I’m talking about how to save money with low income, but more specifically, I’m showing you how to save thousands of dollars, even on the lowest of incomes without having to pinch every penny. If you stay tuned to the end, I’m showing you how to save.$6,000 in just 12 months making only $10 an hour.
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So if you’re struggling with debt you’re behind on rent and just never seem to have any money saved at the end of the month, then listen really closely.
And I just want you to think. For a moment real quick. What would having a couple extra thousand dollars do for you and your family?
What would it be an amazing feeling to know that you finally have a solid emergency fund that you can use whenever something comes up or just some money put to the side in case you guys want to go on a vacation or use it for a down payment on a car either way? Yes, it would be pretty nice. And in today’s video, I’m going to show you exactly how that works.
Possible how you ask won’t by sharing with you these three secrets, number one zero sum budget automation that the wealthiest people use to save money without even thinking about it. Secret number two is the savings secrets for food and housing to decrease even the biggest of expenses. And then finally, secret number three, the five profound mental shifts you need to do to save money fast.
As well as at the end of the video, showing you how to save $6,000 in 12 months with only $10 an hour, you do not want to miss out on that. So if you’re bred into the channel, don’t forget to subscribe. So you’re updated whenever I upload videos, similar to this one, right here on how to save money and build wealth.
And while you’re at it, don’t forget to smash the like button as well, because it lets YouTube know to share this video to more people. Now, with all of that out of the way, let’s go ahead and jump right into it. Now, the first secret secret number one on how to save money with a low income is of course the zero sum budget automation that the wealthiest people use to save money without even thinking about it now, by assigning a job to each individual dollar that you get from your income and treating things even like saving and investing as a bill, similar to utilities.
You’ll have more consistency and control over all of your money. An example would be an individual bringing home $1,500 a month. And every dollar that they get has a place. And under each of those categories, you need to have a cap for things like rent, which are pretty much consistent month to month.
Those are quite easy, but with things like utilities, Or gas that can sometimes fluctuate based on your activities. You need to set a cap for that category and do everything in your power to stay under that limit. So to better explain it. Here’s what an example would look like of a zero sum budget with a $1,500 income divided into $450 for rent.
Since you have a roommate, $350 for car gas and insurance. $200 for groceries, a hundred dollars for eating out $80 for utilities, a hundred dollars for entertainment and $220 for savings. Well, why is it important to break this out and treat your savings almost as if it’s a bill that you have to meet every single month?
Well, otherwise you might get paid and just. Spend spend spend, even though you tell yourself consciously, you know, I’m going to save some money at the end of the month. If you tend to take care of your expenses and your bills first, and you don’t have a cap and you don’t have a goal to set for your savings that you’ve taken out of your income.
Oftentimes, you won’t have any money leftover. It’s just who we are as people. If the money is there, it’s likely that we’ll end up spending it at some point. So if you’re not treating your savings goal, like a rent bill, where if you’re not paying it, you’re going to be getting evicted soon. Then there’s no way that you’re ever going to be consistent with your savings.
But how do the wealthiest individuals take this one step further? This method is called paying yourself first and they mention it in the book, the richest man in Babylon, it is a great method. And so let’s say we’re working with that $1,500 income again, and you have a savings goal to save $220 a month.
That means you need to live the rest of that months worth of living expenses. Off of just the remaining 1380. You almost have to think as though you never even got the whole $1,500 that you only ever got paid $1,380 because the savings just comes out immediately. You pay yourself first and you live off of the rest.
You’ll never again, have to think about saving money as you’re already doing it right away. But how do wealthy individuals take this one step further? Well, it’s simple, just like most things you want to completely automate the process. They understand their expenses better than most. Some of those individuals even use multiple bank accounts to help divide their money up properly.
If they’re taking a large amount of income from their job or their business or whatever it is, Some of them are automatically shifting their savings amount out of that main bank account and into something else. This is a sure fire away to save a bunch of money quickly and consistently, regardless of how much money you’re making now.
Just think if you could use the same method, how great would your life be? If you could save the same amount of money every single month, like clockwork, you finally have the emergency fund. You’d want it. You’d be able to make investments if you wanted to. And you’d be able to pay for fun expenses like trips and new cars and stuff like that.
I think that’d be pretty great right now. Secret number two is the savings secrets for food and housing that allow you to decrease even the biggest expenses in your life. It’s no surprise. That your mortgage or your rent is definitely up there on your expenses. And unfortunately we continually have to feed ourselves food tastes great, but it sure ain’t cheap unless you’re really good at shopping.
And sometimes it’s even hard to help ourselves when it comes to going out to eat. But how can we help eliminate some of this? Well, what if I told you that your house, which is probably your biggest expense. Could be turned from the liability that it is into the asset, that you want it to be a money generating entity in a great way that people like to do.
This is through house hacking. If you have an extra room, a spare bedroom or an office. You could rent that room out to individuals and make a significant amount of money. He might even be able to pay for your mortgage. Now, how does this work? Exactly? What will the cost of the room that you would be renting in your house can only go so low because it comes with a set amount of amenities.
They’re going to get a bedroom. They’re going to get a bathroom. They’re going to get a living space and they’re gonna be able to use a kitchen. And even though they’re missing out on the rest of the rooms that you technically own by a. By owning the home. They still have to pay a significant amount of money just to have that one room, but still cheaper than if they were to go out and do it themselves.
So there’s a demand for stuff like this. And if I giving up just one bedroom in your home, if possible, You can almost completely eliminate if not take out a huge chunk of your mortgage, potentially even living for free. Like honestly, just think what would an extra $500 a month mean to you and your family?
What is already a room that you might not even be using now? Secret number three, probably even more powerful than the first two secrets is the five profound mental shifts that you need to apply. And if you do, you can save money incredibly fast, borderline, instantly, to be completely honest with you. And right after this, we’re finally going over the how to save $6,000 in one year on just $10 an hour.
So stay tuned for that. And the first mental shift you need to make is never buy it. Now, always buy it tomorrow. Businesses have gotten insanely good, like scaring, really good at getting us to purchase something. We never even thought we were going to buy. At that exact moment. And if that is ever the case and you feel yourself kind of falling victim to this urgency, this sale into this product that you really think you want never purchase it that same day.
Unless of course, you’ve done your due diligence beforehand and you’ve been. Waiting to find a perfect opportunity to purchase this. Never buy something out of impulse. If you just tell yourself, I’ll buy it tomorrow, you’ll be thinking about it the rest of the day incident light and into the morning. And if that product passes the test of time and after that day or two’s pass and you still really want it.
Then sure. If you can afford it, go ahead and buy it. But when I started implementing this, I easily cut out on at least half of the things that I originally was going to buy with just 10 minutes of time. I’d come to the conclusion that this is what I need right now. And by telling myself tomorrow’s the day to purchase it, I saved myself a lot of money.
A lot of buyer’s regret and it’s just a super simple mental shift to apply that just personally saved me a bunch of money. And I know it can save you some too. The second thing to think about in the second shift that you need to make when purchasing something is if someone offered me cash value for this item right now, what I take it.
And what I mean by that is let’s say you’re about to buy a couple pairs of clothing. And shoes that equate to $200. Now, if you purchase those, those clothing in those shoes and someone, the next day later said, I will pay you $200 for what you have right there. If you would say yes to that question, then it truly means that the money is more valuable than the stuff that you’re about to purchase.
And the reason this thing works is because in essence, when you end up not deciding to buy something, You save yourself that money in the long run. So if you can be honest with yourself here, if you purchase something and you’d honestly say to yourself that I would take this for cash value again from someone else, it truly means you probably shouldn’t have bought it in the first place.
Now the third trick to save money, especially when you’re making low income, the supplies. So you guys more than anyone else. And is that is to think to yourself, how many hours would I have to work to pay for this? If you’re making $10 an hour and then you of course have to subtract all of the taxes, you’re left with a smaller amount, and you ended up deciding to go to the mall the next day to purchase something that’s a hundred dollars.
Think to yourself, is this product really worth the 10 plus hours? I would have to work at my job. 10 plus hours. That’s more than a day of work for most people. And if it doesn’t pass that test, it’s just simply not worth it. If you work for the rest of your life, always trading time for money, we have a limited amount of time.
So that we’re on this planet. And so if you’re not prioritizing your purchases based off of the way that you’re accruing income, then you’re going to be spending way too much money and not taking advantage of this mental shift that can save a bunch of money. So just always think to yourself, how many hours would I have to work in order to afford this item?
Now this next mental shift goes hand in hand. To the saving automation and paying yourself forward. And that is to make the mental shift and knowing that every time you get paid, you’re transferring money immediately. Once you’ve cashed it to a different account or something equivalent to that, basically locking it away to contribute towards your emergency fund or a larger purchase moving forward.
And once you begin to see this account grow just from this automated process, you have set up, you’ll have this amazing feeling and you’ll get really excited. Every time you get paid, knowing that you can increase that number fifth. The fifth mental shift that you need to make is to think about what your money is worth in future value.
Now, when you save your money or you invest your money, it should naturally grow over time. Some methods being faster than others. But I oftentimes think about this. It really makes me never want to spend the money, knowing that if I put that money away and invested it and received an 8% return annually while reinvesting dividends in any of the money I made off of the growth of that initial investment, historically speaking, I could have a bunch more money.
An example would be instead of spending $20 on a quick meal at a restaurant. You decided to invest it instead now over the next 40 years. And let’s say we took the average return in the stock market over the course of the 40 years with you receiving growth on the $20 and reinvesting your earnings.
That same $20 would be worth $300. Now I know that doesn’t seem like a lot. You’re like 40 years grant. That’s a really long time $20 to go to $300. I make that in a week. But if you do this consistently, and instead of just putting $20 away every single time, you’re about to purchase something. By the end of the month, you find yourself putting $500 every single month away, you are going to take advantage of the snowball effect.
And you’re going to grow this amount exponentially and doing this consistently can result in tens, if not hundreds of thousands of dollars. Waiting for you. And just 40 years time, this secret is almost too powerful, too scary, because I find myself like buying just my living expenses, limiting everything else.
And it is literally like pulling teeth for me to purchase anything that I don’t want a hundred percent need. So with this used properly, It can not only save you a bunch of money, but make you a bunch of money because you’re now smarter with how to use it. Now, if you’ve made it this far in the video, congratulations, I’m rewarding you the strategy on how to save $6,000 in just 12 months with low income.
More specifically $10 an hour. I really want you guys to be able to visualize everything you just learned. So the example of saving $6,000 in 12 months means we have to save $500 a month. So if we go back to the example beforehand, if you’re making around $10 an hour, you should, and you’re working full time.
You should be bringing home anywhere from 1400 to run $1,500, depending on where you live. So that means we’re gonna have to do the incredible task of saving 30% of our income. And that is incredibly difficult with such low income, but it is possible. So if we go off those same numbers from before with those expenses, we were saving around $220 a month, but there are improvements we could have made to make that number even higher.
Now implementing the mental shifts that you guys are aware of and to capitalizing on your biggest liability at the moment. Your home, we’re going to smash this $500 a month goal because our first step here is we need to limit our expenses just a little bit more by almost completely removing any sort of impulse buys.
We’re able to save money on our phone and entertainment category. We’re able to spend less money on going out to eat as well. Thinking now that what our $20 meal would be worth like into future thinking of future value. That’s going to stop us in our tracks more than half the time right there. And then finally on top of that, if you just rent it out, one of the rooms in your home or apartment, and we’ll even use an incredibly low number here, let’s just say $300 a month.
This could easily put us over a $600 a month. Saving, but instead of just saving all of them money, we’ll save only about 500 of it until you’ve built up an emergency fund and the other hundred, just put it into a stock market, reinvesting your dividends and making the historic return of 8% a year. So now we’ve done more than I even said was possible.
We’re now saving the $500, which means we’re saving $6,000 a year, but you’re also getting experience investing your money in making it work for you. And this is all possible on low income. Now there is going to be come a point where you just simply can’t save any more money and that’s when you have to start considering increasing your income.
And I have a bunch of videos on that, on this channel, all about creating side hustles, online businesses. And just simply ways to increase the amount of streams of income you have in your life and build a wall for yourself. I sure hope you guys found this video helpful. If you did, during the smash, the like button and comment down below your thoughts, what was your favorite technique that you learned here today?
What have you been using in the past? Helps save money. All of us want to hear, and if anything, you’re helping everyone else out watching the video they want to hear from you as well. If you haven’t already, don’t forget to subscribe to the channel and I will see you guys next time.