9 Money Truths I Wish I Knew Sooner | The Financial Diet
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- čas přidán 24. 07. 2024
- Chelsea breaks down the simple truths about finances and how to save money that no one teaches you when you're just starting out. Find more great tips at thefinancialdiet.com
7 Crucial Facts About FHA Loans:
www.bankrate.com/finance/mortg...
Private mortgage insurance, or PMI: Just the basics:
www.bankrate.com/finance/mortg...
The Different Types of Mortgage Loans in 2017, Explained:
www.homebuyinginstitute.com/mo...
Links to build and maintaining great credit scores:
www.thebalance.com/maintain-g...
www.myfico.com/credit-educatio...
Credit Basics - Using Credit Wisely:
www.capitalone.com/financial-...
A Cat Outperformed Pro Stock-Pickers. Here's What That Means For Investors:
www.fool.com/investing/2016/0...
How To Make The Most Out Of Interest Rates:
rescu.com.au/interest-rates-to...
The Financial Diet blog:
www.thefinancialdiet.com
Facebook: / thefinancialdiet
Twitter: / tfdiet
Tumblr: / thefinancialdiet - Jak na to + styl
1. You don't have to put 20% down for a home. There are many programs such as FHA loans that help you with mortgages. It allows you to have more flexibility in buying a house. However, the lower you start with, the higher the insurance you need to pay later.
2. Your credit score depends on payment history, debt, etc. NOT JUST PAYING TIMELY.
3. Transpiration is a big cost. Americans spend 9-25% on transportation. From insurance to gas to the car to taxis, we spend so much on it.
4. You can use credit cards without buying things you can't afford. It's helpful to build credit score and protect against theft. Points, rewards and cash back.
5. A 9-5 job is not a ticket to financial freedom.
6. You don't need to be wealthy to invest. Aside from 401k, you can invest in other low-risk funds.
7. You can invest without buying an individual stock.
8. INTEREST RATES WILL KILL YOU.
9. The repayments you start with don't have to be the ones that you end with.
Kristine Liu bless you. these videos are too long.
Chelsea has a lovely voice, I wish she could speak for 8 hours in every video, than I could listen to her in my boring 9 to 5.
If 10 minutes is long for you then you shouldn't watch Yt.
You're awesome! Thanks!✌
Here is the greatest truth of all DON'T SPEND WHAT YOU DON'T HAVE!
It often works, but sometimes it's better to spend it.
Could you do a video on money n relationships? I'm interested in tips you have for couples coming from different economic n spending backgrounds!
Samantha Holthaus Yes!
Samantha Holthaus and how to have those discusssions! Money can be a topic of insecurity
love this idea! this would be great to show on my channel! thanks for the idea :)
Yes!!!!
oh yesss this would be so ideal .. can't agree more, the conversational aspect as well as just in general 👍
Before you take out a mortgage. Check to see how much you will be paying back. For example: if you put down a 20% deposit, and pay the rest in 15yrs. You will pay back less than someone that takes 30yrs to pay back. The same goes with putting down a deposit. The more deposit you put down the less you have to pay back. So to save thousands of dollars, put the biggest deposit down that you can do, and keep your loan the shortest a possible.
What I love about your videos is that the tips you give to viewers are those which a person would have otherwise taken years or decades to know through experience... Basically you save us of having to learn it the hard way...
You are brilliant. Thank you for providing this information in a way that is so easy to digest.
Usually when I watch youtube i feel like I'm wasting my time but I don't when I'm listening to you. So Happy I found you
Can you do a video on when and when not to use a credit card? PLEASE!
What I do is consider the purchases I want to make, what my balance will be, and then what my new payment will be (assuming it's a large purchase that you can't simply pay off immediately). I then see if I can fit that payment into my budget. If I can't then I don't make the purchase. Emergencies might be another matter, but it should be a real emergency.
Lindsay Campbell yes please
You should not use credit cards. Read up on Dave Ramsey. Don't put yourself in debt for things you can save for and pay in cash.
YES! That would be an amazing video! Great idea, Lindsay!
love this idea! maybe i should do a video like this on my own channel! thanks so much for the idea :)
I will be 52 tomorrow. Other than college loans, I have never had debt or a credit card. I paid cash for cars and my house (yes, 300k$). I budget, spend with cash and debit cards. No I am not a high earner, but I am a high saver: I have always paid rent (when I had it), utilities, transport and grocery budget first, paid heavily into savings and then lived off of less than what was left. And yes, I had times when spaghetti and ramen were a staple, meat and wine a true luxury. Life happens. But delayed gratification is one key to happiness and that applies to many areas of life. Learn to tell yourself „no“ - and to accept it - so you can tell yourself „yes“ with no regrets!
I am 60 years old. I lived through the last recession. The only debt I've ever had was the houses I lived in. NEVER buy a house with less than 20% down. It is folly. The banks want you to do it because they get more money out of you in interest. The insurance companies want you to because you have to pay PMI until you reach that 20% mark in equity. If you do take out a 30 year mortgage make extra payments on it every month. Avoid other debt like the plague. Don't spend what you don't have.
after refinancing my car, I went from a 5.99% interest rate to a 2.45% interest rate, and from 75 months to 48. I am saving $6300 in the long run because of this refinance. I recommend going to a credit union for your loan needs. most of all, though, I recommend not buying a car that you can't pay cash for. just save and buy a car for cash.
bebe4235 just buy an asset that pays for the liability
Put that money you saved away for your next car
do you swim in pillows?
Zahinn lmao! did she buy those pillows with credit? haha. love her videos though
Zahinn I counted 11!
Yes.
The pillows on the background are so distracting me, cant focus on what she is talking. Save some money by not buying that many pillows. I love her other videos that don't have the pillows on the background.
+Dung Nguyen maybe they've been there for years?
Hi Chelsea! Relatively new viewer, so I apologize if you've already made a video on this, but I'm interested in a SUPER basic guide to getting started with investments, specifically within retirement/IRA accounts. You say "mutual funds," but I suppose I don't understand the difference between that and my other options. I guess an explanation of the terminology and the general process of how to get started! Thank you, your videos are super helpful!
i would love to learn more about investments too! :) i am a bit clueless in that department!
I opened a RothIRA online. I only drop 50 dollars a month in there, since I also invest in my company's 401k. Do you have a 401k or other type of plan at your job? If not, open a RothIRA on your own. Way to be proactive.
My current job does not offer 401k, so I opened an IRA account in April and have been depositing a chunk of my paycheck every 2 weeks. I suppose what I don't understand is if you are supposed to attach investments to that account? It does not seem like my money is growing/accumulating any sort of interest. The site I'm using is encouraging me to "start investing with my account" but I haven't found any good explanations as to how. :'(
Hey Koomaxx - what site did you open your RothIRA with? I can take a look, then let you know.
Koomaxx you need to make investments with that money you put in the IRA! Or else it just sits there. BY law each year you are limited to putting $5500 in an IRA. So I encourage you to max it out. Why? Because the earnings you get from the investments are tax free! And you ask well what do I invest in? Mutual funds are safe. Ask an advisor too.
Started watching pessimistically but there was a lot of verifiable info that I didn't know. Loved it. Subscribed.
These tips are incredibly useful! Your guys's channel has grown so much over the past couple of months! I am honestly so proud of you girls because the work you put into this channel is evident. Keep it up :)
Thanks for all your advice and info. I’m 57 years old and learning a lot from you young smart lady . Thanks a bunch!!!
your channel has been so helpful! love your videos and tips 💕 they have definitely helped me to be more mindful!
I would never have $5000 in an account attached to a card. This kind of money belongs in your savings account that is not attached to a card and cannot be stolen unless your identity is stolen, or someone else has your details (like an ex spouse/partner).
A video on renting vs buying would be awesome. Breaking down the pros and cons of each depending on your life situation. I would love that!
Thank you TFD! this is an amazing and insightful video.
Very informative. It seems as though people don't take the time to learn about their personal finance, and it's such a necessary aspect of life. Great video!
I would LOVE to see something on money and relationships! Id like to see the pros and cons with money and relationships I want to show my husband I can be a smart spender and be proud of myself for how I handle money on MY end. THANK YOU, again for speaking directly to me! I am new to really wanting to buckle down financially and i LOVE your videos!! :)
WOW THANK YOU FOR ALL THIS VALUABLE INFORMATION AND FOR ADDING ALL THESE LINKS I WENT TO 4 OF THEM THANK U SO MUCH! LOVE ALL YOUR VIDEOS BY THE WAY BUT WOW THIS A GREAT ONE! (:
Great video!
Thank you for sharing.
Thank you for the well presented information.
Excellent financial advice! I wish I had known these tips when I was 20 years old!
Lol, I love kittens. I'm happy they are also professional investors!! Thumbs up for kitties.
You have a really great voice and presence its really easy to concentrate on what you're saying.
Great video! I graduated recently and am looking into investing but I am quite lost. Would like to see a video from you about this topic in the future!
Thank u so much for sharing these videos!
I love that you mentioned the sponsorship at the end of the video
I just got my 9-6 job after college I thought it would answer all of my problems too, I blew my first check in two weeks on the stupidest things. I started using the mint app it has helped so much and so have your videos!
Hi Chelsea: I am enjoying your videos and see that you are primarily gearing them towards young women. I have also shared your ideas with my 20 something sons. Great work, very valuable.
I live and work at two different ends of my city (Edinburgh) which means I am paying a lot for fuel since it's roughly a 25/30 mile round trip. Since I am young my monthly insurance charge is $115 (approx) and that doesn't even factor in the initial cost of my car. I am also paying $50/month for a bus pass that I don't use because it is a 12 month contract!
I'm so happy to live in a country where credit scores dont exsist
There are SO many pillows on that couch! :)
My economics teacher said the exact same thing about credit vs debt cards when it comes to theft
Hi Chelsea..Im binge watching this saturday about money ..I subbed yesterday. I think you look lovely in denim..try the darker shades too. Your new cut is beautiful btw. Thank you xLiah a happy subscriber..x
Thanks for sharing this is great insight!
Awesome ADVICE AS ALWAYS!
So... if Kittens outpurrform investors with their stock picking...
Where can I hire a bunch of kittens to pick my investments? Hmm...
hybby hah
hybby hi, hybby! I would not advise hiring a bunch of kittens to buy you stocks!
Humane Society
Thanks for all of this, #5 is so true
This is very good advice, if people follow it they will save themselves a lot of money and heartache.
love your videos! although I wish you did some versions for the UK. Finances arent the same this side of the pond! also having dealt with finances in the UK and the US I think the US personal finance market is overly complicated and difficult.
Thanks for the excellent tips! :)
Loved this video thank you
Awesome video
I use credit cards to build credit too. Like you said it's also how long you've had credit.
Thanks for the video! Where are the links for investing on a budget??
I love how simple you make it sound! #1 Can you use these tips to buy land as well? Thanks for the info on #2. Investing in Mutual Funds for long term is a great start. Thanks the info!
this was a great video 👍🏻👍🏻
Can you do a video on first time house buying? Specifically programs that can help us purchase a home.
Please do more videos on investing on a budget! Thank you!
I feel like putting 20% down on a home shouldn't be a big deal if you're going to be able to reliably pay your mortgage, shouldn't you have a good margin above the monthly payment?
Having a lump sum to put down all at once is vastly different from making a much smaller payment each month. Just taking a $150,000 house as an example, 20% of that is $30k, which is quite a bit to front. The payment on that house will likely be between $900-1000/mo, which is, in many cases, less than what someone might already be paying in rent. There's no reason to assume someone can't reliably pay their mortgage just because they don't have 20% of the purchase price sitting in the bank.
summeroutside n
In some housing markets, that could be a huge chunk of change, that could take some people years to come up with. I understand your logic though, but in places like CA and CO where you're not going to find a home under 300K, that is a big chunk of money.
This is a easy mentality to have if you're living somewhere with affordable housing, but remember if all mortgage repayments where similar to the 20% deposit, it wouldn't take anyone long to pay it off, and certainly no where near 30 years
These vids are great! Thanks :)
does financial diet have a podcast? it would be great to listen to these tips & suggestions on-the-go
Great stuff! Take about using Vanguard for investments. It is run as a non profit company
In the USA you can invest and buy partial shares of a stock. Here in Canada it's not possible. You only can buy a full share. Buying several partial shares is much more easy and fast.
Can you do a video on the different retirement accounts? I want to start mine soon but it's very confusing
Credit scores are important, and repayment is important, but for me I saw the biggest increase in my credit score came when I... wait for it... made more money. That was it. I made more money, was given larger lines of credit based on that income (and being a homeowner--a home that was paid for in case, and not mortgaged), managed those larger lines of credit which made my debt to income ratio a LOT larger, and I watched the numbers go up. That said, a friend of mine has a score that is in the 800 range while I am in the 750ish range. The difference? He makes much more money than I do.
Can you link the options mentioned for investing on a budget?
you can try that new app Stash
You're making the right decision, invest to make a passive income :)
TeaWithDanielle yeah I was wondering where those links were too...
TeaWithDanielle yes me too
Hi forisma, I am investing too :) It's great to hear that you're planning to to do it as well. We all need passive income stream :)
If you're out of school and working fulltime, you should have an RRSP or 401k. Set up automatic withdrawals to top it up frequently.
Never invest in a mutual fund... If you are interested, always go for an ETF. Mutual funds take out fees for picking the stocks for you. I'd recommend the Vangard Total Stock Index (VTI) for anyone, especially those new to investing.
#8 is the biggest one. Interest rates can add up like crazy! My friend paid $680 to her credit card in one year in interest for only paying the minimum balance.
I do not see the "investing on a budget" link/s from 5:30 in the video. Please help me with some links.
Oh wow, I didn't know you could refinance student loans. Thanks Chelsea!!
Can you do a video on car buying/saving up for a car?
Justin Johnson Save up about four thousand dollars for every twenty thousand you are spending on a car. Don't buy a car that's newer than three years old if it's your first car.
Buy a cheap car (less than 10k) to begin with to familiarize yourself with the expenses of a owning a car such as insurance, gas and regular maintenance such as oil changes, brakes etc. Once you see you can afford that, then if you're interested in financing a car consider the additional cost of a car payment and higher insurance.
Can you create a series for college students and what they should be doing to cultivate a financial well being???
Great video !
Did you post the mutual fund/investment basics/recommendations because I don't see them. If I am just not seeing them can someone let me know which link it is? Thanks!
Can you guys do a video about mutual funds. I hear thy're extremely expensive to maintain so your advice is surprising.
Chelsea I love you, but I must respectfully disagree on a lot of points.
1. Paying less than 20% down is extremely unwise, esp. for 30 year mortgates. In doing so, you are paying over 60% of the price in interest. As well as increased insurance.
2. Who cares about credit scores? Credit scores just incentivize going further into debt. Which again is not wise.
I really like all of your videos involving saving and professionalism. But, I do wish you would be a lot more cautionary about encouraging readers to utilize debt. While it can be lived with. It is a massive temptation. And think that esp. young people should err to not rely on it. This is especially true for depreciating assets like cars or random credit card purchases.
I like some of your other tips and think young people should invest more.
1. Just because someone puts down less than 20% doesn't mean they can't refinance and/or throw another large lump sum at their loan later on down the road. The terms of your purchase do not have to be what you're stuck with for the next 30 years.
2. Credit scores matter quite a bit when you're trying to apply for a loan, because better credit generally means you're eligible for a lower interest rate. And in her defense, Chelsea DID caution people against using a credit card unless they're able to pay it off in full each month.
1. Don't do 30 year mortgages. Easy way to pay on your mortgage forever. Do 15 year. And pay that shit off early. Too many people buy too much of a house. I mean if you want to be a slave to a bank than yeah
2. My issue with credit cards, even in the case of being able to pay them off, is that it is too tempting to use them. Keeping them around for rewards is EXACTLY what the card companies want. Eventually you will lose so the way to beat them is to not play.
1. The FDIC says that 97.3% of people don't systematically pay extra on their mortgages.
Paying mortgage is a decision. Most certainly, if you pay extra, you pay earlier, and you pay less. Just because others don't do it means you can't yourselt.
I also don't agree with paying your credit card off in full every month. TransUnion and other credit monitoring organizations want to see that you can carry a balance and it is actually better to carry around 30% of the balance. From someone who worked in the credit card industry "they want to see that you can pay a bill every month, not that you have self control with your card." otherwise there are a lot of good tips here
On the topic of it being easier to get reimbursed on fraud charges with credit cards vs. chequing accounts: Someone once took $4000 from my savings account by depositing two cheques with my saving's account number on them. The name and signature on these cheques wasn't mine, and my bank doesn't even give out cheques for savings accounts (luckily, when cheques are deposited, they show a picture of them to me, so I was able to prove to my bank it was fraud). I was terrified. I didn't even have any money in that savings account so I was suddenly $4000 in the negatives.
You should do a video about the things concerning buying a house
Are there any links for investing on a budget? I'm truly interested.
The comments about fraud involving debit and credit cards were interesting to me as someone who worked at a credit union. I think it depends on whether you have a credit union or bank, which one it is, and the size of the institution. Where I worked and still bank, it's quicker to get debit funds returned than those on a credit card.
#10: Money unfortunately can't grow on tree
Depends. Fruit grows on trees, and fruit can be traded for money. So.... non-technically... money does grow on trees.
DON'T LOOK AT MY PROFILE PICTURE and weed.
Any advice on getting your first credit card as a student?
In point 7 you just disproved your point. If investment bankers are worse than kittens in choosing stocks, then you shouldn't put it in an investment fund... Individual stocks are good if you are up to date on that industry and having around 10 of these individual stocks will guaranteed give you a profit over the course of a lifetime when keeping them up to date.
Great tips.
What are your thoughts on apps like Mint and Acorns? I have considered downloading both of them. They are highly rated, but I am not sure.
Are there credit cards you recommend or credit cards you suggest avoiding?
I understand the whole "stocks is gambling" deal. But do your homework and it's a gamble with the odds in your favour. Just to know what kind of stocks there are and the way they behave many times, gives you a decent edge.
I wouldn't perhaps recommend for everyone to invest in individual stocks but to compare it to Las Vegas is not quite true in my experience.
Ooohhh square space... I looove me some square spece honey! ;)
Go Kittens! Entertaining and Informative
Hey TFD!
I'm not sure if you're open to this idea, but I'm wondering if you would consider doing a segment on upping your LinkedIn profile for those who are looking for the appropriate career/ how to market yourself and landing a job that is reflective of your skill set. Maybe how to describe yourself in your headline so you can be approached by recruiters. It's not a traditional "financial" topic, but I think landing the right job is imperative to well being and leading a financially stable life.
Thoughts?
I don't see the link to tips on investing in the description.....??
Can you make a video about refinancing student loan dept and student loan debt in general? I don't have any left, but I have a partner who does. If you already made a video, link or re-post it for more views.
just use one credit card and pay off 100 percent at the end of month
This is a great video
Could you recommend any channels that do the same thing as u but are UK based?
Jamie Jackson research Dave Ramsey, thank me later...
tonymers thanks
that imperfect list of 10....
That comment about the checking account isn't true. I had a fraudulent charge on a Visa that took 10 weeks to refund. I had a fraudulent withdrawal on my checking, and got the money a week later. Living in Canada is great!
The link to investing on a budget is not here.
Do you have any knowledge or videos with tips for American's living abroad? My husband and I currently work outside of the US and would like to invest but run into problems with paper work...
Looks like I need a Cat 😻
great video Chelsea
Can you do a how-to video about investment? I know you've discussed the topic but you've never really gone into depth about how to make it happen
Yes please!
Some caveat: 1) Just because you have some money to buy a house doesn't mean buying a house is better than financial investments, 2) Credit Score is BS, who needs credit scores when you have savings, 3) Transportation cost is sometimes inelastic because your point A to point B might be too far and thus public transportation is not viable or wise, although I would advise petroleum users to switch to diesel due to efficiency, plan your trips and avoid traffic, 4)Yes, 5)Yes, 6) I disagree, you do need enough money in order to buy funds, index or otherwise, you will incur lots of fees, if you buy less volume, and will have more losses if you trade/buy/sell frequently, even if you get someone to do it for you, the MER will kill you, you need like 30k+ to start buying funds, if not then it is not worth it., 7) Yes, passive is better than active investing, 8) Yes, it can also make you richer if you own the credit, interest for who is the right question, 9) Yes,
Could you please do a video on how to manage money when you don't have a stable and consistent income?
I want to know how to determine which people to lose and keep
Could you please do a video on the student loan refinancing?
Karen Mutoro I second this! 🙌🏽
Omg yes pls
Yes. I need to know how to refinance every thing. My loans and my car. Also.. I've always wondered how to refinance a home, even though I don't have one.