-upper for under $2000. I've also seen these people spend thousands in car repairs when it immediately breaks down, and even lose their job after being late one time too many due to car problems. If you want to advance in your career being on time every day is a must.
A year ago I had an accident that made me unable to do my job until I finished my arm rehabilitation, that whole year my savings kept me afloat, but as soon as I was able to get back to work, BOOM corona strikes and now, while I still have a few savings left, idk what i'm gonna do if this keeps up
9:52 interesting if you compare it to Vienna. Here the single ride is about the sane, but the monthly ticket is less than half.
Chelsea I missed youuuu!!!! TFD hasn’t popped up on my RUclips in a while
A great post! I'm happy to learn that my husband and I are doing many of these things already! I totally agree that credit cards, used carefully, can be great. We pay for most things with two cards and get tons of cash back with one and airline miles which we can use for hotels, too, with the other. We have a budget and stick to it so we're not overspending with them.
8:00: I disagree with that when it comes to cars. Expensive cars are rarely ever a good investment compaired to a mid priced one.
She was refearing to the cheapest options. Mid-priced cars are more expensive that cheaper Cars but they are better.
Hi Chelsea, I was wondering whether you can do a video around your apartment and share a bit what items you got on a budget, a few that were second hand and perhaps a few that were designer pieces of furniture or clothes (and why you paid extra, like what was the benefit). P.S. Love the paintings in your background 😊😊😊
I've heard the advice to use credit cards on tfd so many times. It just seems bonkers to me that there are countries that choose creditcards over debit cards, and even force people to use them (to build a "credit score"). Here in the Netherlands many people don't own credit cards or only have them if they travel internationally or buy online internationally. We cmdobtbusecthem in everyday life. People use debit cards, because its wise to only spend the money that you actually have, right? What is your view on this?
I agree... I m not from usa.. But i found the encouragement to use credit cards in every tfd money saving. In my country. We are not encouraged to use credit cards.. Even my dad use credit card for specific mean.. Many people cant pay their bill in the end...
@@MesheherKim thank you for your reply, now i have a better understanding. That's why it looks so strange. It seemed to me that they try to make people believe that being in debt is not a bad idea. That's so wrong in my opinion.
@@MesheherKim I totally agree with you. I live in America and I wish I never had to use a credit card. We are basically forced to do so if we ever want to get a loan for a large purchase, such as a home or vehicle, as you can't get one without a credit score. My husband and I recently had to get a cc to build credit, as we plan on possibly buying a home in the near future. I'm a frugal person, so we buy things we would buy anyway, even if we didn't have a card, that we can afford at the moment, and we pay it all off every month. That's the only reason we own a credit card. I abhor the buy buy buy hyper consumerist culture in America. It's so wasteful, harmful and unconscientious. I don't know how people become so brainwashed to think it's a good thing.
I loved your video. Everything you said was on the mark. Thanks so much.
I just got (unfortunately due to corporate budget issues) laid off from a very nice professional job that paid me very well for my industry. In the past, I’d buy the cheapest headphones and earbuds cause I just couldn’t afford a nice pair of each. After telling myself that, once I got in better financial shape, I bit the bullet (after A LOT of research this past year on which were the best) and bought the ones I wanted a month ago. I still was able to build up some savings and pay down a huge chunk of credit card debt beforehand too. I still have no idea what I’m gonna do with my old tech accessories but you get to a certain age and income where you just can’t deal with inferior products to save some money...
The comment about buying in bulk is very true. I used to have a BJs membership that I ended up canceling due to the fact that I really wasn't saving any money on groceries. I now shop at Aldi and my grocery bills are much cheaper
I wish I was more financially free when I did bought my house. I had no idea of what boat I was taking. Now it's okay. But it did take years to organise my finances to be able to pay everything.
I just keep staring at the dining set-up and wanting a house tour. Beautiful.
i don't need a credit score, never borrowing money again. DEBT FREE for Life!
19:56 honestly on home ownership I think it really depends. Some areas a mortgage is gonna be WAY cheaper than paying rent and you’re saving money in a lot of ways by owning a home. Some areas it’s about the same or more and it really comes down to either that or the extra stuff that comes with if
I really don't understand the US credit score system. Having debt to prove you're worthy of having debt? Strange.
Handling debt to prove you're worthy of being given a chance to handle even more of it*
It's not the "having debt" in and of itself that matters, it's "having a history of reliably paying back debt in the past".
I am also 31 and look up to you, Chelsea!