Money Saving Tips || How To Save Money FAST (The BEST Strategy)

– Hey, what’s up guys, Shane here. So today I’m gonna be
talking about saving money, why it’s so important, how I
save nearly 70% of my income, and why it’s so important
that you do this as well. And I’ve noticed that a
lot of videos on YouTube will tell you that it’s very important to save your money, track your money, but then they just give
you generic advice, or they tell you that you
need to make a spreadsheet and spend 20 hours a week
tracking every single cent that goes in and out of your bank account. So I decided to make a video that goes over the
practical steps that I took to save nearly 70% of my income, that don’t take very much time
and they’re very easy to do. So first things first, why
is saving money so important? Well, chances are, right now you’re living paycheck to paycheck. And the reason I know this is because I decided to read
a bunch of boring studies that basically tell me
that over half of Americans live paycheck to paycheck. Somewhere around 70%. Now the problem with
living this way is that when an emergency comes up, you end up having to go into debt and borrow money in order to pay for it. And this is why the payday loan business in the United States is
a $100 billion industry, and the total credit card
debt in the United States is over $1 trillion. Now avoiding getting into debt is a very good reason to save, but an even better reason is is if you have a job right now, chances are you’re trading
your time for money. And once you get enough money
and you save up enough money, what you can do is you
can flip this around and you can start trading
your money for time, and this will buy you freedom. And this freedom will allow
you to do whatever you want. So maybe you want to retire early and just lay on the beach all day, or maybe you want to travel the world. Maybe you don’t ever want to retire, and you just want to build
a business that you love. The big point here is that you should start saving right away, so that way your money
will start working for you and not against you, and you can gain the freedom
to do whatever you want. And then you won’t have
to worry about everything, and I’m gonna show you
how to do that right now. So the first and by far the most important thing you need to do is you need to get your mindset right. And you really want to
understand the value of a dollar, because for the average
person watching this channel, $1 invested right now
by the time you retire is going to be worth over $20. So whenever you’re thinking
about buying something, you should imagine that thing in one hand, and the money in the other hand. And this is especially important when you think about buying clothes. I mean think about that $350 golden jacket that doesn’t match with anything, so you’re probably only
gonna wear it twice. Well, when you calculate it out, that’s gonna be $175 for
each time that you wear it. And if you invested that money instead, it would be worth over $7,000
by the time you retire. And I find that it’s really
useful to think of your money like little workers or little soldiers that kinda just work for you, and then you send them out in the world to bring you back more money. And that’s basically what you’re doing whenever you invest your money because of the power of compound interest. Now the next mindset trick is whenever you’re thinking
about buying something, if it’s a small item, wait
until the next day to buy it, and if it’s a large item,
wait at least a week before you decide to buy it. A lot of the time you’ll
have an emotion or an impulse that’ll make you want to buy something, but if you just wait until the next day, that emotion is gone, and then you just don’t
want to buy it anymore. And if you still want it the next day, you can go ahead and buy
it, or you can do what I do, which is put it on a list
of things that I want, and then whenever I achieve a goal, I will look at this list
and I’ll pick one thing, and then I’ll get that thing for myself. This is really useful
for getting things done because you basically
incentivize you doing things that are good for you with things that you
naturally want anyway. Speaking of goals, it’s very important that you have a clear vision or goal of where you want to be financially. Do you want to retire by 40? Do you want to retire by 60? Do you want to be a millionaire? Do you want to be a billionaire,
like Warren Buffett? It’s very, very important, and I can’t emphasize this enough that you have a clear vision
of where you want to go, and it’ll be kind of like a north star that always leads you
in the right direction. And without a clear vision or goal, you’ll probably just
end up going in circles and not really get anywhere. Now you don’t have to get
crazy with this budgeting and become like a minimalist
who lives in a van, or someone who uses like
one-ply toilet paper or anything like that.
(buzzer buzzes) But it is very important
for you to keep a budget, and this is gonna be my second tip. Now the first step to making a budget is to go ahead and track
what you’re spending. And the easiest way to do this is to download an app like Mint. It takes about 15 minutes to set up. You just connect your credit cards and your debit cards to it, and it automatically tracks
all of your purchases. So once you do this, it
will be extremely easy to see where your money is going, and then you’ll be able to
cut back on certain expenses. And you’ll probably find
that you have a subscription to like RuneScape or something that you haven’t used in five years, and you’ll get rid of all those. Now realistically speaking, there’s only about five essential
needs that everybody has. And in no exact order,
these are food, shelter, transportation, clothing, and health. And you’ll find that a lot
of the nonessential items you can just completely
cut out of your life. You just don’t need them. You’re basically just throwing
your money into a black hole. Now with the essential items, you’ll find that you can really cut down
on a lot of those expenses. And when I first started
doing this a few years back, I was just amazed at how much
money I was spending on food. I was spending over $1,000 a month. And most of it was just like going out to expensive dinners with friends, eating Chipotle, Starbucks, In-N-Out, all that stuff that you really don’t need. And I cut all of that out, and now I spend about
$300 a month on food. And so that means I have
an extra $700 to invest, and you can do the math there. Meal prepping by using a crock pot takes almost zero time. It’s much cheaper, and it’s also healthier than just eating out all the time. Now this is just one example, but honestly there are a lot of things that you can do this with. You just have to check your
Mint app every single month, and then just start cutting
back or cutting down on expenses that you don’t need. Now an example of
cutting costs for shelter would be getting roommates. This can cut your costs in
half, or maybe even 1/3. An example of cutting
costs with transportation is to not buy a new car. Instead, buy a car
that’s five to 10 years, it’s already taken most of
the hit of depreciation, and it’s gonna be much cheaper insurance, maintenance, et cetera. Everything is gonna be much cheaper. And for clothing you can still
look really good on a budget. Just focus on classic
pieces, like black, white, you know, white shirt, blue jeans, and then things that match
really well with black and white. This will never go out of style, and you can wear it just
about all year round. Now the next thing you should
do is automate everything. You need to have a central bank account where money comes into, and then every single month, automatically, money will get funneled either to a savings account or
maybe an investment account, and you just don’t have to do anything. They do all the work for you. Now what I did is I started off
with about 15% of my income, and then I worked my way up to
50%, and then after a while, I was able to work my
way up above 65% or so. And that’s where I feel comfortable. And my personal goal is to
retire around the age of 35, so saving 65 to 70% is
where I’m aiming for. And when you first start
saving, it’s a good idea to funnel all of your money
into a savings account, and then once you have enough saved to where it could cover all of
your expenses for six months, then you want to start
putting all of your money into either an index fund, a Roth IRA, some type of investment account basically. Now automating things is obviously useful because you don’t have to manually take the time to transfer money
from account A to account B. But the real magic here is it tricks your brain into thinking that you have less money
than you actually have. And because of this, a lot of those natural urges to buy stuff will just go away. And the last tip that I have for you is to find things that make you happy that don’t cost very much money, and then do those things a lot. And I know this sounds stupidly
simple, but let me explain. Our brains are so good at
tricking us into thinking that doing certain things are good for us when they’re actually really bad for us. Think about the bad relationship that you stayed in for too long. Think about all the times
where you ate really bad food and then felt crappy afterwards. Think about all the times where
you should’ve been studying when you have a test six hours later, but for some reason you’re
watching videos on YouTube. Our brains trick us, so it’s
extremely important for us to identify what actually
makes us happy long term, not things that make you
happy for five seconds, and then you feel like crap afterwards. And the key to discovering this is whenever you come
across something like this, you must, must, must write it down. Make a list of things on Google Docs or whatever you want to use, keep it on your phone at all times so you can access it very easily. So examples of this would
be maybe like hiking, playing sports, hanging out with friends, maybe if you’re an adrenaline junkie, maybe you like to skydive
or just do extreme sports, something like that. Whatever it is, identify
it, and then write it down, and then do that thing a lot. So an example for me is I
really love making videos and helping people out. I’ve always loved filmmaking, I’ve always loved watching films, video editing, that sort of thing, and I like helping people. It makes me feel very fulfilled,
and so that’s what I do. I make videos that help people. So putting this all together
and summing things up, you need to get your mindset right so that you understand
the value of a dollar, so that you can properly
weigh the cost and benefit of all the purchases that you make. Then you need to get
a simple app like Mint so that you can make a budget, and then you need to run your
finances kinda like a business so you just know what things you’re actually spending your money on, and what things are
essential to your life. After you’ve done this, you
want to automate everything so that your money is
automatically going into either a savings account
or an investment account. That way you don’t even
see the money every month, and your brain thinks
that you don’t have any. And the last thing you want to
do in order to avoid boredom, which generally leads to
you spending more money, is to find things to
do with your free time that make you happy and
then do those things a lot. And usually these things
won’t cost very much money because the best things in life are free. Thanks for watching the video. If you made it this far, don’t forget to smash the like button, subscribe, comment, hit
the notification bell, all that good stuff. I work really hard on these videos, and I appreciate all the
feedback you give me. So, until next time, bye for now.

9 comments on “Money Saving Tips || How To Save Money FAST (The BEST Strategy)”

  1. George Pierce says:

    Money buys freedom, simple and true, thank you, Shane.

  2. finance videos viewer says:

    Save then invest. Retire young faster. Thanks for this great video Shane,

  3. Juan Dela Cruz says:

    Great advice Shane.

  4. A Merry Life, On A Budget says:

    Great tips! Money can buy freedom and then builds on itself. It's an amazing tool for sure.

  5. Creative 7 Inc says:

    It all starts with saving, great stuff Shane

  6. Dranomoly says:

    Great video

  7. What_InterestMe2 Day says:

    Good tips! Anybody like this comment I’ll subscribe.

  8. Quagliarella says:

    Unfortunately when you live a terrible life and become depressed and don't care anymore about wellbeing especially financial wellbeing and then having to go do a business course and you're only 18, it makes you realize that money ain't everything when that's all you're brought up to think.

  9. c188 says:

    When I was broke I used to save after I spend. Now I save BEFORE I spend. Very simple but it works very well.

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