if you ever try to get your savings in order chances are you failed a lot but the truth is it's not your fault you just didn't have the right strategies so here are six proven ways to save $10,000 faster according to science first there's guideline automation a 2004 research study found there's a way to easily save 3. 8 times more money but the best part is you can still buy things you love pineapple pizza MrMagic lambs and broccoli but you got to do it in a specific way implementing guideline automation does take a bit of work to get started but it saves so much more time and headache in the long run this strategy plays on the idea of loss aversion basically it's when you losing $100 feels significantly worse than you finding $100 naturally anything you do that takes away from your immediate pile of money like saving money will become just a bit harder for me guideline automation makes it so I never have to worry about saving money it completely eliminates any form of loss aversion but before I show you how my flow is set up let's say you earn $67,000 a year if you apply guideline automation to just 10% of your income you'd have saved close to $7,000 by the end of the year not bad considering you didn't have to lift a finger after setting it up once think of it as sort of a self tax where your future self is charging you a 10% tax of all your earnings so that your future self can be financially free here's how I set mine up step one my paychecks are deposited into my checking account step two on the same payday my bank account then automatically moves my paycheck into one of two accounts one is called my spending account which includes my fixed monthly bills typical living expenses like groceries gas Etc and by knowing how much that I typically spend in a month based on historical averages I can set up spending targets for other stuff like restaurants entertainment travel and shopping the second account is my savings account basically where all my savings go step three at the end of the month I automatically know what I didn't use up in my spending account and I can automatically move the leftover money into my savings account then the money for my savings account can do one of three things be a part of my emergency fund go into a high yield savings account or go into my investment accounts I also use this savings School tracker to save money a lot faster basically I'll just put in how much I want to save and then I can track my progress and Visually see where I'm at for a limited time I'm giving away my ultimate saving Gold Tracker for free get it with the link below next don't save $10,000 the problem with setting such a large goal from day one is that it's not realistic instead I want you to think about how You' eat 10,000 slices of pineapple pizza if you don't believe in pineapple and pizza I already know what your answer is but the only right answer is one slice at a time so just like the slices of pizza break down that $10 , goal what you need to save every month is $833 which still sounds like a lot of money but then you want to keep on breaking it down $10,000 in a year is just $27. 30 a day and when you break that down even more it look like this cooking meals instead of eating out there's $10 to $15 a day bringing your own coffee instead of getting latte with oat milk $5 a day cutting out subscriptions you don't use anymore Netflix GQ Hulu about 30 bucks a month taking public transportation instead of uber $50 a week playing Katon with friends instead of going to the bar $100 a week but there's just one more problem there's a psychological phenomenon called present bias basically people tend to put more value in priority on immediate rewards over future benefits now thankfully there is an easy way to get around this instead of thinking you're only saving $7.
39 every day you got to switch it back around think about it as you're saving $10,000 at the end of the year by doing this Jedi Mind Tricks and switching your mindset into the bigger number when you need it you become more conditioned to fight off present bias suddenly saving $27. 39 a day seems pretty doable and by the end of the year you're going to have $10,000 saved up all for making a few little decisions that the person next to you didn't next taking back control of your emotional bank companies like Amazon Coca-Cola and Nike invest billions of dollars to try and figure you out they hire teams of psychologists behavioral economists and marketing experts to understand how your emotional Bank Works what gets you to tick why you crave things and how to convince you to click by but what if instead of letting multi-billion dollar companies exploit and manipulate our emotional banks for the worst what if we were able to do the same thing to it but for the better a 2019 research study found that you were 3. 3 three times more likely to save if you were able to use your emotional advantage to fine-tune your behavior and it all starts with a single question but what surprised me the most from this study is that you don't need to obsess over all the data the statistics and information about the benefits of saving for most people it doesn't really help to constantly hear about how unprepared some families are for emergencies or how baby boomers are struggling to financially retire the truth is none of this is as effective as asking yourself this one question why for me my why is my parents my parents left their friends their entire family and everything they knew to come to the US they worked in factories every single day from morning to evening to give their future children a better life when they got paid they didn't use the money to buy new clothes for themselves or designer bags or anything lavish instead they decided to tuck most of it away in hopes to give their future children a better Financial start when I was born I never grew up with much money in fact I grew up witnessing all the little things that my parents did to save I remember how we would get these little coupons in the mail and my mom would clip them out one by one how instead of Nikes and Jordans we had to get brandless shoes from Pals or how we intentionally bought clothes that were way too big for me because my mom said that I would still be able to wear it when I got older my why is to be able to give my parents a life they never had a life where they never have to worry about money that's why I have pictures of my family throughout my apartment to constantly remind myself why I'm doing what I'm doing and to always hold me accountable and motivated to keep on pushing author Simon s calls this the Golden Circle basically it's a model that explains how some people achieve success While others don't it consists of three concentric circles representing three different layers s says it's not enough to know how to save money or what you can do to save money these things are important but they come secondary after you have a genuine answer to why you want to save money your why creates a Sentimental connection between your core values and why you want to save it builds a personal reason to save not just because you should or are told to but because you have a deeper meaning to achieve and speaking of deeper meaning I've come to realize that when you grow up without money you tend to build up a lot of Financial baggage and Trauma that negatively impacts you later in life what I think is really helpful is therapy which can give you the strategies to work through this that's why I'm excited to talk about today's sponsor betterhelp better help's mission is to make therapy more affordable and accessible finding a therapist can be tough especially when you're limited to the options in your area better help is a platform that makes finding a therapist easier because it's online it's remote and by filling out a few questions better help can match you to a professional therapist in as little as a few days it's easy to sign up and get matched with a therapist check out the link below it's betterhelp.
com Vincent Chan clicking that link supports the channel but more importantly gets you 10% off your first month of better help and because finding a therapist is a little like dating if you don't really fit with that therapist you can easily switch to a new therapist at no additional cost without stressing about insurance or who's in your network if you ever went through or going through a hard time consider online therapy with betterhelp click the link in the description or visit betterhelp. com Vincent Chan thanks again to betterhelp for supporting this video Oscar wild said I can resist everything except Temptation I personally have a super addicting personality all the way since middle school I've been obsessed with video games Left 4 Dead Team fores 2 Age of Mythology in fact my biggest brag is that I finished a main quest in Skyrim in Just 2 Days in Psychology they call this gratification most people tend to give into their impulses is because of dopamine basically it's the pleasure chemical in our brains that gets released when we give in but the problem is we're all misunderstanding the timing and sequence which dopamine affects us typically we think the dopamine process goes like this you want to buy a Mrmagic lamp you buy it you get a huge hit of dopamine but did you ever notice that after you buy something you've wanted for a while you sort of forget about it that positive feeling stops existing but studies found that the dopamine process actually goes like this you want to buy Mrmagic lamp you get a hit of dopamine anticipating the purchase and then you buy it and companies know all about this order they spend billions of dollars to exploit this deep-seated weakness of ours they use tricks like the classic on sale signs where they make you feel like you're actually saving money or setting up thresholds making you spend $100 more just so you can save $5 on shipping but how do you stop falling for this author bow Meister knows a thing or two about this bow meister and his colleagues study people who are obsessed with chocolate cake but instead of giving the participants the cake right away they were told they could have it later and it worked their urge to eat the cake significantly subsided the trick is instead of stating that you'll never make an unnecessary purchase again which is an unrealistic goal give yourself permission to get that dopamine hit by creating a not now but lat lat list whenever I see something that I really want to buy I add it to my not now but later list I let my dopamine get its fill and then I wait 30 days before I buy it if by the end of the 30 days I still want to buy the thing then I'll get it but what happens about 92.
