The Unexpected Expenses of Adulthood | The Financial Diet

Chelsea and Lauren talk about some of the expenses of adulthood that you may not even realize you need to be thinking about, and how to budget for each. Curious about the myths of adulthood? Check out this video:

Hi i’m chelsea and i’m lauren and we are the financial diet and today we’re going to be talking about the expenses of adulthood that we personally never thought about but which are super important to prepare for and we’re passing on this invaluable knowledge to you so that you have a little bit better of an idea as to what to expect first off the cost of cleaning

Products is real everything from like the sponges to the dish soap to wood and glass cleaner to disinfectant to laundry detergent dryer sheets everything my pet really adds up and it’s a lot and it can easily cost you like $50 or more at the grocery store and then you have more kind of purely financial things like your health insurance and your emergency fund now

For your emergency fund that means that you basically get to do nothing else in terms of fun spending until you have at least three months at the bare minimum of expenses in your savings account so that you can pay if something happens you know you lose your job you get injured if anything happens you can cover it and something always happens so then you have

Health insurance which if you’re working for yourself or part-time means it’s going to come out of your pocket every month yourself and that’s something that you have to put aside an account for every month or if you’re working for an employer that provides health insurance packages that means that that money is going to be taken out of your paycheck before it

Even hits your account so you’ll never get to see that money so don’t get used to expecting it on your paycheck and if your employer is one of the ones that offers health insurance packages usually you’re going to have to choose between a couple of different options to decide the amount of coverage you want to get now usually you pay more upfront and that means

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You get more things covered if you’re like me in my first year you’re going to go for the absolute cheapest crappiest to health insurance program you possibly can and end up spending way more in the long run in my case out of pocket so what you really need to do is look at your average you know yearly medical expenses do you get sick often do you have to go to the

Lady doctor do you have glasses all that stuff and really account that into how much you should be paying per month and we’ll provide links in the description to help you decide which package is right for you now another unexpected cost of adulthood is repairing and replacing the items that you accidentally break now i know this is terrible sounding to say but

When you’re younger you’re surrounded by a lot of things that are not owned by you mostly they’re owned by your parents so if you break something chances are that your parents are not going to make you replace it but the older that you get so you are throwing a dinner party in your own apartment and smash like i said up 8 wine glasses which have done it before

Go yeah the whole sink just kind of shattered and some way to combat these costs are to invest first of all in not expensive stemware glassware drink ware etc that’s a huge plus also investing in a basic tool kit to fix things that might break around the house and finally invest in stain removal for things like towels linens napkins stuff like that so you don’t

Find yourself replacing them that often now another thing you probably definitely aren’t thinking of is weddings and bi weddings i mean other people’s weddings now i say this with love because i love the people whose weddings i’m going to but that doesn’t make it any less expensive i’ll be out about two grand this year from travel accommodations gifts engagement

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Parties bachelorette parties it adds up fast and that’s not even including your own eventual wedding which at this point might be happening in a dumpster if you have to go to too many weddings beforehand another expensive adulthood is saving for retired you so that kind of seems like almost the ultimate mark of adulthood and that’s about 5% of each paycheck that

Goes immediately into your 401k if you have a 401k i never had one in my life but you know if i did i would have had to prepare for that 5% and speaking of work stuff depending on where your job is you might need what we call a professional wardrobe which basically means things like really nice investment shoes one good suit at least some nice tailored shirts a

Skirt that ends around your knee a bag to carry your laptop and all that stuff basically you can expect to pay close to a whole paycheck at ann taylor before you even really start your job another expense is investing in products for your skin and your health that are more heavy-duty if you’re lucky you might even find yourself in that awesome age bracket where

You’re fighting both acne and wrinkles now while these aren’t considered essentials it’s worth noting that during your mid and late 20s you’ll have to invest in nicer products because that old bright orange cleaning clear bottle is just not going to cut it anymore now the holidays are probably the biggest expense in terms of like pure unexpectedness because you’re

So used to living them as the kid who just receives gifts and eats candy and you know if you make someone like a macaroni necklace everyone’s so proud of you and it you know doesn’t cost anything now you have to actually pay for real gifts for everyone plus travel plus often hosting it at your own place which makes it go from just a fun party time to huge expense


That you have to plan for months and ahead plus some party time now all this sounds expensive and let’s be honest it is but affording is not hopeless now we’ve both found ways to combat this and the first step is creating a clear strict budget for yourself i use excel and chels uses an app called mint now on top of that we recommend seeing if you can add about

15% of your take-home income through side jobs and one-off gigs now for example if you’re earning about $2,500 a month that means that you want to look to add 375 to your monthly income which might sound like a lot but it really breaks down to like three nights of babysitting and maybe a catering job this 15% is huge in terms of helping you offset the costs we’ve

Talked about as well as saving for big future thing for me personally when i started writing to help supplement my income because it wasn’t that good i took on tutoring gigs in french and english that i found through craigslist a site called wise aunt and even meetup comm and it was huge for helping me earn money no matter how you do it it is possible to increase

Your earning potential with a little side hustling that will make all these expenses a lot less painful being an adult is expensive but it’s not impossible so thanks for watching and don’t forget to hit the subscribe button and go to the financial for more high

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The Unexpected Expenses of Adulthood | The Financial Diet By The Financial Diet

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