Overspending with Kadri and Gus
Overspending in Your 20s with Kadri and Gus
During this episode of Financially Naked: Stories from The Financial Gym, our host is Kadri Augustin, Level 2 Financial Trainer. Joining him for a conversation about overspending and what not to do in your 20s is Gus Gosson, Level 2 Financial Trainer.
Podcast Notes
Gus is Kadri’s mentor and he is 24 years old. Kadri is 32 years old.
Gus has done some overspending, especially on travel, on his credit card. Since working at The Financial Gym he approaches budgeting differently. When he was younger, he spent everything he earned.
Kadri did not have any system for saving when he was younger.
No spend days are easiest after you do your grocery shopping.
Kadri grew up in Brooklyn, and no spend days didn’t exist, especially in his 20s. He has a lot of friends in the city and it is easy to spend money going out. Gus is from Syracuse, New York and moved to NYC in September 2019. It is easy for Gus to save money, because he doesn’t have a lot of friends in the city.
The New York State average for dates is $297.
Kadri graduated college in 2011, and after graduation, he got a job near Wall Street making close to $65,000. He had about a month of vacation and he never said no when he was invited on a trip. He was excited to have a job and the money to travel. He figured he would make more money later to pay for it.
The number one thing that is critical to success for Gus is to spend less than he makes. Beyond that is saving for an emergency fund, which is three to six months of expenses.
Gus saves specifically for travel.
Both Kadri and Gus cite travel and relationships as their biggest expenses in their 20s.
Kadri went all out from 2011 to 2015, from age 24 to 28, because he wanted to visit all of his friends. Kadri’s travel hack is staying with friends. Spending can get out of hand with plane tickets, food, and experiences.
Gus encourages his clients to set aside money for travel and gifts, so they can balance experiences with expenses.
Gus saves money on travel by staying at hostels and eating cheaply, and he is selective on experiences.
Kadri and his friends do an annual football trip. Their goal is to see one college game and one NFL game in whatever city they end up in. They drive and they split the lodging cost between them.
You need to budget to put yourself in a better position later on. Budgeting Bootcamp is a webinar the Financial Gym has available on their website, and it is a great way to get started.
Setting boundaries around spending limits is very important. Numbers don’t lie. There is some give from month to month, but ultimately, it is all about saving and spending within your means.
Kadri used to work in a restaurant and it was the first time he was paid in cash. He started using the envelope system to designate how much money to spend on food, entertainment, saving, etc.
Money is a tool, and it is not negative or positive.
It is especially empowering when you go out with friends and not spend money, if it is a no spend day. You don’t always need to pay to play.
If you are worried about overspending, try no spend days, pre-saving for things, and the envelope system. Set boundaries with your friends and family and gamify it.
Resources Mentioned