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20 Habits Of Frugal People In 2023
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- čas přidán 17. 08. 2024
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I managed to save £10,000 (around 30% of my salary after tax) while living in London, going out with friends, and generally living a pretty great life 💸 Building financial freedom is probably my biggest life goal right now - and growing my assets is a huge part of that, which means saving money each month 👏
So, in this video I share the 20 practical steps I’ve taken to save a decent amount of money each month without changing my life much at all. I’m definitely not going to tell you to sit inside, alone, and hoard your wages. What’s the point in saving money if you’re making yourself miserable in the process?! 😤
Instead - it’s all about small, cumulative changes that add up to build you at least £10,000 in savings in just one year. Having the money I’ve saved over the last 2 years in my job (around £25,000 total), along with some savings from my CZcams channel means I’m on my way towards financial freedom. There’s a long way to go, but I own ETFs 📈, and parts of pieces of art 🎨, and am looking to invest in real estate soon 🏡. All because of these habits 🫶
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About Me
I'm a trainee lawyer, part-time CZcamsr, son, brother, startup founder, boyfriend, black coffee drinker and plant dad. I graduated from Cambridge University (where I studied French and Spanish), topped my law school class and now work for a corporate law firm in London as a trainee solicitor (which takes up a lot of my time)!
Around that, I'm a big fan of discovering new ways of thinking, of balancing work with life, and of performing to the very best of my ability. Ohh, and being happy. And I try to share all that on this CZcams channel 😀
Fun fact: I believe we massively overplay the role of “natural talent” 😮 AND… I also believe that TOGETHER, WE ARE ALL CAPABLE OF POSITIVITY, PRODUCTIVITY AND SUCCESS.
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Information, views and opinions depicted in this video are my own. Information visible on screens or in documents does not relate to my work as a lawyer for clients.
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📌 *Nice video, love how you take your time to educate your viewers. You gave me the mindset to invest my savings now I have made profits over $120k Right now and still making more , I am enjoying a good life with what I made investing. Indeed ‚building a Portfolio income (investing) through a licensed investment adviser is one out of many ways to earn passive income.*
If you are not in the financial market space right now, you are making a huge mistake. I understand it could be due to ignorance, but if you want to build a generational wealth and cultivate financial knowledge, you must be in the Market.
A lot of people keeps talking about investments and how investment trade change their lives. I really need to engage myself in someway of earning more income and stop depending on the government
*I'm in Stockholm Sweden 🇸🇪, how can I get in touch with Mrs Jessica Madilyn McMain?*
When it comes to investment, dedication and determination is the key factor, with the help of a good broker like Mrs Jessica Madilyn recommended by CNBC news. She’s a well verified license broker in the STATE 🇺🇸
Step 1: earn a ton
A bigger ship doesn’t help if you have a leaking ship.
So it’s always best to plug them holes that you would consider as waste more than focusing on earning more.
Step 2: Invest a ton
@@EdwardSHS Agreed but earning more is clearly more impactful than trying to save on small expenses
@@nicolasmoreau3434 yes in the very short term, our perceptions do lead in that direction, but it’s the expenses that we aren’t very conscious of, that eventually amount to a significant sum. There’s a saying I was taught as a child that “you don’t know your getting wet from misty rain”, I’m not advocating that you be a complete tight ass, just negating stupid and unnecessary expenses. Especially things that you hardly use but seemed like a good idea at the time.
Yep these type of people talk about behavior but not about their income!!!! Income is where all that is at and everything else just supports the process.
My tips:
- buy for longevity, but ONLY at steep discount. If you want a new pair of quality shoes that will last you a decade, then buy them over the cheap Kmart rubbish, but wait Black Friday or New Years sales to get them at 50% off. Have a mantra: if you can't buy an expensive item on sale, you don't buy it.
- on the other hand, be careful of second hand. If you buy a used car, you are buying someone else's problems. They are selling the thing for a reason, after all...and that means the car could be a dud. Ensure all the paperwork and *all* servicing stamps are there, and pay a mechanic to do a thorough check on the vehicle. It will pay for itself.
- if you're buying a home or investment property you *must* get an inspection report. If you find that your new propery has termites, water damage, corroded pipes under concrete or structural cracking then it could be the biggest financial disaster of your life. The cost of the inspection is insignificant compared to the dangers. Remember: someone is selling the property for a reason...
- do food prep on Sundays. Peel a bunch of carrots, put them in a glass container in water, in the fridge. They will remain completely fresh the whole week. Have them with celery and cherry tomatoes for snacks at work, and them in the oven with roast potatoes and pumpkin for easy weeknight meals.
- tell expensive-minded friends and family that you are "on a budget" or you are "saving". Be direct, so they don't expect you to shout a $100 round of drinks or plan an expensive vacation with you.
If your office mates all get $8 coffees every morning, tell them you're on a budget.
- don't have bank loyalty. Here in Australia, one of the biggest banks, CBA, offers 1.1% on their "Savings" account. Meanwhile, you can get 3.2% with *no* fees, minimum limits or other hurdles at places like Macquarie Bank. That's a huge difference, especially when inflation is so high.
Completely agree with all of these, and particularly the first one - I'm a huge "buy quality at a discount" guy :)
@@liam.porritt I tend to buy very specialised equipment also, not those multi-purpose types, cause they usually are made by companies that are very specialised that usually care more about the smaller details which you can truly appreciate. They are usually made to last longer and with better materials, that being said they are usually double in price but the point of them being specialised allows you options to replace them in the future (usually if they present a very clear and tangible advantage in doing so) without hanging on to them cause you like a minor quirk about them.
I would also recommend automating all of your finances so that you don’t need to look at them on a regular basis.
So when I get paid, I have set up direct debits to all of my bills, a set direct debit to my savings account and also to my index fund investments. I then transfer the remainder to a separate Monzo account which then gives me spending reports and tells me how much money I can spend for the rest of the month.
Although this sounds like a lot, it only took me about an hour to set it all up and has been a game changer by saving me both time and money.
Would argue that doing it manually really makes you think about your money though
@@hwoodinlygo it does, but it's proven that it's better to make good decisions when it's the easiest..so have everything automatically go to the places it needs to..including savings
Why not just follow your budget each month doing it all manually?
great advice
THAT THUMBNAIL IS DAMN ATTRACTIVE
Thanks for increasing my knowledge in personal finance and investment, I recently subscribed to your channel. I want to give a big shout-out to all those working tirelessly to earn a living and build wealth during this recession. My husband and I are both retired and debt-free, and we're living smart and frugal with our money. Despite the recession, we're still earning passive income thanks to our savings and investments in the financial market. Investing lifestyle has enabled us to earn a steady monthly income through passive means, and we're grateful for it;.
Congrats on your retirement!! Not quite long I started investing. I did a trial investment in stock like Disney but to be honest I don’t know what am doing and I don’t think I made anything either. I'm very curious and need help on how to enhance and increase my returns. Any good investment tips would be appreciated.
@@whitneyhouston6888 No problem at all! If you're seeking to earn substantial profits from your investment, I would suggest determining your investment horizon and implementing a long-term plan. I worked with Claire Martha Magalhaes to create a long-term investment strategy, and she assisted me in managing my investments while I focused on my job without any concerns.
@@martyedgar4677 Thank you for your advice. It's challenging to find a reliable investment advisor, and I appreciate your input. Seeing the successes you've achieved through investing, I would love to have access to your investment advisor's information if you wouldn't mind sharing it.
@@whitneyhouston6888 I work with *CLAIRE MARTHA MAGALHAES* ,who is based in the United States. If you would like more information about her, you can conduct a search online. She even got featured on CNN recently.
@@martyedgar4677 Thank you for talking about your financial consultant. I will definitely look her up and try to get in touch with her. I have realized that relying solely on CZcams videos and attempting to manage my finances on my own hasn't been very effective.
One good way for me is to save the £ equivalent to what date of the month it is, so the 1st I save £1, the 2nd I save £2 etc. so for every 31 day month I save £496 etc.
Where would that help?
@@chaotus what do you mean?
That’s an awesome idea. Thanks for this comment.
So happy you included point 20!
I used to buy 1-2 belts a year for about €20 each. I keep things minimal so I really just need a black and a brown belt for various outfits. Suit belts are worn less so I get away with a cheap and cheerful set of black and browns there.
I recently bought a Levi's authentic leather belt for wearing with jeans, it is reversible so can be black or brown and I've been wearing it almost every day for 2 years now and it was €80 and it's still going strong. I don't see it needing to be replaced at all anytime soon but even if I got another 2 years from it I'd buy the same one again, makes way more sense financially and it's better for the environment 😊
Funny thing about Beth’s advice - I had this video as a background to a lunch part of my weekly mealprep and yeah, I am having chili con carne next week. I did the math back in 2018 and I counted that with the prices back then, mealprep just on lunch alone will within 5 years save me enough to buy a car (second hand but still). Snacks are also a good deal, especially if you are unable to stop eating until the packet is done like me. I use ikea 365 compartments and their tupperware and make yoghurt+apple+small amount of chocolate and nuts in top and it is enough to keep me happy but so much cheaper than buying snack every day. :-)
My wife and I are pretty much at the FIRE stage (50, so not Super early, and she still works a couple days a week). But thinking back to the time immediately after college graduation the biggest difference between us and our peers were that we didn't change our lifestyle. Everyone else rushed out and bought new cars, big homes (and lots of shopping to fill those homes) and Immediately added to their debt. We focused on eliminating our ~$120k worth of student debt before adding anything back. So we lived in a cheap rental, kept driving the same, paid-for, vehicle (did have to buy a second, bought used and paid for outright after saving specifically for the purchase over about 8 months). I'm not saying we didn't enjoy life, we took trips to Hawaii (anniversarys), went skiing, hit up theater shows ~ just that we added no additional debt till it was paid off 5 years later.
Past that, you nailed the big one, eating at home and brown-bagging your lunch. Our grocery budget, eating very well, runs about $11/day per person ~ you can Easily blow more than that one Just lunch out. Coffee at home is well under $1 (for a worlds better product than can be bought for even triple that price), and a water bottle is a no-brainer.
As a side note, Rich Dad has "passive income" at the expense of Constant, and ever increasing, debt. It works, but it's work to juggle and you've got to have the right mental fortitude, which I quickly found I didn't have. We found that a simple life with minimal expenditures while also doing the normal saving (401K, IRA, HSA, some stocks/bonds) works best for us. That and following the adage passed on from my dad of "If you can't pay cash, you can't afford it", with the 2 exceptions being education and a house, has paid off well. Neither my wife nor I have had a full time job in over a decade because it's been totally unnecessary.
The problem with earning more and more money is you start to lose track quite easily and it scales as well. Also I reckon leaving stuff in cart and just sitting on items, question yourself if you actually need it helps with the mental process as well.
Also you start to value “time” alot more than the cost of things, sometimes it’s worth it to spend a little extra just so that you don’t spend the time worrying about something coming on time or whether if the place your buying from is reputable. Especially when you get older and even more so when you have children. 😂
Yep - completely agree with this point Edward! I personally have the ability to outsource some stuff (e.g. ironing) at an expense that is well worth the time it saves me. Will think about whether I can include this idea in a future video :) Thanks!
Also with online shopping disable one click purchases and don't save your card details, it then adds a pause to the process. Kepping your spending money away from savings or bill money also helps keep in focus if the purchase is necessary
Re: Rich Dad Poor Day, just remember that Robert Kiyosaki made his money not by practicing what he preached, but by selling *books* on how to get rich to MLM people (Amway), using a "Rich Dad" gimmick.
It's likely that "Rich Dad" never actually existed.
He has also been bankrupt at various times.
IMO, he is not a role model, and it's not a good book.
This comment is spot on with the truth when you actually look into Kiyosaki and his background
He is a scam artist. There are better books out there on how to invest.
@@slackerjo I'd say his book is not about investing, but about the mindset, but yeah, there are better books or even better content on youtube, so no need to get the book.
Another tip - avoid expensive monthly gym memberships by exercising outdoors and investing in some dumbbells
I mean for some going to the gym is more motivating :)!
No
Tithing is a tip I believe in. It seems to stretch the money that comes in. Mysticism but it works.
Being frugal does not mean to be poor.
Thanks for this video.
Tip 14, as a concept it’s amazing, but in reality so difficult to sell stuff, unless you put a crazy low price. And it takes so much time to take pictures and upload to platforms, that you need to think if your time spend on this is worth rather than just give it away for charity or throw.
Buy clothes on sale or at thrift stores as much as you can! I go to a wealthy college and feel a lot of pressure to dress well but don’t want to spend the money. I’ve been able to assemble what I think is a very smart and preppy closet for probably 1/5 the price my friends pay for their clothes. It feels great wearing an outfit that cost me $40 that would have been $200+ at full retail!
I'm not the author but here it goes: if you want to buy something, make a note, wait a week, if after a week you still want it, then consider buying. The guy who recommended it said it saved up to 1/3 of his paycheck monthly. Obviously this shouldn't apply to essentials and this more tailored to compulsive buyers.
Thank you for reassuring that it's ok to buy ready/easy meal!!!! 😂
Thank you for this video! Where is your hoody from? Strange question haha
I disagree with the ready meals idea. Cooking your food is proberbly the best approach. Meal prep is the way to go.
That’s how I got my first house, when living at home I saved a grand a month being boring and not spending much for 2 years then started my life from there, mortgage and all
as a law aspirant from India who also wants to get into corporate law, this is really inspirational
love this video liam! can you do a video on you’re idea of financial freedom whilst working in corprate law?
Not for everyone, but my tip is to lower your cost of living. I live on site at my job, I only pay the electricity bill. No rent, no council tax, no commute, etc... I make on average £1500 a month after tax. It isn't how much you make, it's how much you spend. I also don't have to do a ton of work in this basic job, unlike previous "career" jobs that require more of me, for more money. So I have enough to save, invest and enjoy the free time I now have.
Another "tip" I've got is: Asking myself "Do I really need this?" If the answer is yes, then looking for a way to get the most for my money.
Completely agree Karin - this question is the start of the road to more minimalist living, and definitely something I try to ask myself, but probably should be even more savage about!
Thank you for all the advices. I actually used an insurance comparator for my car right after watching your video and I found many other companies that are charging twice less than my actual one - saved about 450EUR per year.
Would you be open to breaking down your expenses in a slightly more detailed way? Gas & Electricity; council tax; broadband; transport costs; holidays; dentist; groceries; eating out; clothing allowance; entertainment (gigs, festivals, cinema etc.); gifts; charitable donations etc.
Yeah people like him don't talk numbers but they seem to focus on all the process minus numbers. None of this s**t matters without a rough understanding of the numbers!!!!
Those are specific to each person, how they want to eat etc. The area they live. I just use a spreadsheet myself and track my money every month, so I know where I'm going to be. I live like a boring sod, so rarely spend money on entertainment, eating out etc. Where some people do. I'm an introvert, so I don't care less about social activities
@@RoadRunnerMeep Why do you track so carefully? Does it really make any difference?
Perhaps check out Dave Ramsey? If that would be better for you in the long run. Instead of the tips from Robert Kiyosaki since it`s potentially alot more risky(Loved the book). Either way do whatever floats ur boat :)
Step 21: don't spend all your money on a fancy car!
100%!!!
£50 on a phone bill! That's super expensive. It's possible for this to be £10 even £5 if normally at home with wifi
Agreed! I have been on SIM-only for years! However, I got a good deal for around £50 per month for the new iPhone 14 Pro, which made sense for me and my business :)
My phone bill is $67 cad. Can't do much .
@@Dominicreviews not sure if it's the same as in the UK, but when your contract ends, if you're still happy with the phone you could switch to sim only (so just paying for the minutes/data) and not a new phone. In the UK sim only starts from £5 a month. Of course the phone companies want you to keep your old phone and still pay the price as if you're buying a phone.... So I give a shout out.
@@tinymouse.travel Yeah we have the option to keep our phone but the contract regardless is still high. Those days of cheap cell phone plans are over. You're absolutely right these companies just want you to spend money on a new phone each time.
@@Dominicreviews next time you change phone. Try to buy with an upfront payment and buy a sim only plan. That's what my sistet did. From 50cad down to 25cad a month with her new iphone 13 mini compared to her ancient iphone 6 plan.
Where do you live in London for such low rent?
The amount he quotes is only half the rent as his girlfriend pays the other half (mentioned in another video).
On number 1, that example is what I try and do and is great in theory but there is always a big ticket that comes up each month e.g. booking a holiday, car insurance etc. So I try set up a pot for the one offs too and pay into that each month
Great video!
Can you tell what is the model of external monitor? 0:39
I penny or pound saved was still earned and taxed at some point....
Unless the student debt isn’t from Student Finance or you feel like you will earn enough that paying off the debt is realistic then I wouldn’t worry about it.
100% agree I wouldn’t touch my student loans. Literally pay as your go.
@@racetofindglitches5112 It is slightly different for lawyers because in London they earn quite a lot so the 9% deduction for student loan is quite a lot and therefore paying it off is wise, whereas most people (usually not lawyers) will never pay all of the loan off.
@@janesmith9024 yeah I could see some reason for lawyers to do it but I just hope that he’s not overdoing it so he can enjoy life too. Though of course that’s all up to him. Also commenting really for any American viewers who may not realise that out student loan debt is treated very differently.
He will definitely earn enough to pay it off
@@mustafarecords369 read my latest comment
Quick question - how is your net salary only £2,500 as an associate? Have you disregarded student loan payments/pension contributions? Congrats on qualifying btw! I’m training in Dublin so maybe our paths will cross down the line.
It’s not as an associate! I based this off when I was a trainee 😊 And yep - that is post-tax, and student loans + pension contributions 👌
if all us doing this constantly, not only can we save up for any future's uncertainty, but also stalling the UK economy 😊
Yeah good for him but bad in every way for the nations economy. But in the U.S. taxes are more expensive the more one makes but I think that is totally fair!!!
that's for government economists and policy makers to figure out. Decades of decision making has lead to frugality being more appealing to live a comparable wealth lifestyle to previous generations.
If they want to encourage spending from younger people, then they should have have built a system that does so.
Does anyone who reads Rich Dad read about the guy after the fact? Not exactly inspiring, but I guess that book still inspires some people to a degree. I just find some financial advice doesn't fit for the climate we live in or all our careers and lifestyles. I'm very lucky I'm in a good spot and learned how to make money and always found a way to first survive without help then actually thrive.
Hi Liam. New subscriber here - I would like to know if you would recommend any apps/software that is good for tracking personal expenses and workload. Merry Christmas.
Al parecer en todo el mundo el dinero ya no rinde como antes..
Excelente video Liam!...
Muchisimas gracias, aprecio de veras tu apoyo :)
Love the video - £2-3 bottle of water highlights the London Lifestyle. Slightly cheaper over the bridge in Wales.
Not sure on the Graduate opportunities for Lawyers though
Swings and roundabouts as they say… 🤣
Hahaha - indeedy Tom :p Might as well get a beer for just a couple of extra quid :p
I don’t see food in the budget
Would focus on paying off your student debt
I saved 35k thks year
Point 3 is wasted money. Just invest in some cooking gear that are good and ease your life and in that way you will save money too (f.r. NOT order meals form McDonalds)
Homemade burgers are the best ones! And cook for 2 days whenever possible. Takes less time and saves energy!
How to save £10000 a year, step 1 - Get paid £1000 a month more than the average person
I lik it but yeah saving money requires making more than is spent so income vs. expenses really does matter.
21 minutes - ironic spelling mistake alert! “Descent” interest rate 😅
What is carni? Like carnival?
Why you don't wear an Apple Watch??
It’s not a debt it’s a tax system
LEARN TO COOK!
me saving 10k every 3 months :v
I find this video to be Frugal-ish
First of all, you need to earn 10000 pound first. Not eberybody are so lucky
Step 1 #save for yourself, spend for yourself, split the bills with your girlfriend. Don't work as a family to multiply your finances, be each to their own.
Cannot subscribe to that....
You literally earn mid six figures what’s the need boss
The state takes a lot of that sum in tax and for those wanting to buy a house and have children it is sensible to save some money.
The need is that if you earn six figures but spend six figures, you're going to be broke.
Expenditure rises with income.
If you're a lawyer earning $500K a year, you're going to live in an environment that expects you to spend untold thousands every week on clothing, dining, vacations, gifts, cars, houses.
When you buy a nicer car or house, you also need more insurance, maintenance, stamp duty, rates.
Regardless of income, its always good to save for a rainy day. Also whatever income you have, if you don't save any it will be a shock when retirement comes round. Also if we spend our money on things we don't really think about overpriced coffee each day, or a gym membership we don't use then it takes the opportunity away from our future self to do something we really want to do, be that a big treat for ourselves, to donate to charity or provide for family
@@tinymouse.travel Tho... a gym membership that you *do* use is one of the best possible investments you can make for your future.
@@w0mblemania This. Health is one of the best investments you can make. If spending an extra £50 on a gym membership is the difference between going and not going then it's worth it.
First?
Crypto is a scam.
You're a lawyer and you're advising people to illegally share subscription accounts. Nice.
£2500/month?
You are poorer than me😊
And your point is?
You're clearly not an American badly quoting Benjamin Franklin 😁😜
Making video about Frugal habits...16:51 "get a credit card" 🤦🏻♂️
Downvote just for that
10k? I can save that in less than 2 months. When your young should be aiming to save 50k to 100k+ a year. What is your financial freedom number? £5 million?
Oh interesting observation. I thought he was trying to make sure he saved a minimum of X amount each year but maybe he is aiming for something specific.
the best way to track spending is not to spend anything
Try “YNAB” sounds like you would love it. 34 days free