Ways To Save Money On A Tight Budget

Man how you supposed to save money on a
tight budget right?! I’ll tell you what. I know what poor feels like. I know what
Poe feels like and I’ve also been able to travel the world. Becoming a self-made
multi-millionaire, figuring out who I am, what my life purpose is. I tell you what,
knowing Taj Mahal and stepping onto the great pyramids in Egypt and having been
in Phuket some of the nicest beaches on the planet been in Bora Bora. I’ll tell
you that budgeting at one point was one of those really critical key aspects of
figuring out how to let the rest of my life become everything it’s become. Kris
Krohn here with Limitless TV and I’m going to share with you my number one
tip on how to budget like a boss to help you step into this amazing life that you
want to live. So I’m going to share with you in a
moment my 4 envelope system. My wife and I developed this back when we were
newlyweds when we didn’t have money and yet we found a goal something truly
worth saving for. In fact, the first mentor that told me what I needed to do
to make my first million dollars required me to put five thousand dollars
in my savings account and work on actively establishing my credit. Those
were the two things that I had to do. And for a 14 month period of time, before I
hit that goal, I needed to find a way to put $5,000 together when I didn’t have
two pennies to rub together. And I want to share with you when we first got
married, we were looking for examples on how do we budget. And my wife, her parents
financially did really well but came from very frugal background and they did
this, they had all of these amazing uphill in the snow both ways stories
about how poor they were when they started out their life kind of like my
wife and I did. And we developed a system from it called KPPPM because we were
poor. In fact, we were probably more like poo because you couldn’t afford the R.
I kid you not. This KPPPM means cleanse parents penny-pinching month.
Cleanse parents penny-pinching month. In fact, they got this one story where they
had saved up money for this two-dollar can of Lawry’s seasoned salt and baby
Ben had knocked it over and spilled the salt out and it ended up being this this
traumatic thing of oh my gosh we save this money we bought this this luxury
item of seasoned salt and been it’s gone to waste. And they had stories like this.
They, they and they have the banana box house. This was a house where their baby,
the crib was about a box it was a banana box and that’s what they actually made
his bed out of and Kalenn and I were really inspired by that and realized
that, if we were going to save this $5000 and frankly whatever it
is you need to stay fourth we needed to kind of pull money out of thin air. How
are we going to do that? So we would establish a cleanse
parents penny-pinching month which meant work that we were going to become wise
stewards in how we allocate our resources and I’m going to tell you
right now your resources can stretch way further than they currently might be
depending on mindset and it’s going to start with the
belief that you have plenty and enough to spare. And I can invite you to write
that one down. I got plenty of enough to spare because that’s going to create
some room for a margin to start setting money aside for whatever it is you need.
And so with that let me share with you my four envelope system. Alright. so budgeting, you can turn it into a game and you can make it fun and it requires
just a little bit of organization. Once you have your why and you know what you
want so that you can aim that budgeting for a purpose rather than just, listen
budgeting for the sake of budgeting? Man, give it direction, give it aim, and give it
a purpose. And then Kalenn and I, when we got started we used the four envelope
system. We had four physical envelopes and what we would do is we would divide
all of our money into number one, personal use. Okay personal use was, what
we were going to be consuming our money on every month. Personal use was food and
gas and our monthly expenses. Number two, there was an investment envelope which
was we’re investing in our future. We can’t live paycheck to paycheck our
entire life or just get ahead a little bit. We decided the incremental growth
was never going to get us where we wanted to go so eventually we were going
to have to invest in us and we’re going to have to invest in, investments like
real estate and business and other things. So even if we were, even if it’s
just a dollar a month or ten dollars or $50 that’s a start with putting money
towards your investment envelope. Number three, savings. This is also really
important. Eventually, if we can save a little for a rainy day we start creating
peace of mind. We make it easier to choose out of scarcity. So every month,
money would go into savings and then number four, charity. And you know my wife
and I, in our religion, we pay a 10% tithing. This is one of the ways that
that we give and that money gets to go towards really good causes. We believe in
and do a number of other charitable acts and it’s this idea that says, all the
things that we have is it really ours? let’s make, let’s pay it forward and
let’s make an investment into other people, into the universe, organizations,
institutions and circumstances. So this four envelope system no matter how much
money you have every month the idea is and in the
beginning with the tight budget a lot of it might be going to that personal
category which is what do we need to sustain our household. Number two, get
something in that investment envelope. If you’re not making enough money and moving
backwards, put that money in your investment. You don’t invest when you have
surplus. Investing is a priority. It’s more important than your cellphone bill,
it’s more important than your home bill, you have to invest in yourself. Because
when you don’t, if you don’t have a plan for it, how you’re going to ever get out
of your circumstance? you need to do something to go beyond. Don’t just wait
for things to change with time or for the promotion to finally come. Make that
an expense that is just as real as paying off that credit card. Number three,
savings. You’ve got to get your money set aside to save so that should you get
behind the 8-ball with something, you have something to fall back on rather
than panic. Because if you don’t got nothing, phone back on panic it’s that
fight or flight it gets your adrenaline going and not in a good positive way.
It’s training your chemistry, your body, your mind, everything to be in that space
of lack and scarcity. When in fact, we want budgeting this is why we need a
positive aim to produce something positive uplifting and free. And then
finally, even if you don’t got money at the end of the month find a way to give.
Find a way to give back because as unfortunate as your circumstance might
be or maybe you’re in a great situation but you’re budgeting for something you
really believe in, tithing, charity, this is a way to practice detachment which is
a way of letting go and releasing some of the selfish or self-interest of what
about me and what do I want and to know that we live in a world where other
people are in need and you’ll like the human being you become when you give
back. And so I recommend that you implement this four envelope system.
Today in my modern day, Kalenn and I do it with four different bank accounts and
all the money that comes in it’s going to get allocated no matter what into
those four and what that will do with time is build a momentum. It’s going to
build growth because $100 a month set aside for investments may not feel like
a lot but when you get much it feels like it’s under control and when you’re
shifting out of scarcity and anxiety and shifting into into your birthright
of prosperity and to shift into abundance then, oh tax return came in
$2,100. Let’s put 500 towards our this month’s
investment account and boom there was a great,
there was a great bump there. Oh let’s get back a little more charity. Let’s put
that extra fifteen hundred dollars in savings and instead of consuming it and
living on it. This simple little system that I’m sharing with you is not about
how to budget it’s more about why to budget and the really big picture that
starts with a belief that there’s always an excess amount of money at the end of
every month to make sure that there’s money to set aside for savings,
investment, and charity. And when you do that it’s your first steps of stepping
into more of your prosperous life. You know me and my team we put together,
every now and then, one of our three day wealth workshops to really help people.
Take what you just started learning here on budgeting and take it to a whole new
level. Like how do you set money aside and save? how do you step in to investing?
and how do you step into a mindset of prospering in abundance that can allow
the birthright of prosperity to really enter and flow through your life.
And I want to invite you. Click the link below and find out. And you know what? take that
first little bit that you saved in your investment envelope and come check out
one of these events so that you can educate yourself on how to get to your
next level.

38 thoughts on “Ways To Save Money On A Tight Budget

  1. Thank you again for all your videos, really. I'm at the cusp of getting all this in motion in Sept. I'm just starting out on a very low income and believe this is the right path for me to help me reach my goals. Question: I have all my ducks in a row, excellent credit, first time buyer, length of job/apartment etc. Trying to get my debt ratio to zero though, I was told (by mortgage lender) to do this. trying to get rid of car, but even doing this I still have a small loan (4000$) and student loan ($100)which is about $100 a month . Being that my annual income is only $25000 I could only afford a $100,000 loan (I'm assuming) Live in Atlanta BTW, there isnt much in the way of getting a home with a mother-in-law or basement. Could real estate investing still be done? I also design kitchen and sell kitchen cabinets. Thank you

  2. Thanks Chris quite an appropriate video in the situation I'm in. Whats your thoughts on investing in gold?

  3. Chris, why single family homes? Why not multi family apartments that are valued by their NOI divided by their Cap rate? I invest in single family homes too, but all the traditional gurus say to invest in multi family to scale. You own hundreds of houses around the country. Clearly there is a reason you prefer this over MF.

  4. Will you please consider being more direct in the video and straight to the point? This can help us as viewers watch the whole video when its short and direct instead of skipping or bouncing off the video.

  5. just got a 6% raise this week and getting a 10% raise in six months which is really helping me get out of my rental quick to start investing after that. thanks a ton for your work I appreciate it

  6. I just watched about 5 of your videos and I will continue . I am about to start my investing and I will remind you with my progress and message you when I'm ready to start investing

  7. Great videos Kris, I've been watching you for a week or two now and I really enjoy your channel. Your content is relative to me, you speak clearly and get to the point with short clips that hold my attention, you are a good teacher. I wish I was living in the States and could attend your seminars but I will be getting your book soon! I find your clips to be so much more motivating than others, keep up the great work and hope to see a lot more of you in the near future.

  8. I think this is a problem for me, every time I save up one thousand or more, I always finish donating it to a cause, and I never have money for myself. But there are so many more people that need money more than I do.

  9. The envelope system works great! But let me suggest using a small accordion folder with tabs to divide and label the categories in one envelope.

  10. Limitless TV can you please do a video about how can i start investing in my mony when ur 18 or 16. I have saved 4,500$ and i don't know how to invest in them btw im still in school

  11. Soon as you mentioned tithes… I paused subscribed…cause now I know what you have to say will be meat… 😂 Now back to the video

  12. so what do you do if you don't have enough to cover your personal expenses let alone savings, investments etc., ?? On benefits here in UK, any investments you 'may' have are taken into account and benefit money is deducted – it's a trap that is almost impossible to escape. I would like to know how you can save what you don't have ? I can budget OK, but I don't have enough money to budget with !!

  13. what savings account the bank's savings account? that is wrong advice to give people can you tell me what savings account?

  14. How is investing more important than your house bill? So you're saying it's ok to live out of your car "so long you're investing " you should be out of debt before you start investing that way you'll have more to invest.

  15. 4 envelope system:

    1- personal use (food, gas, monthly investment..etc)
    2- investment (business)
    3- savings
    4- charity ( 10% )

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