Money doesn’t come easy, especially when you are on a low income. However, there are
many ways to save money that will really help you on your journey to financial freedom and
security. These 6 ways will keep more money flowing in while you’re increasing your
wealth at the same time. I share with you exactly my principles and
ways how I started to build my wealth, which I acquired over years from my role models
like Warren Buffet or Robert kiyosaki. And 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. And at the
end of the video, if you were able to take away real value for yourself, feel free to
give this video a Like
For many, making ends meet on a low income can be a real struggle. Not only do many families
live from paycheck to paycheck, but they also have monthly expenses that they need to cover.
Moving from living from paycheck to paycheck to living a life where you don't have to worry
about money and have a secure financial life may seem difficult – but it’s not impossible!
By living a life focused on saving and building wealth you can break out of this wheel and
put an end to it all.
Way 1 : Reduce Your Cost of Living
While it is not very difficult to save some money, it is more difficult to change money
spending habits. However, once you take a look at all your non-essential things that
you buy, it's very easy to see what you could easily cut down on. For example, if you don't
really need every single item in your closet or laundry hamper, you can spend less on the
things you only wear every couple of days. The easiest way to do that is: find the areas
you spend the most money on and always ask yourself if they are necessary. Get rid of
the extra stuff and really save on everyday expenses like food and clothes.
Way 2 : Increase the Money You Make
Millions of people are starting side hustles, switching careers or starting a part-time
job. Why ? Because it makes sense while you start saving money, also increase your income
on the side so you can save even more money. If the income is larger, the savings rate
can also be higher. Simultaneously in this process, they build multiple streams of income.
This means they draw their income from multiple sources, which provides them with security
if one source fails. If you are on a low income your first priority
should be to increase your income. This is the fastest way to get rid of this problem.
In our opinion starting a side hustle provides the most value for you, because over time
your income will increase and maybe you can make your side hustle to your main job. But
keep in mind that a side hustle takes time and results may not occur for a few months.
Possible side hustles could be a marketing agency, a blog or maybe a YouTube channel.
If you want us to, we can make a specific video about side hustles and which ones are
really profitable. Just let us know in the comments.
If you don't want to wait any longer to increase your income, we recommend either a job change
or a half-time job.
Way 3 : Take Control of Your Debt
Taking control of your debt is very important because after you pay it off, you will be
able to save more money and put it away for building wealth in the long run.
There are many ways to take control of your debt, but the most important thing is to pay
it off and still save money along the way. To make this possible, many use the 50-30-20
rule. We addressed a modified version in another video, this one is linked in the top right
or in the description. The 50-30-20 rule has the advantage that if
you have really large debts, you can apply it to systematically pay off your debts. It
is a budgeting rule and you divide your net income into spending categories. 50% of your
net income goes to your basic expenses such as food and rent, 30% goes to your personal
needs such as travel and 20% goes to savings or debt repayment.
Our recommendation is, if you have really high debts, to subtract another 15% from your
30% personal needs and use this as a savings rate.
Way 4 : You Can Save Money on Transportation
The US average annual spending on motor vehicles, parts and gasoline is roughly 2.500$ in a
year. Ask yourself how much you pay per year for
your car and for your transportation? You do not know? Then it is time to deal with
it and possibly save a lot of money. Of course you have to get to work and also
go grocery shopping, but aren't there worthwhile alternatives ? Using your own car for each
route can really cost you a lot of money. Choosing transportation alternatives by using
new technology like Uber, Lyft or public transit is less expensive than using a car.
Way 5 : You Can Save Money on Insurance
The average U.S. citizen spends $250 a month on insurance. So it pays to take a closer
look at your insurance. The important thing to do when looking at
insurance products is to take the time to carefully research your options. In other
words, you want to know what you are getting yourself into and what is important to you
based on your life situation. The best way to save on insurance is: 1. to
look at what is important to you and what you need, 2. then compare the different providers
and offers and 3. regularly revisit your insurance needs.
There are now many good insurance providers that have a good performance for a good price,
such as Lemonade. Lemonade would appear to be a rarity in this
world - an insurance company with a social conscience.
And not only that but one that pays up to 30% of its claims in seconds rather than the
weeks you've all come to expect from a typical insurance company.
So instead of bloated premiums, you pay a flat fee each month, starting from as little
as around $2 for contents insurance.
They take a small cut of that, the rest goes to actually insure your possessions, and anything
left over is donated to worthy causes.
We have linked them to you in the description, feel free to check them out to compare your
offers and save money.
Way 6 : Get more out of the money you’re already spending
The easiest way to save money is to make more of the money you spend anyway or to manage
it better. If you do it right, you can save up to $1000 a year and use it to invest, save
or pay down debt. How you can manage your money better is by setting a budget. At first
it takes a little time to create a budget, but once you have it set up you will be able
to track your expenses and income and also control exactly what you spend your money
on. We have linked you to a video in the top right
corner that shows you how to create a perfect budget in 10 minutes or what we use is CalendarBudget.
This is a budgeting tool that we use. If you want to check it out, check out the description,
we've linked it there. And now you need to put all of that saved
money into an automatic investing tool. Every dollar you save now you put into an investment
account. The best way to do this is to automate the transfer of this amount from your bank
account to this investment account. There is a wide range of ETFs and mutual funds
that are very suitable for automated deposits into an investment account and thus build
up a fortune in small steps. If you liked the video and want to learn more,
click on the right side or check out our description. You will find our recommendations to “watch
next” and other resources to save money.
And hit the like button if you now know some ways to save money and build wealth in the
long run.