Why Millennials are choosing Botox instead of down payments
Two pieces of advice for priced-out millennials
Chelsea spends $1,400 a year on Botox. And while she knows she could use that money for a downpayment on a house one day, she’s done the math and keeps the appointments anyway.
She’s hardly alone — a quarter of Millennials believe they will never save enough money for a down payment and they also spend more on cosmetics and aesthetic procedures ($2,670/year) on average than any other age bracket.
It’s the “Millennial Glow-Up” and it’s causing some critics to age prematurely in frustration.
They view it as shortsighted and lamentable: Botox instead of budgets, micro-needling instead of micro-investing. Bustle connected the dots with this unforgettable headline: ‘I Can’t Afford a House, so Why Don’t I Just Look Gorgeous?’
The article takes a probing and empathetic look at several millennials who are putting serious money into self-care and aesthetic procedures, having decided that homeownership is too steep a climb.
What’s it like to live in this moment where you might have a decent income, but major necessities like housing, healthcare, and childcare have inflated far beyond wages in recent years?
What are you supposed to do with your money?
It is tempting, as spectators of other people’s finances, to fall back on a simple moral hierarchy that says you can spend your money in two ways…
Needs (which are justifiable) and
Wants (which are indulgent and should be viewed with suspicion).
Formulations like this are how guilt creeps into spending.
As a wizened millennial myself, there are two pieces of advice I’d give a spry thirty-something with enough money to spend on themselves, but not enough to purchase a home:
1. You are free to spend your money as you wish.
You don’t have to follow family or cultural norms around spending money. Several years ago, Stephen, a YNABer in San Francisco, realized how much money anxiety ruled his life.
“I was in the habit of making fear-based savings and financial decisions. I’d inherited my parents’ thriftiness and a judgment on money and those who have it. Now, I’m untangling guilt, shame, and practicality to forge my own financial philosophy.
YNAB helps me be realistic about money and remove unhelpful emotion surrounding saving, spending, and worrying about it.
When my dog needed emergency surgery that was well beyond the amount in our vet category, it was simple to prioritize him and clear how to cut back in other areas.”
Spending on you (or a dog) now, without judgment, can be a beautiful thing. But it’s only part of the picture. Ideally, your money is there for you now and in the future. So, my second piece of advice:
2. Be a good friend to your future self.
May you live a long life! And when you do, your future self will inherit the financial choices you’re making right now.
Tabitha, a court stenographer from outside New York City, said:
“Saving always meant deprivation to me. I didn’t have good financial role models growing up and, due to my habits, I found myself wondering whether I could ever retire!
Once I started using YNAB, I could finally plan for the future… For the first time in my entire earning life, I have GOALS!
I drastically downsized, eliminated my long commute, and found an adorable, and very inexpensive studio apartment that I’m not stressing about renovating to my heart’s desire because all my bases are covered.
None of this would have been possible if I stayed on the path I was on.”
Personal finance is a boat on the seas of the greater economy. Currents may push us one way or the other — to smaller housing, multi-generational living, or spending more on how you look.
Both Stephen and Tabitha found new directions and stopped worrying about money well into their adult lives. They couldn’t have imagined exactly how they’d be one day spending their money, but getting good with money gave them choices later on.
You can’t change everything, but you can decide what you’re going to do with your money. The returns of getting good at money last a lifetime.
I’d love to hear from you:
Have you ever made an unconventional choice with your money that benefitted you greatly in the long run?
Until next time,
Dan