Saving money doesn't happen out of the blue if you want to save money you need
to use time-tested savings techniques which is why in this video i'll be
sharing with you seven tricks to save money faster and if you're new to the
channel then hit the subscribe button below for more life-changing content
trick number one using automated savings deductions let's face it saving money
the manual way is a nuisance enticing ads and financial emergencies further
escalate the strain of reserving money once it enters your pockets however
automation can help bridge the gap between the money you intend to save and
the money you actually save now running your savings on autopilot attracts a
couple of benefits including discipline and consistency whether you're saving
towards a vacation or your kids college years automation ensures you don't
divert the money you intend to save towards other things given how
compelling temptations can be automated savings deductions are worth a try so
how do you set up automated deductions if you already have a bank account start
by setting up an automatic deposit for your saving fund pick a percentage of
your income that you're comfortable saving every month and instruct your
bank to extract it from your paycheck and sync it into your savings account
this method works perfectly for those who intend to save towards retirement
another approach is to ask your employer if they offer direct deposits in case
they do you could ask them to split your payments into two one deposit should be
made to your checking account and the balance your savings fund even better
you could also make arrangements for your automated deductions to go towards
your retirement fund like let's say a 401k regardless of which specific
savings account the money is directed towards automated deductions will ensure
your saving efforts are fruitful trick number two using the one percent
rule assuming you're saving towards a long-term goal tracking your progress is
paramount however finding a consistent system for trailing your saving journey
can be a major bummer this is where the one percent rule comes in this rule
recommends that you should increase the percentage you save by one percent every
two to three months until you hit your saving jackpot why is this rule
necessary the thing is saving only bears fruit if you do it consistently
therefore your starting point wields a little power and making you financially
successful instead your speed of growth is what determines the amount of time it
takes to smash your savings goals when you increase your savings consistently
you reduce the number of years it will take to attain financial independence
additionally you'll have solid financial security thanks to the money you will
have saved with that said how can you implement the one percent rule it's
always advisable that you kick off your saving plan where it hurts the lease
start by setting up an automated deduction of 10 of your pay to your
savings account this is a minimum percentage for those who want to save
faster then every three months increase the savings percentage by one percent
for instance if you earn three thousand dollars every month establish an initial
deduction of ten percent or three hundred dollars and after the first
three months lapses raise that to eleven percent or three hundred and thirty
dollars adapting to the thirty dollars in your budget will be painless all you
need to do is reduce your weekly starbucks visits or terminate that
service subscription that you barely ever use now thirty dollars every month
is almost insignificant if your savings goal is let's say ten thousand dollars
but this insignificance also creates the impression that saving isn't all that
hard automatically you'll feel the yearning to increase this amount from
thirty dollars to an amount you consider impactful so what you'll need to do is
increase your savings percentage by one percent on an ongoing basis in one year
you'll have climbed up six runs of the saving lottery placing you six percent
higher if you bump up your savings every two months which equals a hundred and
eighty dollars every month given the idea of savings rule rallies for at
least twenty percent it will only take you about three years to afford twenty
percent comfortably overall the idea behind the one percent rule is to start
small and increase your savings progressively at a pace that won't hurt
your budget trick number three using roundup purchases another saving
strategy that will increase your bank balance quick is using rounding up apps
to round up your purchases these financial tools enable you to save your
pocket change by topping off the amounts you spend on everyday purchases if for
example you've bought groceries worth 345 dollars and 50 cents the app rounds
off this amount to 346 dollars and transfers 50 cents to your savings
account while this isn't much think about all the transactions you perform
in a day or a week if you save 50 cents 60 times a month that's an extra 30
dollars in a year you would have piled up an extra 360 dollars the best part is
these apps give you the freedom to double up your rounding rather than
saving 50 cents you could adjust your settings so that your app rounds up and
saves a dollar per transaction also given the fact that you link these apps
to your credit card or bank account they can come in handy for tracking your
spending as well talk about a double win trick number four banking your windfalls
windfalls refer to unexpected financial gifts like illegal settlement lottery
winnings stimulus checks and tax refunds windfalls happen more often than you
think and they can range from thousands to millions of dollars unfortunately
when we come to a windfall of money we are often tempted to spend it as to us
it can be perceived as being bonus money please don't fall for this trap rather
wait a day or two until your excitement dies down then start formulating a plan
to help you utilize this money more wisely for instance besides helping to
loosen a financially tough situation banking your windfalls is wise if you
wish to get ahead financially by building up your savings and the good
thing is there are multiple ways to do this when you first receive a financial
windfall the first step should be to determine its tax implications if it's
taxable let an accountant help you set aside an amount to cover the taxes next
use the 80 20 windfall rule to assort your windfall funds this rule spells out
that you should dedicate eighty percent of your windfall to a long-term
financial goal like a savings account and use the remaining twenty percent to
satisfy a short-term desire besides saving long-term financial goals can
also include building an emergency fund and paying off high interest debt such
as credit card bills not only does eliminating a costly debt free up your
budget but it can also save you on interest however if your bills are up to
date and your debt free this is a green light to put 80 into your saving fund
assuming you receive a tax refund worth three thousand dollars applying the 80
20 rule would mean saving twenty four hundred dollars you can then use the
remaining six hundred dollars to purchase anything you've been longing
for trick number five quantify your purchases i tend to think sometimes
people waste money because they lose sight of the effort it takes to make
money if you're struggling with impulse buying try this trick convert price tags
into working hours for example let's assume you earn 40 dollars per hour as a
tutor whenever you get the urge to splurge on new designer shoes that you
don't need quantify this purchase in time if the shoes cost 400 tell yourself
that they'll actually cost 10 hours of tutoring chances are you'll realize how
wasteful this sounds and you'll opt to save this money instead another way to
look at it is by saving a certain amount of money you're actually preserving your
hours in the future for example by saving forty dollars you're recovering
one hour of work and the more money you save and invest the faster you'll attain
financial freedom hence the lesser hours you'll have to work so before buying
anything especially when your savings account is starving think about the long
hours you spend at work every day do you want to spend it when it means endless
more days at work the choice is yours trick number six play would you rather
would you rather win free health care till you die or have your mortgage
written off this is one of my favorite would you rather questions about money
if you're confused about how to save money fast or you're in the middle of a
financial crisis consider using other people as a financial resource one of
the best ways to tap into other people's minds is to use a popular party game
called would you rather this game presents twin hypothetical yet tricky
situations it makes the players pick one depending on the trade-offs that they
can't afford to give away for instance in the case of winning free healthcare
or getting rid of your mortgage both of these situations sound insanely valuable
yet it's almost impossible to pick one and leave the other before reaching a
decision one will have to weigh in on the benefits of winning a lifetime worth
of health insurance or getting total equity of their home without having to
pay a dime assuming i'm one of the players i would rather have my mortgage
written off why well i'm not the kind of person to follow often and if i ever
have a financial emergency my employer's health insurance would cover it getting
rid of my mortgage on the other hand would mean owning my home ultimately and
acquiring an additional asset not to mention i'll save the money i would have
had to pay as interest in the long term this will add value to my net worth this
question alone is enough to motivate me to set up an emergency fund or eliminate
my mortgage in real life if you've never played would you rather here are a few
steps to start you off first think about the goals you intend to achieve from the
game thinking about your desired income will help you come up with fire cracking
questions that are spot on in this case your goal is to save money faster right
in that case you can draw inspiration from the financial dilemmas you're
currently facing while doing this frame the questions in a way that will trigger
deep detailed discussion amongst the people you're playing with make sure the
situations you merge with are thought provoking and challenging to
discriminate trick number seven set savings goals of course you can't start
a journey if you don't know where you're headed having specific savings goals is
therefore an essential element in any financial journey in fact it's proven
that people who set savings goals manage to save money faster than those who have
no vision therefore the first step is to list down your short-term and long-term
financial goals what are you saving towards is it something you want to buy
like a home or is it for an experience such as a vacation it doesn't matter how
big or small your goal is giving it a name creates a permanent reminder in
your mind and pushes you to keep working towards it the next step is to determine
how much money you need to save to meet your target if you're saving towards a
home what's your budget given the market value the houses you're eyeing you can
estimate how much down payment you'll need to save determining the price of
your end goal will also help you work out how much you'll need to reserve
monthly depending on the time window you're working with you can quickly
gauge your ideal monthly savings for instance if you want to buy a home in
five years and need a down payment of twenty thousand dollars you'll need to
save roughly three hundred and thirty three dollars every month the final step
is to identify a savings method that will bring you closer to your goals for
short-term goals a high-yield savings account will do for long-term goals that
may out last 10 years consider saving through investments such as stocks or
bonds this way you can take advantage of compounded growth and earn extra money
through interest speaking of taking advantage of compound growth the trouble
is now that you have the money you need to know how to maximize its use to
generate the most amount of wealth possible which is why in this next video
i'll share with you the absolute best ways to invest a hundred dollars a month
and achieve the financial success you deserve click on over and let's get
started