When I first got involved with Frugal Living, I learned so many Frugal Living tips to improve
my finances that I was so overwhelmed with information that I didn't know which ones
to implement and which ones not to. You probably know this too, right? This led to the fact
that even though I had a lot of desire to integrate these tips into my life and get
my finances better under control, I ended up not implementing a single one and could
not focus on the ones that really move the needle and have the biggest impact on my life.
That's exactly what this video is about today, so you can approach the right things with
more focus and get your hands on the Frugal Living Tips that really make a difference
and have the biggest impact on your life. By now everyone knows the term Frugal Living
and so I don't think I need to go into what Frugal Living is exactly and also you probably
know that Frugal Living can help you achieve your financial goals with a few more benefits
that you can achieve such as earlier retirement, financial happiness or even the reduction
of financial stress. No matter what your financial goal is, with a Frugal Living approach you
can definitely achieve it without having to somehow lower your quality of life or sleep
on the floor, whatever some people imagine Frugal Living to be. There are many ways to
get started with Frugal Living and as with most things, the 1st step is the most challenging
and the more you look into it, the more ideas you get and the less you actually implement.
Which is why it's most important to focus on the things that will have the biggest impact
on your life in the long run. For example, many people start cooking at home and yes,
there are actually many people who never cook at home, crazy right? Or you start by checking
your subscriptions and just canceling the ones you don't need anymore. There are many
ways to start living a Frugal Life and that's exactly why today I'm sharing with you my
Frugal Living Tips that have had the biggest impact on my life, allowing me to focus on
the few things that actually make a big difference. True to the 80/20 principle, which I'm sure
many of you have heard before, I'm also focusing on the 20% that makes 80% of the difference
and gets me to my financial goals.
But before we dive into the topic : Hello and welcome back to our channel ! And if you
are new here : We are the finance nerds and on this channel we are helping hardworking
people like you to get more out of your hard earned money by showing you how to use your
money in the most effective way. Remember to give this video a thumbs up at the end,
if you got value out of it and now let’s start.
Build Your Credit The first tip is : build your credit.
Why should you build your credit or your credit score ?
Your credit score determines how much interest you will pay later and the better your score,
the less interest you will pay and the less you pay, the more money you can save each
month. The average American citizen pays just under $1000, accordingly you can really save
a lot of money if you can reduce your interest rates. Of course, your credit score is mostly
dependent on your past. So how can you build your credit score if you don't have a long
history now ? One program that can help you build your credit
score is Self. Self helps you build your credit score and save money. I put the website in
the video description if you are interested. I know building your credit score is one of
those frugal living tips you don't hear too often, but interest is a cost you can easily
reduce and you'll have more money in your bank account afterwards.
Manage Your Finances And Bills
Now it's on to managing your finances and bills. This is a Frugal Living Tip that is
often mentioned and yet many simply don't implement, even though it is one of the tips
that gives you the most influence and control over your finances. And how are you going
to achieve your financial goals without control over them? Right, will be difficult and that
is exactly why it is important that you start doing it. I recommend that you manage your
bills and finances virtually, simply because you have everything in one place and can access
it from anywhere. Of course, if you want to do it analog, no one is stopping you. And
then you start really tracking every single expense and especially tracking repetitive
expenses and asking yourself if they are really necessary. For example, a certain subscription
or the coffee to go. You can also see at a glance which are the highest recurring expenses
and find alternatives for them. For example, for your cell phone contract or your Internet
provider and find cheaper offers for them. This costs a lot of time, of course, but can
also save you a lot of money in the long run. If you want to save money and time, I can
recommend True Bill. True Bill helps you reduce your bills, optimize your expenses and manage
your monthly subscription costs. You can also track your expenses and start a savings account.
I've put this provider in the video description, feel free to check it out if you like and
of course you can do it on your own by tracking your expenses for example in an Excel spreadsheet
and optimizing your finances step by step based on that.
Earn Extra Money
The next step for you should be to earn extra money. What's the point of saving all that
money if there isn't much money to save? Of course, in any financial situation you find
yourself in, you should put something aside and even if it is only $50 a month. But if
you really want to reach your financial goals and accelerate this, you need to increase
your savings rate and the amount of money you want to invest. Especially if your goal
is to retire earlier or even build a fortune you must always follow the same 3 steps :
1. you must spend less than the average 2. you must earn more than the average
3. invest better than the average. Point 3 almost takes care of itself, because
very few people even think about investing their money and if they do, they do it once
or with a small amount. Accordingly, only point 1 and 2 remain, although for me point
1 and 3 are the most important, because you can achieve your financial goals just as well
if you earn as much as the average, but live below your means and invest the saved money
well. I've linked you to a video in the upper right corner where I show you 5 ways to live
below your means. Now let's take care of the 2nd point, that you earn more. Of course,
it is a complete topic in itself and far from being covered in this video, but I want to
give you some food for thought. We all have unique skills and passions and
the easiest way to build a side income at this time is to talk about your skills and
passions on social media and add value to other people's lives. As an example, if your
passion is dancing, then you can make YouTube videos where you give other people dance tips
and recommend your favorite dance shoes to your viewers, for which you then earn a commission
when they make a purchase. The ways and possibilities are endless and if you like, I will make a
complete video about it, just write me a comment below this video.
Investing
Without investing, unfortunately, it does not work. If you don't invest your money,
you lose it... simple as that. Inflation increases and over time makes your money lose more and
more worth if you just keep it in the bank. Of course, not everyone is a financial expert
and has the skills of Warren Buffet. However, there are solutions for those who know less
about the subject. There are now intelligent solutions for which you need 1. little prior
knowledge and 2. also not much start-up capital. However, I urge you to acquire the necessary
prior knowledge and not just invest blindly, that could otherwise backfire. For this, there
are enough resources on the Internet or even small e-books on Amazon with which you can
acquire the necessary prior knowledge, if the term stock market now completely provides
you with headaches. If you want to make it easy for yourself, use the solution from Acorns.
Acorns helps you to Easily save money & invest in the background of life. Invest your spare
change, save for retirement, spend smarter, earn more, and grow your knowledge. I've put
Acorns in the video description for you, feel free to check it out.
Sell Stuff You Don’t Need
We all have so many things and honestly, you can probably think of 3 things that you have
not used for years, just take up space and are actually still worth money right ? The
easiest way: Just get rid of them, get money for it and in the best case, invest it right
away. There your money is in any case better off than dusty in some drawer. Use sites like
Ebay and the Facebook Marketplace. The whole thing not only brings cash, but can also be
very liberating to simply clean out his apartment and only have the things in the house that
you really need. If you enjoyed the video and now want to know
more about how to take control of your finances, click on the video to the right or check out
the video description. There you will find more videos and resources to help you have
more money at the end of the month.
And remember to hit the like button and subscribe to the channel if you are new here
We hope to see you in the next video.