What if I told you that by learning one simple money management concept I was
able to save $10,000 and significantly improve my financial situation well in
this video I'm gonna share with you my story and exactly how I saved over ten
thousand dollars and word on the street is that for every person who hits a
subscribe button a baby pig will be born so hit the subscribe button below now
before I get into how I save ten thousand dollars let me admit something
for many years I was quite irresponsible with my money I would blow hundreds of
dollars on coffee every month spend endlessly on clothes and nights out with
friends always cost me a couple hundred bucks not that I was counting what's
more embarrassing is that I was and still am a designated accountant and yet
I still like some of the basic financial skills to manage my own money this
financial disaster of a life I was living lost it up until a couple years
ago when my mom was finally getting ready to retire her and I were
discussing her plans for retirement and as excited as she was there was one
aspect of retirement that was causing her extreme anxiety her savings well she
always made decent money at her job she still had to be mindful of how much she
could afford to spend when retired but had no idea how to calculate this amount
I suggested to my mom that she talked to a financial planner and before I knew it
I was in a meeting with my mom and a financial professional during the
meeting the financial planner assessed her assets and discussed her desired
lifestyle and came up with a robust budget that would be used to ensure that
she would be in total financial control as the years went by after the meeting I
could tell that my mom felt way more confident in her ability to enjoy a
retirement and it made me wonder whether I should use a budget myself to get my
finances in order one night I went up to the bar and as usual I ordered a round
for me and my friends after enjoying her drinks I then went to pay and as I
topped my debit card on the machine I got the message insufficient funds and
that was a point when I knew I had to start taking my finances more seriously
at that point in my life I was 25 making about $75,000 a year which after talks
was just over four thousand dollars a month unfortunately while making a
decent salary I had next to nothing to show for it
which as an accountant was extremely embarrassing so one night I sat down and
began drafting my own monthly budget I started by listening out my income
sources which at the time was just the income I was earning at my job I then
began to list out all my expenses one by one I documented every expense line-item
I had from rent to groceries and even entertainment luckily I had just
received my monthly credit card bill so I knew exactly how much I had spent on
each of these areas of my life when I completed the expense section of my
budget and total in my surplus deficit line at the bottom my jaw nearly hit the
floor I had spent $500 more than I had earned that month which then made sense
while my debit card had been declined at the bar I then reviewed my budget for
areas that I knew I should start to cut back on of course some expenses were not
easily changed like my rent and insurance but other costs definitely
needed some attention the most obvious ones were entertainment and clothing
just these two items alone were combining for more than a thousand
dollars a month on top of that I decided that my coffee spending was getting out
of hand and then my phone bill was absurdly high
so I decided these costs needed to be addressed after modifying my budget for
the upcoming month I was projected to say $1,500 that next month I was doing
well it's spending more cautiously or so I thought
I bought halfway through the month I decided to see how I was doing against
my planned budget after totaling my spending I realized that I had spent
almost 80% of my monthly limit in just the first 15 days of the month I began
to get discouraged because they had taken the time to create a solid budget
yet it wasn't working then I remembered one thing that the financial planner
said to my mom that completely changed my money-saving journey he said what
isn't measured isn't managed I realized that I had a budget in place but I
wasn't actively tracking my spending against my budget so the first thing I
did was put a picture of my budget is in my phone lock screen so that every time
I looked at my phone I would be reminded of how much I could spend then I began
to write down in my phone every purchase I made so that I could track how much
money I had left to spend in each of my budget line items for the rest of the
month due to my lack of tracking during that first
month I was only able to save $250 but in upcoming months my progress
skyrocketed during the second month I wasn't perfect but it ended up saving
seven hundred and fifty dollars then for the next six months I hit my goal of
saving fifteen hundred dollars fast forward eight months and I had saved ten
thousand dollars which is more than I had been able to save in all my previous
years combined well this was a significant victory in my life it would
never have happened if I hadn't taken action to educate myself and the power
of budgeting invested the time to draft a plan and most importantly employ
strict rocking on my spending thanks for watching if you want to go from the life
you have to the life you deserve then hit the subscribe button now