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How to Save Money | Resource Series (2/4)

*** Money Disclaimer***
The absolute best money strategies are to save and invest. Compound interest is your best friend when it comes to money! Honestly, this video could’ve been much longer but I just covered my general strategy when it comes to doing things I’ve always wanted to do. Regardless of anything said in the video… I REPEAT, saving and investing is the absolute best thing you can do with your money!

 

I get this question all of the time “How can you afford it!?” In all honesty, it’s all about prioritization and understanding what you really need. Despite all of your preconceived notions or how you feel, money is an extremely important and necessary resource when living in any “civilized” society.

I mean, what is money? Well, back in the day, there was a time when money was not around. People used to trade and barter services instead of money. For example, the Average Joe would trade his sword to a farmer in exchange for three chickens. Back then, they did not have a universal currency in which to exchange services or items. However, some genius decided to invent money and he basically cut a slew of exchanges down and made everyone a middleman, so to speak. Thus, be grateful that you don’t have to go through the hassle of dealing chickens, swords, pies, and whatever else. You can trade money instead. And all money really is is a measure of the value that you provide to others. Do not view it as anything other than a tool.

Don’t let the amount of money you make or the amount of things that you buy define you. You and you alone should know your worth and have the personal wherewithal to know that you already have more than enough to be “successful.” The fact that you’re reading this is a success. You’re already farther along on the journey of personal fulfillment than most people on this planet. As an aside, smile and think of everything you are grateful for. You don’t have to compare yourself to others at all, just be happy with what you have and love yourself. Doing this as a daily ritual will help with improving your sense of self-worth and will literally make you happier.

Back to the main point, money! Get a piece of paper out and draw a vertical line through it. At the top of the left half write “Assets” and other half write “Expenses.” Now list out everything you are getting paid for and everything you need to spend money on for the next month. If you want to expand this and make it 3 months or a year, feel free to do so. I like focusing on a month because who knows what’s going to happen. If you can focus on the near future, it will force you to be more present in the moment and allow you to understand what you can do right now. Also, if you want to expand the revenue side to include the things you own that you’d like to sell, that’s great too. Look, I just helped you declutter your life a bit. You don’t need so many things, many of these materialistic objects won’t make you happy. Any material object that doesn’t make you happy should be out of your life. You can always sell it, donate it to your family & friends, Goodwill, or local homeless shelters. As they say, one person’s trash is another person’s treasure. Once you have everything listed, total each side up and add them together to find your total “Revenue.” Thanks Mr. Hancock, your college accounting class definitely helped me with personal budgeting!

Writing out your assets and expenses will help you understand exactly what you need in your life. Take some time to examine both sides and see if you can increase the amount on the left side Assets without affecting your quality of life and see if you can decrease the right side Expenses without sacrificing any sources of true, personal happiness. I mean, do you really need to eat out that much? Go cook some food and develop a new lifelong skill. By increasing and decreasing your Assets and Expenses, respectively, you’ll increase the amount of Revenue you have to either save or spend for happier times later.

What I personally like to do with my money is the Rule of 3. A third of my money is saved in case of emergency, a third is spent on living (home, utilities, food, essential needs, etc., and the last third is spent based on myself, namely my Free Will List. If there are emergencies or unexpected costs down the road, I’ll take them out of my “saved” and “personal” funds. I mean, we all gotta eat and sleep, right?

If you follow the Rule of 3, you’ll have more than enough money to dedicate to your passion. And if you don’t, work on allocating your funds better or look at your Free Will List and find a “cheaper” passion to dedicate your funds to now. Regardless, be smart with your money and control it, don’t let it control you.

For all intents and purposes, let’s say you understand how to use your time and money wisely. As Bruno Mars says, “I’m a dangerous man with some money in my pocket. Keep up!”

Part 3: How to Use Your Network

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