Tag Archives: how to stop wasting money

4chan /biz/’s Top 10 How To Save Money Tips

**4chan /biz/’s Top 10 How To Save Money Tips**



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Courtesy of 4chan /biz/, these are the top methods on how to save money. If you want to cut expenses in an extreme way, check out this tutorial on how to drastically reduce the amount of money you spend.

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Taken from frugal living threads on /biz/, I will show you the top 10 ways you can stop wasting money today. You need to save money for the future in order to have a baller funeral, and if you are serious about saving money this step-by-step “How to” guide will show you how to save money. 4chan /biz/ is the best place on the internet to learn ridiculous penny pinching methods and frugal living practices. Saving money is only one third of the money equation, and that is what is being covered in this video. You also need to generate income, but we’ll save that for the next one. If you are sick and tired of not saving enough money, follow each of these top 10 methods and you will be on your way to financial freedom! You can use these frugal tips to save money for a wedding, save money for college, or save money for retirement. Enact each of these steps into yourself, follow the money saving program and you will be wealthy in knowable and in cash! Tip #1 reveals the way to get the most out of investing in stocks. Tip #2 will show you how to save money on food! Nobody wants to waste money on free things like water and food. I will show you how to get your food for free to save money. Kids are expensive, so how do you save money while raising kids? Tip #3 will show you how to cut down on your children’s economic impact. Tip #4 will show you how to save money on your housing costs. Stop wasting your money on expensive mortgages just to impress dumb people. You can save money and have a comfortable life. Tip #5 is going to show business owners how to cut costs. What if I told you you can save 25% on your labor? Business owners can cut their expenses and save money with this one easy trick. I will also show you how to get free flowers! Tip #6 shows you how to use freebies while being romantic. Tip #7 teaches you to stop wasting money on vacations. You can save money on expensive vacations while still showing off on social media. For tip #8 I show you one simple money saving hack to save money on electricity. Stop wasting money on carpeting! Tip #9 shows you how to cut your carpet costs by 99%. You can even do it for free. Tip #10 is all about saving those precious electrons in your car battery. Don’t hemorrhage money while you are in your car. Instead, save money with this tip.
You're probably wondering how I got myself
in this situation. Let's start from the beginning. Do you want to save money? Here's 4chan /biz/'s top "how to save money" tips. The number 1 tip I have to give you is: Make
your money disappear. Take all the money from your bank account
and put it in your stock brokerage. You can't spend money if you don't have money. Choose a really long and confusing password
like this. Forget the answers to your security questions. Lock yourself out of the account and you can't
possibly spend money. Alright, here's my #2 tip. You're five biggest expenses in life are gonna
be the 5 C's. Cassa. College. Car. Kids. And food. Food is free. You don't need to spend a single cent on food,
and I'm gonna show you how. Before you eat food, drink a whole bunch of
water and you'll be less hungry. You never need to pay for water. Just take some water from a free water fountain. Fill up your jug, you're good. For eating, you can go to your local church
and get free food. Just tell them that you make less than $12,000
a year and they will give you free food. Church will probably not give enough food
to survive. So, you can go to fast food places and get
free condiments to supplement your nutrition. Look, I'm at Starbucks right now and we got
free mocha, free chocolate, free cinnamon, free vanilla, and we got free sugar right
here. That's important calories right there. If you start feeling light-headed, have an
ice cube. Or a ketchup packet. If you want to splurge, and go out to a restaurant
or fast food place, you still don't have to pay for the meal. Here's what you do: you go on tinder, or you
go on Plenty of Fish, or on /soc/. And you know, you make a date with some desperate
girl. You go, you eat your food, you eat like a
king, and then you make her pay for the date. If she gives you crap for not paying for the
date just be like "oh my god, I'm sorry I didn't bring my card, can you pay for this
one and I'll pay for the next one?" And that's how you get free food from any
restaurant you want. Kids are one of the top 5 expenses of your
life, and you can cut them out completely by not having kids at all. But, if you simply must, unavoidably have
to have kids, here's what you do. Make them go door to door selling products
like cheap popcorn that you buy from the store, or subscriptions to magazines, or anything. And with this method you can even profit from
your kids, it can even be profitable to have kids. You can even have the pyramid scheme of families. Have your kids have kids, and have their kids
have kids, and have all of them go door to door and get a percentage of the revenue from
all of them. And just be at the top of the pyramid of your
own family infinite money chain. These things come in handy all the time. If you're a business owner, I'm gonna show
you how to save 25% on your labor costs. People say that women only make 75 cents to
every dollar that a man makes. If that's true, you'd have to be absolutely
insane to hire a man. Go with the cheap labor, hire a woman. Anniversary? Here's how to get free flowers when you're
feeling romantic. Look, this guy doesn't look that important. Here's how to go on expensive vacations for
a fraction of the cost. So first thing you're gonna do is take some
3D glasses and push out the lenses on them. Next you're gonna print off an image of the
vacation of your choice. You can use color or black & white. I'm using black & white to save money. And you just tape these on the inside of the
glasses just like this. And it's as simple as that. Now you can bring these glasses wherever you
go and you can have a vacation wherever. Whether you're watching a stupid movie with
your stupid friends, or waiting in line at the social security office. You can even post about your vacation on Instagram
like this: take your glasses, flip them the other way, hold them up to the camera. I posted this picture on Facebook and I already
got 7 likes! To cut down on your electricity bill, turn
off your doorbell before you leave the house. Don't waste thousands of dollars carpeting
your house. Take two squares of carpet. And you tape them to your feet like this. Look at that, and you're all ready to go. This is what being smart looks like. Save electricity by driving without your headlights
on.

Making Money VS Saving Money (Which Is MORE IMPORTANT?) | How to Financial Independence Retire Early

**Making Money VS Saving Money (Which Is MORE IMPORTANT?) | How to Financial Independence Retire Early**



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What’s more important to achieving Financial Independence, a good offensive strategy (in other words finding ways to generate an income) or a good defensive strategy (in other words finding ways to lower your expenses)? There are certainly some good points on both sides of this debate so today we’re going to look to find an answer to this often debated question.

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What's more important to achieving Financial
Independence, a good offensive strategy (in other words finding ways to generate an income)
or a good defensive strategy (in other words finding ways to lower your expenses)? There are certainly some good points on both
sides of this debate so today we're going to look to find an answer to this often debated
question. Hey everyone Daniel here and welcome to Next
Level Life a channel where you can learn about investing, debt, retirement, and many other
financial topics besides, because, let’s face it, the school's aren't going to teach
it for us. So if any of those topics sound interesting
to you or if you want to learn how to better handle your money and have more financial
freedom be sure to hit that subscribe button and the bell next to my name to be notified
every time I upload a video. And if you want to further support the growth
of this channel you can check out some of the links I’ve left down in the description
below which includes a 30-day free trial of Audible and 2 free audiobooks of your choice
as well as a list of some books on money I’d recommend checking out with your free trial,
or you can smash that like button if you haven’t already, share this video with a friend, and
leave a comment below letting me know what topics you’d like me to cover in future
videos. When you're looking to achieve Financial Independence
there are really only a few things you need to consider. You need to consider how you're going to make
money, how that money is going to make you more money, and how much money you need to
make in order to be financially independent. Essentially you need to figure out how to
generate an income both through your own labor and without the need for your own labor (since
there eventually will come a time where you simply can’t keep up the workload) and figure
out your expenses. So before we answer the title question of
whether it's more important to have a good offensive or defensive strategy when it comes
to your finances let's first look at what goes into each side of the debate. On the one hand, you have people who propose
that having a strong offensive strategy is more important than a strong defensive one
when it comes to achieving Financial Independence. A strong offensive strategy requires you to
focus primarily on raising your income and finding ways to generate extra income off
of that income. Income earned through your own labor is usually
generated through a job or some sort of a business. Income not generated through your own labor,
commonly known as passive income, can be generated in many ways but usually, it's through some
sort of a business wherein you are the owner as opposed to the boss or manager, or an investment
of some kind. The biggest pro to this side of the debate
includes the fact that income, particularly in highly profitable businesses, can be generated
in effectively limitless amounts for all intents and purposes. This level of income is made possible through
something called The Law of Effection. The Law of Effection states that the more
people whose lives you effect in an environment you control, the more money you will make. Say if you were a really knowledgeable and
skilled personal trainer that wanted to play your financial strategy primarily offensively
and so you went into business for yourself in an attempt to raise your income above what
you could make working at a gym. You could do very well for yourself as a consultant
working with individuals one-on-one or in small groups but your income would be very
limited in that scenario compared to if you instead wrote and sold books or online courses
on how to lose weight, or gain muscle, or put together a good meal plan or all of the
above. Why? Because there's only so much time in the day
and you only have so much energy at your disposal. Say you're able to help out five people at
once in one of your small group sessions and each session lasts an hour and costs the client
$50 to attend. Even if you only slept 4 hours a night, took
no time away from work to eat or run errands, and worked for the other 20 hours of the day,
you still would only be able to help a maximum of a hundred people a day and thus earn $5,000
which granted is nothing to sneeze at but it's not the same as being able to sell a
book at $20 a pop over the internet to a worldwide audience of 7.5 billion people that can be
buying from you 24 hours a day 7 days a week 365 days a year without taking up any of your
time after the initial amount you spent to write the book. And that’s not even to mention the fact
that you could go back to your group consulting gig after finishing writing the book or just
pour that time into making another passive income generating product allowing you to
reach and help even more people and continue to raise your income, rinsing and repeating
until your income is at a level that you are happy with. Having this level of income will not only
enable you to live a much finer lifestyle than someone who chose to play primarily defensively,
but gives you the opportunity to generate massive levels of wealth over time thanks
to the miracle of compound interest. Eventually, it may get to the point where
you have so much put away that it doesn't really matter how much you spend. Now obviously that's only ever going to be
true to a certain point because you have to live within your means in order to have money
at the end of the day but there's a big difference in having means of $40,000 a year and means
of $40,000,000 a year. The biggest con or potential con to playing
primarily offensively is that there's a lot more risk involved, theoretically. You see there just aren't that many jobs out
there that pay good money at least when compared to the potential payoff of having your own
business. Which usually means in order to take full
advantage of your offensive potential you're usually going to find yourself starting your
own business in one form or another and not all businesses work out the way you wanted
them to. Now to someone who has a truly relentless
offensive mindset towards their finances is probably not going to be deterred by this. If one business fails or doesn't go the way
they expected they just start another one, learn from the mistakes of the first business,
and keep trying until they eventually get it to work, but it is something to consider
because there's always going to be speed bumps on the road to success. However, another thing that I would like to
point out here is that there's going to be speed bumps on the defensive path as well. Sure you may not have the failed business
or the potential lawsuits from a failing business but you also don't have much control over
your job security either when playing defensively. You may get fired due to a poor economy or
heck just having a co-worker in a position of power that doesn't like you. Office politics are, unfortunately, very real. So just because there are risks associated
with the offensive approach don't just assume that there aren't risks with the defensive
approach. The biggest pro to the defensive approach
that I’ve heard mentioned a lot, aside from the perceived lack of risk that I've already
covered, is that learning to live happily on less gives you more leeway in achieving
Financial Independence (and possibly more happiness, though it’s arguable whether
this is because of the confidence you gain from learning to live well on less or from
the large stack of cash in the bank account… maybe it’s a bit of both). But coming back to the idea of leeway, it
all goes back to the 4% rule which I've covered in previous videos. It states that you need roughly 25 times your
annual expenses in retirement saved in order to have a reasonable chance of not running
out of money after you leave the workforce. What this means is that for every dollar you
cut back you save yourself from the need to acquire $25 worth of savings in your retirement
funds. I've covered how staggering of a difference
this can make in the video I did a few weeks ago on how to stop wasting money which I'll
leave a link to in the description if anyone's interested in finding out more about that. Cutting back also means that you have an extra
dollar to put into your retirement funds, which can help you reach your goal that much
faster. However, the biggest potential con to this
defensive strategy is that you can only cut back so far. Now there are people who cut back way farther
than you would think possible, as little as $7,000-$8,000 a year, but as impressive as
that may be, there's still a limit to how far you can cut back (and there’s an even
stricter limit on how much we can cut back in a healthy manner without putting ourselves
at higher risks for financial regression and spending sprees later in life). In comparison to the offensive strategy which
as I said is for all intents and purposes limitless. And let's face it none of us wants to live
in destitution. I don't think any of us really wants to have
just barely enough money to survive in retirement, even if it might seem like it some days for
some of us who really don't like our jobs and just want to get out of it as soon as
possible, but in truth I don't think that's what any of us wants. If for no other reason than, if we're honest
with ourselves, we would eventually realize that retirement, especially early retirement,
is long. For the first time since being a kid, you
have too much time on your hands and if you never have any money to do anything, if you
aren’t able to join your friends for any fun activities that cost money, it can become
quite difficult finding ways to enjoyably fill the days after a while. Sure there’s a lot of fun things that you
can do for free, but we could be talking about 50-60 years or more of living on that tight
of a budget. I don’t know, maybe I’m wrong, but that’s
not the life I want to live. So there's only so much that you can cut back
and if you cut back too much the quality of life diminishes… Does that mean I think that playing offensively
is the superior strategy? Well, not exactly. I actually think that we're asking the wrong
question. The question shouldn't be which one is better
the question should be how can we pull off both? How can we find a way to cut back on our expenses
and stop wasting money while simultaneously generating more? Because in the end, that's the best strategy. They offset each other's weaknesses very well
and the same is true for enhancing each other's strengths. There isn't as much true risk to you and your
family if a business or side hustle fails if you've learned how to stop wasting money
and you're living on less then you make at your job. And your means that you have to live below
are higher than they would be if you just played defensively because you have diversified
your revenue streams at least to some extent. In addition to that, since you've learned
to live on less by not wasting money, the extra money you're generating is then able
to be put into your retirement accounts and help you achieve Financial Independence that
much faster. After all, it’s not really how much we make
that matters, it’s not even necessarily how much we spend that matters… it’s the
difference between the two. It’s how much we keep that matters. So, yes, continue to focus on your budgets
and other defensive tools, continue to learn how to stop wasting money on things you don't
value. Never buy things with money you don't have
because you're trying to impress people you don't even like. But also continue to research ways to diversify
your revenue streams not only so that you can make more money but also so that you can
be better protected in the event that life happens… Because let's face it at some point life happens
to all of us. But that'll do it for me today once again
if you enjoyed this video be sure to smash that like button if you haven’t already,
subscribe, and hit that Bell next to my name so that you'll be notified of all my future
uploads. I generally upload every single Monday, and
if you have a friend that would be interested in this kind of content be sure to share it
with them and let's really get this information out there and start our own Financial revolution.

FRUGAL LIVING | Are You Throwing Money Away?

**FRUGAL LIVING | Are You Throwing Money Away?**



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Find out if you are throwing your money away! I used to waste my money on these 6 bad money habits, but I’ve chosen to live frugally and save my family money. A frugal lifestyle doesn’t have to be complicated. Little money saving habits can make a big impact over time!

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hi everyone welcome back to Quinn in the household today I want to talk to you about six ways you may be throwing your money away so I have been guilty of all six of these things and in the last couple of years I've been a little more vigilant about how I'm spending my money and how I'm just my money practices I guess you could say so anyways here we go number one is shopping with no list and I'm talking specifically about the grocery store how many times have you gone to the grocery store and picked up everything you think you need but then you get home and realize you forgot the main ingredient for tonight's supper so you have to waste time going back to the store and purchasing it or maybe you didn't make a list and so then you end up going out to eat and spending extra money and going out to eat because you didn't have the food at home or you might end up buying more than you need so I used to buy an overabundance of produce because I just thought okay I need this and I need that but I wouldn't actually write down specifically you know what fruits and vegetables we would have for each meal and so I was buying too much and ending up throwing it out so now I make sure that I shop with the list number two you might be throwing away your money if you don't return items that you cannot use so I used to be guilty of this quite a bit because I would take when I would get home I would throw the receipts away and then I wasn't able to return items that we couldn't use so if it was maybe a shirt that didn't fit my husband when I bought it for him I would end up just donating it and if I had spent $20 on that shirt that was really just me throwing $20 away because he couldn't use it but I couldn't return it because I wasn't holding on to the receipt so just recently I had bought a pack of razors and they were $6 and I didn't like them they just they just didn't feel right on my skin and so I thought about just throwing them away because I had already used one but I said no you know what this is the quality of the product I didn't like it I still have the receipt I'm gonna take it back to the store and see if they'll let me return it and they sure did they let me get a full refund for the writers because they didn't meet the standard that the store wanted them to me and I have my receipt number three late fees I used to spend money on late fees I was just really bad at it it was really bad okay so whether it would be late books or DVDs to the library or it was late fees on our bills sometimes so even if I was just a day late sometimes on bills they will charge you up to five ten dollars for paying your bills late so what I did instead was now as soon as I get home from the library I take my receipt and I see when the books are due and then I write that down on my calendar and I highlight it same thing with bills whenever a bill comes in the mail or comes through my email if I have an online account with my bill then I check for the due date write it in my calendar and highlight it and then that way I can refer to my calendar on a regular basis and know when my bills are due and therefore avoid those late fees number four you might be throwing your money away if you are buying deals that you don't need okay I used to be really really bad at this one because I would love going to the store and looking in the clearance section trying to find the best deal that I could on little trinkets here and they're usually house decor or clothes but I there were things that I didn't really need I wasn't really looking for anything specifically I was just basically looking at the price tag looking for a deal and so I finally realized that that's just throwing my money away because a lot of times I would bring it home and I wouldn't end up really loving it I was just buying it because it was a deal so think about the things that you buy on a regular basis when you're out and about are you buying things that you really need or are you just getting them because it's a great price and it just can't pass up something that is that great of a price number five is donations now I don't think that you should not give to people in need or help people out I'm not saying that at all but it seems like everywhere I go there is someone asking for money whether it's at the store they want me to round up to the next dollar or it may be someone when I'm leaving the store asking for money or even just on the side of the road people are always asking for money and a lot of times my heart you know wants to give to them but I have realized that when I'm giving that money away it's kind of being it's not being wise with my money because I don't know how that money's going to be spent I don't know if all of my donation is going towards that cause or if just half of it is going towards that cause and so instead of giving to every donation that's available or everyone that asks for money instead I've just chosen a few areas to give my money to and also we give donations like at Christmastime there's the Operation Christmas Child which is great they give plastic shoeboxes full of little items like toilet trees and little games and coloring books to children around the world who don't get any Christmas gifts and you know exactly where that is going so things like that or if you donate food to a shelter or something like that then you know where your money is being used 100% and number six the last way that you maybe throwing your money away is not using up everything so for example when you get to the bottom of your laundry detergent and you know there's still some more in there probably enough for another load do you just toss it out because they won't come out of the bottle or do you turn it upside down you can turn up your laundry deterg– your laundry detergent upside down dishwashing detergent any kind of soap like shower gels and things like that always turn it upside down so that you're getting every last drop out of it for my face wash it comes in one of those squeezy bottle or tubes I guess you could say and so what I do is when I can't get anymore squeezed out I snip the end off and I can usually get enough in left on the sides of the tube that will last me a whole nother two weeks which really adds up okay so let's every two tubes that I use that's a whole month's worth a face wash that I would have just been thrown away if I hadn't have cut the end off so make sure that you're using everything up so that's my list of six ways that you may be throwing your money away I know I was guilty of it and I'm working really hard to stop doing that in the last couple of years and I hope that that was some inspiration for you if you are trying to save money as well if you haven't come like me on Facebook and follow me on Instagram I love to have you follow along thanks for watching bye

How to STOP WASTING Money | How to Save Money Tips

**How to STOP WASTING Money | How to Save Money Tips**



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How to STOP WASTING Money | How to Save Money Tips

Links Mentioned in the Video:
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Saving money is an incredibly important skill to learn (and one we all must learn at some point if we wish to be financially independent and retire!). However, we aren’t usually taught how to save money in school or in our careers. Marketing is always trying to convince us why we should, in fact, be spending more money and they’ve gotten pretty good at it over the years.

With that in mind, today I’m going to be going over two tricks to help us save money both in the short term and over the long haul. The methods I’m going to be covering include the 300x multiplier method and the hours lost method.

If you enjoyed this video and would like to see more I highly encourage you to check out some of the playlists below and subscribe for weekly videos:

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Retire Inspired –
Early Retirement Extreme –
Your Money or Your Life –
The Automatic Millionaire –
The Behavior Gap –
The Intelligent Investor –

#FinancialIndependence #SavingMoney #Money

Disclaimers: All opinions are my own, sponsors are acknowledged. Links in the description are typically affiliate links that let you help support the channel at no extra cost to you.
the safe withdrawal rate also known as the 4% rule is a rule of thumb that many people use in order to try and get a general idea of how much money they will need to have saved when they retire it's a pretty good rule of thumb to start with in my opinion and I've covered it in more depth than previous videos which I'll link in the description if you're interested in finding out more but the basic idea is that you need to have roughly 25 times your annual expenses saved when you retire to have a reasonable expectation of not running out of money after you leave the workforce some people want to be a little bit more conservative and use a 3% safe withdrawal rate and if that works better for you because you're concerned the 4% rule isn't conservative enough in today's climate and more power to you ultimately it's just a rule of thumb to give us an idea of how much money we may need to have in order to live in retirements but some people take this concept even further and they use it to not only give them an idea of how much money they're gonna need to save in order to be financially independent but also as a tool to help them stop wasting money on recurring expenses today we're going to be talking about what those people do as we cover the 300 times multiplier method and we're also going to be looking into a similar strategy that people use to stop wasting money on one-time expenses hey everyone Daniel here and welcome to next level life a channel where you can learn all about investing debt retirement and many other financial topics besides because let's face it the schools aren't gonna teach it for us so if any of those topics sound interesting to you or if you want to learn how to better handle your money and have more financial freedom be sure to hit that subscribe button and the bell next to my name to be notified every time I upload a new video and if you want to further support the growth of this channel you can check out some of the links I've left down in the description below which includes a 30-day free trial of audible and two free audio books of your choice as well as a list of some books that I would recommend checking out with your free trial or you can share this video with a friend and leave a comment down below letting me know what topics you'd like me to cover in future videos so the 300 times multiplier method is a way that people try to help themselves control their spending and figure out what their priorities really are all while helping to ensure that they are in fact saving enough money to either retire early or at least retire at the normal age basically in a nutshell the 300 times multiplier method is where you take a budget that you've already written this is usually used in conjunction with a zero sum budget but you can make it work with other budgeting methods it's just a little Messier and more difficult and they analyze all of the categories in terms of a Retired Persons lifestyle just as a quick example say that John takes home thirty six thousand dollars a year and has the following budget categories rent transportation household expenses living essentials and lifestyle transportation would include things like a loan payment that he may or may not have on a car as well as insurance fuel maintenance repairs other fees such as car tabs parking tolls and anything else that might come up during them up household expenses include things like your utilities internet cable maybe if he has it possibly a cell phone and other household materials like toiletries living essentials include the groceries clothing personal care items medication and stuff like that lifestyle would include any sort of vacations entertainment movies gym memberships eating out and giving would probably also go under this category among other things John writes down what he spends in all of these various categories and then looks at each of them and asks himself is this item worth saving 300 times what I'm spending on it so that I'm able to continue paying for it when I retire and John can do this with any line item on his budget whether it's as rent costs and asking whether it's worth renting a place that's as expensive as his is or whether he'd be happier retiring earlier but in a less expensive place all the way down to smaller things such as a monthly netflix subscription john's monthly expenses in this hypothetical example anyway add up to about twenty five hundred dollars a month that means that according to the four percent rule he would need to have at least seven hundred and fifty thousand dollars saved by the time he decides to retire in order to have a reasonable expectation of not running out of money based on those expenses and if we assume that john's investments make on average eight percent per year over the long haul which is right about what the market has done historically we can get an idea of how long it will take john's and not only reach retirement but how much time each individual item is going to cost him on his journey towards achieving financial independence which may help john to figure out what is and what is not worth spending the money on since John is taking home $36,000 a year and spending roughly $30,000 a year he has six thousand dollars a year or $500 a month left over to invest for his retirement his retirement savings goal is about seven hundred fifty thousand dollars assuming again the four percent rule is what he's using as his guide and under these assumptions it'll take John about 30 years to reach his retirement savings goal and maybe he's okay with that and if so great but if he wanted to speed up his time to reaching retirement he could do it by looking at each of the line items in his budget and figuring out which of them survived the 300 times test for an example on a small scale take a look at his Netflix subscription which costs him about $10 a month or $120 a year to keep $120 a year times 25 or $10 a month times 300 either way is how we would figure out how much John needs to save in order to cover this expense in retirement and we get an answer of $3,000 so if John cancelled his Netflix subscription in retirement he would lower his retirement savings goal from seven hundred and fifty thousand dollars to seven hundred and forty seven thousand dollars and looking back at this chart from the 30th year of John's journey to financial independence we see that seven hundred forty seven thousand dollars is not gonna save him much time as a matter of fact due to how the compounding works it's going to save him almost a month since he jumped from seven hundred and forty four thousand dollars in the 11th month of that year to seven hundred fifty thousand dollars at the end of the year so in this particular example John's Netflix subscription probably isn't something he's likely to cancel because it's just not gonna cost him much more time to save enough to keep it however this could change if he had a bunch of small expenses similar to Netflix that when put together could add up to a big amount maybe at that point he would want to change his buying habits when it comes to subscriptions and maybe cancel of you a woman but that's not the case here so he moves on to another line item in this case it's his car loan which is costing him roughly $500 a month right about average here in the US $500 a month is six thousand dollars a year and to cover a $6,000 a year expense in retirement following the 4% rule you would need to have to save a hundred and fifty thousand dollars meaning that if John could find another solution to his transportation situation or you know just pay off the debt before he retires he would lower his savings goal from seven hundred and fifty thousand dollars to six hundred thousand dollars that is a full 20 percent reduction in his total retirement savings goal and in our hypothetical example John broke the six hundred thousand dollar mark in his investments in twenty seven years and six months meaning that paying off the car loan would save him two and a half years worth of saving for retirement or give him more wiggle room in retirement if he still decided to work and save for the full 30 years so that's basically the gist of this budgeting trick but I can hear some of you already saying I'm not gonna cut out all of my expenses only to have to live a life of boredom or destitution and my reply is good for you neither do i this trick is not meant to stop you from spending any money ever or deny yourself all forms of joy from spending it's just to help you frame up your future purchases a little bit differently so that you can be aware of the true cost of an item or service small purchases can add up quickly especially if there's a bunch of them and large purchases or debts can really slow down your journey to reaching financial independence that doesn't mean that no small or large purchase isn't worth the money some of them are worth the money but we want to make sure we're always at least considering what we're doing before we do it and that whatever it is we're buying is truly worth it to us because ultimately all this trick is trying to do is stop you from experiencing buyer's remorse in my experience anyway it does help do that so before making your next purchase or signing that next loan or joining that next subscription service take a few seconds to figure out how much this new item will cost you per year and multiply that by 25 or how much it costs to per month and multiply it by 300 and ask yourself if you're willing to save that much money just to support whatever it is you're buying if you are then by all means go forward with it but if not then don't let yourself experience buyer's remorse now one thing that you may have noticed with the 300 times method that while it may work well with some things like recurring expenses such as housing debt subscriptions and things of that sort it doesn't quite have the same impact on one-time expenses for example let's say that Henry was thinking about buying a new laptop the laptop costs about $400 and a laptop is not a recurring expense I mean it doesn't cost him $400 a month the viol laptop or even $400 a year you know unless he was really into computers and bought new ones that frequently for most of us a laptop is more like a one-time thing we use it until it stops working and then yeah maybe we get a new one at that point but it's not really a recurring expense in the traditional sense and since we don't know exactly how long the computer is going to last us it is a little more difficult to figure out the effect of that purchase using the 300 times method you can do it of course it's just more difficult so what can we do to help ensure that we don't experience that same buyer's remorse in this kind of situation well we can look at these one-time purchases through the lens of how many hours we would have to work in order to pay for whatever it is we're considering buying let's go back to Henry and say that he's making $15 an hour or thirty one thousand two hundred dollars a year that laptop would cost him almost 27 hours of work to pay for assuming we didn't take taxes into consideration if we did it of course Henry would likely be looking at roughly an entire working week to pay for that laptop and once taxes are taken into consideration Henry could be spending anywhere from one and a half to maybe even two percent of his entire after-tax income on a laptop which he may be okay with and again that's fine just like the 300 x method looking at these purchases through this lens isn't meant to make us regret every purchase we've ever made or stop us from making any future purchases at all it's merely meant to get us to take a few seconds and consider our purchases more carefully so that we don't fall victim to buyer's remorse unnecessarily in other words it's just meant to help us figure out what we consider to be truly worth the money and what we may not consider to be truly worth the so that we can stop wasting it but that'll do it for me today once again if you enjoyed this video be sure to subscribe and hit that bell next to my names you'll be notified of all my future uploads I generally upload every single Monday and if you have a friend that would be interested in this kind of content be sure to share with them let's really get this information out there and start our own financial revolution