We can all agree on one thing having money is better than not having money
but in order to achieve this you must learn to save most people want to save
more money but without a solid plan and good habits it's easy to fall short in
your financial goals life interferes money slips through the cracks and
before you know at the end of the month arrives and you're no closer to saving
than when you were when you started the month through my own money-saving
journey I've found that the key to saving more is by leveraging simple but
effective saving techniques which is why in this video I will share with you
seven tricks you can use to save more money fast and if you're new to the
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trick number one appreciate the savings process when you're just starting out
with saving it's easy to discount your efforts even if you're only able to set
aside five dollars focus on the fact that you're saving something now many
people start their financial journey with thousands of dollars in the bank
and $5 is always better than zero during the early days of your saving
journey you should be more focused on creating money saving habits then
worrying about how much money is beginning to add up in your bank account
which is why you should give yourself permission to start slow when I was
first starting out could be quite discouraging to admit to myself that I
could only save like twenty dollars a week but what helped me overcome this
mental roadblock was analyzing the savings figure for instance twenty
dollars a week isn't much but it amounts to more than a thousand dollars in a
year which when I first started saving seems like quite a bit of money as long
as you're moving in the right direction you're focused on what really matters
establishing the habit of saving once you gain momentum you can take a look at
your budget and figure out savings opportunities that you may not have
immediately recognized if you're not sure where to start or how much you
should be putting in your savings account here's a good method start by
saving one percent of your monthly income and increase that by one percent
every month if you're in $3,000 per month safe thirty dollars a first month
sixty dollars a second month ninety dollars a third month and so on trick
number two set up automated deductions one of the biggest things holding people
back from saving money is the perceived effort it will take they think that in
order to save money you must spend hours a month calculating your income
budgeting and checking your bank balance but in reality saving money takes next
to no time at all when you automate the process setting up automated deductions
from your pay to your savings accounts can get you started saving money without
even thinking about it by filling out a few forms for your employer you can have
part of your paper automatically read into your savings account making saving
money literally effortless I personally use automated deductions in my money
management plan and I think the savings technique has been so successful for two
primary reasons first it allowed me to pinpoint exactly how much I wanted to
save when I first started using this technique I was earning around $2,000
every pay and I knew I wanted to try and save $500 a month so I set up a 12.5
percent deduction for my pay which allowed me to consistently hit the
savings target second automating my savings took the thought of having to
save off my mind allowing me to focus on other important things like improving my
skills in order to make more money I often preach that once you have a solid
savings technique in effect that making more money is the number one way to save
more and by freeing up my mental bandwidth I was able to take on more
freelance work earning the extra income to boost my savings now depending on
your level of financial discipline it may be worthwhile to set controls on
your savings account so you aren't tempted to spend it for those with a
less financial willpower I often recommend setting up an untouchable
account which is an account that you open and then give the banking
information and access card to a trusted family member or friend this way you
will have no access to the account meaning that even if you wanted to spend
the money that was accruing in that account there would be no way that you
could trick number 3 set savings goals for some people the best way to save is
to have short and long term goals for instance a short-term goal may be to
build a $5,000 emergency fund within the next year so that you can have money set
aside for emergency purposes and if you need a refresher on emergency funds and
ways to manage your money in general you can check out the modern money habits
course on Skillshare and watch it for free because we're trying to save money
here right by following the link in the description and signing up for a free
two months of Skillshare now by setting goals around your savings efforts you
create a target to work towards which will keep you much more focused on
taking the necessary actions that will lead to increase savings moreover by
setting up these goals you can link them directly to the
benefits you'll realize when the goal is achieved for instance if you were able
to achieve your goal of building a $5,000 emergency fund the benefits you
would realize would be less financial stress in a sense of control on your
ability to weather any unfortunate circumstances other common short-term
goals include saving for a vacation a new car or a down payment for an
investment property when it comes to long-term goal is having a robust plan
to achieve them is crucial in their realization the truth is that when goals
lie way out in the future it can be easy to underestimate their importance for
instance 70% of American parents intend on saving up the full cost of tuition
for their kids however only 29% of them are on pace to actually accrue the money
it will take to cover this ever-increasing expense in an effort to
save to achieve both your short term and long term goals be disciplined about not
making withdrawals from your savings accounts unless it's a life-or-death
situation some banks apply penalty fees if you go
over a certain number withdrawals from a savings account in a given period which
is an excellent way to dissent avise withdrawing funds trick number 4
question all of your purchases it's said that a dollar saved is two dollars
earned and when it comes to saving money you need to make sure that your
expenditures are in line with the life you want to live for instance you may
feel inclined to buy a $5 coffee every day but deep down you know that saving
that money and putting it towards a family vacation will be much more
worthwhile now we all have vices but the point I'm trying to make here is that
you must try your best to spend thoughtfully every time you take out
your credit card ask yourself is spending money on the sytem is bringing
you closer or pushing you further from achieving your short and long term goals
chances are that this thoughtless spending will only grant you a momentary
high whereas if you were to save that money and achieve your savings target
you would gain a much greater sense of satisfaction I know this is easier said
than done so let me share with you two ways I've been able to curb my own
spending in the past one of the most straightforward ways to decide on a
purchase is determine how many hours our work will take you to afford for example
if you're in $25 an hour and you want to buy a $2,000 laptop you should think
about whether that computer is worth 80 hours or roughly 2 weeks of work the
other way you can question your spending is by using these strange
test if you're unfamiliar with this money-saving trick let me explain how it
works every time you think about buying something picked your stranger standing
in front of you in one hand they have the item you want to buy and in the
other hand they have its monetary value in cash which would you rather have in
most cases the cash is probably more appealing when taking this approach on a
regular basis you'll start to see yourself continuously picking the money
over the item which solidifies your position in not splurging and instead
keeping that money in hand trick number 5 budget for your savings one common
reason so many people make it to the end of the month and wonder why they haven't
saved any money is that they never budget to save money in the first place
don't make this mistake instead you should be building a monthly budget that
when followed will allow you to hit your savings target and a lot of that piggy
bank of yours to grow two of my favorite budgeting methods that have savings
built into them are the 50 30 20 method and the 8020 method in the 50 30 20
method you allocate 50% of your income towards living expenses 30 percent
towards entertainment leaving you with 20 percent that will go right into your
savings account I find this method to work great as it
delineates how you can spend your money but not everyone wants to have
parameters around their discretionary spending which swaiiow often suggests
the 80/20 method instead in the 80/20 method you allocate 20% of your income
towards saving and the rest is up to you how to spend it
using both methods you will be sure to start saving money especially when the
savings amount is systemized to the use of automated deductions trick number 6
try the anti budget will I constantly preach the benefits of budgeting I know
that I can't convince everyone to adopt this money management technique the
truth is that not all strategies work for everyone and not everyone is a
natural saver in fact some people are quite opposed to the idea of creating
budgeting spreadsheets or writing down all of their expenses those who are
opposed to budgeting often complain that it takes too much work that it's too
restrictive or then it can be too hard to agree with your significant other
where all the money should be allocated if any of these situations resonate with
you then perhaps a money management method you should be using is the anti
budget this method involves assessing how much money you tend to spend on a
monthly basis and then backing out how much you want to say
then once you have this figure you can spend it freely as the amount of money
you aim to save will already be accounted for if you're struggling to
make ends meet then I don't believe that this is the ideal budget to be using
however if you are strongly opposed to budgeting then this can be a good tool
to break the ice in your money and management journey trick number seven
set small rewards saving money often means making sacrifices and continuously
giving up things can wear you down over time if your self-imposed restrictions
on spending are too strict you may be setting yourself up for failure it's
like going on a really strict diet if you deny yourself of everything for way
too long you may snap and undo all of your good
work this is why I think it's beneficial to set up an occasional reward for
yourself for instance if you have a long-term goal of saving $10,000 and
that means giving up that daily latte and your monthly happy hour with friends
set mini goals along the way once you hit $2,000 reward yourself with a latte
or a couple drinks with friends to enjoy a mini celebration of all the hard work
you've been putting into your money savings journey in short there's no
reason saving money has to be a completely miserable experience and be
giving yourself small rewards you'll reinforce the idea that you're doing
something that will quite literally pay off in the end
thanks for watching if you want to go from the life you have to the life you
deserve then hit the subscribe button now