Nearly 60% of adults do not have enough money saved to cover a $1000 emergency…so here are 5 simple tips on how to save more money, even with a low income. Enjoy! Add me on Instagram: GPStephan
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First, DON’T SPEND MONEY! Just kidding…obviously. But my first “Trick” that I use is that if there’s anything I’m looking to buy…don’t “BUY IT NOW”..instead, I always just “buy it tomorrow”
This one is really just about cutting down on impulse purchases that you make without really thinking about it…because this one gets really interesting once you start digging deeper. Many studies have shown that shopping can release dopamine in the brain, which then brings about a sensation of well-being and happiness. And if we take a step further, research has shown that the dopamine hit doesn’t actually come from the purchase itself…it comes from the ANTICIPATION of the purchase.
From this, we can conclude that BUYING something won’t necessarily give you that fun excitement you’re looking for…and you can get all the same enjoyment from shopping…by not actually buying anything, and instead, window shopping and then saving the money.
Second, assuming you’ve waited a day and you’re thinking about buying something - think to yourself: “if someone offered me the cash value for this item - would I take it?”
Sometimes we forget about how much something is going to cost us when we’re so fixated on just getting the thing that we want. But start thinking to yourself: if I had the choice between buying this item, or getting paid that exact amount of money - which would I rather have? Because, in essence…when you decide not to buy something and save the difference - it’s almost as if you’re getting paid to save.
The third trick to saving more money is to think to yourself “how many hours will this cost me to pay for it?”
Basically, we have a limited amount of time on this planet - and it’s important we make the best use of our time, not only from a financial standpoint, but also from personal fulfillment. Given that, it’s vital that we spend our money on things that are most important to us - and since our time is a very limited resource, we shouldn’t spend our time working for things that don’t bring us long term value.
Now fourth, a fun exercise you can do is whenever you save money by not buying something, or by spending less - is by immediately transferring the difference into another account.
This is a great way to not only make sure you actually keep the money you’re saving, but it’s also really effective because you can begin seeing the immediate results of cutting back. I think that once you begin seeing it work firsthand, you’ll be more likely to get excited at the aspect of having some extra cash laying around - and you’ll be more likely to stick with it.
And fifth…most importantly, think of what your money is worth in its future value.
When you save and invest your money, it’s going to grow over time…when you spend it, it’s almost like your halting its growth that it would have been worth, had you saved it, instead. So, instead of spending $20 on avocado toast, you took that $20 and invested it over the next 40 years…if you just took the average, historic return of the stock market - adjusted for inflation, with dividends reinvested…that’s a lot to say…that $20 would be worth about $300 in future value.
And lastly, if you’re already doing all of the above, and you’re still not saving enough…you need to make more money. EVERYONE will get to a point, eventually, where they cannot possibly save anymore…and it’s at that point where you should begin to shift your efforts from saving, to learning how to increase your income.
This could be learning a new skill, picking up a side job, looking to switch careers, smashing the like button, you name it - the point is, increasing your income is the necessary last step when it comes to saving money.
And I really believe that it’s by implementing these strategies, slowly over time, and sticking with it, that you have the potential to begin saving a LOT more money - without really feeling it, until you look at your bank account and see all those extra Benjamins.
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness@gmail.com
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