Why saving money doesn't work. (And what does...)

Just to Clarify before we start this video, saving money is a good thing, but it will never ever make you rich, unless you have a ridiculous income. To clarify even more, by rich I mean that you get to financial freedom, and not when your 85.

The advice my Mom always gave me was, if you want to have money you have to save money, and its because she didn’t know about the alternatives. She didn’t know how to grow money or for example have money work for you.

So in this video I’ll break down exactly how to do that.

😎Call Me😎: https://bit.ly/30IBr0i

😎Second Channel😎: https://bit.ly/3c4sVPS

💲1 on 1 Talk + My Budget + Stock Investments💲
https://www.patreon.com/tommybryson

💰MY M1 FINANCE PORTFOLIO💰 PLUS $10
Link: https://m1.finance/fQsrul1PZcHM

1. Its Common Sense that the first step to Wealth is Saving
- The definition of saving is the money you set aside when you get paid, that is not going to be used for your bills and so on
- So you need to have the habit of saving to build wealth

However: Saving by itself makes no sense
- First: inflation: for the last 10 years, inflation has been almost 3%, meaning that every year the money you save loses 3% of its buying buyer ( meaning that in 10 years your money value goes down by nearly a 3rd )

An example:
- You know those gumball machines, you put in quarter, and they spit out a piece of gum
- Well 50 years ago it use to be 1 Penny
- And same problem is going to happen with the money you just keep in under mattress because you don’t trust banks, but you just the government that makes the money, that then lends the money to the banks

However:
- Lets remember wealth starts with saving
- So get a barebone budget ( Shelter, Utilities, groceries and transportation)

2. What to do once you have savings

Job 1: Money is supposed to Give you Security ( so build an emergency account 3-6 month worth of expenses)
- No this money is not going to make you rich
- Yes this money is going to be affect by inflation
- But it gives you security

For example:
- I personally have an emergency account with 6 month
- And I know people that are a little crazy and have emergency account for 1 year or sometimes in 2 years
- Its all up to you ( but to get started I would do 3-6 months )

Job 2 and this what your money should be Doing:
- If your saving 10-20% of your income you should be investing it into your Retirement accounts ( 401k match with the company you work for and maxing out your Roth Ira )
- Now I know this sound boring, but building wealth is literally repeting what works over and over
- Perspective: if you invest just $10 a day or $300 month at a 10% return

10 years: 36k saved or $63k invested
30 Years: 108 saved or 651k invested

But if you maxed out your Roth Ira and also your 401k accounts: you have way more than a million dollars invested

3. Full transparency
- The reason the tell you to only do between 10-20% once your debt free
- Is because I want you grab the rest of the money and put towards a downpayment or paying off your house early

Who you could be:
- You could be Person A: I invest a little, Save a little, got 30 years mortgage and bunch of debt ( and I don’t know when this game is going to end )
- Or you could be person B: I invest 10-20%, I got a 15 year mortgage

* PRO TIP*
INFORMATION IS EVERYTHING

👕Merch👕
https://teespring.com/stores/tommybryson

✅2 FREE AUDIOBOOKS✅
https://amzn.to/2Enayo8¬¬¬

💰M1 FINANCE $10💰
Link: https://m1.finance/fQsrul1PZcHM

🎁ACORN FREE $5🎁
Link: https://acorns.com/invite/38EYSU

⚡FREE KINDLE UNLIMITED⚡ (traditional reading)
Link: https://amzn.to/2VGbxt9

👨🏽‍💻DISCORD PRIVATE GROUP👨🏽‍💻
https://discord.gg/EcZEHpA

My Camera Gear: https://www.amazon.com/shop/tommybryson

✔ Help Us Reach 500,000 Subscribers: https://goo.gl/0wvm6w

😎All My Social Media😎
Link: https://linktr.ee/tommybryson

*Some of the links and other products that appear on this video are from companies in which Tommy Bryson will earn an affiliate commission or referral bonus. Tommy Bryson is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. I'm an Accountant but I'm not your Accountant, always review information with your Accountant/CPA and your Financial Advisor.

Видео Why saving money doesn't work. (And what does...) канала TommyBryson