Why is saving money so difficult ? I think many people ask themselves this question,
and I'm sure you do too. So let's get to the bottom of this question and at the same time
look at how you can solve this seemingly difficult problem. I'll show you the top 3 reasons why
it's hard for you to save money and give you the solutions so you can start working on
it right away. By the way, the last reason and the solution to it were a game changer
in my finances and led me to go from a $3000 account balance to $10,000 in 5 months. I'll
show you exactly how I did it and how you can do it too.
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.
When I started to deal with finances and economics I really had a big problem with saving money
and also earning money. I always had the feeling that I was earning too little money, but also
had too little money in the account overall. So I had to change something and take my finances
in hand. The first time was really hard and it went very very slowly, what the money earning
and especially the money saving concerned. But over time I was able to solve my own blockages
and barriers, which I also share again and again in my videos and how I was able to solve
them, which is ultimately what this channel is about. But I also know that I'm not alone
in this, which is also shown to me by the numbers and data.
According to the LA Times, the average American doesn't even save 5% of their income and a
full 20% don't even save a little bit of their income according to CNBC. So I asked myself
why it is so hard for me and many others to save money and why many have this almost their
whole life, although everyone knows how important it is. So what are the reasons that make us
fail at it and how to fix them ? As I said at the beginning, I'm going to focus
on the top 3 reasons that I think are responsible for this and that were the main reasons that
held me back. Since this is very subjective, it would interest me and certainly others,
what are the real reasons that keep you from changing something in your finances. Therefore,
if you like, I ask you to write a comment and share your reason. Maybe together as a
community we can find a solution or I can make a special video about it.
The costs increase but the salary remains the same
The first reason why it is hard for me and many others to save money is simply that at
the end of the month there is just not that much left to save and the monthly costs for
rent, car, insurances and groceries keep rising and our salary stays almost the same for years.
According to the Center for Retirement Research, the average salary of a Millenial is less
than Gen-Xers or Baby Boomers when they were in the early stages of their careers. Add
to that the current economic situation with highs in inflation and our money is worth
less and less. Of course, this leaves the question of what exactly you can do about
it, because it's mainly out of our control. And admittedly we can't do much about the
overall situation, but we can start taking small steps, because it's important to start
in the first place. I started by saving just $50 a month and putting that money into a
separate account that I don't touch and just deposit. In addition, an important approach
is that you start to live below your means, so that you can save more and more money over
time, how you can do that Specifically, I have explained in another video. You can find
the video linked in the upper right corner. ( Live Below Your Means Video Link )
Of course you can now think about what purpose it has to save just $50 and why you should
do it at all. But it's not really about the amount, but that you start to establish a
habit and build up a little financial cushion that you can mentally lean on, because the
main reason why we have a problem with money is that we have been programmed our whole
life to have a lack of money and money is never enough and when you start to build up
a financial cushion you counteract that.
No Tracking - No Prioritizing The 2nd reason why many people find it difficult
to save money is that they don't track their finances and don't prioritize them. They don't
feel it is important enough or they suppress the importance of getting their finances under
control, because it is often painful to really deal with your finances and maybe even realize
that you are living way above your means and actually have to cut back on your standard
of living. I know it's hard to take this step, but it's very important if you're serious
about getting your finances under control and improving your financial situation. Without
tracking your income, expenses, savings and investments and not making this a priority,
you will never reach your financial goals. I did it the same way before, I didn't track
anything and I didn't give it any real importance until I made the decision to change my financial
situation. How to track your finances is quite simple
and does not require a lot of work and that is by creating a budget. I explain how to
do that in the video above right ( How To Create The Perfect Budget Video link ), but
the important thing is that you track your income and expenses and get an overview of
your finances. More importantly, how do you make your savings a priority ? That's the
next step after the budget. And how do you make sure you save the money you have left
over? By automating your savings. You take a fixed % of your monthly income, which is
automatically transferred from your account to a separate account at your bank.
Mental and emotional issues The 3rd and in my opinion the main reason
is that many have emotional and mental problems with money. It was also the solution to my
mental and emotional problems with money that enabled me to go from $3000 to $10,000 in
5 months. For this I will tell you the story and also tell you exactly how I did it. The
topic is very deep and if you are interested in diving deeper into this topic, how your
head and your bank account are connected, I recommend you the book by T. Harv Eker,
which I have linked to you in the video description. But to quote a passage from the book to make
my point clearer and how I mean it exactly "If your financial behavior pattern is not
programmed for success, then neither all your learning , all your knowledge nor all your
ventures will bring about change". And this is coming from someone who went from a normal
earner to a millionaire in 2 and a half years. When I first started working in business,
money and economics, I was barely making money, so not worth mentioning. I realized that in
order for my circumstances to change, I first had to change "me". I know it sounds voodoo,
but if you listen closely to successful people, you hear this all the time. So I started to
change myself and my mindset and especially emotions about money. The big problem is that
for many people the lack of money is completely normal and an abundance of money is something
new and unknown that your ego always tries to protect you from. Sounds crazy, but that's
how it is. Now the question is how I overcame this problem. Of course there are many ways
and means and the first step is already done by acknowledging this problem. Furthermore,
I used affirmations to change my mindset, but the main reason how I managed to get my
bank account from $3000 to $10,000 was that I installed a money magnet. This money magnet
sounds also voodoo at first, but it's actually not. I show you exactly how to set this up
in the video above right ( How To Attract Money With One Simple Strategy Endcard + Infocard
), but I also go into it briefly here. I got the concept of the money magnet from a very
successful investor from Germany, who got the concept from his mentor and everyone who
really installs this, reports the same positive effects, that as soon as this is installed
the whole financial situation changes and that both in private and business.
It's about putting a fixed % of your income into a separate account every month, that's
nothing new so far. However, this money magnet only works as long as you stick to the only
rule: "Never, never withdraw money from it and never neglect to deposit it".
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.