I don't know who's cried more recently me or my bank account and all these
tiers are the result of one thing inflation if you've been crying over
increasing prices of late don't worry because i'm about to share with you the
five steps i've taken to save money with inflation that i promise will have you
stacking tons more cash i know that whenever people talk about saving money
the word budget enters a conversation but this is for good reason you see it's
really hard to save money especially during times of high inflation when you
have no idea how much money you are saving in the first place this is like
trying to lose weight without knowing how many calories you're consuming it
just isn't gonna work now while i want to assume that you already have a budget
in place if you don't then don't worry in the next 30 seconds i'll explain
exactly how you can set up an easy but effective budget that you can use to
make sure you start saving money while inflation is hitting record highs to
start at the top of your budget is your after tax income typically you can find
this number by summing the total of your monthly paychecks or if you're
self-employed this amount will be your monthly income net at what percentage of
tax you typically pay once you have your income figure it's time to identify your
expense categories most people's expense categories include costs like housing
transportation food utilities entertainment and the like you can
google any standard budget template in order to help identify the cost
categories that pertain to you finally at the bottom of your budget will be
your net savings this is the difference between how much you make and how much
you spend and our goal is to maximize this amount now once you have this
itemized budget in place this is where the real work starts after using this
budget for a few months you're going to want to review your spending to identify
where you're being hit the hardest by inflation so assuming your spending
needs remain constant you will notice which cost categories are being impacted
by inflation the most based on how much they rise as you track their amounts
month over month for instance one cost category that is impacting a lot of
people lately is a cost of food at home costs have risen by over 12 since this
time last year which is adding a ton of extra strain on the wallets to people
like you and me another good example is the cost of gas if you own a car then
you've definitely shed a couple of tiers filling up your tank lately if you've
been reviewing your budget over the last year like i'm recommending then you've
definitely been seeing those costs rising steadily therefore the first step
is to create a budget that you can use to assess which cost categories are
being impacted by inflation the most once this is complete you can move on to
step number two which is using the 3 30 exercise now another word exercise may
have just put you into a state of panic but hear me out because there's only
good news ahead not only does a 3 30 exercise not require you to break a
sweat but it's also going to help you combat inflation and save money so
here's how it works the 330 exercise involves reducing your monthly
expenditure on the three most inflation impacted cost categories that you
identified when performing your budget review so for instance let's say that
when you were reviewing your costs for the last month the costs that appeared
to have been impacted by inflation the most were your groceries transportation
and entertainment in this case you would be required to make adjustments in order
to reduce these costs by 30 hence the 330 exercise so let's talk about how you
could do that right now let's start with groceries what we all need there are
some ways to save money and still keep your stomach full for instance you can
review your food choices and move away from foods that are experiencing the
highest amount of inflation like meats and fruits and offer other palatable
options alternatively you can assess how much food you're wasting because we all
do it and see if you can get by with buying less in an effort to reduce your
waste to zero as for transportation you better get out those running shoes just
kidding but the easiest way to avoid the cost of rising gas prices is to simply
drive less this could mean taking the bus to work or deciding to avoid taking
long or unnecessary drives and if you've considered doing any of these things
already let me know by hitting that like button below finally there are
entertainment costs travel and food away from home costs are usually areas that
are highly impacted by inflation so if you can hold off on a vacation or trying
that brand new restaurant out in your city then scaling about this expense by
30 should be doable now will this exercise
save you thousands of dollars not right away but it will ease a bit of your
financial strain especially when you combine it with step number three so the
third step you're going to want to employ involves the 30-day rule the
30-day rule requires you to cut out all expenses one would classify as one items
for the next 30 days then after the 30 days elapse assess which expenses you
feel you could live without and which you were dying to add back into your
life however before you can start using this rule you have to delineate your
wants and needs in the first place and doing so is incredibly important in your
quest to save money why is that you may be wondering let me explain the truth is
that the easiest way to sidestep the effects of inflation is to simply stop
spending money when you stop spending no matter how much the cost of goods
increase you'll remain unaffected now while you can avoid spending forever you
can scale back what items you buy and this comes from understanding what
purchases provide you the most value and which don't so in order to assess your
wants and needs you're going to have to go back to that handy budget you've been
using and review each and every cost category and the expenses that pertain
to them as you're going through each expense ask yourself if you think they
fall into the category of a want or a need in my experience any expense that
doesn't relate to groceries and housing are costs that can be deemed as wants
but ultimately this is something you'll have to decide for yourself once you've
identified your wants it's time to cut them out for 30 days this could be going
out for dinner having netflix or buying new clothes for your weekly night out at
the bar then once you make it through the next 30 days which i promise you
will ask yourself which eliminated items you missed the most i know for myself
personally performing this exercise provided me a ton more benefit than i
initially thought it would for instance not only did it allow me to cut out
expenses and save money but it also provided me lifestyle benefits that i
was foregoing for example i kind of go into the club for 30 days and by doing
so i not only saved a few hundred dollars a month but i also didn't start
my weekends with a hangover which i've noticed have become even more severe as
i've gotten older this is all to say that you're probably going to enjoy the
lifestyle benefits when you employ the 30-day rule and save money in the
process now at this point if you followed the three previous steps i've
shared so far you should be starting to save more money however you don't want
to make the mistake that i see so many people making once they start stacking
some cash what is that mistake you may be wondering turning those savings into
board money and just like a board girlfriend board money will inevitably
get up and leave you see if you grew up like me then you probably had your
parents advise you to save every penny you earned you were told things like a
dollar saved is two dollars earned however while saving money used to work
back in the day when banks paid respectable amounts of interest on their
accounts today the advice to save money is a losing affair let me explain right
now if you leave your money in the bank you're likely to earn a few bucks a year
on your deposits as right now the average savings account interest rate is
roughly 0.1 however when inflation is near 10
that means that if you let your money turn into board money and just sit idle
you're in effect losing 10 percent of that harder in cash you work so hard to
make this is why the fourth step you must employ when trying to save money
with inflation is to invest i know you're constantly being told that you
should invest your money but no one ever really tells you why this is such a
savvy financial move during types of inflation so i want to get into that now
when most people think of investing they think of buying stocks in companies like
apple or tesla well these companies have somewhat of a superpower during times of
inflation and it comes in their ability to price their products and services you
see when inflation is on the rise it's not just people like you and me who are
affected by companies as well as prices rise so do their input costs however
well as consumers we have to bear the brunt of these economic forces companies
have a way out and it comes in the form of price increases companies almost
always pass their increased input cost costs and consumers which now that they
think of it is probably why i always shed a tear when i'm driving to the
store and if you do too make sure you hit that subscribe button below so we
can fix this issue together however investing is like a box of kleenex ready
to wipe up those tiers because when you invest in these companies you get to
flex their superpower too as you invest you reap the benefits that these
companies enjoy when they raise their prices however rather than collecting
more revenues your benefit comes through stock appreciation it's this stock
appreciation that keeps your money ahead of inflation and is why investing is a
highly recommended move to make with your money compared to most people who
simply let their money rot in the bank however even when you have your excess
cash fully deployed investing can only get you so far for instance during times
of high inflation it's not uncommon to see moments of economic downturn meaning
that those investing returns you hope will keep you moving forward won't
return for some time as such you need to put step number five in action which is
to make more money whenever i talk about making more money in the context of
saving i like to use the analogy of filling up a pool when you cut out
expenses in order to save money it's like filling up a small bucket and using
that bucket to fill up your pool sure it will work but it will take a lot of time
and the progress will be slow when you make more money on the other hand it's
like filling up your pool with a fire hose the stream is constant and the
progress is rapid now before you go changing your swimsuit and sneak out
into your neighbor's pool let me share with you a star comparison that will
illustrate how much more effective racing your income is in saving during
types of inflation versus cutting costs or investing let's say that over the
course of the last year your cost of living has increased by ten thousand
dollars in order to combat this rising cost you can either create ten thousand
dollars worth of savings realize ten thousand dollars worth of investment
returns or make ten thousand dollars in extra income let's start with savings
right now the average american spends roughly sixty thousand dollars a year in
order to save ten thousand dollars they would have to cut their spending by
around seventy percent or just over eight 800 a month chances are if you had
to save this much money every month you'd have to make some major life
changes like moving giving up driving or basically never going out it's doable
but not realistic for most people then you have option number two which is to
invest if we assume you were to realize the market's historical return of ten
percent achieving our ten thousand dollar target would require you to have
a hundred thousand dollars invested however studies show that it takes the
average person well into their fifties to achieve this level of investment
meaning that unless you're realizing astronomical returns or you're
middle-aged relying on investing probably won't pan out plus if the
market declines during inflationary times investment returns won't solve
your issues anyways finally we have making more money as i just mentioned
during an extra ten thousand dollars that requires you to earn an extra 800 a
month assuming you earn 20 an hour at your job that's an extra 40 hours of
work per month now i know that this means working quite a bit more than you
already are but i think you'll agree that this is the most practical path to
keeping up with inflation now does this mean that you should only focus on
raising your income during periods of inflation not at all you should be
putting all three of these inflation tactics in place and if you do the next
time an inflation report comes out you won't even pay it a second thought
however making more money is easier said than done and if you want to learn how
you can start growing your wealth exponentially click on this next video
and let's get started