4 Tricks to Save Money FAST
How to save money quickly and easily is something we all want to know. Whether it's to buy a cell phone, a car, or a house, we want to know the best ways to save and where we should keep our money.
The new Nintendo Switch, the new iPhone, a motorcycle, a trip, a car, a house... Many of the purchases we want to make require more money than we have left over in a paycheck, so we have to turn to saving to accumulate enough. In this video, I'll talk about two incredibly important points: where we should keep our money and how we can achieve our savings goal as quickly and easily as possible.
The first point—about where to keep the money—is simple: we should keep it where we can't easily access it, where the money isn't exposed to risks (theft, for example), and where, ideally, it will generate a decent return. This is where CETES, or Treasury Certificates issued by the Mexican government, come in. These CETES aren't exposed to any risk; you don't keep them at home where someone could steal them, but rather in a secure bank account. Furthermore, they currently generate a return of approximately 7.5% annually! And this return, unlike investing in stocks, is guaranteed.
Regarding how to save more, I've broken this down into four other tricks for saving quickly and easily:
1. Prioritize your spending. If buying a car is your priority, you might need to lower the priority of buying other things like travel, cell phones, and restaurant meals. This will allow your money to be dedicated to your priority, and not to secondary things.
2. Keep your goal in mind. You know your priority, but humans are bad at postponing gratification (after all, our ancestors didn't know if they would live long or if a jaguar would eat them tomorrow, so it's better to take advantage now!). But nowadays we aren't exposed to these kinds of risks, and it's likely we'll live a long time, hence the first point. This point is about describing your goal in as much detail as possible and keeping it in mind, especially when you're tempted to make a non-priority purchase. Keeping point #1 in mind.
3. Set a monthly amount and automate it. Decide when you want to make the purchase, and then set a monthly savings amount that will help you accumulate enough money. Once you've done this, automate your savings! Otherwise, you're more likely to spend it on what's most important. If you automate it and follow point 4 (below), you won't have this money readily available to spend.
4. Separate your savings from your regular account! Closely related to point #3, this is about keeping your savings separate from your checking account to make it harder to access this money. This way, you're more likely to achieve your goal. You can do this by following the main point of saving in CETES (Mexican Treasury Certificates) through cetesdirecto. It's a separate account that you can't use like a checking account, and it takes a few days for the money to reach your regular account, adding another layer of protection to your savings. #PersonalFinance #FinancialEducation