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How to Save a Lot of Money Fast?

By Proactive Thinker

As of 2020, warren buffet is worth 73.2 billion dollars. And he ranks number
4 on the Forbes richest people in the world. But did you know that when he
was 50 years old, he wasn't even a billionaire? He made his first million when
he was 30 years old. And only at the age of 56, he crossed the billion-dollar
mark.

Then how did he end up on the top of the wealthiest people in the world?
The answer is simple. He made most of his income after turning 60. So, if you
are a 20 or 30-year-old adult who thinks it's too late for him to be financially
independent, then stick around because in this video we will explore the
strategy that warren buffet used to crush the Forbes billionaire list? How is
that related to saving money? and you can apply that too! Learn to delay
gratification In one of the previews videos, we discussed how the cycle of
poverty keeps poor people poor. When you grow up in a low-income family.
Daily life holds fewer guarantees, there might be good food today and might
not be tomorrow. If there is an ice-cream in the fridge today, you better eat it
now because you never know when your parents will get you another ice-
cream. And even if they promise to get more next week, you can't trust them
since they have broken such promises before due to financial necessities.

So, you grow up preferring immediate small rewards instead of waiting for
bigger rewards. When its a payday, instead of putting aside 20 or 30 of your
income into your savings account, you spend it on you new clothes,
restaurants or start going out with your friends more often. You will feel good
in the short run, but you will never save enough to achieve that financial
freedom and will be working 9-5 till the end of your life.
 The first step to saving money is to learn to delay gratification. And that's
what made Warren Buffett so rich. Even though he crossed the million-dollar
mark when he was 30, he didn't buy a brand new car, start going to expensive
vacations, but kept living frugally while investing everything else. And with the
power of compounding, his net worth skyrocketed over time. That doesn't
mean you should live frugally for the rest of your life. But if you want to save
enough money to achieve financial freedom. Maybe you should be saving 20
percent of your income so that you build up a big enough investing portfolio
that will provide with enough passive income.

2. Leave to a different city When you are a teenager or even an adult, city
life is all that you wish. You meet different people, visit different places, and
everything is moving fast. While you are still young, you should be enjoying
your life. Right? The problem with that is, life in the downtown became so
expensive that you will barely make ends meet even if you are earning twice
the amount. Rent alone will probably eat up half of your paycheck, if not more.
So one of the best ways to cut your expenses and save a ton of money is to
move to the countryside or move to a different city that is more affordable.
For some, its impossible since you have to be in the office every day, but right
now, we are presented by a fantastic opportunity, if you can do your job online,
your boss will be more than happy to let you do that. Of course, you might be
a weightier or salesman and you might not be able to do that. but, as the
world is trying to immediately digitalizes, now is your opportunity to do
something online. Just imagine cutting your expenses by half and investing
that amount.

3. Set your savings goals clearly Preventing yourself from the pleasures
you can afford is not easy, especially if your savings are already in dozens of
thousands of dollars, if not hundreds. The problem with most people is that
they don't have a clear vision of why do they want to save money. Do you want
to become a millionaire? Do you want to be financially independent? Do you
want to save enough for your retirement? Not everyone wants to live super
frugally their entire lives just to be on top of the Forbes list when they are 90.
let's say you want to retire on an island in southeast Asia. You can do that with
as little as 12k dollars of passive income annually. So, before you implement
any of the things we are discussing in this video, spend a few hours thinking
about what exactly you want to save for. And base on that goal, decide how
much you need to save and within what time frame and then implement the
tips we are discussing.

4. Control your cashflow It's weird how some people want to save money
but don't have any clue about their spending habits. Here is how most people
budget, this is how much I make a month; one-third or half of it goes to my
landlord (rent), and the rest, I will spend it gradually over time. But then at the
end one the month you are going to wonder, how did I spend my entire
paycheck. There are many ways you can save a ton of money, by having a
clear understanding of where exactly your money is going to. You don't have
to dime and nickel with it, but at least have a general understanding. Set a
specific budget for food, transport, and other things and revisit it at the end of
the month or each week if you are following the plan. And if you are not, then
you have to cut your spendings maybe.

5. Car is not an asset. A car is the most inefficient method of transport

because it spends 96 percent of its time parked doing nothing. Even if you
move around a lot, you will use your car maybe 10 or 20 percent, at best. But
regardless of how often you drive, you still have to pay insurance, every now
and then you have to change something, maybe the ties because its summer.
There are just so many expenses that come with a car that you don't think of
when you get a one, such as paying for parking. At first glance, it seems like
having a car is cost-effective, but when you do the math, it is not. And if you
own a car, you probably agree with me. And its not only about the money, the
time that it consumes to take care of is another headache. Of course, if you
live in the countryside where you have kids that you have to drive to school. In
that case, maybe owning a car is the right option. But in most cases, its a hole
in your wallet.

6. Wait another day to make a major purchase  Whenever we want to buy

something expensive, we start convincing ourselves by telling ourselves
 different reasons why this is a wise purchase. Your car is perfectly fine, but
it's not up to date. You can lease a new BMW, but you don't have to, so you
start telling yourself how this new BMW will make your life better. Your
friends are going to admire you. You will draw more attention and so on. But
then when you buy that BMW, you get that dopamine spike and realize that
you didn't have to. To avoid that dopamine trap, I have figure out a way.
Before buying expensive, just wait another day or two, be it a smartphone, a
car, or a computer. If, after a few days, you still think its a necessary
purchase, maybe you should get it. 

7. Cook at home Since the beginning of the pandemic, I stopped eating

outside as I use to often and tried to cook at home. And believe me, I have
saved a fortune. You can cook incredibly delicious meals at home for a
fraction of the cost. Cooking at home isn't always fun, but the moment you
learn it and practice for a while, it gets super easy where you can prepare
delicious meals faster than it can be delivered to you. Probably one of the
best benefits of this pandemic is that I learned that I could save a fortune by
cooking at home. Outro In conclusion, I want you to keep in mind that
money is a resource that should help us to improve the quality of ourselves.
There is no point in having a ton of money in your bank account when you
are miserable. Probably one of the best benefits of this pandemic is that I
learned that I could save a fortune by cooking at home. Outro In conclusion,
I want you to keep in mind that money is a resource that should help us to
improve the quality of ourselves. There is no point in having a ton of money
in your bank account when you are miserable.

I hope you guys have enjoyed this video, make sure you give this video
a thumbs up and leave a comment because that will help the channel.
And of course, hit that subscribe button if you are new around here.

Ⅰ、 Vocabulary

1. fridge(n.) (= refrigerator) A piece of kitchen equipment that uses electricity to

preserve food at a cold temperature. 冰箱
2. gratification(n.) Pleasure or satisfaction, or sth. Which provides this. 滿意、滿足
3.frugally(adv.) In a careful way when using money or food. 節儉、樸素地
4.digitalize(v.) To change something such as document to a digital form that can be
stored and read by computers. 數位化
5. asset(n.) A useful or valuable quality, skill or person. 優點、長處；有用的人

Ⅱ、Summary
The video discusses different methods to save money and become financially
independent, with Warren Buffet's strategies being a primary focus. The first
step to saving money is to learn to delay gratification, which means that instead
of spending your money on immediate small rewards, you should save it to
achieve bigger rewards later. The video also suggests moving to a different city
or countryside to save money, setting clear savings goals, and controlling your
cash flow. The video emphasizes that everyone should spend some time thinking
about why they want to save money, what they want to save for, and how much
they need to save within a specific time frame to achieve their goals.

Ⅲ、Discussions
1. What is your ways of saving money and making money? ( 2 points in each)
Why do you want to do this?
2. Do you prefer to save money or spend money? Why?
3. And what’s your financial plan? (E.g.30% for entertainment, 50% for rent
suite……)
Ⅳ、 Feedback
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This Article is transcribed from the Video “ 7 Uncommon Ways To Save a Lot of Money Fast in
2023”