A Conversation About Budgeting ft. The Financial Diet

Rachel and Chelsea Fagan take a look at a hypothetical budget together, talk about compromise, and tips for saving money.
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[@AndyMoranPhoto]

Two of the best pieces of financial advice I ever got from my parents was to 1) Always have a physical $20 bill in your wallet at all times for any daily emergencies, and 2) Always have at least $1,000 stowed away in a bank account for automobile related emergencies.

[@briancarpenter6413]

duh

[@MegaChickenfish]

The constant push for "side-hustles" as the norm is concerning when there was a point where working full time actually meant you could afford silly things like "food", "a house", and "a family", even all of them at once on a single income! Working full time is a struggle enough that I find myself needing to spend extra on therapy with the stresses, then lump side hustle upon second job until you don't have free time left, you're going to explode.

[@tricial8771]

Thank you for making this video! I am using this to teach and have a conversation with my oldest niece on how to adult

[@clairewillow6475]

I inspired my mom lately because I finally got my shit together enough to have a small emergency fund. She doesn't have one and she's gonna start. Never too late to start adulting :)

[@eyitsyaboi4527]

Oh wow that's amazing good job 😊😆

[@TPRJones]

My #1 suggestion when it comes to budgeting, saving, and investing is to "pay yourself first" before you pay your bills. The first 10% of everything you make goes into savings (and later transitioned to long-term savings or investment). Of course at first you may frequently not be able to afford that and end up pulling it right back out of savings to pay bills, but do it anyway! Getting into the habit of putting away that first 10% is very important and will serve you well when you get to the point where you can actually keep it saved.

[@benaaronmusic]

Budgeting is crucial to being an adult. It got me on the right track to get out of debt and start saving for retirement. Do yourself a favor and get on a monthly, written budget.

[@briancarpenter6413]

duh

[@greenhorntenderfoot9261]

My budgeting philosophy is “short term inconvenience for permanent improvement”

[@hannahfluff341]

Greenhorn Tenderfoot i really like that! I put it on some post- its and put them in every room in the house☺

[@greenhorntenderfoot9261]

I can’t take complete credit for the philosophy. A very close aunt of mine always told me that when I was going through tough times. I hope you get the permanent improvement you want soon!

[@WanderInWunderland]

If you get to "live at home" as a solution to not paying rent, then you're privileged. I went to high school with kids who had to work to help their families pay bills.

[@bibbobbamthisismyjam7814]

I mean she did say if it was an option... I really don't see why you're mad

[@karinagutierrez7134]

bib bob bam this is my jam I don't think the OP was mad but rather were trying to bring up the fact that Chelsea's suggestions aren't viable for some people.

[@ShadeMiller]

@@karinagutierrez7134 but she literally said if that's an option..

[@karinagutierrez7134]

Shade Miller Accurate, but OP is also right. Acknowledging privilege when you have it is important, and they didn’t say anything factually wrong. That said, this isn’t that big a deal so I’m not looking to get in an argument

[@briancarpenter6413]

The fact this hypothetical woman thought she's could afford a $900 a month rent on that income is BONKERS

[@hiddentreasure83]

I use budgeting software that makes it really easy to see how much I've got available, what I've previously spent on things and schedule future payments (in and out) so I'm not surprised by bills and know when I can't cover the rent. My income is low enough that every dollar counts, and I find budgeting allows me the freedom to spend money (or save for larger goals) without being stressed about money all the time.

[@abigailkerr3354]

hiddentreasure83 what software do you use?

[@hiddentreasure83]

an older version of quicken

[@armenianchik]

Remember emergency fund!!! That's your safety net!! 3 to 6 months of expenses.

[@briancarpenter6413]

duh

[@lavayuki]

You can get a car quite affordably these days if you buy it via Finance, or just getting a used car with low insurance costs. In terms of vacation vs car, I would prioritise the car and just go on a cheap package vacation. Having a car is essential for a lot of things unless you live in a big city with a great train or bus system, while vacations seem much more discretionary.

[@dkhosh7380]

There are 3 channels I make sure to check pretty much weekly how to adult, the financial diet and hanging with lee tv

[@Dayglodaydreams]

I live in Tulsa, it's better than NYC in terms of cost of living.

[@alexever17]

There were some tipps which i didn't expect, so great video i would say

[@karinerente3623]

Just love both channels and I really need to start budgeting.

[@briancarpenter6413]

so how has the budgeting going?

[@fernandao.5001]

Chelsea is my queen and savior

[@kaseybasler4500]

Yes you have a game that will make your game better free time free

[@variousadrian8963]

Yay Chelsea!!!!!

[@iquitLOLjk]

damn the other expenses should be like AT LEAST double that

[@caribaez5711]

what is 401k?

[@jnzkngs]

I just wrecked my truck tonight when a deer jumped out in front of me and smashed my front end. Thanks to budgeting and direct depositing a portion of every paycheck into a savings account that I pretend isn't there when I want to buy frivolous things I have enough $ to pay cash for a new GMC Sierra Denali. But since I am not gullible enough to buy a new or luxury vehicle and I am also trying to buy a better house I will try to find a truck around the $10000 range. I bought my 2010 Colorado in 2013 with 90000 miles on it for $9300, it has 180000 on it now. Thanks to people who don't budget and believe used car salesmen trying to sell them more vehicle than they can afford it's all but impossible to find trucks less than ten years old with less than 100000 miles for less than $10000. When you wonder why things are so expensive these days don't blame rich people, they didn't get rich by throwing away their hard earned money. Blame people who were willing to pay way too much for homes, vehicles, and rent because they didn't really know how poor they were because they didn't budget.

[@JuliaSpeaksWithWords]

I understand budgeting is good but I feel like every time I listen to something from the Financial Diet it’s very bourgeois or capitalistic. They constantly push doing side jobs and extra work as a solution for everything.

[@Mooseplatoon]

To be fair, that is the way individuals in a capitalistic society improve their financial situation. You don't need to like it or even think it's okay to acknowledge it as the only viable option for most people. If their content is not inclusive of or sympathetic towards people who don't have the time or ability to work more however, that is certainly a problem they need to address.

[@thatjillgirl]

I mean, for most people, if you want more money on top of whatever income you are currently working with, your two main options are side jobs or selling some of your stuff. Side jobs don't fix everything, but they can be nice for a little additional fun money or goal money.

[@pseudogenesis]

What do you expect? There are very few other ways to make money. You're basically calling them bourgeoise because they say the best way to make money is to make money.

[@saraisreading4231]

They do talk about it a lot, but it's also more realistic than them recommending to ask for a raise of leave a current job for a higher-paying one. Extra jobs/work is probably the more reasonable option for more people.

[@M4CB]

Lol, a communist complaining about having to work to earn more money. How quaint.

[@Seth4All]

$400 for "other expenses"? HAHAHAHAHAHAHAHA! Health insurance, car insurance, and phone will eat the majority of that right off the bat. If you don't want to eat pasta and ramen all the time, you're gonna spend at least $200 on groceries. Gas? Plan to fill up 3+ times a month. Not sure if you're considering internet and cable to be utilities (some do, I don't), but that's another $100+ a month. Got a girlfriend? Hope you don't plan on taking her out anywhere. Hope you don't have car trouble ever. Hope you don't have any medical expenses. Hope you don't have incidentals. Hope you don't buy Christmas presents for your friends / family. Hope you don't have any hobbies. You can't do SHIT on $400 a month!

[@learnhowtoadult]

It's true that for many people, $400 would be too little. It really depends on your situation, where you live, what sort of social support structures you have, and all sorts of other factors. We certainly don't want to alienate anyone with these numbers by implying that $400 should be your standard "other expenses" budget. We also don't want to imply that budgeting is a silver bullet for poverty. It's useful, and hopefully helpful to some folks out there, but ultimately it's still just a tool in your financial tool bag. -Sarah Meismer

[@AppleCrider]

Very helpful in changing my mindset regarding a budget! Love the collaboration! -Financial Freedom For Millennials Channel Subscriber Goal 119/250