👩‍💻3 Purchases A 20 Yr Old Finance Female Guru Regrets

Although I promote financial literacy as a frugal minimalist stealth wealth teen, here and there I like to splurge.

Yes, I’m human too.

No one is perfect and you deserve to buy what you need and sometimes want, without reason.

I don’t completely condemn this dangerous behavior but once in a while, especially during a pandemic when all we’ve done is hoard our cash, increase our savings load and reduce spending on major areas of life including: tourism, hospitality and leisure, ironically the three most hit industries due to the pandemic that I believe will be revitalized in no time once we reach herd immunity, it’s healthy to revenge spend a bit.

But as someone who gets a disruptive feeling after I ‘revenge’ spend a.k.a spend on something that I haven’t thought about for 2 + weeks, listed out pros and cons for and decided that I can get a less expensive replacement, I choose to only spend on what I really need to keep me mentally sane and away from FOMO.

If you want to learn about how to appropriately revenge or comfort spend, you can read here. I list out the criteria I recommend you meet until it is acceptable to spend on what you really want without thinking hard about it.

Spending 101

I’m sure you all are aware of what spending entails but have you ever thought about why you do it? Is it to impress others, feel comforted, reduce FOMO, keep up with trends or just look better?

Spending isn’t all bad, even on clothes. I have clothes and I must buy them. I only shop for clothes which include, shirts, pants, jackets and shoes about once every 3–4 years, but still, I need them and cannot feel guilty for it. Also, since I need clothes, I might as well buy investment pieces that are a bit out of my price range but will last me for a few decades, hopefully.

What’s the point of working if you cannot build a better life for yourself anyway?

Although saving is more of my type, spending isn’t so bad either even though I tend to constantly have either FOMO or regret something after purchasing it which puts me in the category of a savings addict!

I can credit that to my disciplined personality of working since age 10, learning about the markets, trading on my own through a custodial account at 13 and buying my first rental property at 19.

I could say I’ve accomplished a lot but I’ve also made a lot of mistakes down the road by taking more risks than the average teen.

The best way to learn how to invest and trade is to make mistakes by loosing your money, yes, loosing your money because then you won’t repeat them later on with more money and experience as you would’ve feel extra guilty that you didn’t learn earlier on.

So let’s examine and learn from my spending mistakes which have cost me time, energy, my mental sanity and money.

These purchases were made from 2019-today.

Clearly, I didn’t buy much.

The rest of my expenses were groceries, eating out and a new computer which were necessary to make me more income and stay alive.

#1: Family Car in NYC

No matter how wealthy you are in NYC, you don’t need a car. It’s not a sign of prestige, it is pretty dumb. You can get downtown from uptown faster by subway or walking than in a taxi or even worse, trying to find parking with your own new shiny car.

With a car in NYC or any major city, these are the questions that go through your head that no one has time for:

-Where can I park this so it doesn’t get scratched?

-How can I hide my valuables in my car so valet doesn’t steal them?

-Bigger + shinier car = more eyeballs = more danger

-Bigger more prestige car = higher fees

Traffic and congestion are the worst reasons to drive in any major city. Get some exercise and save $30k+ for a car and $200-$4200 per month on parking by using your free feet.

You’ll feel better too I promise. It will replace your $5k a year Equinox membership

#2: Movie Tickets + Certain Events

Don’t get me wrong, I believe spending money on experiences is the best way to live life. Junk shouldn’t matter because it only adds dust to your life and extra possessions that demise your demeanor and boost your ego. They don’t serve you any purpose besides making others become your fake friends and be jealous of you.

But here and there I’ve gone to certain events that have just not been worth it. These events include band tickets, Burning Man to Coachella where I foolishly paid up to $2k + $5k air fare +$4k on a private villa + $500 on food + $400 on transportation, etc. to feel burnout, not have great seats with jacked up prices, kill my eardrums and really not enjoy the experience that much. After each event, I typically have to take a few days to recover.

It’s over advertised and hyped up. Although I do see the entertainment space ramp up as people will seem to imitate seniors graduating going on to summer break which will lead consumers to spend more foolishly for any experience since they’ve waited a year to do so when normal life resumes, they will be surprised that watching a concert in your living room investing $200-$1200 on speakers will do the same justice cozied up and able to go to sleep at your choosing while saving thousands.

Maybe I sound like a baby but that’s just my preference. I would much rather listen to music at home, travel to countries without the concerts and fashionista events.

#3: iPhone Cases + A New Phone Every 2 Years

Phones are another material good that everyone carries around these days but upgrades them too often. There are some rumors that Apple and Samsung purposely put in batteries with short life spans to purposely have their consumers purchase a new one every few years but how slow can it really get?

Plus, if you spend up to 6 hours on your phone a day, you have a problem.

Get a computer, have multiple devices so you aren’t glued to your phone. Remember when phones just used to be for talking?

I treat my phone like soap. Use it when you need to gain a benefit from it. You don’t wash your hands all day unless you want crippled sand paper hands.

As a freshman, I fell into the trap of following what everyone else did. My colleges at school seemingly had a new case for their iPhone every week and I wanted to be cool the same way. Yet it not only was pointless since when my phone really dies, no one will want to buy a dirty iPhone case from me, it didn’t improve my life.

Less = More. Spend less time decorating your phone. It’s a tool not a best friend.

These are the major purchases I regret these past few years. At least I’m only 20 so I have a long way to go to replenish the money wasted. I’ve learned to never follow what other people buy and instead buy what I need instead of want at the moment.

I hope you’ve learned something and appreciate what you have.

Cheers,

Mia