– Every now and again I like to sit down and take a deeper dive into my finances. When I was running the numbers recently, I realized that my
savings had jumped by 10%. Okay so I don’t actually
save 69.5% of my income, but I do save 70% of my
income every single month. So in this video I’m
gonna walk you through how I save 70% of my
income every single month. The goal is to hopefully
give you some ideas to explore for yourself so that you can greatly increase your savings rate kinda like I have. If that sounds interesting to you, then please Hulk Smash
that thumbs up button. I would greatly appreciate it, and it helps show my mom that I’m not as big of a loser as she thinks I am. I think it’s safe to say that there is a big savings problem when it comes to Americans, not because we’re all idiots, but because you don’t
know what you don’t know. But once you know it, it’s one of those things
where you’re like, oh okay I get it now. It’s the same thing with maxing out your savings rate. It’s honestly not rocket science and way way way more attainable to increase your savings
rate than you think. I would go as far as saying
that everyone watching this is able to do 90% of the
things that I’ll show you. But even if you can only do 50% of these things that I talk about, then that right there
will greatly increase your savings and investment rate in a way that you didn’t
even think was possible. Now when you hear that I’m
saving 70% of my income, then your natural thought may be, well, you must make a lot of money then, or, you must be so deprived that you’re not enjoying your life. Actually I have pretty much
everything that I want and need. If I want something,
then of course I buy it. There is zero deprivation or cheapness going on over here in this house. If you wanna make this happen, then you just have to
get a few things right. Don’t forget to hit that Subscribe button if you want more personal finance
videos just like this one. There’s also all kinds of
playlist in the subscription for you to check out
after you watch this video to help you out with all of
your personal finance needs. Let’s get into how I save 70% of my income every single month right meow. The first reason my savings
rate is so high is that I don’t have kids. Now before you get all angry, start typing ignorant
things in the comments and giving this video a thumbs down, I’m just being honest, and I’m owing the fact that this does play a role in my high savings rate. So Hulk Smash that thumbs
up button for honesty. This is coming from a guy
who really likes children and is absolutely open to
having kids in the future if I can find a smokin’ hot wife that wants to have all of my babies. Saying I can. – I can. – I can, we don’t say I can’t, we say either I can or I will try. – I will try. – I will try. We don’t say I can’t. – No. – No, we say I can or I will try. – I will try. – There you go, good job. Or maybe I’ll even adopt a
kid in the future, who knows? But I’m able to have more
money in my pocket today since I’m not caring for a cute and sometimes annoying little monster. The more important thing
to take away from here is that if you have kids now or gonna have them in the future, don’t let the fact that you have kids prevent you from increasing your income to increase your savings rate. It’s one of those limiting beliefs that’s extremely easy to
fall into if you’re a parent because you’re already working hard enough caring for these kids, so how in the world are you supposed to
make more money as well? The majority of my friends are parents and a lot of them have found
ways to increase their income in ways that they never thought before. Another thing parents can do is make their kids work
as early as possible and start paying for things on their own. This can greatly increase
your savings rate if you are a parent. Now I know when I was 14, I started working and paying
for everything myself. And I honestly think
it’s played a huge role in shaping who I am today. You should also force your kids to apply for scholarships if they go to college so you don’t have to worry about having to save money for them every single munch, munch, munch, month which will greatly
increase your savings rate. Paying off $82,000 of debt in four years is still one of the best
decisions I have ever made. It’s also a large contributing factor to how I’m able to save and invest 70% of my income every single month. My debt consisted of student loans, a credit card, and a car loan. Carrying debt has become
so common among Americans that it’s something that
everyone just accepts as something that they’ll always have, kind of like that pet turtle that I got from one of my exes. That thing is gonna live forever. Bad debt will be one of
the largest destroyers of your wealth above anything else if you allow it to hang around
until the day that you die. It’s like lighting money
on fire every single month. Not only are you losing money through the interest that you’re paying, but you carry around
this large amount of risk everywhere you go. It follows you forever. Forever. Name that movie in the comments if you know what it is. When you carry a bad debt, you lock yourself into being vulnerable to the insanity that’s
already here in life. Your back is instantly in a corner every single morning that you wake up, and whoever you owe money
to literally owns you. They own your thoughts, they own your feelings, they own your emotions, they choose what you can and can’t do, and they own your happiness. Stupid people spend money
that they don’t have on things that they don’t need. I decided to stop being stupid and only buy things that
I can actually afford by saving up for it. You can’t know how much you’re saving unless you know where it’s going. Because of this a budget
is extremely important to my ability to be able
to save 70% of my income. Budgeting isn’t about being cheap at all. It’s just a way for you
to direct your money and tell it where to go as opposed to having it tell you where it wants to go which is usually right down the toilet if you’re not paying attention. I recently heard about an author that was trashing budgets because he said that they prevent you from earning more money and being happy since they force you to cut back. He said it gives the
person a scarcity mindset. My answer to this author
is you sir are an idiot because what prevents a
person from making more money has more to do with the person not going out to pursue more money. A budget has absolutely
nothing to do with that. A budget is a way for you
to prioritize your spending so that more of it goes towards things that actually make you happy and will improve your lifestyle today and in the future. I think there has been
enough studies done on this that buying more things does not correlate to becoming more happy. So if you love buying clothes and that makes you the happiest person in the world, then that’s great. Budget for clothes and buy those clothes. If pursuing financial
independence or retire early will make you super happy, then great. Budget your money so that you can achieve financial independence
or an early retirement. Can you increase your savings
rate without a budget? I’m sure you can, of course you can do anything you want. But I could also go swimming
with sharks and not get bit, but I’m still not gonna
hop in that ocean to do it. No thanks, no way. You can jump in on your own if you want. The next reason I’m able
to save 70% of my income is that I don’t spend
insane amounts of money on car purchases. Does this mean that I only drive beaters? Nope, not at all. Instead I choose to buy
more reliable car models that have a better track
record with cash of course. The with cash and used parts
are the keys to success. Since I pay cash, I don’t have to shell out extra money every single month through that interest that I’d be paying. I actually haven’t paid cash for a car yet since I still own a car I
used to have a loan out for, but I finally have enough cash sitting in a high interest savings account for when my current car dies. And when that time comes,
I’ll buy a used car preferably something over five years old to avoid that depreciation that
everyone faces on a new car. Five years is the secret
number since the average car loses 60% of its value
through depreciation within the first five years. So instead of paying interest
by taking out a loan on a car, I now save that money in a
high-interest savings account where I make money while
that cash just sits there until I buy my next car. You’ll never find me taking a loan out on a car ever again in my life. This one has actually been easier to do than most people make it out to be. I spend a very minimal amount of my monthly income on housing. By minimal, I’m talking way less than 15% of my take-home pay. I’ve seen stats out there saying that the average housing costs are roughly 30% of most people’s income. Knowing this it was
extremely important for me to find a way to lower this amount by as much as I possibly could. So I bought a house for
a very modest amount. To be honest with you I think that most homes are money pits. A lot of people look at
their home as an investment, and sometimes they are, but to just assume that buying a home will somehow generate you a return is the wrong way to
look at a home purchase. My home isn’t a complete dump at all. I actually think it’s a pretty nice house for a cheap price that I paid in the area that I’m in, and plus none of the
women that I ever dated have felt unsafe in this area either. So that’s a win in my book. Will I buy a more established
home later down the line? Possibly, but until then I’m
banking all of the extra cash that I would be paying for a nicer home, and letting that money work
in my favor for investments. Another contributing factor
to my high savings rate when it comes to housing is that I live extremely close to work. Like five minutes, 10 minutes tops. Not only does this save time but it also saves money
when it comes to gas and the wear and tear in my car. When it’s nice out, I’ll even throw my tennis
shoes on and walk to work. I get that not everyone can do this, but I bet that you could find a way to make this work for
your specific situation. Unless you live in a
high cost of living state like California, then I would just tell you
to move somewhere else. If you’re interested in getting an idea if you live in a high cost of living area, then I found a website that
you might wanna check out. It is called bestplaces.net. Head to that website and type
in the city that you live in, then click on the cost of
living link to the side. It’ll rate your city based on
the US average score of 100. The sixth reason I’m able
to save 70% of my income is that I don’t have a girlfriend, so naturally there’s
more money in my pocket. Don’t get mad, I’m just kidding, kind of. But I am very conscious
when it comes to dating. In the past the first couple of times that I would meet a girl, I would spend a lot of money
taking them out to dinner, the whole wine and dine thing because that’s just how I was raised. But after a while I looked at the amount of money that I would spend and kind of threw up a
little bit in my mouth, not because I wasn’t
attracted to any of them but because that money
really really adds up especially when you’re a
lifelong dater like I am. I knew that I wasn’t gonna stop dating to keep my savings rate up. That’d be a little bit ridiculous. But I knew that something
needed to change. Now I have a rule when it comes to dating. The first few times that
I hang out with a woman, I either take them out for coffee or we do something that’s fun
for free or very low cost. Not only does this save some money until I decide if I really like this girl and actually wanna
spend more money on her, but it also prevents any bad decisions that may be made if I went out drinking at a bar with a
girl on the first date. I know this might be strange
to some of you out there but I’m trying to avoid
an illegitimate child with a woman that I don’t like. I guess I’m weird like that. The takeaway from this one isn’t to break up with
your significant other, but instead talk about your money goals so you’re both on the same page. The next way I’m able to save 70% of my income is by fasting. Now I know this isn’t for everyone and I’m not telling you to fast. But getting on a diet where
I only eat twice a day or within a specific feeding window has decreased how much money that I spend on food every single month, plus I like the other health
benefits from it as well. Don’t worry I won’t nerd out on that kind of stuff in this video. If fasting doesn’t sound appealing to you, then get on a different
diet that you’ll stick to. The main reason this is
gonna help you save money is that it puts more
structure around the things that you’re putting into your mouth, and not in a gross way you freaks. Get your mind out of the gutter please. Instead of snacking all day
like you’re on a buffet, you’ll get a better
handle on your food intake which will have an
impact on how much money that you’re spending on
food every single month, plus you’ll start to feel a
little bit better in general. The eighth way that I’m able to save 70% of my income every single month is by making my health a top priority. A New York Times article cited a study that exercising can save you $2500 per year on medical costs. This study looked at over
26,000 men and women. It concluded that inactivity caused the United States economy almost 28 billion dollars
in medical expenses and lost productivity every single year. That’s exactly why you see
many companies out there that have fitness and
health focus programs. It saves both you and them
more money in the long run. Here’s the three areas that I focus on when it comes to my health. Number one is my nutritional health, the food that I eat. It kinda goes along with what I mentioned with fasting. Next is with my physical health. I built a garage gym that I work out in. I do indoor workouts. I’m also at my local park
all the time running, hiking, and doing some other things that are very physically active out there. Lastly I make my mental
health a top priority as well. You may be questioning
how this saves money. The way that I look at it is that if my mental health is in order, then I can be an even more happy and productive human being in general. I take care of this mental health through daily meditation and writing. The ninth way I’m able
to save 70% of my income is that I don’t ever get a raise at work. Okay I do get a regular
raise from working my job but I don’t ever see that
money in my monthly paycheck, that’s because every pay increase that I’ve received over
the past couple of years has gone straight to investments. So technically I never get a raise. My over all wealth gets a raise. If I get a $10,000 raise at work, then I calculate how much of it I’ll actually be taking home, then increase my
investments by that amount. Out of sight, out of mind until I calculate my net
worth every single month and get a great big smile on my face once I see that number start to grow. Some people might look at
this as me depriving myself but it’s not like that all. I’ve been able to find the
amount that I need to live on that makes me comfortable and happy so I make it a point to
stick to that number. The 10th way I’m able
to save 70% of my income is because I’m a bit of a minimalist. But it’s not like I don’t own things so minimalist isn’t the best word for it. I guess you could say that I’m more of an intentionalist if that’s even a word. I like spending money
but only on the things that really bring me value and happiness. Minimalism has taught me
to kind of take a step back and question how much value
something is going to give me if I do end up bringing it into my life. It’s made me realize that
buying more and more things doesn’t make me happy
which in turn has saved me from spending money on useless things just to keep up with the
Joneses whoever they are which in turn has given me the ability to save more to invest. Last but not least, I use credit cards which saves me a pretty good amount of
money every single year. I know that Dave Ramsey tells
you not to use credit cards and I have a lot of respect for Dave because he’s an OG in the
personal finance space. I don’t agree with everything he teaches but I got respect for the guy. But I’ve been able to be responsible with my credit card use. And if you’re able to be responsible when it comes to your credit cards and pay the balance
off every single month, then you can reap the
benefits of the rewards from those credit cards. As of today I make roughly $600 per year from my credit card use. That’s more money I’m making for basically buying things that I would have already been buying. I’ll be doing more credit
card hacking this year so that $600 will most likely be turning into things like rewards towards airfare but it’s still the same idea. If you don’t feel comfortable
using a credit card, then don’t do it. But if you feel like you’re ready and you can handle it, then quit leaving money on the table and go get a credit card with really good rewards. Don’t forget to check out
the description down below for more playlists to help you out with all of your personal finance needs. Let me know in the comments down below what you do to increase you savings rate or what you would like to do. I’d be willing to entertain more ideas if you have any that I an use. Don’t forget to Hulk Smash that thumbs up button to support the channel. It helps me out a lot and I appreciate you for it. If you want more personal finance
videos just like this one, then hit that Subscribe button
and the notification bell so YouTube knows to deliver them to you. Make sure to pick up your free copy of the Debt Free Prep Workbook that I made just for you. The link is in the description. I’ll see you in the next one friends. Adios!