TFD Viewers Share Their Worst Money Decisions | The Financial Diet

We asked the TFD community to share their worst money decisions, and here is what they said! Chelsea talks you through money decisions you should never be ashamed of in this video:

Hey guys it’s chelsea from a financial diet and this week’s video is brought to you by wealth simple and today we’re gonna do something fun and kind of cringy last week i reached out to the tfd community to ask them all about their worst money decisions because i think a lot of the time it’s important to remember that we’re all human we’ve all made mistakes and

It’s so important to be honest about those mistakes so that perhaps others can benefit from your lessons and potentially not make the same ones often the money mistakes that we make are part of really avoidable patterns that we all have a habit of falling into whether it’s not thinking a purchase through enough not being honest with yourself about what you actually

Need and use or just following along with someone else’s money decision when it’s really not something you can afford and when i ask people for their worst money decisions i was pretty surprised by how many responses i got yet how much they all tended to fall in the same four categories so i wanted to share some of the actual stories while also talking a little bit

More generally about the lessons that we can take from each so let’s jump right into it here are the tfg viewers aka you guys on your worst money decisions ever the first category that i noticed when i was looking through people’s answers is spending for love and actually this fits very neatly into what i would consider to be my worst money decision ever basically

When i was about 21 years old i briefly met a guy while i was travelling and i invited him to come back and stay with me for almost two weeks when we had barely known each other for more than two days because i was like so obsessed with him and you know i was 21 and generally not a great decision maker and obviously it didn’t work out because it was so awkward

And we barely knew each other and we should not have effectively lived together for two weeks on that but it was also a terrible money decision because i almost had literally no money in the bank and was expected to pay for a lot of things that i didn’t anticipate i ended up putting myself into debt and actually taking my mom’s credit card out of her purse to pay

For something that i couldn’t afford because i didn’t feel that i knew him well enough to tell him i didn’t have any money but my story is just one and i heard from many many people who made similar decisions in the name of love where basically they were spending money they couldn’t or shouldn’t have been spending to either attract keep or please someone often

Who wasn’t doing the same thing for them viewer amy wrote in and told me a really shitty thing i did with money was to give a lot of it to a boy friend of mine who didn’t have any i felt bad that he was going on a study abroad trip funded by a trust fund that only covered school related expenses and wouldn’t have any money for fun things on the trip so i drained

My account and gave it all to him hundreds and hundreds of dollars i was 18 and it was just very stupid and colleen told us my now acts boyfriend and i bought a new king-sized tempur-pedic mattress together five thousand dollars he convinced me to put it in my name because of some other purchases that had been in his we broke up less than a year later and i’ll be

Paying it off for the next four years on the plus side there’s plenty of room for my dog and lastly a viewer kit told us mine was putting down the deposit on a rented flat for my best friend her boyfriend and i for the summer we spent in spain they broke up and he never paid me back his share i’m never lending to or covering for friends or their partners again not

Without a formal agreement now obviously in every relationship including very healthy ones there are going to be times that you spend money for the other person and that’s not necessarily a bad thing but when it comes to real investments things that really put you on the line financially you must always ask yourself is this a financial decision that’s smart for

Me or just what the other person wants is it something that i would justify if the other person weren’t part of the equation for example it’s probably pretty likely that colleen would not have justified a $5,000 mattress if there wasn’t someone else who was convincing her to do it and it should go without saying that any large investments that really implicate

The both of you should either be done with some kind of formal agreement in place or when your money is actually already legally combined like for example when you’re married you never ever want to be in a situation where a breakup or a relationship that goes south can leave you on the hook for tons of money that the other person was supposed to share with you

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And secondly and perhaps more importantly it’s important to always be extremely open with your partner about what you can actually afford to spend a very common theme in these responses i got was a person who felt compelled to overpay for things or to participate in things that they couldn’t really afford because they felt that’s what the other person wanted or

Expected and it doesn’t matter how much you like someone justifying going to let’s say a concert you can’t afford with them just because you want to impress them and spend time with them is never a good decision if you can’t be honest with a person about what’s realistic for you financially or feel like for some reason that will put your relationship in jeopardy

It’s probably not the right relationship for you the second category i noticed over and over again in viewers answers was experiences that you can’t afford we’ve all heard the sayings about how you’re supposed to spend on experiences not things and there are studies that show that people do generally take a higher level of satisfaction from money that is spent on

Experiences rather than objects but so many people take that to mean any money spent on experiences is automatically well spent which is totally false number one experiences that make you take on debt or spend way more money than you’re comfortable with are almost always going to lead to regret and number two half the time the things that we convince ourselves are

Really valuable experiences are things we don’t even end up enjoying in the moment i cannot tell you how many concerts i’ve been to in my life where i was sort of swept up in the moment of someone often a boyfriend who wanted to go to that concert and i spent the entire time hating the experience and also hating myself for the fact that i wasted hundreds of dollars

On it we’ve all done it though and i wasn’t surprised when i got the answers that this was by far the most common theme tfd viewer sara told us while i was still in grad school i wanted to get on the music festival bandwagon and agreed to attend two music festivals in one summer i thought that they would end up being only a few hundred dollars but with tickets

Transportation food drinks lodging i ended up spending fifteen hundred dollars on two weekends i was living frugally as a student and i still regret it both music festivals weren’t very fun and for that amount i could have gone on a trip to europe and tfd viewer nana said as a college student who has not had a ton of chances to be – done with money i have to say

My worst money decision was getting myself a fake id after a somewhat socially lackluster first year of college where and i didn’t really go out or make many close friends 19 year old me somehow convinced myself that if i had a fake id i’d suddenly get invited to fun things and bars by cool people i was desperate for a college experience like the ones i saw on tv

And movies so i used the best known but yet still highly sketchy site to order one from some guy in china between the base cost plus the western union fees to wire money i ended up spending almost $200 on this to my best recollection i then proceeded to never use it not even once i was just too scared hearing about the frequent bus of kids with fakes in my area

And that girl who i thought would totally invite me out if i could hit up a bar she didn’t i also got over a dozen replies from viewers who spent money on vacations specifically that they couldn’t afford charged them two credit cards and are still in many cases paying off the debt now obviously unless you want to become a complete harm it it’s unlikely that you

Will live a life totally devoid of experience spending that you couldn’t afford but there are some pretty specific strategies you can follow that will ensure that the experience spending you do decide to make is something you can feel good about generally speaking giving yourself at least six months to save for something will ensure that a it represents a healthy

And sustainable portion of your budget because you have to find room for that savings every single month but it also gives you an extremely long window to determine if it’s actually worth it to you keeping up the momentum of saving for something month after month means that it has to be really valuable and something that really matters because you could be spending

That money on so much else giving it that level of patience and priority in your budget every month means that you actually really want it and most importantly doing these things far ahead means that you will not be doing what so many of the people who wrote to me did which is buying tickets flights hotels or any of that kind of stuff at the last minute no matter

What it is that you want to do buying something right before you do it is one of the best ways to ensure that you will pay way too much for it the third category i heard about over and over again is paying to work we have mentioned before on tfd the dangers of working for free and although many people will have to work for free a little bit to get where they want

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To go in their career it’s so easy in america to get sucked into these traps of essentially paying other people for the privilege of working for them an extremely common pattern that i noticed was people just not even asking about money and for many of them money might have been something on the table but they either didn’t feel entitled to or didn’t know how to

When it came time to actually ask about it and that falls into a larger problem of just not feeling like you can advocate for yourself because when you’re on the bottom of the totem pole for employment you we feel so desperate and so lucky if you can find any kind of job that you don’t want to rock the boat by asking too many questions but not asking questions

Is the only surefire way to get an answer that you don’t like on this subject claire wrote us i am someone who always dreamed of working in a creative field photography which meant that my path to finding a job was really unclear and often involved a lot of unpaid or unfairly paid work one summer i took an impression dc where i lived who owned a studio he turned

Out to be a total pervert who mainly used it to photograph naked women and he also constantly moved the goal posts on my position so that i ended up working a full-time job for free for the entire summer when i was promised repeatedly that i was going to remain part-time and to be compensated i learned then and there to never make verbal agreements and to trust my

Instincts and similarly ilana wrote my worst money decision is actually one decision that i made over and over during and after college doing an unpaid internship i did three i don’t regret the experiences but i didn’t put any effort into trying to find something that actually would pay me i’ve probably spent a full year of my professional life working for free

Also one of my internships was at a magazine which was awesome for helping me get my writing publish but instead of spending three full days a week at that internship i could have simply written for free to get myself published alongside working a less fun but actually paying full time job it’s so important to remember even for entry-level and intern work that

You should always ask about compensation even if it wasn’t advertised sometimes they’ll say there just isn’t room for compensation and you may still decide to take that job but often you’ll be surprised that they are willing to pay you and besides asking about it up front establishes the relationship that you are there to get something out of the experience just

Like you’re there to give something you never ever want to set up a dynamic in any work environment where you feel just like lucky and happy to be there and are just so excited to be abused and exploited and unless it’s absolutely unavoidable for a specific and precise training path such as something like medicine or law commit to not letting unpaid work take up

More than one-third of your total working time if you don’t set firm boundaries for yourself it’s extremely easy for unpaid work to start to spiral into a much much bigger chunk of your overall available working which leads into what many people who wrote in experienced going into debt to work a job never ever go into debt to work a job but most importantly no

Matter what you are doing always get everything in writing even unpaid internships need contracts with very clear boundaries and expectations that delineate not only what you are expected to get out of it but how much you are expected to commit not having everything laid out in very clear legal terms is an easy way to allow yourself to get exploited and lastly a

Pattern that came up again and again in your answers was bad living situations and this was really everything from dangerous to just simply unpleasant to really overpriced living situations that could have easily been avoided if the person in question took more time to research or wasn’t so impatient to move in somewhere most of us have probably made at least one

Living choice that we regret even if it just meant paying too much in rent when we didn’t know better and frankly for all of us who had to find roommates that we didn’t know it’s kind of just by the luck of the draw that you didn’t end up with an axe murderer and while we can’t always ensure that every decision that we’ll make in terms of living will be perfect

We can really arm ourselves by at least doing everything we can to know what we’re getting into otherwise you’ll end up like tfd viewer naomi who wrote us when i was 19 years old i made the decision to live with a group of people i didn’t know very well who all had a house share in new york they seem sketchy from the get-go but cool and i wanted to get out of my

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Parents house and they were willing to take me on in an illegal sublet because i had no credit or deposit money bad sign long story short we got the locks changed on us three months later because it turned out the guy whose name was on the lease was stealing our rent money and not actually paying the rent we tried to get the money back from him but he moved to a

Different state and changed his number i’m sure he’s scamming someone else as we speak and tfd viewer jill wrote my worst money mistake was staying in an apartment i couldn’t afford but that i loved i’d moved to england and found a cleaning job and a gorgeous one-bedroom apartment that ate up all of my income i had no savings and was barely making ends meet and

Then my grandmother died back home and i couldn’t afford to fly back and attend her funeral this led to a huge depression and a spike in my anxiety and my apartment was my only sanctuary which meant that i hung on to it for another year and a despite still not being able to afford it i default it on several debts couldn’t afford to travel or enjoy my time in

England and put off starting my own business because of the mess i was in i also heard several horror stories about people just living with other people they couldn’t stand and having to get out and pay way more than necessary to escape the situation which leads me to the strategies you can follow to avoid falling into similar traps first and foremost you cannot

Afford to move into any living situation unless you have enough of an emergency fund that could cover an emergency move out whether it’s a problem with the actual living space or someone you’re living with or if the landlord suddenly decides to kick you out you have to be able to move when it comes up without putting yourself into severe debt or potentially being

On the street obviously you never go into a living situation thinking you’re going to have to move out in a panic but you can’t afford to be trapped in any living situation secondly you must always be on any lease by name and have some kind of contact with the landlord if you are not on the paperwork of that apartment you have absolutely no claim to being there and

Could be in a seriously vulnerable position if one of your roommates is sketchy and also always have a direct line to your landlord so that you’re not relying on other people in the home to contact them with any issues thirdly go out of your way to vet any potential roommate just like you would a job applicant you should have references for them you should dig

About them on social media and do every bit of due diligence that you can to not end up living with a total psycho and lastly of course you always want to keep your rent under 1/3 of your take-home pay and if it’s not an option for you right away it should always be the goal you’re working toward having your rent represent half or even more of your take-home pay

Means that budgeting for almost anything else is impossible no apartment no matter how much you love it is worth not being able to have a financial future in summary even the brilliant awesome money motivated people who watch this channel have made plenty of bad money decisions and so have i but we should not have any taboo around these things we should be able to

Speak openly about what we learned and admit where we made totally avoidable mistakes i’d love to hear about more of your money mistakes so leave them in the comments and we can all talk about them and one of the biggest money mistakes that we’ve all probably made is not investing when we should have the best time to start investing is yesterday followed closely

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Get a cash bonus for getting started check them out at wealth simple comm slash tfd or use the link in our description and remember you can get started with literally $1 no excuses as always guys thank you so much 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 you

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TFD Viewers Share Their Worst Money Decisions | The Financial Diet By The Financial Diet

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