How to Save Money 7 Essential Tips for Building Wealth

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One Big Happy Life

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Subtitles:
hey guys it's Joseph and Tasha from one big happy life in this video we have 7 tips on how to save money we used these tips to save a hundred thousand dollars last year in our last video we started our intro to investing series and we mentioned that we saved a hundred thousand dollars in over the past year and so many of you wanted to know exactly how we did it so we are sharing it in this video be sure to thumbs up subscribe and share these tips with your friends to help them build wealth too tip number one make more money so this is increasing your income either at your current job or if need be finding another job so we're not saying just work more hours work longer or something like that we're really trying to get you to focus on taking on either more complex work say getting a pay raise to do additional tasks at your current job or looking for that same position at another job or even getting a promotion somewhere else any of those things make it a lot easier to save money because you'll be making more and we all know it's easier to save when you have more to go around alternatively you could start a side hustle so something like starting a blog or starting a YouTube channel or walking dogs or babysitting something that you're passionate about that you would love to do in your free time do that thing and by the way if you are interested in starting a YouTube channel later on this week on the blog I'm gonna be posting a post about how to find your perfect a YouTube channel idea and a list of 155 YouTube channel ideas that Joseph and I came out with so be sure to check our blog one big happy life for that later on this week tip number two pay yourself first and make it automatic savings like anything else that we do is a habit and it's something that we need to work at and practice that to make sure that we continually do it making it automatic makes it something that you don't have to think about because money is already set aside it never even touches your bank account and so you don't have to worry about willpower to make a habit and the reason why you want to pay yourself first is twofold number one again you want to build that habit and number two it's because mathematically most of the time you are better off saving early and often then you are delaying savings in order to pay off debt and we've done videos about this before and I think we have another another one coming in a couple of weeks so stay tuned for that for more info tip number three plan for financial upheaval savings is frequently one of the things that's going to get cut first if you're under some financial difficulties and that's not great so you can minimize having to do that by preparing an advance you might not be able to predict exactly what's gonna go wrong but you can make it easier to deal with whatever does come up so one way that we do that is because we're we are a dual income couple we've structured our finances so that we could live on just one income if we had to also make sure you have all the insurance that you need to cover yourself so that means disability insurance that means health insurance maybe you need an umbrella policy for just bigger emergencies make sure you're covered there and then you won't have to save as much to to cover that because you know oh hey I can I can make a claim on my insurance it'll-it'll back me up so plan for your one-off expenses so you know that you're gonna need new tires like every sixty thousand miles which could be every three or four years so that's not something that you should be dipping into your emergency fund for that is not an emergency it's actually a known expense that you should be planning for so planning for and anticipating those once-in-a-while expenses is another way to that you can protect your savings from yourself and of course you mentioned emergency find definitely have an emergency fund but you can build it up over time especially if you're taking care of these other things tip number four budget for a year or more at once so we shared our 2018 budget with you guys back in December and I will drop a link to that in the description box below and in the cards up above so you can check that out so we plan our entire year out at once we anticipate what kinds of expenses we're going to have and we put those in our budget not only that but we also budget for several years out so right now we're fully budgeted out until the year after alexis finishes college which is six years from now because we know that we're gonna have these massive expenses when alexis starts college we want to start planning for them now and again that makes it more likely that when we get to those very expensive college years that we've already planned for these expenses and so we will be able to keep our savings on track tip number five resist lifestyle inflation this is when you get a pay raise or start making more money and then you increase your expenses try to avoid that if we compare our budget now to when we were making half as much it's about the same even with the more expensive house it's still very very close and the reason is we've cut costs in other areas as our income has increased and we've just saved the difference now we will add things back in a little bit a little bit by a little bit as our financial situation improves but only things that we value and also they're going to be things that we will never or try to avoid at all cost adding back like expensive cellphone plans or cable those are things that were just too expensive and we don't want them anymore and so we would never say don't like that you should cut your cost to the bone and that's the way that and that's how you should build up your savings no we much much prefer for people to do what it takes to make more money while still enjoying their lives because the more you make you can it makes it easier to hit your savings goals while still having the kind of lifestyle that you want to have and speaking of lifestyle tip number six find your happy and practice gratitude it is so much easier to save if you have created a life that you love and you are living in accordance with what truly makes you happy so that means taking the time to think about the things that you love in your life and appreciating those things so practicing daily gratitude and the things that you don't love about your life taking the time to change them doing the work that it takes to make those things in your life better instead of doing what most of us kind of tend to do when things feel crappy we say oh well we deserve a treat we're gonna go out and spend this thing well it's so easy for us to save money now because we're happy about the lifestyle that we live and anything that we want to include we know that we're working towards increasing our income so we can include those things but we also are happy knowing that we are planning for a financial future that we are both incredibly excited about the the ability to retire early if we want to and travel in retirement and be generous with our family with our friends to be able to donate and donate our time those things really excite us about our future so it makes it a lot easier to stay on the savings path that we are on right now tip number seven understand that this is not going to happen overnight now I know that's some tough love and it's it's just the truth it's gonna be a process but it's an important process and things will still be improving so stay the course and don't beat yourself up about it if it's taking a while yeah especially because we see all these things all the time in the news about people paying down X amount of debt super fast don't worry about that just worry about creating a life that you are enjoying on a day-to-day basis while also planning for your financial future because remember life is what happens in the space between our goals so don't lose sight of the life that you are living today because you're in a rush to get somewhere because someone told you you have to get there quickly you don't take your time enjoy your life enjoy the journey don't feel the pressure to go uber frugal unless you really want to you there's only so much that you can cut from your budget anyway and you can make more money if you want it to go faster but you just can't expect it to go that fast and that's okay so these are the seven tips that really helped us not only just the hundred thousand over the past year but the 265 thousand dollars that we have saved total and we have lots of other videos with specifics on exactly how we save plus we're doing the investing 101 series so we'll be talking a lot more about some of our financial strategies in those videos so be sure to a thumbs up and subscribe for more one big happy life and we will see you guys next time Bye I don't know did we go out to I'm too much of a tangent oh yeah so what I wanted to say is you don't have to go super frugal because my point is that there's only so much you can cut ok ok stop ok

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