9 Ways to Be Good With Money – Why You Are Always Broke


How to be good with Money For most of us, the dream is to have a good
life, whatever that means for you. For some, it may mean getting a good job and
being able to afford all that we’ve so far only dreamt about. Others might be more into falling in love
and having a massive wedding attended by the stars. For some, ultimate political power is the
dream. Chances are, whatever your dream is, it involves
having money in your pocket. To create long-lasting wealth, it is important
that you are good with money. Being good with money has nothing to do with
the amount of money you are making; you could earn peanuts and still be great with
money. Rather, it is about combining some essential
skills to ensure that you are getting the most value from your earnings and that you
are able to take care of your needs; in this case, the bare minimum you need to have a
convenient life. I’ve partnered with an amazing financial
blog – Money Under 30 – which is a leading authority providing financial advice to young
Americans. They teach you how to save, how to spend,
and most importantly how to lead a healthy financial life. I’ve personally been reading their site
for years – it’s been a great help for me in going over the fundamentals for financially
healthy living – and I think it would be a great resource for you all as well. Here are some excellent pointers on ways you
can be good with money; 1. Change your mindset about Money
You may be at a point in your life where you are engulfed in the bad money decisions that
you have made all your life. Debt has piled up, your bills are unpaid and
all that is in the bank is enough to get you that box of pizza you have been craving all
day. You can’t imagine a life where your money
problems are all gone; and yet, you’ve run into this video telling you it is possible
to be good with money, no matter the point of life you are in right now. The first step to being good with money is
recognizing that you have the ability to do it. This means changing your mindset about how
you believe money works for you and around you. It means understanding that you can take control
of your financial present and future, and make your dreams come true. If you are having difficulty believing that
it is possible, look up people who have been in your position before, and managed to get
to where you want to go to in terms of financial independence. Then, with consistency, work towards getting
that future for yourself. 2. Save Save Save
Having a savings account – or several of them – is a very important step when looking
to be good with money. In fact, experts recommend that you should
have more than one savings account as it creates specific plans for your money. Savings accounts serve several purposes. First, they give you a cushion in case of
an emergency. This means that when something comes up, you
don’t have to use money that was supposed to be used to pay your monthly student debt
and car insurance to pay for an emergency. Secondly, they’re useful in making big purchases. It is recommended that one should save for
big purchases, rather than using credit cards. Buying a new machine in cash that you have
saved over a period of time means that you can actually afford it; buying one on credit
means it is technically not yours until you have paid off the credit and interest accrued. Nowadays, it is possible to have your bank
automatically take out a percentage of money from your checking account, and deposit it
to your savings as soon as your income rolls in. So, if you don’t have one, set up a savings
account and see your goals to turn it into a reality. 3. Budget for your Spending
Budgeting involves identifying your needs for a period, putting a price tag on them,
identifying how much you have and whether it will be sufficient to fulfill the needs,
adjusting where necessary, and then fulfilling the needs. The first step is identifying what you need. Utility is the rule that applies here, and
this means that if anything is not necessarily useful, don’t write it down. Alternatively, you can identify all your wants,
right down to your dreams of funding the next mission to Mars and then arrange them in order
of what is needed most to what is needed least. So, for instance, an expensive pair of Louboutin
boots in your list would appear way after groceries and bills. Second, put a price tag to the things you
need (or want) for the period of time you are budgeting and do the total. Then, look at how much you have to spend and
make a determination of whether it will be sufficient. If not, remove the least-needed items from
your list. If it is more than sufficient, you can invest
the difference, save it or buy that pair of red-bottom Louboutins. Budgeting ensures that you live within your
means, as you get to indulge in things you want, as long as you can afford them. It is advisable to make monthly budgets and
stick to them throughout the period. This means that when there are unwarranted
purchases or unexpected income, the budget is referred to before any money that wasn’t
meant to be spent gets drained. Most importantly, don’t forget to budget
for ‘fun’ money. Otherwise, you’ll end up tearing into your
budget on a whim. After all, you are only human. 4. Use the Cash Envelope System
The cash envelope system works because of one major reason; you get perspective on how
you are spending your money. When you budget, there are several key areas
of your spending. For instance, in one month, you could be expected
to pay the bills, buy groceries and settle a debt. In that same month, you might set aside some
money for fun and entertainment. In this system, you will have four envelopes;
one for bills, one for groceries, one for debt and another for fun and entertainment. In each of these envelopes, the exact amount
to complete each of the tasks is put inside. Therefore, when you are going grocery shopping,
armed with a list and the assorted prices, you carry only the envelope for groceries. Putting your credit and debit cards aside
and dealing with cash only ensures that you don’t spend any more than you planned to,
which is a weakness associated with using cards. This is especially important if you are at
a point where you are using money badly and need to get back control of your finances. Until you feel that you are back into control,
use cash only. 5. Cut your Spending and Increase your Income
This takes us back to the issue of budgeting. At the core of budgeting is the need to spend
less or an equivalent of what you earn. When budgeting, one begins by listing down
a list of the things that they need for the period of time that they are budgeting for. Using this list of needs, and comparing it
to previous lists, you can identify the areas where you need to cut down on your spending. When you reduce the amount of money you spend
buying things or paying bills or in entertainment, you get to keep more of your money. You can cut down by increasing the duration
over which you budget and taking advantage of the economies of scale. So, if you are doing weekly budgets, adjust
it to every fortnight and then every month. Also, avoid take-out and instead start cooking
at home. Cooking allows you to make several meals at
once using minimal ingredients and is generally cheaper than takeout. Better yet, budget for when you want take-out
and when you want to eat out, and when you have fully spent this amount, eat only food
you have made. Unless, of course, you aren’t paying for
it. While cutting down your spending, find ways
to generate more income. If you have a hobby that can make you a little
money, work on it. If you know someone whose business you can
invest in for dividends, do it. By doing these two things, you get more disposable
income. 6. Invest for Your Old Age
At some point, you will be too old to generate any new income. Therefore, you need to start earning
money now that you can spend later for your everyday needs. The easiest way of doing this is investing
in your employer’s retirement plan, if it is available where you
work. This involves having some money cut off from
your paycheck each month and then accruing interest until the day you retire or until
an agreed-upon time. Other ways of taking care of your income in
your old age include investing in real estate, a personal
pension that invests monthly, quarterly or yearly income, or investing in the development
or marketing of creative works and intellectual property like
patents. All these methods will ensure that you don’t
have to work until you die. 7. Devise a Plan for Paying off Debt
You can still be good with money even if you have debt; all debts are not necessarily bad. For instance,
you may be required to take a car loan if there is a problem with public transportation
where you live. Or,
your student loans from back in college may still be haunting you. While debt itself is not bad, paying it off
aimlessly may take you into an even worse financial muddle. For
example, it is inadvisable for you to use all your income to pay off your debt, even
if doing so will leave you debt-free. Do you know why? Because chances are that you will get into
more debt to be able to provide for yourself since you used all your
disposable income to get out of it in the first place. It is therefore paramount that you make a
financial plan to pay off all your debts. You can start by listing
down everything you own and identifying the accruing interest rates if there are any. You can then make a
plan over several years on how you intend to pay off the debt, taking into account your
expenses and your income. In a situation where the debt is accruing
both interest and default payments, talk to your financial
provider and come up with a plan that will not debilitate you financially. 8. Ensure that you get Value
There are two ways to get value; by ensuring that you don’t just go cheap and by ensuring
that your investments will result in acceptable returns. “Cheap is expensive.” When something is cheap, it means that the
cost of production was low, which probably means that there was a compromise
on the quality. Such a product is, therefore, likely to lose
value over a short period of time. However, when you make a point to get value
for your purchases, you look for a product that will serve you well
for an acceptable period of time. You are better off buying a pair of shoes
at $100 which will serve you over a year than one which you buy at $40 only for it to serve
you only two months. Getting values for your investment involves
making a determination that the money you are giving up will have an acceptable amount
of returns. This means avoiding putting your money into
investments that look too good to be true or are not worth the value they claim to have. When you get the best prices for your purchases
and investments, you are on your way to becoming good with money. 9. Deal with the Money Issue that bugs you Most
At any point in time, you may have a small issue related to money that bugs you. For example, a small service charge from the
bank could be bothering you. Such a small issue could be a weight that
you carry around and might seem more challenging than it really is. So, what do you do? Deal with it. You would be surprised at how much money you
can save, or how much more you can earn, by simply dealing with a small issue that bugs
you. For instance, dealing with an unnecessary
service charge means that you will be able to keep more of your money. If you are doing at least 50% of the things
we just mentioned, you are well on your way to being good with money; maybe even funding
the next mission to Mars. I want to take a second now to tell you about
Money Under 30 – the people that sponsored this wonderful video for you. They’re basically a blog dedicated to helping
you millennials learn how to be financially healthy adults. The financial world can be a scary place – but
you don’t need a PHD to navigate it. You just need the basics. And Money Under 30 is a great place to master
these basics. Read up on saving, budgeting, investing, and
everything else you need to know to live a financially healthy and secure life. Check it out – moneyunder30.com. Thank you guys so much for watching. If you liked this video, please give it a
thumbs up, and don’t forget to subscribe for more helpful and inspiring videos like this
one. That being said, I’ll see you all in the next
one!

54 thoughts on “9 Ways to Be Good With Money – Why You Are Always Broke

  1. No matter how much money you make, without proper money management, you will lose it all. i.e. Mike Tyson, NBA players, etc…

  2. The reason why people are broke – because they focus on consuming instead of creating.

  3. I would humbly advise to invest money and then after that investment has grown, to then buy that nice car, because if you do this, after you buy the car, you still have income coming in from your investment. If you just save the money then spend it, it's gone and you are left with a depreciating object. If you still have the investment pouring money in, then you're in a better place because you can have your cake and eat it too.

  4. I disagree with paying not paying off your debt. All my debts are paid such as student loans and such . Now I'm able to put aside 3/4 of my monthly income for investment after living expenses. I own my car as well. So I don't have car payments. To me that's an extra $275 per month. I cook mostly at home, as a former sushi chef. I eat out because my passive income can pay for my meals. Good luck all.

  5. But Isnt It Better To Buy Stuff You Want With Credit Card Rather Than Debit Card Or Money Becuz If Something Happens like Stealed , Warranty Not Occured / Valid And etc ,You can take ur money back / bank cover ur money safety

    -Graham Stephan

  6. My dream is a world where the economy is actually fun to deal with, rather than something that strangles the life of the not so fortunate.

  7. Having a hand full of money is very tempting. In this regard, make a financial plan. Every pay day, you have to set aside at least a percentage of 20% from your salary. Make a habit every pay day.. at the end of year, you grab something that make that money robust. Invest invest invest. Be inspired 😘

  8. At 0:29 is SO TRUE. I KEEP SAYING IT OVER AND OVER. Its not about how much you earn its your attitude towards the money. Being good with money has nothing to do with how much you earn AT All. You can earn a low amount and still achieve great things

  9. What about when you have a good mindset with saving money but the woman you’ve been with for the last 7 years has the attention span of a 5 year old

  10. I remember when I was a kid, I used to go with my mom when she does grocery shopping. She’ll tell the cashier her exact budget (amount) and tell her to stop scanning products once it reaches the amount. My mom was clever lol It was back home in the Philippines 😅 She’s frugal in a good way. We were never starved. ☺️

  11. Money, stay in control. If you buy something and it is still in the box, has the tag on it or is getting dusty in your garage, you don't need it. Save that money or invest it in a 401k.

  12. Only buy what you need, not what you want. I see so many students in my high school are always excited to shop in the weekends nonstop without taking to consideration how much they are going to save.

  13. Funny how the shoe purchase illustration actually has to deal more with weight than your wallet. Meaning the the lighter you weigh, the stronger your chances of having those shoes for a longer period. The same can be said for 2 identical cars where one transports heavy people than the other carrying lighter. You'll know the difference spent at the gas station.

  14. This video is useful, but I didn't like seeing all of those ads while it was going on. They were too much of a distraction. I don't mind ads at the beginning or end of a video.

  15. thanks for this incredible video sir..i have always advised people the best way to make passive income without so much stress is to get an expert that can help you grow your portfolio…i made my first million trading stocks as a beginner with the help of Mrs Nancy Berman Epstein.she handles my investment portfolio and i have never been in better hands…she is popular in the US

  16. Here I thought I had system down.
    In college working hours given at grocery store, used envolopes. Rent food, electric, car,clothes laundry in that order.
    Ate late breakfast, early evening super, so was not hungry, ate pop tarts for evening meal canned fruit ,drank lot of water.
    Have no credit cards, make list of needs, not wants, spend only some the cash on me.
    My money goes to ills first, then replunish that expense.

  17. Poverty is Generic. It is passed down from Generation to Generation. I order for you to be something. …you need to become it first. If you grew up in poverty, this is all you know it's been programmed in yoyr Subconsciouns . You need to reprogram your Subconscious. …thru Meditation, Affirmations or Faking it till it shows up. It's going to take time and patience and this is where our people fall down. Everyone is living in this now,now world. They dont have the time or patience to wait for the good things to appear. Yet if you do…you will be shocked at the results. Listen to…Neville Goddard, Michael Beckwith…..Joseph Murphy

  18. Hahaha do you think I want an expensive car? Or expensive boots? I want to be able to pay for my rent, conmute and still be able to eat Hahaha :'(

  19. Although my $30 AZ Kadin boots seems it may last just as long as my $450 Stuart Weitzman boot which lasted almost 7 years.. I will have to compare and see in 6 years, if it makes it, lol.

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