How to SAVE MONEY 2020 | NYC - If you can save here, you can save anywhere!

hi guys welcome to my channel if you're new here welcome my name is a Dini and today's video we're gonna be talking about how you can save more money by taking these same steps that I've taken when it comes to my lifestyle in order to increase your wealth since I got my first job out of college about two and a half years ago my main focus has been finding ways to save money now this has allowed me to help my parents pay off their mortgage and to provide funding for my sister's college tuition and then even have more money left over so it's really important that early on in your career you figure out ways to start saving money and cutting back expenses in order to increase your wealth over time now I recently found out that 78% of US workers live paycheck to paycheck it's not just blue-collar workers it's also white-collar workers so people earning six figures a year are living paycheck to paycheck so I picked up a few habits and tricks that I like to use in order to make sure that I am getting the most out of the money that I do end up spending and I want to go ahead and review those with you guys today I'm gonna start off by just listing out the five categories that people spend the most money in and then I'm going to jump into each one and help you guys find ways to cut back on your expenses how much you're able to save depends on two things the lifestyle you live and how much money you make in order to start saving more money you can do two things you can increase your income or decrease your expenses now to attain financial freedom in life and one day become a millionaire the key here is that as your income increases your lifestyle meaning your expenses stays the same or decreases this is how you attain more money over time and then you invest that money to make more money and then you become a millionaire now as your income increases so does your lifestyle because you're buying those Gucci shoes and not bail and eating out all the time well then this is probably how you might end up becoming 78% of the American workforce that lives paycheck to paycheck but of course there's other factors that go into it like insane amount of student debt and loans credit card debt so these are other things that you also take into consideration and make sure you're putting your money in the right places and figuring out how to budget so that you can get rid of your debt and live financially free so let's start with things that we can control today we might not be able to increase our ink right off the bat but we can start by decreasing your expenses right away so the five main categories that people spend the most money on are housing transportation food entertainment and clothing right so I'm gonna go over those today I'm gonna do housing and transportation a little later in the video and start with food because we all love to eat and it's the easiest place to cut expenses okay when it comes to food it's important that you shop smart shop eat smart means you don't shop at Whole Foods or fairway or overpriced supermarkets they will just eat away at your wallet for no reason there are much more affordable options that you can find especially in New York City you have Aldi stop and shop Target Costco there's a lot of options for you to go out and help find those savings now you can even take this a step farther if you guys know who Graham Stefon is on YouTube then you know that he likes to shop around and diversify where he buys things I do similar things so if I know that all these has $3 Bri then I'll buy my cheese from there and if I know the store on the corner has the cheapest organic eggs then I'll buy them from there so you'll start to kind of figure out what stores offer the cheapest options and keep track and then you're even saving more another key is survive off branded items if you look into the ingredients as the exact same ingredients the only difference is the label name my next food tips meal prep you guys meal prep is amazing you save so much money I can't tell you how many people that I know that buy lunch every day and when you think about it if you're spending twelve to eighteen dollars money maybe pits are a basic salad that's gonna add up if you think about it there are 252 work days in a year and if you're spending twelve to eighteen dollars that comes out to around three thousand to four thousand five hundred just in a work year for lunch and if you buy lunch every single day of the year then that comes out to four thousand to six thousand five hundred dollars for a whole year on lunch just lunch not including breakfast or dinner now for me I spent around fifty dollars even less on groceries every week to cover breakfast lunch and dinner that comes out to two thousand six hundred a year on all my food expenses so the key here is don't eat out eating out will just kill your wallet especially in a city like New York where meals are so expensive and you might think listen I mean II I can't cook like I literally can't cook but guys I can't either I had to teach myself but I make such quick and easy meals so simple someone who let's say can't even boil water right not me I mean I just heard some people don't know how to boil water even they can't learn so there's hope for everyone and then if you love eating out because your friends go out and you have to eat out well there's a lot of ways that you can work around that invite your friends over cook a meal for them it's a whole activity and then in the end you tip yourself with all those savings but also guys if you don't have friends nope it's fine due west mouths to feed right regardless there are options if you have a favorite meal at a restaurant learn to cook it at home or find really affordable places to go and purchase those meals so for me I love sushi and sushi is expensive guys especially in New York City but what I like to do is get my sushi in Chinatown Brooklyn I get a whole roll six pieces for a dollar seventy-five I know it's crazy absolutely crazy but there are a lot of options you just have to you know go out there and search for them they're not gonna fall in your lap free money is not gonna hand it to you one more thing that I do want to mention when it comes to food is coffee we'll go back to our men Graham Stefan who is a millionaire and makes his own coffee every day at home and it saves him like three dollars and fifty cents multiply that over a year you're looking at twelve one jealous babies multiply that by five years and you're looking at over six thousand dollars in savings just by making coffee I don't spend any money on food isn't a priority for me there's nothing that depreciates faster in value than food you literally purchase it and it's gone in minutes sometimes seconds if it's good okay next clothing clothing is expensive but it doesn't have to because if you are able to you know identify what your style is style is not trendy if you shop based on what the new trends are every like a few months or every weeks they just rotate so fast nowadays but if you shop based on trends and all you're gonna do is end up consuming and consuming a bunch of junk and things that you don't need but if you find pieces that you know are true to who you are as a person and a style that you have that will last you a really long time then you're guaranteed to be signing your money and there right way when it comes to clothing and the key here is also where I shop I shop a lot of second-hand I do thrift stores consignment stores it's all about finding the right places to go I tend to go to consignment shops that will shop from celebrity closets although bring those in and sell them at a fraction of costs it's insane I have like a Burberry jacket brand new wood tags on for like $250 I'll look at Goodwill's in like the richer neighborhoods where people are just throwing out stuff they don't need because they've consumed so many things that they'll just get rid of nice clothes like Armani suits and Zara theory Reformation you'll find things in like brand-new condition so it's about you know searching for these opportunities to one really help save and then - this is a great wave help the environment by taking in secondhand clothing if you look into the fast fashion industry it's absolutely just devastating what happens to the environment because of the clothes that we wear so many steps you can take to better the environment as well as your wallet it's a win-win it's a no-brainer my last tip for pretty much anything not just clothing is to look at things in the value of time and not money sometimes we forget how much time we put into earning our money so when you thinking of buying like a pair of Gucci shoes like take the price and put it into the hours you spent to make that money right if it's 200 hours 300 hours ask yourself are those shoes or bell or whatever worth the sweat and tears that you put into those hours at work to get that money once you start you know time in that price into your hard work you'll be less likely to make impulsive purchases of things that you don't really need you just want needs / wants and quality over quantity alright moving on to housing now housing in America in general is just really crazy expensive rent or mortgages and it really eats away at your Wow here is also an important thing to remember when I hear people spending 1900 to 2500 dollars on just the one room in the city it kind of blows my mind because there are a lot more options when it comes to finding a place to live whether you diversify into different boroughs or different areas of man and that offer you more of a bang for your book it's not just about living in Hell's Kitchen or Midtown and having this whole lavish lifestyle and then not being able to grow your wealth over time because you're spending so much money on just a roof over your head I would also say that getting off the busy cycle is super helpful so busy cycle is like with the summer season so if you're least and in the summer try and negotiate a month-to-month lease in order to get into the fall and winter cycle now another thing that is costly when it comes to housing is utilities let's say you have con Edison free electricity well con Edison will assign you an energy supplier by default maybe it's a nice price to begin with and then over time it increases because you're not checking it on it but what you can do is Google energy supplier for con Edison and then sign up for a new energy supplier and you'll get a lower rate because it's a more competitive market rate for new customers so this is a great way to go ahead and start cutting down your utilities and you can do this for your internet bill as well like change your roommates name get a new like customer deal there's a lot of ways for you to start cutting back on your utilities whether it's like a $5 or $3 cut month-to-month now overall housing is really expensive in these cities and the long-term goal should be for you to leave these cities and find opportunities elsewhere you also want to you know save up and be able to put a down payment on your first home and have that as an asset that you can then continue to grow your wealth with okay the second most expensive category is transportation transportation is expensive as well like it is insane how much you have to pay to get from point A to point B now when talking about New York City iPhone mine use a monthly subway pass I pay around 127 dollars a month which is pricey but because I use it like two to three times a day it's definitely more worth it than buying a daily like ticket this also gives you access to not only just the subway but to the bus system and I was really intimidated by the bus system in New York but recently I started to figure it out and this is a great option this is like uber max pool because you get to see the city and enjoy the views you get your Wi-Fi and it's a lot cleaner and a our environment than the subway but it's also a really great option and super affordable so public transportation is my go-to I don't like to borough taxi places it's expensive and it's a lot slower to get places then if I were to just take the subway there but a lot of people do and it kind of like creeps up on you like there's people I know that take uber to work every single day it spending 20 here at 10 here you're going out there's money another 30 to get somewhere like before you know your uber bill is like $300 a month and you're like things like that they do add up guys so figure out ways to get around the city with other you know methods of transportation and you can take a bike city bike is everywhere and a great affordable way to get around you can walk places like Manhattan is a lot smaller than you would think you can definitely you know take a 20 30 minute walk to get somewhere and enjoy the city so there are a lot of options one thing I would drawing the advice against is getting a car a car I feel like is more of a hassle than a help in the city you have to figure out a way to park a park enos of course insanely expensive and then again the traffic is so bad that it's just gonna slow you down at the end of the day so our final category is entertainment and recreation and a bunch of other things thrown in there so now financial advisors suggest that you should spend around five to ten percent of your salary in this category but I would say that if you have a lot of debt they're trying to pay off or you're trying to save up quickly that you stay on the five percent or even less side of this but there's a lot of things that can add up when it comes to this like asides from your regular fun activities that you like to do and enjoy the city there's things like your gym memberships which are crazy expensive I know a lot of people that like to go to Equinox but I just don't see the value in spending $400 a month on a gym membership that's gonna offer me the exact same tools I can get at like a billing fitness for $25 a month don't get me wrong the steam room was amazing it's just not worth it in the long run so do I figuring out what you're looking for when it comes to exercise so I don't really like going to the gym but I love classes so you can look at the class pass or what I like to do is use Groupon so I'll go onto Groupon and find coupons for classes like I did kickboxing for like a whole year through two months of yoga for $70 which is a really affordable price in this city also since we're on the topic of Groupon there's a lot of things that you can do especially when it comes to experiences on Groupon and get like really great prices for it so if I'm gonna get my nails done I'll check on Groupon for really nice studios that have deals going on similar like getting massages or cooking classes dance classes like there's a lot of things that you can experience in the city at a fraction of the cost if you get your ticket on Groupon so it's important that you decide what percentage of your income will go towards entertainment and that you stick to that goal it's a promise that you keep to yourself and it's important that you see it through because if you can't keep a promise to yourself how are you gonna keep promises to other people right it's all about finding that balance okay now that I've shared with you guys a bunch of different ways that I save money the next steps are gonna be to analyze how you're spending your money so you can either print out your bank statements and analyze your credit card spending or you can download apps like mins and empower that go ahead and track your expenses for you and let you know when you've gone over the goals that you've said another helpful trick is to set up automatic withdrawals so as your paycheck falls into your checking account you can set it up so that twenty to thirty percent of it is automatically pulled out and put into your savings account so then you're left with money that you can then take and break down into the different categories that you spend and it's like that other money doesn't even exist and you're not tempted to spend it alright now that we've saved all this money we don't want to sitting in a normal savings account we want to put it in a high-yield online savings account that allows your money to make money as it just sits there now it's not gonna make a lot of money but it's gonna make more than Cyril which is what it makes an enormous savings account now once you've saved enough money to let's say pay off your debt or have you know a good emergency fund secured to cover like six months of your expenses the rest of your money you're going to want to start diversifying right whether that's investing or going into real estate there's a lot of options that you can take for your money after that and I'll link up here my how to get started on investing video if that's something that you guys are interested in please check that out and then finally I want to leave you guys with your next steps things that you need right after this video number one smash that like button for the YouTube algorithm and hit subscribe for more videos step number two go ahead and do those analysis on your own spending and figure out what expenses are eating up the majority of your income your third step is to set those financial goals figure out what is it that you want out of your money in the long term and what steps you can take today to cut back and help grow your savings all right guys that is all I have for you today but if you found anything this video to be helpful please leave a comment below if you have some helpful tools that you do to save money please share as well and then hit that like and subscribe button for more videos coming [Music]

Channel: Luxe Minds

Views: 4,757

Rating: 4.8685446 out of 5

Keywords: How to save money in nyc, how to save money in the city, how to save money, how to save money fast, how to save, money saving, saving money, money tips, money saving tips, saving hacks, saving money in nyc, budget lifestyle, how to budget, budget planning, how to save and invest, how to save a lot of money, growing wealth, financial freedom, how to cut down expenses, how to manage your money, financial minimalism, Nate obrien, graham Stephan, how to save money 2020

Id: KwMadNnhV40

Length: 16min 4sec (964 seconds)

Published: Wed Jun 17 2020