Is it just me or does it seem like every day the cost of things we normally buy
keeps going up well if you've been noticing the same then you're probably
looking for ways to save money however i must admit that there's a ton of garbage
advice on how to save money out there these days for instance people will tell
you to cut coupons and ditch your starbucks coffees just to save a couple
bucks do yourself a favor and don't listen to these people instead let me
share with you five money savings tips for beginners that will ensure you save
more money this year than you ever have before tip number one review your big
three expenses if you ask me one of society's most widespread failures is
the fact that despite money's great importance financial education is not
taught in schools a lot of people don't know it but if you took your time to
analyze your cash flow you'd probably discover that your three biggest
expenses are housing transportation and food and these three cost categories are
gold mines so when it comes to saving more money the review of these expenses
is critical in your efforts to save more money and i'll get into how you can do
that right now first let's begin with housing since it's generally the most
costly of the three it's well known that neighborhoods with higher demand
generally those with better schools higher paying jobs and more enticing
attractions if you live in one of these expensive parts of town or simply rent
or own a property that exceeds your needs then one obvious way to reduce
your housing costs is to make a change to your living arrangements for instance
let's compare the cost of two different sized homes for a home you acquire with
a four hundred thousand dollar thirty year mortgage at five percent you can
expect to pay nearly 370 000 in interest over the course of the loan compare that
to a 200 000 mortgage with a 5 interest rate over 30 years and your total
interest cost will be 185 000 instead that's more than 200 000 in savings over
30 years now that can go a long way in helping you build your wealth over time
now the second expense to review is transportation now unless you work from
a home or a hermit chances are you have some sort of need for transportation for
instance going to work going to the gym traveling to meet friends and family
there's always a place to be and people to hang out with unfortunately a lot of
people get caught up in the hype of getting a car i like cars as much as the
next person but there's no refuting the fact that they are a total money sink if
you agree go ahead and gently tap that like button below you've probably heard
that when a new car hits the road for the first time it loses 10 of its value
instantly well things only get worse as it loses 20 of its value after the first
year of ownership which is why financial experts often dissuade people from
buying new cars therefore if prosperity is your goal buying a new car for forty
thousand dollars may not be the best choice because you lose four thousand
dollars the moment you drive it off the lot and eight thousand dollars by year's
end alternatively buying used offers you the ability to let someone else incur
the steepest periods of depreciation while you still get many years of
benefit as most cars run well for at least a decade however the best way to
cut down your transportation cost is cycling and using public transportation
these two modes of transportation remain among the best options for people who
want to reduce their transportation costs most people live in big cities
already accustomed to using some form of public transit and paying a hundred
dollars for a bus pass over hundreds just for gas alone is a win when it
comes to stashing away more money plus if you offer the biking option you can
save money and get an exercise at the same time the final of the big three
expenses is food and the best way you can cut down this expense is simple eat
out less when you go to eat the price you pay is inclusive of a lot of extra
costs table service restaurant overhead a tip and any additional taxes now i'm
not saying you can't enjoy a meal out from time to time but if you're serious
about saving money this year then keep these extravagant nights out to a
minimum tip number two eliminate all high interest debts no saving strategy
is effective as eliminating high interest debts and most credit cards
these days charge extremely high interest rates with rates exceeding 20
percent in many cases now what most people don't realize about paying down
high interest debt is that it's akin to receiving incredibly high investing
returns for instance very few investments can give you a return equal
to the 18 or 21 interest rate you're being charged in your credit cards which
is in effect the returns you're getting when you're avoiding future interest
charges so now you know how lucrative paying down your high interest that can
be on making strides in your savings efforts how can you eliminate this debt
for good the solution is to hit that subscribe button below okay just kidding
but seriously do it if you haven't already in all seriousness the best
method to eliminate this problem is not to use a credit card unless you know you
have the money to pay the bill upon arrival it's easy to forget how much
you've charged your credit card each time you use a credit card keep track of
your spending and determine how much you'll have to pay that month now if
you're already in high interest debt here's a simple plan you can follow to
become debt free in no time first organize all your debts from the ones
with the highest to the lowest rates of interest next begin to funnel all your
disposable income onto the one with the highest interest rate until it's paid
off then proceed to pay off your debts in descending order until you become
debt free of course this process will take longer for those with more debt or
less disposable income to apply to their balances but using this approach is the
most proven way to minimize your overall interest burden tip number three set
detailed savings goals when you think of your future what does it look like do
you want to buy a home with a yard for your dog do you want to be free of
student debt do you want to go on a life-changing vacation if you want to
achieve any of these wonderful things i'll tell you right now you need to set
detailed savings goals simply put setting savings goals can help you
prioritize how you allocate your money and will constantly remind you of the
better times ahead now i'm sure the idea of setting money goals is nothing new to
you but still so many people do this incorrectly almost everyone in the world
probably already has a plan to do everything from saving to retiring to
paying student loans however turning these dreams into reality is another
matter entirely ask anyone who is succeeding financially and they will
tell you that you need to employ detailed money goals your goals should
be divided into short medium or long term objectives short-term financial
goals are achievements you want to attain within the next 12 months
medium-term financial targets can run from 1 to 10 years while long-term
financial goals are typically goals you want to achieve in 10 years or
thereafter once you have these goals outlined it's not enough to just rest on
your laurels and hope things work out the next step is to attach tasks to
these goals to make sure they are realized for instance if your goal is to
save a thousand dollars this year then you should have a plan for how you will
earn that extra money whether it's by doing some freelance work or taking on
extra hours at the office in fact if you ask me the more detailed your goals are
the higher the chances you'll actually achieve them so put in the work when
creating your goals and you will reap the rewards you desire tip number four
don't save at all okay so this tip may come as a shock given that i just share
with you three ways to put more money into your pockets every month but here's
the thing saving alone isn't enough no one and i mean no one has ever saved
their way to impressive levels of wealth don't believe me let me share with you
an example to illustrate this point let's say that you employ all the tips
i'm sharing with you and are able to save ten thousand dollars a year after
forty years you would have four hundred thousand dollars saved that's a lot of
money right well not exactly at an average three percent inflation rate
that four hundred thousand dollars would be worth just over a hundred and twenty
thousand dollars in today's money so as you can see saving loan isn't as
promising as many people make it out to be however if you were to invest that
money into the stock market instead after 40 years at an average or seven
percent return you'd have two million dollars or five times more money than
you would have compared to saving loan and still exponentially more when
inflation is factored in therefore it's not enough to save you must invest your
money however investing towards wealth requires you to make sizable
contributions to your portfolio regularly so let's talk about how you
can do that next tip number five earning more income i'm going to level with you
when it comes to saving money cutting costs can only take you so far we all
have certain expenses we have to meet every month and if i'm being honest if
you want to save any appreciable amount of money this year or any year for that
matter you're going to need to find a way to increase the amount of money you
earn now this is probably not news to you but the cost of living these days is
skyrocketing no thanks to inflation and as a result having only one stream of
income rarely serves anyone well therefore creating and maintaining
multiple streams of income is a new order of the day for those seeking an
abundant life so how can this be done you ask let me explain one step you
could take to start earning more money is to ask for a raise getting raised is
an excellent move because it doesn't require a lousy exchange whereby you
trade more time for money you spend the same amount of time but you're cashing
bigger checks keep in mind though that it can be tricky when asking for a raise
especially when your company feels your current salary is what you deserve to be
paid as such you need to present a strong argument that you deserve a top
up in pay a more proactive approach to making more money is to get into
freelancing whether you realize it or not we all have skills that we can offer
to others to make some extra money however if you don't agree there's
nothing stopping you from learning a new skill and using it as the basis of your
next income stream in fact this is what i did a few years ago i taught myself
how to create animated videos and i've turned the skill i've learned for free
into a four figure a month business let me tell you when you're making thousands
of extra dollars a month saving money becomes significantly easier because of
this i've decided to leave my free guide to building your own one thousand dollar
a month side hustle down in this video's description for anyone looking to start
making more money then as you start to make this extra income you'll not only
have more money to save but to invest with as well which will be a cornerstone
to your wealth creation journey now if you are keen on really expanding your
income in a short period of time then you're going to want to watch this next
video where i share with you the exact step-by-step approach i use to make 10
000 a month and how you can do the same click on over and let's get started