Cashed up diary, week one: How 22yo wasted thousands of dollars

This uni grad thought she had been saving heaps of money for years. Then she realised she might have been doing the exact opposite.

I’m not your typical 22-year-old Generation Z (or I dare I say, it, Zoomer). I save more than I spend. Or do I?

Taking part in news.com.au’s Cashed Up challenge — which is written by financial advisor Ben Nash to help get your finances in order — made me reconsider just how good I am at saving.

Ben’s calculator got me thinking — where does my money even go?

First off, what is the difference between spending and wasting? Ben summed it up nicely. One is “everything you currently spend your money on” while the other is “the things you want to spend your money on”.

Whenever I get something, it’s because at the time I really do want it. A large milkshake? Let me get my wallet out. A new dress? Sure, why not? Only once you have a stomach ache or that maroon gown sits in your cupboard, untouched for months, do you realise you just wasted your cash.

This reminds me of a high school commerce class. As well as learning that it’s a nightmare to work in a group for an assignment, those classes also taught about needs and wants when buying a product. Do you need it or do you want it? In fact, do you actually want it?

What is the difference between spending and saving?

I was in the positive zone for Ben’s calculator (phew!).

It’s probably worth noting I still live with my parents and I’m currently saving up for a property, or to move out, or both.

But now, looking back, that’s not to say I don’t waste money.

From the time I paid $84 every month only to never show up to my gym, or lost $100 buying an ABN which shouldn’t cost anything, not to mention when I used to fork out $10 weekly on a news subscription service that turned out I could get it for free because I worked at the company.

Or when I was fresh out of high school and the only drink I could stomach was a super-sweet cocktail which cost upwards of $15.

And let’s not forget when I can’t be bothered catching a train home in the dark and/or the rain so I cop the Uber fare.

I have never downloaded a food delivery app, can you believe it? Picture: NCA Newswire /Gaye Gerard

I’ve mostly been in the mindset of being a cash-strapped uni student, working part-time hours fitted around study, so perhaps I used to be more careful with my money.

Many a time I recall trying to decide where to eat or drink with friends and everyone would declare they were “nearly broke” so we opted for the cheapest bar with the best sangria deals (even if the tables were perpetually sticky).

So earlier this year, when I went from being a uni student to entering the full-time workforce, I concede that I may have been a bit more loose with my cash.

Two weeks after beginning my first full-time job in journalism earlier this year, my first pay cheque flowed into my bank account.

Not going to lie, I got a little dopamine rush seeing my balance go up.

I decided to redecorate my room, I bought more expensive birthday presents for people and I even went away on a little trip to go skydiving.

I am also currently tossing up on whether to spend thousands to get my riding licence and buy a motorbike.

I think that the moment I realised I’d spent all my cash on a skydiving trip.

But I wouldn’t even say I’m a serial waster of money.

I don’t have a PayPal account nor have I downloaded a food delivery app onto my phone (or even Afterpay) because I know once I get them, my money will get sucked into a black hole.

In fact, I don’t even drink coffee (yet).

I decided to ask a few friends of mine about their wastage.

One has deliveries arriving at her door every day from her online shopping sprees (probably not aided by the fact she was stuck in lockdown for months).

A uni mate buys multiple copies of the same novels because she prefers the cover on the reprinted version.

Another friend admitted she bought “cook books galore” even though she doesn’t cook and never attempted to rustle up any of the recipes.

Wasting or spending?

Ben’s calculator did give me some hope — you have to factor in a bit of money-wasting into your budget.

It showed me that I really shouldn’t be beating myself up when I waste, or should I say spend, my money.

As a finance journo, I’ve spoken to a fair few young first home buyers, a few years older than me.

Some said they gave up on travel (though I suppose that choice has been made for all of us for the past 18 months) to save up for a house deposit.

Another didn’t go to a bar for four whole years — let me just repeat that: four whole years without having a drink — to save money.

But if you ask me it just ain’t worth it.

At the end of the day, I’ll still want to spend $15 enjoying a really overly priced cocktail, guilt-free.

Get Cashed Up

Cashed Up is a free six-week course to help Aussies get their finances in check. Those who sign up to the budget bootcamp get weekly, step-by-step challenges to improve their financial fitness.

By the end of the six weeks, participants will have set a budget, created a savings plan, learned how to invest, and sorted their superannuation.

I will keep a diary as I work my way through the course, so make sure you return for week two. And hopefully I end up with more money in the bank after making informed financial decisions.