There are 3 money skills to master in life, but is learning about money a boring topic to you? You know what’s not boring though? Early retirement – let’s go!
Hey what’s up everyone this is Alan and today we’re going to learn the next money skill you have to master of the total three which is Saving money, if you want to retire early.
If you missed it, don’t forget to watch Part 1, which was mastering Earning money, but no worries, you don’t have to watch it in order.
As a reminder, the 3 money mastery skills are: Earning, Saving, and Growing.
You can be a rockstar in one of those skills, but that would not lead to true early retirement. For example, you can earn a high income, but if you’re horrible at saving, then it really doesn’t matter.
So let’s break down Saving.
Mastering the art and skill of Saving money, more than anything, is simply building up habits, setting goals, and trying your best to automate and systemize the whole process.
To be honest, it is probably the easiest to master out of the 3 money skills of Earning, Saving, and Growing.
And I don’t have much to share outside of what has already been hammered home by financial experts since the beginning of time, such as:
- Setting specific numbers you need to hit for your goals on things like buying a house or paying for a wedding
- Not spending more than you earn
- And paying yourself first where you contribute to your 401k and set aside savings before you pay for your bills and leisure fun
If you want, you can check out another video of mine that dives deeper into Breaking Bad Money Habits.
In my opinion, the hardest part about mastering the money skill of Saving is your mental game and perspective.
And what I mean by that is how comfortable are you with what others think about you?
Saving money usually means making sacrifices
What are you willing to sacrifice in order to reach your Savings goals?
I’ll give you a personal example. I like to save money, but I also enjoy experiences especially with family and friends, and it can be as simple as having a delicious dinner.
Everything else, I don’t really like spending money on except I have no choice on things like bills.
But spending money on things that are not that necessary to me, such as clothes is something I simply don’t care for.
I wear the same old t-shirts, shorts, sandals, and shoes for YEARS. The last time I went shopping for the first time in a long-time, I literally asked my wife and friends, “Hey, do you think this will still be in style in 10 years?”
Their response: “Yes Alan, a plain black shirt will still be in style in 10 years.”
I just had to make sure 😉
When friends are tired of their clothes, they’ll ask me first if I want them before they donate them. I am their first stop before the actual donation bin.
So let’s go back to the initial question I asked you: How comfortable are you with what others think about you?
To some and maybe many, they’ll think I’m cheap as hell because I don’t want to spend money on clothes.
Maybe people will think I’m a bum because I always wear the same things and happily take on hand-me-down clothes like the youngest child of the family, except I do it with a big ole’ smile on my face.
My answer to how comfortable I am with what others think about me is that unless you’re someone important to me, I simply do not care.
Those who are closest to me won’t call me cheap because they know that I’m plenty giving to THEM, just not myself. I know this, and the ones most important to me also know this.
Everyone else’s opinion, quite frankly, does not matter.
So that’s why I say the HARDEST part about mastering the money skill of Saving is your mental game.
When you care about what others think of you, you buy expensive clothes and cars to keep up your external appearance and reputation. If you do that, then you have to open your eyes to see that you’re letting OTHER PEOPLE’S OPINIONS dictate your Savings goals and essentially, whether you’ll retire early or not.
So then you have to ask yourself “Do their opinions actually matter?”
You know what my cheapo answer is.
Coming up for my next video is the third and final part of our money series where we’ll learn about mastering Growing money.
If you missed part 1, then catch up by clicking up there.
Be sure to hit the Subscribe button below with the notifications turned on so you’ll know when part 3 is released.
This is Alan and here’s to you investing in your knowledge and future in the Freedom of Choice lifestyle – I’ll see you soon.