You’ll Save More Money If You Do This | How To Save Money Faster

You’ll Save More Money If You Do This | How To Save Money Faster


We live in a world where pretty much
anything that can be automated is you can subscribe to grocery delivery so
fresh fruit shows up at your door every week you can preset your houses
thermostat and of course you can set in an automatic alarm so you wake them in
time for work every morning now in most circumstances these automation
techniques make life easier and are much more efficient than doing everything
manually but as we know there is an exception to every rule therefore in
this video I will share with you the best money tool you’ve never heard of
and if you’re new to the channel then hit the subscribe button below for more
life-changing content let’s face it technology has made life pretty
convenient but it can also leave you detached from the world around you for
instance in business meetings of transition from in person the video
conferencing in order to save costs moreover in our personal lives we have
exchanged hanging out with FaceTime and texting it seems like as technology
progresses we become more and more out of touch with those around us however
humans were given five senses for a reason and one of the senses that has
been dulled by technology is our tactile sense or sense of touch it seems like
there are millions of different finance apps out there for budgeting saving and
investing and while these tools work for some for others they simply aren’t
effective and maybe this ineffectiveness speaks to the fact that going old-school
sometimes the way to go take the example of self-made billionaire Bill Gates
despite being renowned for his computer genius Gates routinely uses just a paper
and pen to write down his thoughts this nocturnal nature of know keeping has
been proven time and again to improve memory and processing and the atoms
written down and when it comes to your finances the same benefits are true it’s
for this reason that one of the best money tools you’ve never heard of is as
low-tech as possible yet has extremely powerful benefits for those who use it
enter cut cable cut a bow is a Japanese word that translates to household
account book a few english-language versions that cable journals have
recently been published but if you have a blank notebook handy there’s no reason
to rush out and buy a special ledger here’s everything you need to know to
put cut a bow to work for you first what is cut a bow cut a bow is a way of
manually tracking your finances to help you stick to a budget and reach
savings goals according to the Journal of Japanese studies the concept of
kekkai Bo is credited to Hanny Mikoto a Japanese journalist who published one of
the first housewives magazines in 1908 in the pages of her magazine
Makoto encouraged her readers to develop schedules and systems for household
tasks she also promoted the concept of homemakers as managers of the household
finances and advised them to set aside savings for their families ‘get able
revolves around the four following questions how much money do you have
available how much do you want to save how much money are you spending and how
can you improve by taking a close look at what you’re doing with your money and
asking yourself in depth to reflective questions you can change your financial
habits and reach your goals now I know not everyone sees the benefit of
budgeting but let me illustrate why you should budget with the following example
imagine trying to lose weight without paying attention to what you eat or
stepping on the scale from time to time you might drop a few pounds but you have
no way of knowing for sure or identifying what changes led to your
weight loss well the same thing is true when it comes to money if you want to
set and reach any sort of financial goals you need to know what’s going on
with your money you can’t just get your paychecks each month spend away and hope
for the best sitting down and taking a close look at
your finances at the start of each month then taking the time to write down
everything that’s coming in and out might seem like a drag but it’s a must
if you want to tame the money beast once and for all
another benefit of manually tracking your expenses income and savings goals
is that it encourages mindfulness you have to take a close look at your money
and hold yourself accountable for what you’re spending if you know you want to
save $100 one month for example you’re more likely to think carefully before
you spend some of your limited disposable income on something you don’t
need or don’t really even want now you may be thinking okay budgeting makes
sense when you explain it like that but why don’t I just use a budgeting app
instead of going old school about things although it can be easier to rely on an
automated budgeting app you’re more likely to process the information when
you record things by hand a study published in Psychological Science found
the students who took notes in class using longhand were better able to
answer in depth conceptual questions on a subject compared with students who too
no it’s on their laptop the students who wrote out their notes by hand
paraphrased and adjusted what they were hearing taking the time to process the
information as they recorded it manually recording your goals including your
financial goals can also make you more likely to achieve them when you spend a
few minutes each month thinking about and writing down what you want to save
you create an easily accessible record of that specific goal the process of
writing something down can also cement the idea in your brain as you write down
that goal to save a hundred dollars you analyze it and begin to think of ways to
achieve it this can be what kick-starts the actions you take to reach that goal
so now that you know the why you could cable let’s talk about how you can
implement it into your own financial life using cable as a multi-step process
some of the steps you do at the start of a new year some of you do at the
beginning of each month and others you do throughout the month at the end of
each month you take some time to review your spending and goals the process
gives you both a big-picture view of your finances and an in-depth detailed
look at how your everyday spending plays out here’s how it works
step 1 conduct an annual review typical kickable journals include a yearly
planner which asks you to start a ledger with a general idea of your income and
expenses for the year ahead in this section you can record expenses that
might happen just once a year such as paying for a vacation or your annual
property tax as the best practice look at your previous year’s spending to get
an idea of what to include in your annual review also think about what you
plan to accomplish there in the next 12 months and what infrequent bills
might come due step number 2 create a monthly spending plan at the start of
this section you’ll answer two questions how much money will be coming in and how
much money will be going out record your sources of income for the month
identifying each source of your salary freelance income side hustle income and
include when you expect to receive the money and then add up the total amount
then you’ll do the same for your expenses record your monthly fixed
expenses such as rent utility bills health insurance and debt payments once
you subtract your fixed expenses from your income to answer the first question
of queque Bowes how much money will you have available next think about your
savings goal for the month how much would you like to save and what are you
saving for record both the amount of your
saving schools and the purpose then subtract this amount from the amount you
have available ideally you’re saving school won’t be the full amount of your
available money at this point you have your fixed expenses covered but you
haven’t budgeted for miscellaneous expenses such as groceries personal care
and occasional fun things that’s where the next step is for step number three
determine your weekly spending after you’ve figured out your big-picture
annual and monthly spending it’s time to zero in on your weekly spending to
determine how much you have to spend each month take the amount of available
money you have left after subtracting your savings goal then divide that
amount by the number of weeks in a month the number you get is how much you can
spend each week record your weekly spending as it happens you can divide
your weekly expenses into categories to help you keep track of what’s going on
where and where you might have room to improve it’s best to keep your
categories simple for example some cable planners recommend using the following
three categories category number one is survival these are non fixed expenses
you can’t really live without like groceries the second category is
optional or wan items these are things you can live without such as extra
clothing or entertainment the third category are unanticipated expenses
these are sporadic expenses you can’t necessarily plan during your yearly
review these expenses may include a repair bill for your car or emergency
medical bills to help you see at a glance where your spending is going you
can color-code your categories for example you can use a blue pen for
survival expenses a red pen for wants or optional items and a green pen for your
unanticipated expenses step number four do a monthly review an analysis at the
end of each month take a few minutes to review your spending and saving for the
month this helps you review your answer to the question how can you improve
record how much you had to spend how much you actually spent and how much you
saved to find ways to improve ask yourself some detailed questions did you
reach your savings goal what did you do to reach your goal did you spend too
much in some categories how can you improve next month after asking yourself
each question write down your response in your journal so you have something to
reference next month as you plan your spending or if you find yourself about
to make a purchase you don’t need now like I said this is
probably one of the best money tools you can employ but I never said it was
perfect the biggest drawback of using kickable is that it’s up to you to
remember to stay on top of it with an automated budgeting app the system pulls
information from your bank of credit cards to keep track of what you’re
spending with Kokubo you’re responsible for recording everything and for holding
yourself accountable for your spending for some people that may not be a big
deal you might welcome the opportunity to
jump in and keep better track of your spending but if you don’t want to carry
a journal with you everywhere you go or can’t trust yourself to remember you
to record your expenses after the fact cut a bow might be a challenge for you
if you’ve struggled to create or stick to a budget in the past I think it’s
worth giving could cable a try you might find that manually recording everything
helps you finally get your financial life in order
if handwriting works for Bill Gates then it could work for you too right funnel
Iike cable goes a step beyond most budgeting methods by asking you to look
carefully at how you’re using your money and consider what you can do to improve
it offers a big-picture mindful view of your finances that many budgeting
systems lack and that view can be what you need to set yourself up for
financial success thanks for watching if you want to go from the life you have to
the life you deserve then hit the subscribe button now

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