How to Save $10K Effortlessly. 4 Saving Tips
Summary
TLDRIn this informative video, Nischa, a qualified accountant, introduces four effective strategies to simplify and accelerate the savings process. She discusses Parkinson's Law to emphasize the importance of setting aside a fixed percentage of income for savings, regardless of the total amount. Nischa also highlights the benefits of meal prepping and planning ahead to avoid unnecessary expenses. She recommends utilizing saving technology, such as apps that automatically transfer money into savings accounts, and emphasizes the value of a yearly financial review to assess spending habits and identify areas for improvement. The video also features a sponsorship from brilliant.org, an online platform offering interactive lessons to master complex topics, including data analysis.
Takeaways
- 💰 Saving money quickly is challenging due to rising costs and the ease of online purchases.
- 📊 A significant percentage of adults in the US and UK live paycheck to paycheck and have minimal savings.
- 🕒 Parkinson's Law suggests that work (or spending) expands to fill the time (or resources) available.
- 🚫 Implementing a strategy of saving a percentage of income immediately can force financial discipline.
- 🍱 Avoiding last-minute spending on things like food delivery can lead to significant savings over time.
- 📅 Planning ahead for meals and other expenses can reduce costs and provide better options.
- 🛠️ Utilizing saving technology, such as apps that automatically save money, can streamline the saving process.
- 💡 Yearly financial reviews can help identify areas to cut back and improve spending habits.
- 🔍 Analyzing spending line by line can reveal opportunities to reduce costs or find cheaper alternatives.
- 📈 Learning data analysis skills can improve personal finance management and other areas of life.
- 🎓 Platforms like Brilliant.org offer courses that can enhance skills useful for personal finance and beyond.
Q & A
What is the main topic of the video?
-The main topic of the video is discussing four effective strategies to simplify and fast track the saving process.
Who is Nischa and what is her profession?
-Nischa is a qualified accountant who discusses personal finance and self-development on her channel.
What is Parkinson's law and how does it relate to personal finance?
-Parkinson's law is a concept that suggests work expands to fill the time allocated for its completion. In personal finance, it means spending will expand to consume all available funds if one does not set aside a portion of income for savings.
What percentage of adults in the US are living paycheck to paycheck according to the video?
-According to the video, 61% of adults in the US are living paycheck to paycheck.
What percentage of adults in the UK have less than £1,000 in savings according to the video?
-The video states that 34% of adults living in the UK have less than £1,000 in a savings account.
What is the second saving strategy mentioned in the video?
-The second saving strategy is not to be a last-minute person, which means planning in advance can save money on takeout, overdrive fees, and transportation costs.
How can technology help with saving money as mentioned in the video?
-Technology can help with saving money through apps that calculate how much one can afford to save each week and automatically move money into a separate savings or investment account, or by rounding up purchases to the nearest pound and saving the difference.
What is Plum and how does it work?
-Plum is an app available in the UK that analyzes spending to determine how much one can afford to save, and then automatically transfers the money every four or five days. It also rounds up purchases to the nearest pound and saves the difference.
What is the fourth saving strategy discussed in the video?
-The fourth saving strategy is doing a year in review at the end of each year to evaluate and improve financial habits, which involves consolidating all accounts and analyzing spending to find areas for reduction or improvement.
What is the main benefit of doing a yearly financial review as suggested in the video?
-The main benefit of doing a yearly financial review is to ensure that one is not only moving forward with their finances but also moving in the right direction, identifying areas to cut costs or find cheaper alternatives.
What is the role of brilliant.org in the video and what does it offer?
-Brilliant.org is an online platform that provides thousands of interactive lessons to master complicated topics such as artificial intelligence, programming, and data analysis. It helps in developing skills that are foundational in any field and can be learned in as little as 15 minutes a day.
Outlines
💸 Effective Strategies for Fast-Tracking Your Savings
Saving money quickly is challenging due to rising costs and temptations. Many adults live paycheck to paycheck. This video offers four strategies to simplify saving. The first strategy is using Parkinson's law: allocate a portion of income to savings immediately to prevent spending expansion. Start with saving 10%, then gradually increase.
🥡 Planning Ahead to Avoid Costly Last-Minute Decisions
To save money, avoid being a last-minute person. Meal prepping and planning can prevent expensive takeout habits. Planning can also save on overdraft fees and transportation costs. It allows using reward points and finding better deals, providing better financial control and savings.
📱 Leveraging Technology for Savings
Use technology to aid savings. Apps can automate transfers to savings accounts and analyze spending. For example, Plum in the UK helps manage savings automatically. These tools align financial habits with goals, making the saving process easier and more efficient.
📅 Annual Financial Review for Long-Term Savings
Conducting a yearly financial review can significantly enhance savings. This involves consolidating and analyzing all accounts, categorizing spending, and identifying areas for reduction or cost-cutting. Though tedious, this process provides a high return on investment by optimizing financial management.
📊 Continuous Learning and Data Analysis for Financial Improvement
Brilliant.org offers courses to enhance skills like data analysis, crucial for understanding personal and business finance. Using platforms like Brilliant can improve critical thinking and financial management, helping to make informed decisions. They offer interactive lessons in various fields, aiding in continuous learning.
👥 Sharing Knowledge for Broader Financial Literacy
Sharing financial tips can benefit others. Nischa recommends sharing the video and related resources with those looking to improve their financial habits. She provides links to additional content and tools for managing money effectively, encouraging viewers to spread financial literacy.
Mindmap
Keywords
💡Saving Money
💡Parkinson's Law
💡Paycheck to Paycheck
💡Spending
💡Meal Prep
💡Planning in Advance
💡Saving Technology
💡Year in Review
💡Budgeting
💡Brilliant.org
💡Critical Thinking
Highlights
The video discusses four effective strategies for simplifying and fast-tracking the saving process.
61% of US adults live paycheck to paycheck, and 34% of UK adults have less than £1,000 in savings.
Parkinson's Law suggests that work expands to fill the time allocated, and spending expands to consume all available funds.
Suggests setting aside 10%, 20%, or even 30% of income as soon as it hits the bank account.
The importance of not being a last-minute person to save money, such as avoiding takeout and meal prepping instead.
Planning in advance can save money on overdrive fees, Uber costs, and provide better options like using reward points.
Utilizing saving technology, such as apps that calculate savings and automatically move money.
Apps like Plum in the UK analyze spending and automatically transfer savings every few days.
Year-end financial review as a strategy to evaluate and improve financial habits for the following year.
Consolidating all accounts into one tracker to categorize spending and evaluate each category.
Asking three questions for each spending category: Can it be cut out, reduced, or replaced with a cheaper alternative?
The ROI of spending 6 to 7 hours on a yearly financial review is highly beneficial.
Brilliant.org is an online platform offering interactive lessons to master complicated topics like data analysis.
Brilliant.org's data analysis fundamentals course is recommended for improving business and personal finance.
The video includes a free tracker for monthly budgeting.
A yearly review is compared to rowing a boat, checking the broader horizon to ensure moving in the right direction.
The video offers a free trial link and a discount for Brilliant.org to improve critical thinking and learn new skills.
Transcripts
Saving a lot of money in a short amount of time is not easy on one hand we're fighting The increased
cost of accommodation food clothing and on the other we're battling everyday Temptation in a
world where pretty much anything can be bought with a single click in fact the data shows that
61% of adults in the US are living paycheck to paycheck and 34% of adults living in the
UK have less than £1,000 in a savings account so in this video I wanted to walk you through four
effective strategies that will simplify and fast track your saving process if you're new here I'm
Nischa I'm a qualified accountant and on this channel we discuss all things personal finance
and self-development new videos come out every single week let's get into it the very first thing
I want to talk about is Parkinson's law and this is a concept that was coined in the 1950s and in
simple terms it means that your work will expand to fill the time that you allocate to doing it
for instance if I set myself 3 weeks to plan and release this video it will take me 3 weeks I'll
procr resonate I'll come across something new and go down a rabbit hole watching different videos
on that topic I'll find a way to make that work expand to take up the full 3 weeks whereas if I
give myself 48 hours to release this video I'll find creative ways to get it done and very likely
the quality between the two videos wouldn't be too different this same principle can be applied
to personal finance where the resource instead of time is money your spending will expand to
consume all available funds if you let yourself spend all of your net income you'll find a way
to do it but if you take away 10% as soon as it hits your bank account on payday and put it
into another savings account that you can't touch you'll find a way to make that remaining 90% work
and if you think putting 10% away is doable try 20% and living on the remaining 80% try 30% and
living on the remaining 70% you'll be surprised by what you can do and you might be listening to
this thinking that's ridiculous no way can I make this work that's where the fourth saving strategy
I talk about comes in where I go into more detail on how you can make this work with what you have
the second saving strategy is to not be a last minute person when I worked in my corporate job
during the busy weeks and months I would get a takeout about three to four times a week I'll be
on my way home it'll be late I'll be hungry and on my way home I'll just order something from
deliver or Uber Eats so that it's ready for when I got home and I did this week after week because
I didn't take a few hours out on a Sunday to meal prep and think about a healthier solution for the
week instead I'm still guilty of sometimes doing this but planning in advance can save you a lot of
money it will save you in overdrive fees because you're setting up some time to check your bank
account it will save you in Uber costs or taxi costs because you've saved yourself enough time
to get public transport instead and planning in advance also gives you options to do better
you can use your reward points to book your next flight you can get a good quality umbrella instead
of waiting until you're caught in the rain to buy whatever is available there are times when
last minute flexibility is useful but often it costs you money and limits you with options the
third saving Str strategy is to utilize saving technology with almost every habit that we want
to stick to or want to try there is some sort of technology that will help make it easier for us
if you're trying to reduce your social media consumption there are apps like one sec that
forces you to take a deep breath before opening the app giving you a second or two to rethink your
decision if you want to improve your Fitness there are apps that will help you do that and in the
same way if your focus is to save more money you want to lean into the technology that's available
to help you out with that there are apps that calculate how much you can afford to save each
week and then automatically moves money into a separate savings account or an investment account
there are accounts like Plum if you're in the UK which analyzes your spending to work out how much
you can afford to save and then it automatically transfers the money over every four or five days
you can also through that round up purchases to the nearest pound and then save the difference so
for instance if you're spending 130 it will round that up to2 and then you can automatically save
the remaining 70p if you want to check out Plum I have the link for that in my description you want
to find the right apps or the right technology that will help you align your habits to your
goals and make the process of saving a lot easier the fourth point which is arguably the one that
will really make a difference if you stick to it is doing a year in review at the end of each year
we usually do a full evaluation on other areas in our lives we look at what went well what didn't
how we can learn and improve for the following year a great way to save a lot of money in a short
amount of time is by doing the same evaluation in detail top to bottom with your finances this
is different to a monthly budget which I have a whole different video for and a free tracker
that comes with it I'll leave a link to that here but think of this monthly budget as you rowing the
boat you're moving forward month by month whereas a yearly review is you stepping back to check the
broader Horizon checking that you're not just moving forward but you're also moving in the
right direction so once a year I'll consolidate all of the bank accounts that I have my debit
card accounts my credit card accounts into one one main tracker that money will have all the
money coming out of my account I'll categorize my spending and then go through each category line by
line asking myself three questions can I cut this out or cancel it completely can I live with less
of it or can I get the same thing cheaper from somewhere else I'm not going to [ __ ] you this
isn't fun it's not interesting but you only need to go through this once a year but the ROI from
this exercise and just carving out 6 to seven hours to do it is so worth it I gave myself 7
hours to do it last month on a flight back to the UK I've recorded my entire process I don't know
if it'll be useful or just a boring video but if you want to see it let me know and I'll show you
how I went about analyzing the numbers and the data one thing that has really helped me analyze
data as well as develop a bunch of other skills is brilliant.org who are very kindly sponsoring
this video brilliant.org is an amazing online platform with thousands of interactive bite-sized
lessons where you can Master complicated topics such as artificial intelligence programming data
analysis all these topics and skills that are foundational in any field and you can gradually
learn them in as little as 15 minutes a day I highly recommend their data analysis fundamentals
course we don't realize how much we use data analysis in so many things from understanding
how to improve our business through to looking at our personal finance checking our content
analytics to improve our content and the way it performs even if you're not after data analysis
and you're someone who just wants to keep your mind active and improve your critical thinking
skills there will be a course in here for you I highly recommend checking Brilliant out they
add new lessons every month to keep things fresh you can join 10 million other people using the
free trial Link in the description below and if you do enjoy it and want to continue you
can also get 20% off of your subscription as well using the same link brilliant.org/Nischa
thank you so much for watching if you find this content useful please share it with someone else
who'll benefit someone who is looking to get good with money and I also have a video right
here on how I manage my money on a monthly basis where there's also a free tracker see you there
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