If there's one thing that everyone says they do with their money but almost
never fall through on it's saving money recent studies show that 39 percent of
American households have less than $1,000 saved and if you're living in the
21st century like I am then you'll know that $1000 doesn't buy you much these
days so what's causing most people to fail in their personal savings efforts
well boss in this video I will share with you why saving money is so hard and
five strategies you can use to save more money and if you're new to the channel
then hit the subscribe button below for more a life changing content let's face
it Americans aren't great at saving most people have heard the over quoted
statistic that almost half of the United States wouldn't be able to handle an
unexpected $400 expense and would have to go into debt to pay it another 21
percent reported that they deal with three months of unemployment by
borrowing from friends selling assets or taking out payday loans this is simply a
few examples of just our many people's financial situations our and quite
frankly I empathize with them saving money can be hard and your
efforts can be affected by numerous factors like your income number of
dependents priorities in life and many other things so let's go over a few
reasons why saving money can be extremely challenging and then I will
walk you through five ways you can save more money and see you also grow over
time the first reason it's hard to save is because we are constantly fighting
the temptation to spend the consumer can set your culture we live and today
bombard us with ads for a new clothes electronics and cars we must own if we
want to keep up with their appears well some people can fend off these
aggressive tactics others lack the willpower to do so and this can cause
them to spend money that otherwise will be used for saving the next reason
people find it hard to save is that they need relief from their 9 to 5 grind and
one of the only ways they know how to make themselves feel better is by
turning to retail therapy the sad reality is that most people aren't in
love with their jobs a 2016 Gallup poll showed that 71% of workers aren't
engaged at work and at least 60% are open to new job opportunities with these
statistics in mind it's no wonder people need to relieve the stress and
disappointment they get from their daily work routine and while some people may
start out treating themselves with a small purchase after a long work
week things can spiral out of control pretty easily this is what I've
explained on this channel as the what the hell effect where you start to spend
money and as you realize you've blown your initial budget you then go wild and
continue to spend telling yourself that you'll be more responsible next month
finally if you do start to make efforts to save money every month they can seem
futile especially in the beginning for instance if you are making a low salary
and are barely able to cover your bills that $50 you save a month won't seem
like it's helping you grow your wealth by any means that $50 represents one
dinner out or one tank aghast in your car and while these small increment
savings won't make you rich overnight they do allow you to start building a
habit of saving which is a step in the right direction ultimately saving can be
tough which is why I will now share five ways you can set yourself up to save
more money and feel good about your financial position tip number one focus
on the process not the ouka like I just mentioned when you are just starting out
on your own money-saving journey making big financial leaps and wealth is simply
unrealistic in the beginning your main focus should be on crafting the habit of
budgeting and ensuring that the money target you aimed a hit is met at the end
of every single month now where people go wrong when trying to save more money
is focusing on the outcome instead of the process they picture all the fun
they will have traveling the world with the money they've saved up or how nice
it will be when they can afford a new car well that is good to ever words tied
to your savings efforts they can actually deter your ability to save you
see the magnitude of your financial goals can either add or detract from
your success let's say you are putting $300 aside every month to buy a new car
that costs thirty thousand dollars after six months you would have eighteen
hundred dollars in your car savings account and while you are proud of your
progress you sigh at the thought of how many more years it will take to be able
to afford that new car you've been wanting to buy so instead you decide to
blow that eighteen hundred dollars on a new TV justifying that you will never
save up the thirty thousand dollars you need anyways now there is nothing wrong
with having large financial goals but without the money saving habit and
motivation in place your efforts can be squandered by their magnitude this is
why I recommend that you focus on the process on simply doing the thing
needs to be done and reward yourself in small ways to keep your motivation going
tip number two keep your savings out of sight when it comes to money sometimes
you need to get creative and the methods you use to build your wealth and one of
the tricks I have used to save more money over the years is by keeping my
money out of sight where people go wrong when trying to save more money is by
keeping all the cash in one single place if all your sources of income around
into a single account then you will constantly have access to that money
making it much much easier to spend trust me I had to learn this lesson the
hard way in fact when I was just starting my career the excitement of
earning a real working salary turned me into a kid in a candy shop and I spent
the entirety of every paycheck on useless things like new phones and
clothes that I rarely ever wear will work for me and many of my friends who
also struggle with their spending with the set controls on our savings accounts
so we weren't tempted to spend it now what I suggest for those with a less
financial willpower is to set up an untouchable account which is an account
that you open and hand over the banking information and access card to a trusted
family member or friend this way you will have no access to the account
meaning that even if you wanted to spend the money that was accruing in that
account there will be no way to do so tip number three start a spending freeze
if you are truly committed to prioritizing saving money then one
technique that you can use to maximize your efforts is to implement a spending
freeze sadly in the United States 78% of individuals are living paycheck to
paycheck and to be blunt a good portion of these people have put themselves in
this situation by overspending on frivolous items while they would have
money left over to save at the end of every month based on their income level
their desire to keep up with the Joneses and get that rush of endorphins that
comes with shopping is often too much to resist admittedly I too enjoy the
positive feelings that get from spending money but I think that overall people
are out of touch when it comes to the lasting value of our purchases sure you
may feel great during the moment and a few hours after an exciting purchase but
in my experience this feeling is soon fleeting putting you back to where you
started at emotionally just poorer this is where a spending freeze comes in
handy a spending freeze is a period of time during which you stop spending
money now while it is all impossible to spend absolutely no money
due to housing bills and groceries during this period of abstinence you
should be cutting out all unnecessary purchases this means no expensive lattes
and no new clothes the goal of implementing and spending freeze is to
keep your financial outlays to an absolute minimum implementing a spending
freeze comes with two main benefits first you will naturally save money
given that your spending is decreased well this is a positive of implementing
this approach I think that the ultimate benefit relates to the spending hi I
just mentioned when you cut out frivolous spending you realize over time
that you are no less unhappy then when you are spending to improve your mood
this say great technique to learn the difference between your wants and needs
and will certainly have you saving more money as you streamline your monthly
expenses tip number 4 Bank your windfalls saving money is as much of a
mental game as it is a financial one and nothing gets you more motivated to grow
your wealth then seeing your bank account balance skyrocket unfortunately
as I said earlier in the video most people's savings progress will come in
the form of small but still valuable savings increments whether it's
allocating fifty dollars a paycheck to you're untouchable fund or cutting out
your morning Starbucks latte it's going to take a little while to build up some
serious cash however there are certain times in life where we are the
recipients of larger-than-normal influxes of money and these events give
us the opportunity to make noticeable progress in our savings efforts these
windfalls could come in the form of a bonus a large tax refund or even
inheritance but like I said these events offer us an opportunity to increase our
wealth meaning that you must make financially
responsible decisions when you find yourself in this situation now if you're
like the majority of people who are swept up in the consumer centric culture
ooh lemon today then of course any windfall you receive will be earmarked
for spending and that's one option but by putting that money or most of it
anyways into savings you're getting closer to that moment when you've saved
up enough that you feel invested when you no longer look at your balances some
piddly thing but rather as something to be protected and cultivated once you hit
that place then saving becomes a lot easier it stops being drudgery and
starts being something you want to do you experience for maybe the first time
what financial security feels like and it feels good so you'll want to get
more of it tip number five earn more income over the last few years I have
made major strides in my saving school's actions like following a budget tracking
my spending and being ruthless in my analysis of my wants versus my needs
have all allowed me to grow my wealth however the culmination of all these
actions combined pale in comparison to the power that earning more income can
have on your savings once I dove into the world of
freelancing I started to earn an extra couple of thousand dollars a month and
instead of spending the supplementary cash I decided to save it well let me
tell you that this made a world of a difference in my savings efforts the
challenge was saving money is that you can only reduce your cost by so much as
we saw in the example of implementing a spending freeze so instead you must
tackle the issue by going on the offensive and earning more money of
course it goes without saying that you must save this extra cash for suspending
it but by making those extra deposits you're saving momentum and motivation
will skyrocket along with your bank balance therefore if you want to put
your savings efforts on steroids then you must start to earn more money thanks
for watching if you want to go from the life you have to the life you deserve
then hit the subscribe button now