Isn't it funny how people will tell you that you need to save money yet they
never actually tell you how much money to save this is why if you ask me so
many people struggle to see the financial progress they want in life
because they lack this key information that will allow their wealth to
transcend to new heights fortunately in this video I'm going to share with you
how much you should be stashing away as well as what to do with these savings
once you've got them and if you're new to the channel then hit the Subscribe
button below for more life-changing content you've probably never been
taught this but there are actually three different types of Savers out there
first are the non-savers as the name implies these are people who neglect to
stash away any amount of savings that each month passes by and as you can
imagine if Financial progression is what you're aiming to achieve then this is a
path you should steer clear of unfortunately many people find
themselves going down this road for a few reasons which I want to point out so
that you don't find yourself in the same precarious situation generally speaking
people who fail to save are victims at two situations the first is that they
simply don't earn enough to save for many minimum and low-wage employees the
cost of living these days have gone to a point where stashing away money at the
end of the month is downward impossible no matter how frugally you can manage to
live the second type of person commits saving negligence on their own accord
this can come in the form of overspending due to a lack of financial
constraint or simply not having a reliable means of tracking how much
money leads their wallets every month either way try and avoid the situations
if you can because I promise they will lead you down a dark Financial road the
second type of safer are oversavers kind of like how you have overprotective
parents who are just trying to keep you safe from the harsh realities of life
oversafers trying to do the same by stashing away more money than they
probably should be now I know it may sound strange to suggest someone can be
oversaving but the truth is that given how low interest rates are on savings
accounts the more you save the more money you lose to inflation finally we
have the optimal safers these individuals are Adept at managing their
finances to acquire the perfect balance between saving for a rainy day and
deploying their money into Ventures that will have their wealth growing steadily
over time this is the type of saver you should drive to become now one thing
that may surprise you about optimal Savers is the fact that they sell them
followed a commonly shared Financial advice of saving 10 of their income in
fact if you ask me this is some of the worst Financial advice out there and let
me get into why that is right now you see suggesting that everyone should save
10 of their income is like saying everyone should take the same degree at
college or that everyone should eat the same number of calories like education
and diet saving is not a one-size-fits-all solution in fact I
believe that how much you should be saving comes down to the financial
position you presently find yourself in let me share with you a few Financial
situations that may resonate with you so that you can use them as a guide to
dictate how much you should be putting away every single month let's say that
right now you're a new college graduate with fifty thousand dollars worth of
student debt and about a tenth of that in credit card debt as well well it
paints me to say this unfortunately many students are in this exact position
right now and aren't doing themselves any favors by employing the common
savings advice of stashing away 10 so why doesn't saving 10 make sense in a
situation simple because their debts greatly aware the benefits that they
would receive by stashing way more cash for example the average credit card
interest rate in the United States in 2021 was 18.24 and the average student
loan interest rate was 5.8 percent there's not a single savings account in
North America that will offer you that kind of return which means that your
money is better spent pained on your debts and stashing it away therefore in
this situation Beyond keeping enough cash on hand to cover your routine bills
I believe that those in this position should focus their extra income on debt
first before saving becomes a priority moving on let's next look at someone who
just cleared off their student debt and has never used a credit card making them
100 debt free if this is you then give yourself a pat on the back because only
a small percentage of people these days can make this claim and as such you need
a different savings approach than those around you if you're in this position
then I would make the argument that you may in fact be better off saving more
than the traditionally recommended rate of 10 why is this chances are afraid now
you're entering your debt-free life then this is the first time you've had an
opportunity to actually see your bank balance grow given that no you aren't
handing over all your disposable income to creditors in fact if you're in this
position your Main Financial priority at this given time is to ensure that you
have a topped up emergency fund maybe I'm a bit too conservative in my savings
ways but I always recommend people put away a Year's worth of cash for
unexpected Financial events even though common wisdom is to keep three to six
months of living costs on hand as such while saving up this productive Nest Egg
I recommend you ratchet up your savings efforts as much as you can so you can
start to enjoy the peace of mind that comes with having a proper amount of
money in reserve now if I had to guess I would say that these two prior
situations make up their financial positions of about 90 percent of
Americans sadly there are millions of people who are still trying to escape
the grasp of their student and Consumer Debt but fortunately there are others
who are entering their debt-free lives or at the very least only having to meet
their mortgage mans on a monthly basis but now let's talk about how you should
be putting away money if you do find yourself in a favorable financial
position if right now you're in a position where you are free consumer
debts and have met all of your emergency fund needs then your top priority should
be maximizing the growth of your money how do we do this you guessed it we
invest oddly enough for people in this position I actually recommend that you
adopt the same stance as those who are in large amounts of debt and keep your
savings to a minimum I know this Probably sounds like strange advice and
is opposite to everything you've been taught about saving up until this point
but trust me without investing your chances of getting ahead financially
will be slim to none let me share with you an example of just how big of a
mistake it can be to rely on savings versus investing to allow your wealth to
build over time let's say that every year you find yourself with ten thousand
dollars to disposable income and you have two choices you can save that money
or you can invest it if you choose to save that money over a 40-year time span
you'd end up with four hundred thousand dollars when all is said and done
however how much do you think you would end up with if you would have invested
that money instead assuming a conservative five percent rate of return
that ten thousand dollars invested annually over 40 years would leave you
with 1.2 million dollars it was literally the same amount of work you
can end up with three times as much money by investing rather than by
strictly using savings as your wealth generation approach right now you're
probably having one or two thoughts your first thought is that you'd love to end
up with over a million dollars in 40 years time but recognize that investing
ten thousand dollars a year is outside your present realm of possibilities
alternatively you may look at a million dollars and think that's a far cry from
the actual amount of money you'll need to retire on for decades from now
regardless of which of these two situations you presently find yourself
in both present an opportunity to use your disposable income to invest however
in this context when I say that you should invest I don't mean a traditional
assets like stocks or real estate but in yourself instead you see well
traditional assets that we are all guided towards investing into are great
and should be part of your wealth building plan there is no greater
investment than self-investment now I'm not just saying this because I want you
to be the best version of yourself that you can be I think I'll leave that
motivational stuff to Tony Robbins I want you to self-invest because this is
where the greatest opportunities for income advancement exist as you just saw
investing ten thousand dollars a year will yield mediocre Financial results
but for those who want to see their wealth grow faster contributing more
money is a must and how do you contribute more money simple you make
more money now it would be pretty rude of me to Simply tell you to make more
money without giving you any advice on how to do so and as such I want to share
with you what I see is the highest returning self-investment as you know
there are many ways you can invest in yourself for instance you can hire a
trainer to help you raise your physical health alternatively you can take a
course on meditation to help you gain mental Clarity and release all the
stress you are currently carrying around while I think these forms of
self-investment are valid you and I both know that they aren't going to move the
needle financially when it comes to making more money the best form of
self-investment I could recommend is acquiring a monetizable skill I Define a
monetizable skill is a skill that is in demand on the open market and that you
can use to make ten thousand dollars or more a month some examples include
copywriting programming financial consulting and the list goes on the key
here is to ensure that whatever skill you put at the center of your
self-investment journey meets the two criteria I just mentioned I say this
because if your skill isn't in high demand then being able to monetize it
will be quite the challenge alternatively if your skill isn't
valuable then you'll be having to trade copious amounts of time simply to see
your income Rise by an appreciable amount the best part about acquiring
this valuable new skill is that you don't have to break the bank to do so
through proper mentorship or even tutorials on YouTube you can slowly
craft a monetizable skill that you can use to boost your income which will make
investing larger sums of money every month entirely possible I know for
myself personally the animation copyright skills I have acquired make me
thousands of extra dollars a month which I teach my students how to emulate my
course side hustle success therefore even if your savings aren't exactly at
astronomical levels right now as long as you have the time and willingness to
learn then acquiring a skill you can use to get ahead financially is well within
your grasp therefore when all is said and done there is no one-size-fits-all
answer to the question of how much you should save every month you should be
saving based on your own unique financial goals and situation and
hopefully based on the scenarios I've provided making this determination will
now be a little bit easier hey it looks like YouTube thinks this next video is
the one that will change your financial life forever give it a watch end let's
see if they're right