How To Save Fast Money.

When I saved my first $25,000, four things happened that made it feel like I was cheating, like my finances got way better. I had opportunities that other people didn’t have. And if you use this money correctly, it can totally change your finances. Now, before we get into the nerdy math stuff, one of the more important things is what it will do to your psychology. See, when you have no money, you are in this state of survival. You have to work. A sick day could make you go into debt. You have this constant fear. If you don’t have any money, you can’t help but think about money. You can’t help but think about the debt. Can’t help but think about your job differently. You’re spending money. Everything has these like micro stresses everywhere in your life, right? But when you have breathing room, you don’t have to think about it. And 25,000 is, I would say, the first level of that. It continually gets higher. And we’ll go into three stages, uh, near the end of this video, which really unlocks some stuff for me. Being broke and living paycheck to paycheck actually costs more money because, let’s say, you have no money in the bank.

If you’re late on a payment, if you get a flat tire, if any type of emergency happens, or late a little bump in the road, you end up having to pay money for that mistake. It’s like a tax on not having enough money. And as you start to build up some barriers there, you’re never going to miss a payment again because you can put things on automatic. You’re not going to have any overdraft fees. You know, if you get a flat tire, you’re able to just pay for it cash without having to put it on a credit card and then pay 30% on top of that. Like the little things actually stop happening to you. So, the more money you have, the more money you actually keep in some of those smaller ways. But also goes into the more money that you’re able to earn. And I know you’re probably thinking, well, how does, you know, having money in the bank help you earn more money? Well, for me, it actually did.

How Your First $25K Creates Time, Opportunity, and Real Financial Momentum.

See, when I saved my first $25,000, a couple of things happened. One of them was that I had the opportunity to work less at my office cleaning job. I was cleaning office buildings at night, and I no longer had to focus as much on earning money, which, in a direct, like trading time for money sort of way, is like an endless trap that you’ll never be able to have financial freedom if you’re always trading time for money. Regardless, but I was able to take some of that time and invest it into things that make no money, which is a luxury I had because I had money. See, if you need to work a full-time job and a part-time job just to pay the bills to survive, then you don’t have the same opportunity to start a YouTube channel in your nights and your weekends like I did or become a real estate agent in your nights and your weekends like I did or start some type of business or intern somewhere or learn a new skill.

You don’t have time to do that because you don’t have money. And don’t worry, I’ll break down how to actually save your first 25K as well. But realizing how important it is, not only does it save you more money, but it also can give you opportunities to make more money. That was a huge thing for me. And it actually gave me this opportunity to get lucky because I actually saved that money. So, so next off, it actually will start to make you more money. See, when you have, let’s say, $1,000 invested or $100 invested, if you earn 8% on that money, 10% of that money, it’s 10 bucks. It’s not going to change your life at all. When you have $25,000 saved up, you can earn $2,500 a year if you earn about 10% on your money, which is pretty good, but it is still not life-changing. And that’s why I personally, because of my own investing strategy of doing more real estate and investing in businesses and stuff like that.

How Saving Your First $25K Opens the Door to Bigger Opportunities and Passive Growth.

I actually kept my money in a high-interest savings account and didn’t invest in the stock market until I had over $25,000. And that way I could keep access to that money. So when an opportunity came up, I could use that $25,000 to buy myself freedom or at least an asset that can pay me every single month. See, $25,000 can be a significant chunk into starting a business into hiring help getting a business going into for me buying my first rental property, which that $25,000 or it was actually less for me, but I kind of needed all of it anyways, but was able to start making me $1,000 a month for the rest of my life off of one chunk of $25,000. And so as your money starts making more money in whatever way you choose, but preferably buying some type of asset or creating some type of asset in the form of a business, you can now start to accelerate that process to 100K and beyond because your money is making money and you are creating opportunities for yourself that you again wouldn’t have if you didn’t have that money saved.

If you’re interested in the description, I have a list of tools like top high-interest savings accounts, my favorite investing app, and things like that. So if you want to get started with any of the tools I use, there’s a link down below. I realize that not everybody is into real estate like I was. And so for most people, the right option is to invest in something as soon as possible. Starting early drastically changes the math. And if you can get a little bit of a head start, that makes it even better. And for most people, that is going to come in the form of investing for stocks. This is something I’ve gotten a lot more into, uh, this year. And I have actually been using the sponsor of this video, Mumu. And I really like them, not just because when you sign up, you can get up to $1,000 worth of Nvidia stock for free when you open and fund an account, or because they’re currently offering 8.1% interest on uninvested cash for the first 3 months. But it’s because it is simple for invest. And when you start to see money making more money, when you start to see $25,000 make you a couple thousand per year while doing nothing, just growing in the stock market.

Why Keeping Cash Idle Hurts Your Wealth and How Smart Investing Builds Momentum.

Obviously, that’s going to vary depending on the year. You start to realize that, like this whole money-making money thing, like there’s something to it, right? See, a big mistake I used to make and a lot of people make is just letting cash sit somewhere earning nothing, getting eaten away by inflation. So, like every year, that money is just sitting in an account earning nothing, not invested. It’s just going down in buying power. And once I realized that, I tried to always avoid just keeping my cash sitting somewhere doing nothing. And that’s why I really like investing it into stocks or just, you know, collecting interest, having your money sitting there while you’re deciding on what to invest in. So, how I personally do this is I invest a percentage into some zero-commission ETFs, stocks, and even options. So, I’m not losing money with fees every time that I make a trade or do anything, which is really cool with Mumu. And for the cash that I haven’t invested yet or decided what to do with yet, I take advantage of their cash sweeps program, which automatically earns interest instead of just sitting idle, which is amazing.

Like I said, right now you can earn 8.1% APY for the first 3 months. And if you’re thinking, you know, I don’t know enough about investing yet, that’s actually one of the main reasons why I like Mumu. Mumu actually has a built-in AI investing assistant that you can ask about any stock or any market trend, and it can give you simple data back answers instantly. Plus, they include free Morning Star research and Wall Street Journal news inside the app, which you normally would have to pay for. So, really take advantage of this. You can get up to $1,000 worth of Nvidia stock just for signing up and funding an account. I’ll leave a link down below. Don’t let your money just sit there withering away, getting eaten by inflation. Check out the link and let’s move on. So, how do you actually save that first $25,000? Well, for me, it was actually two separate steps.

Reaching Your First Major Savings Goal Through Frugality and Side Income.

Number one is the frugal living side of things, right? I am a big fan of frugal living. I think, uh, everybody should do it. I have a ton of videos on that. But I do think it is a step. Once you get past $25,000, you don’t need to do it as much as you did before. But getting that first,000, getting that first 10,000 and 25,000 is mostly done by frugal living. And so that means lowering your expenses, not going out to dinner, and checking recurring bills like your car insurance. Like I have a link down below as well, where you can just check different car insurance rates, and you do that across multiple different things, and now you’re like making big changes without really changing your life at all, just by lowering your car insurance or your monthly bills or subscriptions or whatever.

But number one is to lower that. But that’s still going to take a lot of time, especially if, like me, you weren’t making all that much money. And that’s where putting in that extra time to actually earn money until you get there can be huge by side hustles. I had, you know, two separate side hustles I was running along with a full-time job. And the combination of those two can get you to that first $25,00,0, where you can stop your side hustle that’s earning you money and start something that might not earn you money for a couple e years, but could be the catalyst to your freedom a couple of years after that if you’re into business. Or you can just keep using that money and investing in whatever way you choose. But getting to that point where you have breathing room and then your money can start making money is huge. And for me, that number was $25,000. And actually, about 3 years after I saved my first $25,000, I had gotten my second house hack. I had about another uh close to $50,000 kind of saved up in different accounts. And that was when I left my job. And it wasn’t because I had a million dollars saved up. I had under $100,000. I had used $25,000 a couple of times to buy assets and create a business on my nights and weekends that brought me freedom as just like a totally normal person. So, if you’re looking for your next savings goal, I would probably recommend that. If you enjoyed this video, don’t forget to subscribe and check out all the stuff down in the description.