I'm sorry but PLEASE do an episode for low wage people specifically. 2/3 of americans make at or under 40k. who has $200 to put away into savings every month??? especially for short term goals. for most, the only time people get to treat themselves is around tax season. even then, it usually goes toward essentials that have been put off

is it just me or does it seem like the people who are 'experts' on these things often have a (often high earning) spouse...not to say that this advice doesn't work for single people, but that makes a significant difference.

The best advice I can give for young people (high school, college, fresh out of college) who like designer things is to get a job at one of your favorite brands. They pay better than any other retail place $20+ per hour plus commission, uniforms, dry cleaning, cell phone etc, and you get a great discount. If it’s something you’re going to buy anyway, you may as well get a discount in it. I worked at 2 very high end stores and I now have a beautiful closet full of designer bags, clothes, shoes, and jewelry that is insured because it’s actually an asset now. It’s worth so much more than I ever paid for it being that I got them for 50-90% off and the prices have increased.

I'm really glad she mentioned recklessly spending money on clothes in college once she had access to student loans. I did the same thing and feel a lot of shame around using some of my excess loans that way. I finally had money in the bank and could purchase things I couldn't as a child. Was it stupid? Yes. Did I have a full understanding of how much money I had taken out and how to responsibly manage it? No.

The secret is a high income. You're welcome.

wait, so if I make a tremendous amount of money I can pay my student loans? I had no idea. thanks for the laugh though. the lack of self awareness is hilarious.

I’d like to hear advice from people who make an average salary, and have spouses that make an average salary please. This is not relatable at all to me.

I would also like to add that just because own a car you don’t automatically have a car payment. I have a 2017 vehicle that was bought on the auction and fixed up. There are ways to own vehicles free and clear

About the bags, I would rather buy well-crafted, high-quality local bags and accessories. They are also at a premium price, but they also support local business. Chances are, the owner lives there and pays local taxes. Plus, traveling with an obvious luxury bag makes you a target for theft. I don't get why regular people without security detail get luxury luggage, even.

We doubled our square footage in our last move, and because we are both hobbyists, it has been massively helpful for cleaning - just by dint of the fact that we are able to separate different activities from each other. We have a massive gaming room, which houses my husband's primary hobby and is one of our primary social spaces; we have a library full of two scholars' worth of books that can finally be kept away from the prying jaws of our two dogs without taping protective mesh to the bookshelves (this doubles as a sanctuary for our sweet, oft-times-beleaguered cat); I also have a small room for my sewing, weaving, and fabrics (which is full of pointy objects and choking hazards and needs to be kept from the cat). The fact that these spaces are separated out means that they get to be on a completely different cleaning schedule from the rest of the house, and I (being multiply neurodivergent) am no longer spending twenty to thirty minutes trying to find what I need to do something, because those spaces are so definitively segregated. Spaces are also *much* easier to catproof, puppyproof, and eventually babyproof. And sure, we were cleaning all our spaces more *often* before, but we had to spend so much tidying the mess, each time, that our actual cleaning time was limited. And we are doing *so* much more of what we love, now that it isn't encroaching on the functional parts of our life. Our least used room is currently a guest room doubling as my office space, but it will eventually be converted to a bedroom for the children we're trying for. It will be more than filled, in time. Even our yard is being put to use, as I'm slowly building a garden that will be responsible for most of our produce needs. I get how overwhelming a larger house can be, but the actual living quarters of our home are quite compact, and everything outside it represents something we care passionately about but once we're tripping over, in order to live our lives. The QOL difference is one thing, though. The supposed cleaning difficulties are another. It is so much easier now, in a way that I absolutely could not have understood.

Hmmm...I perhaps would have edited the handbag conversation out of this conversation. Sometimes you have to read the room and I think for the most part, TFD audience is not one to spend $2000 on a bag esp these days when so many are financially struggling. Not saying you can't buy $2000 bags, but if you are trying to sell a book on how to handle your finances...not a good look.

I love TFD but I would like to second a lot of comments that I would like more content from individuals who do not live in a city. Where I live I have to have a car and owning a home is cheaper than renting an apartment. The financial dynamics are just very different. Also, can we please talk about how trying not to own a bunch of unnecessary stuff is soooooo difficult when you have kids and toys are cheap and everywhere? So, in short, I would love to hear from some guests that have a more "generic" American experience.

Trust me us poor folks who are forced to have a car, we know how expensive it is. Especially when you live in places that can hit 110 degrees, standing outside at the bus stop is life threatening, you must have a car hopefully with air conditioning.

Agree with having a cap on the price of the bag. But disagree with being able to sell your bag for a profit. Also, luxury resellers get a % so most of the time, you’re selling at a loss. If the bag is not in a pristine condition, even the smallest flaw, dramatically depreciates the value. My advice: 1. Have a cap as well on the number of bags you would buy. I say 3 is a good number for luxury bags. One daily workhorse, one special occasion or night out and 3rd for travel. 2. Buy for the person that you are, not your fantasy self. Ignore the trends. 3. Buy secondhand. Not only are they typically cheaper but the quality is better especially with fashion houses such as Louis Vuitton and I hear, Chanel. (Gucci better to buy brand new if it’s canvas.)

I don’t get this video at all. I was looking so forward to watching it. The second the lady was saying how she paid off 200,000 in student loan debt. Like that’s great. Congrats, but you’re a lawyer… she kept saying how she was introduced to such a high salary because of her new job. Paying off that much doesn’t seem so difficult to me if you have such a high income. Then her saying “I GREW UP POOR, I KNOW WHAT IT LOOKS LIKE” , no , you know what it looks like from a child’s perspective, from a teen’s perspective. Not as an adult who actually shoulder’s responsibility. Idk , congrats to her, I’m sure she worked hard but flying first class, $2000 dollar handbags. I can’t relate my love.

I appreciate her honesty, but would like to hear from someone who is single, with NO family assistance, and has an average salary. Unfortunately, I can not relate to her story.

I have a 1500 sf single family home with 3 bedrooms - my brother lives here and I work from home so the other bedroom is my office/guest room. And we have this stupid den addition that we basically never use except to walk to the laundry area because it’s long and narrow. When we have kids, I’ll move my office in there but otherwise, it’s a bit of a waste at the moment. And yet people call my house small! American housing is insane.

Man, must be nice to actually have public transportation that works, haha. Rural areas, you gotta have a car... or rely on someone else to drive you absolutely everywhere.

Chelsea, you are so right about going to rich neighborhoods and going to secondhand stores and finding designer items. I grew up in Connecticut, and my mom would go to the Stamford Goodwill and find an entire box of designer purses (granted, from the 80's, but still) and buy them for me to use and give to friends - like I would return to college and give someone an outdated but still real Louis Vuitton or Gucci purse in great shape. Now that I have little kids, she still finds ridiculous stuff like Polo or Janie and Jack jackets in really good shape, and it's a huge cost savings for us. Wish more people realized this - try thrift shops in wealthy areas to find amazing deals.

Maybe I should write a book! I paid off $155K making way less than BigLaw money. The tips are good. Values based spending etc. But the numbers in and out matter more than anything else.

If you resale a designer bag, you probably won’t get top dollar unless you use a reputable reseller. Resellers will take a commission that will most likely wipe out any profit.

I had items from my parents, grandparents & great grandparents. I’ve also thrifted some. These include knits, handbags, jewelry, etc. High quality craftsmanship lasts decades!

You lost me at first class flights and 2k handbags 😬

Was super excited to work from home. Only need my car once a week (very limited grocery delivery availability in my area). Saving on gas, insurance, wear and tear. And then mom's car died. And she really shouldn't drive. So now I drive mom. To multiple weekly church events, many doctors, and HER groceries (and to clean her apartment). Plus driving grandchildren. Really looking forward to carless.

As a person who spent money on both good - bad, necessary- unnecessary things I think when you have really fulfilling ‘time to time experiences or expenses’ like traveling, getting together with a loved one, or even saving up and buying sth very special to you actually makes you so happy and motivates you so much that you know how to stop yourself spending that money for instant gratification.

Hating the beginning of this video, reading the comments I can tell that I would hate the rest.

i can SO relate to the choice not to have a car and the *shocked* reaction that so many people have to that choice, like...? i can drive/i've always kept my license active, but i don't enjoy driving and i've always lived in cities with great public transit. i recently moved to a slightly smaller town where it's a tad less convenient, but there's still plenty of public transit/walkability/uber access, PLUS the reason i relocated was to move in with my girlfriend and it just so happens that they DO have a car. even so, i have so many friends who are just used to the idea that a household/family necessitates two or even more cars, one for each adult... it's one thing to have different perspectives on financial priorities, but at the very least those people who feel that cars are necessary for their own needs need to stop being downright argumentative when they come across someone like me who simply doesn't see that as a need 😅

Absolutely love this ❤

I’m looking forward to this dialogue!

LOVE HER! I resonated so much with adapting minimalism to move away from the clutter I grew up with in my chicano household. Clutter drives me absolutely insane because I grew up surrounded by so much JUNK!

so much this! big space just means, longer travel to work, more time required to clean it, more time and money to furnish and care for it! giant waste of time and money. I notice couples where either they stay in city in smaller space to support 2 careers, or they move far out and someone (usually the mom) sacrifices her career so she can be an unpaid kid chauffeur and maid?? a terrible tradeoff in my view. those moms struggle mentally, of course.

A corporate lawyer salary is KEY here. Everything else mentioned is subordinate to that reality yet it's mentioned as some kind of afterthought. Sensible measures on spending but they won't create that salary. Bottom line is your outgoings must never exceed your incomings. There is only so much spending discipline you can do if your income is low. This discussion is blithely skimming over this reality.

Read Deluxe: How Luxury Lost Its Luster by Dana Thomas before you start dropping big money on designer bags.

This is honestly a great discussion. I think it’s really overlooked the amount of space people need vs want. And society always tells you otherwise get more, bigger. I really loved this video

It's easy to forget that for each unfurnished, unused room, there's one or more homeless person that could not afford a roof because of the house market crisis. Cities need to be thought again. Amazing video and amazing conversation!

Your apartment looks so beautiful and lux! The color schemes are bomb! Would you make a home tour video?

Living below your means is great, preach sister! My household makes $1M/year but we live on only $120K.

This advice is relatable to me, but it’s drawn out in such a way it makes me not want to listen. Your edge is that you are not those boring finance dudes. Don’t structure your content like them. That’s why we’re here, bc you’re NOT them.

I don't quite understand the hype ... you can pay off higher amounts of debt faster with higher income.. it's pretty insulting to our intelligence. I could easìly do that because ive learmed to be thrifty as a way to get by..people work much harder paying off small amounts of debt simply because they are underpaid or have more expenses (ie they have kids).

I love this conversation, it was real, even though I’m nowhere near this tax bracket I didn’t feel left out of the conversation… I can apply everything she does to my own experience. Refreshing, I plan on reading her book.

The carless content is so unrelatable. It is not possible in the most of America.

My apartment is just under 900 sqf and all this space depresses me. Like everytime it's time to clean i get depressed. Like i spend 90 percent of my time in the same part of my kitchen and am always surprised when I get up and see all that space.

I'm pretty annoyed that she says at the beginning that she disliked all the old white men's advise about frugal living and paying down debts, then goes on to describe a lifestyle that would be unaffordable for most even without a debt.

Coming from a smallish town in Alabama, I do like the idea of public transportation and it can save you money. I visited San Francisco and DC this year and I like that they had rail systems, a lot of buses, etc. However, when you factor in high taxes, spending thousands of dollars a month for a cramped apartment you'll never own, and other basic living expenses in the long run, you're still spending a lot of money, compared to small to medium sized towns where you have to drive everywhere. I wish we wouldn't romanticize large cities so much. Yes, they are fun and have many conveniences, but you're often paying a lot to live there directly and indirectly (taxes).

Love you both, loved the general advice on sinking fund and baking honest with oneself, but there was too much luxury hand bag talk for my taste. Not relatable at all.

I wish this was longer. I very much enjoyed this episode

I felt what she said about the buying stuff in college that your parents did not have the money for. Plus, I have the addition of being plus-size and so I used to buy all the stuff that woulf "fit" me, the ones that would be large enough for me. Note: I live in France, and back then plus-size was not widely available, still today, but back then it was even less. When I found Marie Kondo, I started limiting my buys to clothes in my style and the ones that would really fit me. Not just any frumpy big sized item. Id get out of the shops with nothing most of the time. But I feel so much better about it now, and I feel like it has enabled me to go out of my comfort zone a bit and try bright yellow as a color for example.

I hate that we’ve made buying luxury-priced goods a norm for average Americans. This may seem judgemental, but I don’t think you should be buying luxury goods outside of rare treats/gifts when you make less than 6 figures. I feel like people have these items but aren’t contributing to retirement plans, have cc/student loan debt, and don’t have emergency funds. There are many high quality, nice items you can buy at lower price points.

I just bought my first home (Maryland). It is 1500 sq feet.... And it is absolutely a ridiculous amount of space as a single person. I would be fine with less than that, even as small as 750 as a buyer. That is a spacious apartment for one person. You also have to think of utilities and absolutely cleaning and furniture. I say this as I sit in a 3 bedroom house and only 1.5 rooms are even occupied.

I agonized over the decision to go to law school… it was a childhood dream. But I just couldn’t wrap my head around that level of debt. Fast forward… having previously worked in billable hour environments and heard the horror stories it’s a HELL NO For me. Now I’m less afraid of investing in my education… it’s got to be for something in which I fully understand what I’m getting into and what the returns will be. I think certain types of advanced education should be viewed as starting a business. I’m so glad it worked out for her though.

Chelsea I love you but can we expand the circle of topics away from childless NYC people? I'm a mom and the cost of childcare is a topic that would be great to cover. I also live in California and owning a car is pretty much mandatory if you want to work and live. The ability to have no car is a luxury. The advice and topics is getting very repetitive.

this is a great chat

7:00 pay off the debt OR fight for a system that doesn't inflict debt on you........choices choices You think you're (whoever you are) smart but look what you choose. And it screws us all. If college didn't make you smarter than me, you wasted your money.

Lol. The KZfaq put a Dave Ramsey ad in front of this video.

Cindy is amazing. Thank you for bringing her back (and I hope she comes back soon, same as Hannah Louise Poston!).

This has got to be the most relatable episode of The Financial Diet ever. 🥰

Does Chelsea have any advice on learning a second language?

Now more than ever, I wish I didn't live in Houston, TX. Pretty much the entire state seems like it's rigged to force people who are not wealthy into the cycle of car-dependence. In my home city of Houston, there are maybe 2 "walkable" areas. And I say "walkable" in the context of having actual sidewalks, and access to a grocery store that sells real food (as opposed to a gas station that price gouges essentials or a Dollar General that doesn't have fresh produce). Those areas that don't require a car to live in are more expensive than anywhere else in the entire city, let alone the affluent suburbs on the outskirts. I spent a year driving an hour away (longer when I tried to save by not using tollways), and I work 12 hr shifts. So I spent an extra 2-3.5 hrs each workday just to get to my job and back home. I would've LOVED to spend that same time on a train instead of being forced to fight my way in and out of traffic. Now I live closer, but I'm still forced to drive because of the streets and highway systems in place. To use an Uber to get to work would literally cost the same as paying for maintenance of a vehicle, and the suburban areas don't have a single bus.

I totally agree with a lot of this I’m only halfway through & I’m a handbag girl too but it has to make sense. $2000 is a great cap for them. And quite low when you see the cost of like she said Birkens. Hermes alone is extremely extremely expensive. If you’re not going to into debt to make the purchases where you’re buying bags versus paying bills then no problem with it. I also completely agree with regards to the Flights it’s not a big deal to me but I will spend money on my hotel stay because for me that is the experience and where I will get a good nights sleep because I also cannot sleep in public places

nice :)

Great talk but I think the title is misleading. Not accurate at all

Awesome content girl, honestly understanding your financial needs and chalking out a plan remains the smart way to prepare for the unexpected. 11yrs in investing space and extremely pleased with the decision I made.The good news is - it’s not too late

Thank cleaning and furnishing thing is SO real!! I think a lot of millennials are doing away with the idea of the “dream home”

We love seeing Cindy 💕

I love this episode. But oh, my! Please, leave those cars alone! Owning a car in the city is not about driving around, it is to drive OUT OF THE CITY. Everything is connected to your lifestyle. I can own a car and drive to LI, Catskills every weekend for a walk in the forest or sit by the ocean, or spend the same amount on car rental/train tickets or ..... exploring restaurants in the city.

CHEALSEA PLEASE STOP SAYING "YOU KNOW"

Where is the link to the event?

Getting the impression she doesn't need a car...

Trying to portray humility while humble-bragging about $2k purses? Tone deaf. Out of touch

Wow you prioritizing a bag tells me you are broke.. I take the flight, at least I’ll get a healthy sleep

My life has changed because I've been earning $15,250 returns from my $4,000 investment with Darien.