7 “Grown-Up” Behaviors That Are Wasting Your Money | The Financial Diet


Hey guys. It’s Chelsea from
The Financial Diet. And this week’s video is
brought to you by Credit Repair. And as you guys can see, I am
in an exciting, different space. And it’s the last time I’m in
a different space for a while, because we just finished our
final TFD book tour event here in Chicago. It’s been so awesome
going around the country and meeting all of you. And if we didn’t get to see
you on this tour, do not worry. Because we will be coming
out again sometime soon. And today I wanted to talk
about the behaviors that we feel are grown up and
adult and fancy, but which are actually
wasting us money. So much of our idea of what
an adult is really like or what they do is centered on
pop culture or really outdated notions of maturity that
maybe we got from our parents or grandparents. And not only are they often
not relevant to our lives, but they’re often really
unrealistic for us financially. And even for the behaviors
that we didn’t necessarily inherit from a
previous generation, there’s often a huge association
between maturity and spending more money. When we look at the way
products and services are marketed to us, there’s
a very clear association between how much
of an adult we are and how much we can
afford to spend. But we at TFD think
that is bullshit. Being an adult has nothing to
do with how much money you have or how much money you’re
willing to spend on something. And it’s so important to
call out these behaviors for what they are. They don’t make you an adult,
they just make you waste money. So let’s get right into it
with seven grown up behaviors that are wasting your money. Number one is
drinking fancy booze. Now, one thing
that we definitely can’t blame on our parents
or grandparents’ generation but which is a huge case
of us associating maturity with spending is getting wasted
off of really fancy alcohol. And when it comes
to millennials, not only are we
drinking more, we’re also drinking more out
at bars and restaurants. Compared to previous
generations, the proportion of
money that we spend on alcohol outside of
the home has gone way up, while the amount that we spend
on alcohol we drink at home has decreased enormously. And the food and beverage
industry is not stupid. They know this. And so almost
perfectly in tandem the average price
of alcohol at stores has gone down, while
the average price of alcohol out at bars and
restaurants has gone way up. According to Debt.com,
when it comes to drinking, 24% of Gen X, 19%
of baby boomers, and 11% of the silent generation
go out for a drink at least once a week at a bar. But 42% of millennials
do the same, including 51% of
21 to 26-year-olds. And while there are definitely
multiple factors at play, it should also be said that, for
example, millennials also just go out to eat way more
than previous generations. It’s undeniable that pop
culture and how we view drinking has a huge impact. Speaking as someone
who is re-watching the entirety of Mad Men and who
has seen every episode of Sex and the City at
least five times, I’m definitely someone who grew
up consuming media that told me that drinking made
you more mature, as a woman, more empowered
and independent or as a man, more masculine. The mental image of the
successful woman with a martini glass or the successful man with
a glass of scotch in his hand has become almost ubiquitous. And as we’re just eating out
more and more frequently, it’s easier and easier to just
tack on a drink or several when you’re already eating
that restaurant meal. The point is the more we can
remind ourselves that drinking has nothing to do with
being an adult and nothing to do with how successful or
social we are and is honestly something we should be cutting
back on generally, the better. Number two is getting
more space than you need. Now, as someone who
lives in New York City and pays a truly
eye-watering amount of money for a really small
apartment, I’m actually not someone
who experiences this. But most Americans actually do. Long story short, Americans live
in houses that are way too big. They have too many rooms. They have too much
square footage. They have yards that do
essentially nothing except to be really bad for the
environment and a total bitch to take care of. And yet, if you close
your eyes and imagine what an American
home looks like, you’re probably picturing one
of those way two big homes– something with a kitchen island,
a lush green yard with a dog house, and one of
those sitting rooms that no one is
allowed to sit in. And just like with drinking,
a huge part of that is pop culture. If you think about any popular
TV show over the past 50 years, it’s very likely that it will
star a family or friends who live in completely
unrealistically big and beautiful accommodations. But whether it’s a
chicken or egg scenario, Americans living in
bigger and bigger spaces is not in our imaginations. The average newly
built home in America today offers more than
2,600 square feet. And the shrinking
nuclear family means that works out to about
1,000 square feet per person. As of 2012, four in
10 homes were built with at least four bedrooms. And more than nine in 10
had at least two bathrooms. And it’s probably no
surprise that that increase in size, and often
unused size, means that every extra square foot
costs money to just maintain for no reason. And aside from the actual
literal cost of these homes, studies have shown that people
are, on average, more unhappy when they live in these
bigger houses that are spread farther apart. Not only are you really
removed from your neighborhood, community, and town which is a
very natural part of human life and behavior, you’re also
really physically separated from the other
people in your house. But even if you’re someone who
doesn’t mind the separation, chances are you will
really mind that cost. Adjusted for inflation,
the average new home today costs more than twice
what it cost 50 years ago. And the vast majority
of that is because we’re living in bigger spaces. Having a big home doesn’t
make you a grown up. Having a home that works for
you and isn’t driving you crazy does. Number three is dividing your
weeks into depressed weekdays and YOLO weekends. Now, something that we’ve
talked about before on TFD is that whole treat
yourself mentality, which can be a good, necessary
way to reward yourself from time to time, but can
easily become a slippery slope into just giving yourself
whatever you want, regardless of cost
because you deserve it. If we let it,
basically any emotion will drive us to
spending, whether it’s a positive or negative one. And a few cycles make it
easier to spend recklessly than feeling like your entire
week is just one big, sad slog to get to the weekend. And the numbers don’t lie. Most Americans simply
don’t socialize that much during the work week. And their spending habits blow
up like crazy come the weekend. Americans spend almost twice
as much money on Saturdays as they do on Tuesdays. And, of course, a
large part of this is that treat
yourself mentality. But it’s also the
feeling that we have to cram all of our
socializing, our joy, and our adventure
into two days a week. Combine that with the
potential stress and anxiety of a bad work week
or the wanting to celebrate success of
a really good work week, and you’re basically
giving yourself license to spend any money you want to. Not just for financial reasons,
but for your mental health, we recommend that you offset
this grown up 9:00 to 5:00 grind by making sure you
have at least one dedicated low-cost social activity
during the work week. We find that it’s easiest
to keep going with this if it’s something recurring and
that involves a group who can hold one another accountable. Things like a Tuesday night book
club, a Wednesday night board game group, or Thursday
potluck dinners can make your work week
feel way less anxious and take some of that
pressure off of weekends so that you’re not running
out and spending money– also likely while drinking too
much– the second the weekend hits. There’s nothing adult about
being depressed all week and then going nuts
on the weekends. Number four is having different
wardrobes for different things. Now, this is something that is
aggressively marketed to women. Basically, any woman who’s
ever read a fashion magazine has read over and over the
terms day look and night look. We’re encouraged to
have different outfits for the office, for date nights,
for going out with girlfriends, or just running errands
on a Saturday afternoon. And in traditional,
professional environments, this pressure can get out of
control, which is probably why Washington DC, a city full
of professional class workers, spends by far the most
money on their clothes. The average resident
of Washington DC spends a whopping $263 a month
on clothes, which is insane. But this pressure to have
an adult wardrobe, which means separate things
for separate occasions, is overwhelming. And that’s not just magazine
editors’ style preference. It’s an extremely good
way to sell more clothes. The average number of clothing
items that Americans own has grown enormously
over the years, even as the average cost
per item has decreased. We’re essentially being
trained to view clothes as much more disposable
and something that should be rotated
out rather than used to their fullest potential. We encourage you at TFD
to create a wardrobe that is based on simple, functional,
versatile items that can be well-invested in and used
for everything from the office to date night to going
out with friends. Things like a good jacket nice
slacks or a simple black dress can fit the bill. The rest is almost
totally superfluous. And items like jewelry
or a nice scarf can quickly change
the look of something without ever having
to buy a second item. At the end of the
day, what really makes you look like an
adult is feeling comfortable in your own
skin and confident in what you’re wearing. And by the way,
it’s a power move to have a signature
look which requires way fewer items and way less time
and energy getting ready. Number five is wedding parties. Now, I won’t bombard
you with the details, because we have
spoken about weddings. But one thing I do want to
dip into a little bit more is the wedding party phenomenon. Basically, the idea
of bachelorette trips, bridal parties, matching
dresses, engagements showers, and all the things that
seem totally necessary now didn’t even really
exist 30 years ago. And aside from that driving
the costs of weddings up to about $40,000
on average, it’s also meant that just being
in someone else’s wedding is a huge expense– on average between
$1,000 and $2,000. Entire industries
have cropped up to accommodate these
growing wedding parties. And social media makes it
feel like you’re somehow cheating yourself if you’re not
doing every one of these very expensive activities. But as someone who is currently
going through the wedding process herself, I can
tell you that I have not had any bridesmaids. And it has not hurt
my wedding one bit. And I know that every one of my
close female friends and family members are secretly
sighing relief that they won’t have to buy some
ugly dress that they don’t like and will never use again as
well as spend hundreds or even thousands of dollars going
to all my various bridal party events. An adult wedding is not the
most expensive one to be in. An adult wedding is
the one where you do it for the price you can afford for
the things that matter to you. Number six is taking
initial offers. Now, no matter what
background you’re from, it’s very likely
that a lot of us have taboos around negotiating
or haggling for price. Haggling or
negotiating are often seen as un-chic or poor behavior
and definitely not something that serious adult does. Many of us were
raised with the idea that it is just not
something adults do to talk about money or price. But those kind of mentalities
are costing us enormously. Whether it’s for a job offer,
the price of a specific product or a one-off service, prices
are almost always malleable. And in addition to
getting religious about negotiating for
your value at work, it’s also important to remember
that most customer service reps are empowered to
work with you on price. Everything from signing
up to a new phone service to getting an appliance
can be totally negotiated. And you can do things like go
in with facts such as better prices at competing stores
that they can undercut or simply just be ready to
walk away from one offer wherein many salespeople
will literally come after you to close the deal. As my mother says, only
a fool pays retail. And although there are going
to be some instances where haggling obviously
won’t work, chances are pretty high that there are
more instances in your life than you think where haggling
could be a great option and save you a ton of money. There’s nothing unadulut
about negotiating. But there is everything unadult
adult about paying too much. And number seven is overspending
while traveling, especially with the rise of social media
where everyone’s vacations are on display and seem probably
a lot more luxurious than they are. The pressure to spend while on
vacation has never been higher. There’s something so grown up
feeling about taking yourself on a trip somewhere and not
paying attention to what you’re spending while you’re away. And something we’ve heard over
and over again from TFD readers is how hard it is for them to
balance their love of travel with the desire to
make it affordable. Hilariously, even
the airport can be a deadly zone of overspending
if you don’t go in prepared. Almost every product
you can purchase at an airport from toothpaste
to magazines to sandwiches has an almost 300%
or more markup. You can literally save
yourself tons of money just by making a
stop at the Walgreens before you go to an airport. And it’s not just while
actually in transit, Americans have a crazy bad overspending
habit when it comes to travel. 74% of Americans have
admitted to falling into a debt of more
than $1,100 when coming back from a holiday. And while part of
that is definitely a feeling of, I have to enjoy
this trip as much as I possibly can, slash make it look
really good on social media, another part of it is
weirdly psychological. One study found that having
two different currencies deeply affected how we perceive
the cost of something. Even if the currency
you’re spending in is more valuable than
the currency you have, just seeing the numbers written
out with a different symbol impacts how your mind
perceives it and makes it seem less expensive. And when you’re in a
country whose currency is less valuable than
your own, your brain tends to wildly
overcompensate how much you can afford to spend and
overspend even while things are less expensive. Perhaps, one of
the biggest reasons that Americans have a serious
travel spending problem is because we travel so rarely. We have some of the worst
paid vacation policies in the developed world,
which results in Americans taking really few trips. So every time you
do go on a trip, you’re overwhelmed with the idea
that you must make the most out of it because you don’t know
when you’ll go away again. And one of the simplest
ways to combat this is even if you can’t get
more than a day or so off, taking weekend trips more
frequently so that you get the experience
of travel and newness without it always having to
be a no holds barred spending indulgence. Travel should be a fun
and exciting part of life. But it shouldn’t be so
rare that it causes you to go into debt just to do it. Being an adult means
traveling without putting it on your credit card. Now, one adult behavior
that’s definitely wasting our money and something
we all should learn how to do is managing and mastering
your credit score. And one of the best
places to get help if you’re looking to repair
a damaged credit score and don’t know where to
start is credit repair. Basically, Creditrepair.com
is your own personal mentor for repairing, building,
and maintaining your credit. They help you build
a customized strategy for improving your score,
work directly with the credit bureaus to dispute any
dings on your report, and teach you how to
understand both your own score and the rating system. If you feel like you’re
struggling to build or rebuild good credit and want someone
to guide and advocate for you the whole way check
out Creditrepair.com at the link in our
description to learn more. As always, thank you
guys for watching. And don’t forget to hit
the Subscribe button and to come back every
Tuesday and Thursday for new and awesome videos. Bye.

100 thoughts on “7 “Grown-Up” Behaviors That Are Wasting Your Money | The Financial Diet

  • Spending money on holidays could be #8. Every other month there is an occasion that we are expected to throw money into celebrating. whether that be Christmas or St. Patrick's day. Personally I make it a point not to take part those traditions, and save my money for practical causes.

  • Good advice until you criticised home size.

    People who spend thousands on rent in trendy cities like WDC, NYC and San Francisco are idiots.

    That's you.

    Move to a rural exurb, pay 950 for a 2 bedroom and then your points make sense.

    Until then you are just a victim of media hype and a hypocrite.

  • I would like to add one 'danger' to having a bigger space than you actually need:
    You will buy furniture for these rooms (€€) and you will put stuff inside. More stuff than you need or can manage.

  • how about buying coffee instead of making your own, buying pre-made food or eating out/takeaways, buying a car when you don't really need one, getting your nails/eyelashes/eyebrows… done
    also, I think this video is probably only relevant in the US as I live in Europe and I can barely relate to all of the things you mentioned

  • I'm 32 this year and still bring a small bottle of brandy in my jacket pocket when I go out to bars, why spend more (ノ◕ヮ◕)ノ*:・゚✧

  • But I can't wear a crop top to my drug store management job… And my button up blouse doesn't work well with my flannels or my Neat Dude beanie.

  • ugh, this woman seems like the most boring person in the universe. Also, why the fuck does she think SHE gets to define what is "adult" and what is not. Ridiculous. Some of these are terrible as well, like the haggling crap. Prices are set in most situations, grunts on the floor have no power over that.

  • This was such a great video. I especially liked the part about travel. She is 100% right about how we Americans get so little vacation that we feel like we have to make the most of them. I would like to add to this is you and your spouse work different schedules sometimes the one week of vacation a year may feel like the only time you have together and may result in wanting to way over spend.

  • I'm definitely guilty of overspending when I travel. But then again I don't have kids, don't have a mortgage/rent, almost never buy clothes and basically don't buy much at all. So I don't really care how much I spend on food and travel which are my only 'treat' items really.

  • Thank you, for making this video. It’s just a friendly reminder that I’m not going crazy & that my saving techniques are worth every penny! Great video. 👍🏼👍🏼

  • Does not apply to my society or lifestyle, but it's GREAT that you're making these vids! I know lots of people need to hear this!

  • I think people born in 1999 are Gen Z, (they are 19) and in some places (canada in my case) they are old enough to drink. I was drinking for 3 months before I had to stop. Never had expensive alcohol, nor got drunk. (I stopped because I got pregnant)

  • It’s funny that so many young people complain about having to work multiple jobs to make ends meet, yet they eat out more and drink alcohol out more than any other generation.

  • OMG, the currency thing🤦🏻‍♀️ saying 3 dollars sounds way less than 60 pesos. But it's the same thing, and guess what? I earn in pesos so I'm just dumb.

  • If only my family home had that problem with to much space. 6 people in a 3 bedroom place is OK for some people but not for us grown ups lol.

  • Do you really think that people who really struggle to save more, really do these things? I mean, these are the status symbol (so I buy it/do it on purpose) or done by people who simply afford that and want to spend their money in that way. Girl, please let's operate with FACTS, research, numbers because the stuff you tell here is opinions and assumotions, and I get a feeling that mostly yours! I could not stop counting how many discussion fallacies you did there.

  • Re the going out to bars and restaurants, isn't it simply that younger people of any generation just do this more before they get hitched? I'm a mid-GenXer who used to live in a city and ate and drank out often. Now I still enjoy eating out occasionally but resent the rip-off price of drinks in a bar, so nowadays I only go to the pub when I'm on holiday.

  • bridal party events… plural? ….multiple events? as in….more than one bridal shower or something?? why?

  • Loool this is an old video recorded again and uploaded. Even the script is identical…very original

  • Ok.. the wardrobe thing, there are many reasons why you may have different clothes for different things. I saw one woman on here say she hiked in jeans to avoid this. That’s just not on. Don’t force yourself to wear the same daily clothing for activities it is not suited to. If you don’t hike, or go out to weddings, play a sport or visit the beach, then fine casual to dress casual will pretty much do you and there’s no need for a large wardrobe (I fully admit to having way to many dress clothes)

    Edit** also.. you don’t need to rebuy the same clothes over and over. That’s not the same argument to having different clothes for different functions.

  • The house thing. I grew up with sharing 1 shower with my parents. Awful! No kid yet but I’m already armed with “when I was your age I had to share a bathroom with my parents.”

  • I have to be in a wedding next year and she’s making us buy the ugliest, mustard yellow dress that we will NEVER wear again. I think if you want someone to be in your wedding, you should pay every expense.

  • Well well well, when not from americas and you didn't that what you USERES call credit card is not the card we use. Debit. Why are even those thing a thing, buying from money you don't have, to repay a month or two later and then getting in debt again while paying the last one LUL

  • We have a beer or wine at home… and THEN … walk to a restaurant and drink water… app. Twice a month.
    PS… modest size home… no mortgage.

  • I have a 2400 square foot home and I love it. We all have our own rooms and we all use the family and living rooms. It's just what makes you happy. Coming home to a nice size house makes me feel comfortable and relaxed.

  • What about our massive social/political problems which result in most bankruptcies being related to medical expenses and massive student debt unlike any other developed country?

  • We went to Yellowstone with our (teenage) kids last year. We saved so much money by making our own sandwiches, bringing our own drinks, etc. We joked we were taking a Walmart vacation because we went to so many different ones between California and Montana. We got kitchenettes when possible at our hotels (many times it was the same price or only a little more) and cooked our own dinners. The money we saved in those ways we used for things that were more important to us like renting an nice SUV for our trip. It's important to have a comfy car on long family trips.

  • Well.. If the weekdays wasn't so filled with work and duties, then maybe people would have the time AND energy to do things together on weekdays.. just saying 🤷🏻‍♀️

  • Your forgetting extroverts need stimulation and therefore spend more vs introverts who are content with a book for ex.

  • Wasting my time on listening to things I already never had or did… What a carefree grown-up am I…😁😄

  • In UK and Ireland airports are not crazy and for example boots had hight street prices on food and cosmetics. It's great if you travel with hand luggage and want to buy some extra shampoos or food for a plane. To be fair most shops has regular prices.

  • One of my favorite things about this channel is how circumspect you are about recommendations. Not everyone needs the same things from life, and TFD is aware of that and comfortable with it. It’s so refreshing to see people capable of providing good advice and good information without shaming people for having different needs and different personalities. Y’all are doing something right. 💚

  • I do not disagree that clothing (in general) is hella expensive. But I'm almost certain that's applicable to just about anywhere in the U.S., not just the Washington, DC metro area. Something to consider is that the quality of most clothing is not that great. And, if the garment (or plural thereof) is of good quality, the price tag is hella unaffordable. What do think is a viable solution?

  • Speaking of big houses, I can't get over how badly they are designed inside. There is often so much unnecessary space and the layout makes no sense or could be far more practical. I am seriously concidering building my house from the scratch because all others are a waste of money so why not pay the same for smaller but much more practical house?

  • I generally will take a “yolo” weekend after a month of 180extra work done. So far has been really rewarding and inexpensive.

  • Check out this video where Chelsea discusses little improvements you can make to your life without too much extra effort: https://youtu.be/vDSV9ceXr-0

  • Drinking expensive coffee (Starbucks), eating expensive vegan/organic/gluten free/lactose free food. Buying the latest geek, iphone, smartwatch, etc. Renting expensive downtown studios, using uber as regular transportation and humongous student loans from overhyped universities in a low pay/useless degree.

  • Lol I just buy basics that are good quality. I don’t mind the price really bec it lasts forever and I HATE SHOPPING 🤭 also I’m a girly girl and I care about the fit/texture/material/etc so fitting clothes is a must and it’s annoying lol

  • This video should be retitled "7 corporate capitalist money-grabs that capitalists have convinced you that you need to suck you dry"

  • I drink at home accept for birthday and holiday dinners. I'm 37, used to go to happy hours and drink more outside the home. As I've calculated and see what I save, I've switched up. It's safer to at home.

  • The ONLY place I could haggle in Romania is the old fashioned market place, and if the sellers there ARE the farmers/growers of the food they sell, i actually tell them that they're asking too much for their hard work. please people, just pay the price tag. If you're going to buy an iPhone or a Samsung, those ARE too expensive to pay full price, but if you really want a brand new shiny one, try and save money, or just live without. the old style, flip phones still function well for calls and messages, and you'd be saving time you can use for something more useful: reading a book instead (borrow it from the library) or finding ways to make money in other ways.

  • Listen, I'm not giving up my favorite niche and old fashioned cocktail bar. The rest of this some pretty good advice, even though some don't apply to my way to broke to have that bad habit ass.

  • While I agree with most of these (even if I do some of them), I don't want to think about managing my money while on vacation. I can't spend more money that I have (bringing credit card is a really bad idea), but travelling should be exciting, you do or buy things you don't usually do/buy.

  • I like this–EXCEPT that when they are talking percentages and comparing the groups, they aren't comparing them at the same place at the same time. What I mean to say is, you may find that the Boomers DID drink this much, this often WHEN they were 21-26, except that was between 40 and 50 years ago.

  • After I started studying at uni and working at the same time (all full-time), just getting a candy has become "treating myself"

  • Hi Chelsea, I agree with you on most of your points generally, BUT I love drinking fancy drinks not because they make me look more grown-up but because I actually enjoy them. As well as comfortable conditions when traveling and having multiple varying outfits for different occasions.

  • 1. Dont use air conditioning
    2. Consider sharing a house.
    3. Make and use a price book
    4. Teach children to participate in household labor instead of waiting on them.
    5. Always look for ways to do things cheaper

  • For traveling and even living in US, I calculate everything in Colombian pesos, then I determine how expensive is certain item.
    I have been in US almost 3 years and I still do that,it is useful specially, when you want to do a impulsive purchase.

  • Everything is negotiable. I've saved $200 a month on rent, saved thousands on our cars and got a $6,000 more per year because I negotiated them.

  • Woooow, I live in Kharkov, 44 m2 together with my mom, it is very tight here… it was painful to hear about Americans residing in such big houses….

  • When you haggle, do not be rude about it. Say You are at a flea market and see something you love? The price is set by the vendor. Never ask for more than 25% off, as it is rude, people pay for their spaces and the merchandise that they curate thoughtfully. Expect a counter offer. No whining.

  • When I plan a holiday, I save a certain budget for that holiday, and I do not spend outside of that saved amount while on the trip. Usually I come back with money leftover.

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