Want Financial Freedom? Get Saving With A Tip From Graham Stephan
If you are in tune with saving and personal finance experts, there’s a strong chance you will already know of Graham Stephan.
He’s a YouTube sensation, and in his videos he has revealed many times the first key to his success. In fact he has built his entire 2 million+ subscriber channel around this principle. In this short blog, I’m going to break down exactly what this key to successful saving is and how you can follow Graham’s lead too.
I’ll be giving you some of my best tips, some of which come from Graham himself and other top personal finance gurus. I not only follow them myself, but I’ve also recommended them to many of my clients.
A Bit About Me…
I’m Chris Bourne, a financial planner based in the Midlands. I have numerous clients and manage millions of pounds client assets. Over my 16+ years I have picked up so many money saving tips and tricks that I want to share. These are easy tips and tricks for you to learn and follow to create your path to financial freedom. To catch up on my past posts, you can see all of my past blogs here on my website, or head over to my YouTube Channel for a host of videos.
Saving… Let’s Get Started
Have you ever read The Richest Man in Babylon? If so, you may remember that one of the seven wealth building commandments is to ‘control thy expenditures’. What does it mean? Basically, don’t spend too much and save as much as you can.
Now I know what you are thinking, “Okay, so tell me something I don’t know.” I say this though because most people are terrible at it! The first thing that people do when they get a pay rise is rush out to get a better car, a new wardrobe or a big holiday. Hands up if you’ve done that?! It’s easy to do, but it pays to think carefully about how to spend (or not spend!) your money. By investing it in the right places, that bit of extra money can turn into a lot of extra money.
Graham is very good at this. In his pursuit of FIRE he has house hacked, car hacked, and Starbucks swerved his way to becoming a millionaire.
Now I’ll be honest…
Just cutting down your costs isn’t going to make you a millionaire but trust me, it’s a collection of lots of good habits like these that when replicated over and over again, lead to wealth. Of course it’s what you do with what you save that counts. My Youtube Channel helps you with how to save, so make sure you check it out (Don’t forget to SUBSCRIBE!)
It helps to think about it like this; If you managed to save just £600 by being careful with your money (that’s just £50 a month over the course of a whole year), then invested that £600 at a 10% return over 30 years, it would be worth £10,469.
If you were to repeat that same process every year for the next 30 years, all of those £600 combined would be worth £108,566! That’s a hefty chunk towards a comfortable retirement! That’s what you’re potentially depriving yourself of by not controlling your expenditures.
On that same basis, just £5 now would be worth nearly £90 in future. You might be willing to throw a fiver away, but would you be willing to throw 90 away? Keep that in mind when you spend.
Saving Money Tips
So here are some of my favourite ways to cut down costs and save money. These are easy steps that you can follow NOW. Today! Very easily! If you think I’ve missed any brilliant tips, be sure to comment down below to help other people!
- If you buy online, use the reverse image search tool. You can also use services like Google Shopping, Kelkoo, Price Runner and Price Spy for price comparison services. This way you get the best price with a few clicks of a button.
- In the same vein as number 1; Use browser extensions like Honey – millions of people use it, so you may already be on board. What it does is automatically find voucher codes for the items you are buying and applies the best one to your purchase. It saves you money without you having to do anything. They work with nearly 30,000 retailers there’s lots of opportunity to save!
- If there are no vouchers available it’s still worth checking with sites like QuidCo and TopCashBack to see if the retailer you’re buying from is affiliated with their cash back reward services.
- A classic Graham Stephan tip to save money – before you push that button to buy that thing you’ve seen on sale, just sleep on it first and say to yourself if I still really want it tomorrow, I’ll buy it then. Quite often you’ll wake up the next day and you won’t feel like buying it anymore.
- I’ve mentioned this before, so forgive me for repetition. Credit cards. There are many reasons why you should use credit cards to buy pretty much everything (check out my video for full run down of why), but the main reason for me personally is to get cash back. I tend to use the American Express Platinum Cash Back card because I get up to 1.25% of everything that I spend given back to me.
- Fully on the Graham Stephan vibe again, he’s as famous for this as anything: Make your own coffee! Graham makes a good point when he insists on not buying expensive coffee. Don’t get over the counter coffee for pounds, when you can be making it yourself for pennies. I know some of you will say “I want good coffee though I don’t want any of that instant rubbish.” Well that’s no problem if you’re a real coffee lover check out subscription services like those with Apostle, Rise and Mission Coffee Works. Or invest in a coffee machine for the same quality coffee at home.
- As well as that guys make sure you’re regularly comparing the costs of your energy and other home service providers. It helps to set aside a few hours of one day a year, just to do that. As well as that, try and use your energy at off peak times! Put your washing and drying on late at night when your energy cost per unit is lower.
- Check your insurance providers: Don’t let your insurances auto-renew for your car or home for example. Always check them on cost comparison sites.
- Finally, think about where you’re getting your food shop from. Use the discount retailers as they will give you better deals on name brands or their own products. Don’t turn your nose up at discount supermarket’s own brand items; the majority of the time they are made in the same factory as the name brands! If you insist on shopping at the major supermarkets, try to buy home brand items as much as possible.
Once you’ve done all of that guys, I promise you, you will see a difference in what is left in your pocket. You just need to make sure you’re investing the extra money though; not wasting it on other stuff.
Like I always say: Spend what you need to and do your best to invest the rest. Graham will be proud of you… as will I!
Guys, I’m Chris Bourne. That’s really simple money. Stay savvy and we’ll chat soon.