Humans are creatures of habits. You cant get rid of your bad habits. All you can do is
change them to better habits. Habits that would improve your life or at least wouldn't
harm you. The process of developing habits takes a lot
of time, but today we are going to do something different. We are going to focus on small
habits that you can easily adapt right. They are not going to take you a lot of time, but
yet they are very effective. The moment I started implementing these habits, financially,
i started doing better, that’s why i am going to share with you 12 mini money habits
that you should start doing right now. So, Let’s start with the first one.
Don't use cash
I might get criticized for saying something like this but hear me out. The greatest financial
habit you can ever develop is tracking your expenses. Because when you know how exactly
you are spending your money, it's much easier to change your behavior.
If you are spending too much on moving around, next time, you will be more careful before
taking another unnecessary ride. And the easiest way to track your expenses is to pay with
a credit or a debit card. Every transaction is recorded on your phone and you can revisit
your transactions every day to see if you are not overspending.
Which brings me to point number 2.
2. Spend 5-10 minutes every night to audit your spendings
An hour or two before you go to bed. Just pick your phone, open your app that tracks
your expenses and take a look at how much you have spent today. Just Audit your expenses.
You might realize that you have overspent on food today. That will push you to be more
careful next time when you are buying a meal. Or maybe you have spent too much on uber,
and you have to minimize your expenses for the next few days so that you don't get into
a credit card debt at the end of the month. People usually act when it's too late, when
they have already run out of money. So they are forced to get into debt, but then they
repeat the same mistake over and over until they find themselves buried in a lot of debt.
3. set a budget for everything
What most people do - They work hard, save money, they might even save for 6 months worth
of expenses. Fantastic!
But then they go on a vacation. And while they are on vacation, they want to enjoy.
They realize they have all that money that they don't need urgently. Why not spend some
of it? I mean you will get back to work in a week or two and fill it again, right?!
But you won't! So to avoid overspending or withdrawing from
your savings account, always set a strict budget and never leave it no matter what!
This is how much you set for a vacation. That's it! That's your budget!
This is how much you have set for outside dining. You can't spend more than that! You
will have to wait till next week!
4. automate your investments
If you are not into investing, I mean if your job is not directly related to the stock market
or real estate. You probably don't have the time to analyze companies, look for real estate
deals, or follow up the financial news. That's why you watch people like me who try to summarise
everything in short animated videos. But here is a Lifehack! You can't always look for the
next opportunity, and you don't simply want to keep your savings in cash because you might
end up spending them so chose a few stocks or maybe one index fund and dollar cost average.
Which means every week or month, just invest in that stock without analyzing a new company
every time you invest. I get it, you don't want to be buying at the
top, but you don't know where is that top! So just invest every week, you will hit the
top and the bottom so you will dollar cost average at the end of the day. And you aren't
going to waste your time looking for opportunities which means you will finally start investing
instead of just watching how others are investing.
5. negotiate whenever you can
You can't negotiate when you are in Walmart, for example, since prices are fixed, and if
you don't like it, no one is pushing you to buy anything from there. However, there are
plenty of stores where there is room for negation. Whatever you are buying, if it's possible
to negotiate, always do it whether you are in a job interview trying to get a higher
salary or buying a house. You might put yourself in an uncomfortable
position but imagine for a moment if you get a slightly better deal. If you get a 5 or
10 percent raise. That extra 5 or 10 percent means now you can save more money, and if
you count the opportunity cost, which means how much that extra 5 to 10 percent is goi
ng to worth in the long run, then you just saved yourself a fortune.
Especially if you are buying a house, whenever you buy something really expensive like a
house that costs a million dollars, for example, 20, 30, or even 50K dollars do not seem much
in comparison. But if you drive the price down by 30K, for example, that's equivalent
to someone just handing you $30K. You just saved yourself a few months of work.
6. Always check the lower shelves
Hypermarkets or stores, in general, have long ago analyzed your height and carefully placed
the most expensive items at your eye level. So that you come across them first. If you
take a look at the lower levels, prices are a bit cheaper because that's where they place
the most affordable items since they know that most people aren't going to look at them.
But you can outsmart them by taking a Moment and checking what's down there. Usually, the
products aren't much different from the ones on the top. Eye-level shelves at stores usually
cost fortunes, and the companies who are willing to pay that much usually include that cost
in the price of that product. So you are basically paying for not looking down.
7. Don't brag about how much money you have or make
People have the tendency to expect more from people who make more money. If you get them
a little small present on their birthday, they won't like you, but if they think that
you are not a rich dude and you barely making ends meet, then they will be happy that you
even got them that little gift. I know that it sounds horrible, but that's
how humans are. You are rich. - People expect more from you. It's like when a billionaire
donates a hundred million dollars. People still criticize him saying that's peanuts
for him. He makes much more than that. Well, who cares how much he makes? He donated more
money than you will be able even if it's a tiny fraction of his wealth.
8. surround yourself with likeminded people It's very difficult to live frugally, trying
to get financially free as soon as possible when your friends enjoy expensive meals, expensive
vacations, and 5 dollar coffees. Sometimes you even wonder whether it worth saving all
that money. So in order to keep yourself motivated, surround yourself with people with similar
goals. Join the FIRE movement on Reddit, join the chat rooms, share with each other different
tools and techniques you use to save money. It really helps to know that you are not alone
in this tourney, you are not the only one who is struggling now to be financially free
later. In the process, you are going to learn so much that you will cut your journey by
a milestone.
9. Avoid cheap shoes
This might sound a bit controversial because we talk about saving money and being frugal
and yet here I am telling you to never to buy another pair of cheap shoes or in fact,
clothes. What does cheap or expensive mean? If you
buy a pair of cheap shoes that are going to last you a month or two, then I call that
expensive, that was a waste of money. But if you spend slightly more and these shoes
will last you a few years, that's what I call the ultimate way to save money.
Whenever you buy clothes or shoes, ask yourself how long will this pair of shoes or this shirt
is going to last me. I would buy sneakers that I can wear for the next five years rather
than buy a new pair every single year.
10. avoid your local grocery store
I get it, it's comfortable to get your groceries from the corner shop beside your house. You
don't have to walk anywhere far, it's convenient and you pass through the store every day.
But groceries are slightly more expensive there than in hypermarkets.
That might not seem a lot, but over time, they add up and turn into a decent amount
of money. So here is what I like to do. I buy bulk! Go to the nearest hypermarket
and buy the stuff you need for the next month at least. If you turn it into a habit, you
are going to save a fortune in the long run.
11. cut back on sweets
The worst habit you can ever develop is eating a lot of sweets. Don't get me wrong, I like
sweets too, but most sweets are made out of pure harmful ingratiates. They are expensive,
and they damage your health. It's ok to have some time to time but try to cut on them as
much as you can. You have no idea how much you are going to save if you cut back on sweets,
and most importantly, you are going to save a fortune on medical bills as well.
12. And finally, think twice before paying
This is one of the best habits I have ever
developed. I use to waste a lot of money like some of you. And then, a few minutes or hours
later, I would ask myself why on earth did I buy that. I don't need it. I just wasted
money. It happens to all of us so I have promised myself to think for a minute before paying
for something, even if its something I wanted to buy for a long time.
I ask myself, do I really need that or I just want to spend some money, and the answer is
quite often the latter. Try it, but do not be biased. Try to think about it independently.
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Thanks for watching and until next.