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How I Save More Than 69.5% Of My Income - Financial Independence FIRE Movement - YouTube
Channel: Jarrad Morrow
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every now and again I like to sit down
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and take a deeper dive into my finances
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when I was running the numbers recently
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I realized that my savings rate had
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jumped by 10 percent okay so I don't
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actually save sixty nine point five
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percent of my income but I do save 70
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percent of my income every single month
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so in this video I'm gonna walk you
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through how I save 70 percent of my
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income every single month the goal is to
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hopefully give you some ideas to explore
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for yourself so you can greatly increase
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your savings rate kind of like I have if
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that sounds interesting to you then
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please Hulk smash that thumbs up button
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I would greatly appreciate it and it
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helps show my mom that I'm not as big of
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a loser as she thinks I am I think it's
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safe to say that there is a big savings
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problem when it comes to Americans not
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because we're all idiots but because you
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don't know what you don't know but once
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you know it it's one of those things
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where you're like oh okay
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I get it now it's the same thing with
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maxing out your savings rate it's
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honestly not rocket science and way way
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way more attainable to increase your
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savings rate than you think
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I would go as far as saying that
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everyone watching this is able to do 90%
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of the things that I'll show you but
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even if you can only do 50% of these
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things that I talked about the net right
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there will greatly increase your savings
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and investment rate in a way that you
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didn't even think was possible now when
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you hear that I'm saving 70 percent of
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my income then your natural thought may
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be
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well you must make a lot of money back
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or you must be so deprived that you're
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not enjoying your life um actually I
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have pretty much everything that I want
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and need if I want something then of
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course I buy it there is ZERO
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deprivation or cheapness going on over
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here in this house if you want to make
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this happen then you just have to get a
[97]
few things right don't forget to hit
[99]
that subscribe button if you want more
[100]
personal finance videos just like this
[102]
one there's also all kinds of playlists
[104]
in the description for you to check out
[106]
after you watch this video to help you
[107]
out with all of your personal finance
[109]
needs let's get into how I save is
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seventy percent of my income every
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single month write me out
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the first reason my savings rate is so
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high is that I don't have kids now
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before you get all angry start typing
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ignorant things in the comments and
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giving this video a thumbs down I'm just
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being honest and I'm owning the fact
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that this does play a role in my high
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savings rate so Hulk smash that thumbs
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up button for honesty this is coming
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from a guy who really
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likes children and is absolutely open to
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having kids in the future if I can find
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a smokin hot wife that wants to have all
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of my babies I can I can't we don't say
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I can't we say either I can or I will
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try I will try we don't say I can't nope
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we say I can or I will try there you go
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good job or maybe I'll even adopt a kid
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in the future who knows but I'm able to
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have more money in my pocket today since
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I'm not caring for a cute and sometimes
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annoying little monster the more
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important thing to take away from here
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is that if you have kids now or gonna
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have them in the future don't lick the
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fact that you have kids prevent you from
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increasing your income to increase your
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savings rate it's one of those limiting
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beliefs that's extremely easy to fall
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into a fear parent because you're
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already working hard enough caring for
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these kids so how in the world are you
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supposed to make more money as well the
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majority of my friends are parents and a
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lot of them have found ways to increase
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their income in ways that they never
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thought before another thing parents can
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do is make their kids work as early as
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possible and start paying for things on
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their own the skin greatly increase your
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savings rate if you are a parent now I
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know when I was 14 I started working and
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paying for everything myself
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and I honestly think it's played a huge
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role in shaping Who I am today
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you should also force your kids to apply
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for scholarships if they go to college
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so you have to worry about having to
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save money for them every single munch
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munch munch month which will greatly
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increase your savings rate paying off
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eighty two thousand dollars of debt in
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four years is still one of the best
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decisions I've ever made it's also a
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large contributing factor to how I'm
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able to save and invest seventy percent
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of my income every single month my debt
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consistent of student loans a credit
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card and a car loan carrying debt has
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become so common among Americans that
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it's something that everyone just
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accepts as something that they'll always
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have kind of like that pet turtle that I
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got from one of my exes that thing's
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gonna live forever
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bad debt will be one of the largest
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destroyers of your wealth above anything
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else if you allowed to hang around until
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the day that you die it's like lighting
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money on fire every single month not
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only are you losing money through the
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interest that you're paying but you
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carry around this a large amount of risk
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everywhere you go it follows you
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for ever for and bur name that movie in
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the comments if you know what it is when
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you carry bad debt you lock yourself
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into being vulnerable to the insanity
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that's already here in life your back is
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instantly in a corner every single
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morning that you wake up and whoever you
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owe money to literally owns you they own
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your thoughts they own your feelings
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they own your emotions they choose what
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you can and can't do and they own your
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happiness stupid people spend money that
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they don't have on things that they
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don't need I decided to stop being
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stupid and only buy things that I can
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actually afford by saving up for it you
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can't know how much you were saving
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unless you know where it's going because
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of this a budget is extremely important
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to my ability to be able to save 70
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percent of my income budgeting isn't
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about being cheap at all it's just a way
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for you to direct your money and tell it
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where to go as opposed to having to tell
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you where it wants to go which is
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usually right down the toilet if you're
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not paying attention I recently heard
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about an author that was trashing
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budgets because he said they prevent you
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from earning more money and being happy
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since they forced you to cut back he
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said it gives the person a scarcity
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mindset my answer to this author is you
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sir are an idiot because what prevents a
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person from making more money has more
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to do with a person not going out to
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pursue more money a budget has
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absolutely nothing to do with that a
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budget is a way for you to prioritize
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your spending so that more of it goes
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towards things that actually make you
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happy and will improve your lifestyle
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today and in the future I think there's
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been enough studies done on this that
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buying more things does not correlate to
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becoming more happy so if you love
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buying clothes and that makes you the
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happiest person in the world then that's
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great budget for clothes and buy those
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clothes
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if pursuing financial independence or
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retire early will make you super happy
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then great budget your money so you can
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achieve financial independence or early
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retirement can you increase your savings
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right without a budget I'm sure you can
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of course you can do anything you want
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but I could also go swimming with sharks
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and not get bit but I'm still not gonna
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hop in that ocean to do it no thanks no
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way you can jump in on your own if you
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want the next reason I'm able to save 70
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percent of my income is that I don't
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spend insane amounts of money on car
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purchases does this mean
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I only Drive beaters nope not at all
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instead I choose to buy more reliable
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car models that have a better track
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record with cash of course
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the whiff cache and used parts are the
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keys to success since I pay cash I don't
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have to shell out extra money every
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single month through the interest that
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I'd be paying I actually haven't paid
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cash for a car yet since I still own the
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car I used to have a loan out for but I
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finally have enough cash sitting in a
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high inter savings account for when my
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current car dies when that time comes
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I'll buy a used car preferably something
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over five years old to avoid that
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depreciation that everyone faces on a
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new car five years is the secret number
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since the average car loses 60% of its
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value through depreciation within the
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first five years so instead of paying
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interest by taking out a loan on a car I
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now save that money in a high interest
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savings account where I make money
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well that cash just sits there until I
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buy into my next car you'll never find
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me taking a loan out on a car ever again
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in my life this one has actually been
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easier to do than most people make it
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out to be
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I spend a very minimal amount of my
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monthly income on housing by minimal I'm
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talking way less than 15% of my
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take-home pay I've seen stats out there
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saying that the average housing costs
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are roughly 30 percent of most people's
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income knowing this it was extremely
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important for me to find a way to lower
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this amount by as much as I possibly
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could so I bought a house for a very
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modest amount to be honest with you I
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think that most homes are money pits a
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lot of people look at their home as an
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investment and sometimes they are but to
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just assume that buying a home will
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somehow generate you return is the wrong
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way to look at a home purchase my home
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isn't a complete dump at all I actually
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think it's a pretty nice house for a
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cheap price that I paid in the area that
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I'm in and plus none of the women that
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I've ever dated have felt unsafe in this
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area either so that's a win in my book
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well I buy a more established home later
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down the line possibly but until then
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I'm banking all of the extra cash that I
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would be paid for a nicer home and
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letting that money work in my favor
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through investments another contributing
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factor to my high savings rate when it
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comes to housing is that I live
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extremely close to work like 5 minutes
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10 minutes tops
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not only does this save time but it also
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saves money when it comes to gas
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and wear and tear in my car when it's
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nice out I'll even throw my tennis shoes
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on and walk to work I get that not
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everyone can do this but I bet that you
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could find a way to make this work for
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your specific situation unless you live
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in a high cost of living state like
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California then I would just tell you to
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move somewhere else if you were
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interested in getting an idea if you
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live in a high cost of living area then
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I find a website that you might want to
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check out it is called best places Nets
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head to that website and type in this
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city that you live in then click on the
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cost of living link to the side it'll
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rate your city based on the US average
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score of 100 the sixth reason I'm able
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to save 70 percent of my income is that
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I don't have a girlfriend so naturally
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there's more money in my pocket don't
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get mad I'm just kidding kind of but I
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am very conscious when it comes to date
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in the past the first couple of times
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that I would meet a girl I would spend a
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lot of money taking them out to dinner
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the whole wine and dine thing because
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that's just how I was raised but after a
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while I looked at the amount of money
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that I would spend and kind of threw up
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a little bit in my mouth not because I
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wasn't attracted to any of them but
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because that money really really adds up
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especially when you're a lifelong dater
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like I I knew that I wasn't gonna stop
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dating to keep my savings rate up that'd
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be a little bit ridiculous but I knew
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that something needed to change now I
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have a rule when it comes to dating the
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first few times that I hang out with a
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woman I either take them out for coffee
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or we do something that's fun for free
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or very low cost not only does this save
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some money until I decide if I really
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like this girl and actually want to
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spend more money on her but it also
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prevents any bad decisions that may be
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made if I went out drinking at a bar
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with a girl on the first date I know
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this might be strange to some of you out
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there but I'm trying to avoid an
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illegitimate child with a woman that I
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don't like
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I guess I'm weird like that the takeaway
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from this one isn't to break up with
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your significant other but instead talk
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about your money goals so you're both on
[644]
the same page the next way I'm able to
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save 70% of my income is by fasting now
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I know this isn't for everyone and I'm
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not telling you go fast but getting on a
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diet where I only eat twice a day or
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within a specific feeding window has has
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decreased how much money that I spend on
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food every single month plus I like the
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other health benefits from it as well
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don't worry
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I won't nerd out on that kind of stuff
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in this video if fasting doesn't sound
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appealing to you then get on a different
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diet that you'll stick to the main
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reason this is gonna help you save money
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is that it puts more structure around
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the things that you're putting into your
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mouth and do not in a gross way you
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freaks get your mind out of the gutter
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please instead of snacking all day like
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you're at a buffet you'll get a better
[684]
handle on your food intake which will
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have an impact on how much money you're
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spending on food every single month plus
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you'll start to feel a little bit better
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in general the eighth way that I'm able
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to save 70 percent of my income every
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single month is by making my health a
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top priority a New York Times article
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cited a study that exercising can save
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you $2,500 per year on medical costs
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this study looked at over 26,000 men and
[709]
women it concluded that inactivity cost
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the United States economy almost twenty
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eight billion dollars in medical
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expenses and lost productivity every
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single year that's exactly why you see
[721]
many companies out there that have
[722]
fitness and health focused programs it
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saves both you and them more money in
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the long run here's the three areas that
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I focus on when it comes to my health
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number one is my nutritional health the
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food that I eat it kind of goes along
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with what I mentioned with fasting next
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is with my physical health
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I built a garage gym that I workout in I
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do indoor workouts I'm also at my local
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park all the time running hiking and
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doing some other things that are very
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physically active out there lastly I
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make my mental health a top priority as
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well you may be questioning how this
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saves money the way that I look at it is
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that if is that if my mental health is
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in order then I can be an even more
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happy and productive human being in
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general I take care of this mental
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health through daily meditation and
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writing the ninth way I'm able to save
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70 percent of my income is that I don't
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ever get a raise at work okay I do get a
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regular race from work at my job but I
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don't ever see that money in my monthly
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paycheck that's because every pay
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increase that I've received over the
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past couple of years has gone straight
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to investments so technically I never
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get a raise my overall wealth gets a
[788]
raise if I get a $10,000 raise at work
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then I calculate how much of it I'll
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actually be taking home then increase my
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investments by that amount out of sight
[796]
out
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mind until I calculate my net worth
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every single month and get a great big
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smile on my face once I see that numbers
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start to grow some people might look at
[806]
this as me depriving myself but it's not
[808]
like that at all
[809]
I've been able to find the amount that I
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need to live on that makes me
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comfortable and happy so I make it a
[814]
point to stick to that number the tenth
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way I'm able to save 70 percent of my
[818]
income is because I'm a bit of a
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minimalist but it's not like I don't own
[822]
things so minimalist isn't the best word
[825]
for it I guess you could say that I'm
[827]
warm and it an intentional list if
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that's even a word I like spending money
[832]
but only on the things that really bring
[834]
me value and happiness minimalism has
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taught me to kind of take a step back
[838]
and question how much value something is
[840]
going to give me if I do end up bringing
[843]
it into my life it's made me realize
[844]
that buying more and more things doesn't
[847]
make me happy which is which in turn has
[849]
saved me from spending money on useless
[851]
things just to keep up with the Joneses
[854]
whoever they are which in turn has given
[857]
me the ability to save more to invest
[859]
last but not least I use credit cards
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which saves me a pretty good amount of
[864]
money every single year I know that Dave
[866]
Ramsey tells you not to use credit cards
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and I have a lot of respect for Dave
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because he's an OG in the personal
[872]
finance space I don't agree with
[873]
everything he teaches but I got respect
[876]
from the guy but I've been able to be
[878]
responsible with my credit card use and
[880]
if you were able to be responsible when
[882]
it caused you or credit cards and pay
[884]
the balance off every single month then
[886]
you can reap the benefits of the rewards
[888]
from those credit cards as of today I
[890]
make roughly 600 dollars per year from
[893]
my credit card use that's more money I'm
[895]
making for basically buying things that
[897]
I would have already been buying I'll be
[899]
doing more credit card hacking this year
[900]
so that's $600 most likely we turn it
[903]
into things like rewards towards airfare
[905]
but it's still the same idea if you
[907]
don't feel comfortable using a credit
[908]
card then don't do it but if you feel
[910]
like you're ready and you could handle
[912]
it then quit leaving money on the table
[914]
and go get a credit card with really
[916]
good rewards don't forget to check out
[918]
the description down below for more
[919]
playlist to help you out with all of
[921]
your personal finance needs let me know
[923]
in the comments down below what you do
[925]
to increase your savings rate or what
[927]
you would like to do I'd be willing to
[929]
entertain more ideas if you have
[931]
that I can use don't forget to Hulk
[932]
smash that thumbs up button to support
[934]
the channel it helps me out a lot and I
[936]
appreciate you for it if you want more
[938]
personal finance videos just like this
[939]
one then hit that subscribe button in
[941]
the notification Bell so YouTube knows
[943]
to deliver them to you make sure to pick
[945]
up your free copy of the debt free prep
[947]
workbook that I made just for you link
[950]
is in the description I'll see you in
[951]
the next one friends adios
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