0:00 You always hear this advice from people 0:01 who are out of touch that like if you 0:03 want to save money just spend less. 0:06 Like sick, cool, good advice. I'm cured. 0:09 Like that is the dumbest thing I've ever 0:11 heard because 0:13 it is not actually a willpower thing. 0:16 And frankly, you cannot willpower your 0:18 way to good decisions. So what I 0:20 actually encourage people to do is build 0:22 a system. 0:22 >> Okay. 0:23 >> Most of us these days, you're not 0:24 getting a physical check from your boss. 0:27 Most of us get an electronic deposit of 0:29 some sort. Whether you are a W-2 0:31 employee and you get a bi-weekly 0:34 paycheck or if you are a freelancer and 0:37 you send in an invoice and they direct 0:38 deposit the cash into your account. 0:40 Here's what [snorts] you're going to do. 0:42 You can actually set aside part of that 0:45 paycheck to not your checking account. 0:47 So most of us just have 100% of that 0:49 paycheck go into your checking account, 0:50 you see it, you spend it. Hell yeah. 0:53 Wrong. What we're going to do is we're 0:55 actually going to set aside 95 or 90% of 0:58 your paycheck and it's going to go to 1:00 that checking account. You're going to 1:01 pay your rent, you are going to take 1:03 care of the needs for your family, you 1:05 are going to pay for the things that you 1:06 need to pay for. 1:08 And that 10%, that 5% if you want to 1:11 start small, 1:12 we're going to have that immediately go 1:14 to a savings account. Most banks these 1:16 days can allow you to do an auto 1:18 transfer. 1:20 So maybe it's oh, uh I work a retail job 1:24 so I know for the most part I can expect 1:27 this much money to be hitting my bank 1:29 account every month. If there is a 1:30 convenient date or maybe two convenient 1:33 dates, you can say hey, let's transfer 1:35 $100 once this check clears. 1:39 >> Yep. 1:39 >> Or by the end of the week and put that 1:40 into a high-yield savings account, 1:42 you're able to earn more interest. And 1:45 that's great. That is extra money in 1:47 your pocket that comes out of thin air. 1:50 Like most banks 1:52 that are traditional brick and mortar 1:53 are offering you the FDIC national 1:55 average right now is 0.37%. 1:57 So you put 100 bucks in, at the end of 1:59 the year, 2:00 you got 100 bucks and 37 cents. 2:03 What are you buying with 37 cents? 2:05 Nothing, okay? 2:07 But, high-yield savings accounts are 2:09 offering somewhere between 3 to 4% right 2:12 now. 2:12 And so, 100 bucks in at the beginning of 2:14 the year, at the end of the year, you 2:15 have 103, 104 dollars. 2:17 And that scales. So, you put in more 2:20 money, you get the bigger percentage. 2:23 And so, you will be earning more and 2:25 more money. 2:26 And so, I think that is a way that you 2:29 can essentially start to bridge that 2:30 gap. If you are automatically paying 2:33 yourself first and setting money aside 2:35 into that savings account, 2:37 today you is literally taking care of 2:39 future you. 2:40 And 2:41 that is a gift because you're paying 2:44 future self 2:47 to take care of 2:48 the people that you love the most.