15 Small Financial Improvements to Start With

before going big you need to start small you don't need thousands of dollars in your bank account to start improving your financial situation the changes start daily with small improvements that put you on the right path today we'll go through some of those small improvements that you can start to implement right away in this moment [Music] we hope this video brings you value and we'd appreciate it if you would subscribe to alux in return it means a lot for us to have your support also we want to be more in touch with you guys so we'll answer every question from the first comments so make sure to hit the bell notification to be the first to be notified when a new video goes up with all that said here are 15 small financial improvements to start with number one know where your money goes you might know exactly where each cent is going every month but you'd be surprised how many people struggling financially have no idea where their money goes a small inconspicuous amount is debited each month with some obscure reference but it's only a small amount so you don't bother following up but small amounts add up to large amounts and by keeping an eye on where your small amounts are going could save you a lot of green every year number two pay for and buy everything you need at the beginning of the month all of your bills groceries miscellaneous items everything you need each month this helps you to have a clearer idea of how much your basic monthly needs actually cost take advantage of bulk deals and ensure you're covering your basic needs first before spending on extra number three don't tell yourself that you're bad with money hey luxers we're all guilty of this we tell ourselves that we suck at money which is why we've literally released a video called 15 signs you suck at money and what to do about it your feedback on the video has been brilliant with so many acknowledging that it's exactly about you one of the key takeaways is to stop telling yourself that you suck at money because like any skill being financially savvy can be learned and the first step is to change your mindset so change your rhetoric and then start making the changes to start improving financially number four familiarize yourself with financial tools we're talking about everything from how taxes work how interest works how capital works and so on even a basic understanding of these tools and how to negotiate them can make a huge difference for you in the long run and even if you're not using them right now be aware of how they'll work to put you in a better spot to make better decisions down the line number five save with a purpose saving money for the sake of saving money is actually pretty bad for one opportunity cost meaning what you could have made with that money instead and secondly you'll lose money in the long run due to inflation if you have 100k in your bank account right now and you leave it there for the next 20 years that 100k will have lesser buying power due to inflation banks always offer low interest rates compared to inflation this is also the reason why we advise getting familiar with financial tools so saving money for the long run or for retirement is a bad plan but does that mean that saving is a bad habit well no obviously not but you need to save with a purpose for example saving money for a couple of years to be able to provide a down payment for a house is a good plan saving money for an emergency situation also a good plan but always have a plan for the money get into the habit of saving regardless of your income if you can't save ten dollars when you're making one hundred you won't be able to save one hundred when you're making one thousand number six improve your knowledge the net is crammed with free resources to help you improve your financial knowledge so no excuses that you can't afford a financial advisor keep up to date with financial trends even if you don't use them be aware of them and their influence on the current economy and never stop learning aluxers we've got a free download waiting for you courtesy of audible it's money master the game seven simple steps to financial freedom by tony robbins to listen to it head over to alex.com free book number seven live within your means you might be thinking oh hey lux you said small financial improvements and this might sound huge but start off small you eat cereal every morning but you're always buying the expensive sugar-coated crap next time buy oats instead not only is it healthier but it costs you a lot less that's what we're talking about start small and you'll see how it filters down to the bigger unnecessary expenses number eight hang out with people who have the same financial goals as you we're not saying ditch your friends but the friend who eggs you on to buy both sweaters because you deserve them is not going to help your finances perhaps leave that friend at home when you go shopping number nine budget your life for some reason people get really defensive when they hear the word budget like it's something bad that you're forced to do given your situation but that cannot be further from the truth budgeting means making sure you can do everything you want today and do it again tomorrow and the next week and the next year elizabeth warren popularized the 50 30 20 budget rule and it works pretty well for the vast majority of people the rule goes like this out of your total income take 50 percent for things that you need meaning a roof over your head food and other basic needs these are the things you need to be able to survive thirty percent can go toward things you want but don't need like netflix eating out vacations and so on because life can't be all about paying your bills and going to sleep and the last 20 is for investing and savings number 10 have a retirement plan look here's the thing there's absolutely no way anyone is saving during 40 years of work to last another 20 to 30 years of retirement and relying on your government to provide for you is also a bad plan so you need to have your own plan start getting educated about how people actually retire with enough money to live comfortably find what works for you and act on it number 11 give your money meaning right so what do we mean by this let's say you have a goal that by the end of next year you want to have saved enough money to head to mauritius for a holiday great next minute you find yourself in front of an alluring sales stand with a 12 lipstick in your hand do you want your money to be spent on the lipstick or on the trip your money is the means to a holiday so don't waste it on a non-essential like a lipstick especially since you have several others at home number 12 understand the price quality ratio we talked about things that are worth going premium but this does the same from the opposite side price and value are not in a direct relationship for example there's a big difference between a three dollar bottle of wine and a ten dollar bottle of wine but between ten dollars and a hundred dollar bottle most people won't be able to tell them apart the same with toothpaste they're all pretty much the same regardless of brand or price organic food is another trap people get into we suggest checking out see spiricy on netflix when you identify what items are worth going premium and what you should buy on the cheap you'll see a big difference in your monthly budget number 13 don't always go for the specials you might have spent tons of time circling where all the great specials are in your local newspaper but by the time you've driven from uncle sam's to walmart to target and then whole foods you've wasted time fuel and energy and there is nothing special about that number 14 use technology forbes suggests using technology to help improve your finances by using apps that track your income and expenditure cnbc adds that smartphones have become many financial coaches in the pockets of millions of americans bank of america uses a virtual assistant called erica on its mobile banking app erica performs many functions but one function is she alerts users when they're nearing their overdraft facility she helps those who struggle to budget while at the same time making it easier for most people to make better financial decisions see what app suits your lifestyle best and take advantage of technology to help you improve financially number 15 beware of frugal fatigue frucal fatigue is sheer exhaustion from living frugally every day it might work for a short while but continually denying yourself pleasure makes you grouchy and unpleasant the problem with frugal fatigue is it leads to large impulse purchases so grant yourself some small pleasures they're essential to living not only a healthy financial life but your emotional mental and physical well-being depends on it too and with that alexers we're nearing the end we hope we added value to your life today and we would greatly appreciate you adding value to ours by simply subscribing to our channel and hitting that bell notification now we'd love to hear your advice eh luxers what small financial improvement helped you on your journey a lot share with us in the comments and enrich the community and since you stuck with us until the end you know we've been saving on to a bonus you need to have some oh money oh moments can happen at any time you break your leg you crash your car your house gets flooded you lose your phone you need to have a reserve of cash at your disposal to act as a safety net for these kinds of situations this is the first thing you need to do after you figure out your finances once this is in place you'll feel a whole lot more financial freedom you

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Id: rae4NRMYT-o

Length: 11min 52sec (712 seconds)

Published: Tue Aug 03 2021