this one habit will TRANSFORM your relationship with money — Transcript

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1. 0:00there is one key habit that might be the
2. 0:02key to your personal finances and indeed
3. 0:05to lots of other areas of
4. 0:08[Music]
5. 0:11life this year I've been working with an
6. 0:14online coach to try and improve my
7. 0:16health mainly to lose weight to get
8. 0:19stronger to become more flexible and get
9. 0:22better mobility and so far it's going
10. 0:24great you can look at my progress uh
11. 0:26week on week on week I've been losing
12. 0:28weight consistently and I I think this
13. 0:30is down to for the first time in my life
14. 0:33tracking calories and keeping track of
15. 0:36my macros and just paying attention to
16. 0:39these numbers has transformed my
17. 0:41relationship with food because I'm more
18. 0:43aware of what I'm eating and that makes
19. 0:45it much easier to make better food
20. 0:48choices and I think the same is true in
21. 0:51personal finance so if you're struggling
22. 0:53to save money if you haven't got your
23. 0:56personal finances locked down yet then
24. 0:58there's two things that I would
25. 1:00recommend you do next the first is to
26. 1:04track your spending so basically for the
27. 1:07next two or 3 months write down
28. 1:11everything you spent there's all sorts
29. 1:12of ways you can do this you can use an
30. 1:14app like money tree or money forward you
31. 1:17can use a notebook and Japan is really
32. 1:19good at this kind of thing it's called
33. 1:21kako in Japanese and there's you can
34. 1:24find dozens of specialized notebooks and
35. 1:28printed material that will help you do
36. 1:30this it really doesn't matter if you do
37. 1:31it with an app or on paper the key thing
38. 1:34is to make sure that you write down
39. 1:36every single Yen that's leaving your
40. 1:38wallet and that you do this for 2 or 3
41. 1:40months and the reason we do it for 2 or
42. 1:423 months is because if you just do one
43. 1:43month you might miss a lot of kind of
44. 1:46irregular payments but if you do it for
45. 1:48two or three you'll probably catch most
46. 1:50of that once you've got some data I'm
47. 1:52sure you will be astonished at just
48. 1:55where your money is going and for many
49. 1:57people just seeing these numbers for the
50. 1:59first time is enough to help them make
51. 2:01small changes that really change their
52. 2:03finances for the better what we're
53. 2:05looking for here is to find places where
54. 2:08you're spending money on things that you
55. 2:11don't really care about that are not
56. 2:12important to you things that don't make
57. 2:14your life better and then we can cut
58. 2:16this spending and then we can move that
59. 2:18money either to savings and Investments
60. 2:21if you are not saving and investing
61. 2:23enough yet or just move it to things
62. 2:26that you do care about that do make your
63. 2:28life better after in your spending for a
64. 2:30while and noticing these less than ideal
65. 2:33choices then the next step might be to
66. 2:36make a budget and a budget is just
67. 2:38deciding ahead of time how you're going
68. 2:40to allocate your money it can be as
69. 2:42simple as just deciding how much you're
70. 2:44going to save and how much you're going
71. 2:46to invest every month and then spending
72. 2:47the rest or you can get really granular
73. 2:50writing down you know how much you're
74. 2:51going to spend on rent how much you're
75. 2:53planning to spend on groceries how much
76. 2:55you'll be able to spend on going out now
77. 2:57how deep you get into budgeting is going
78. 2:59to depend on your kind of interest in it
79. 3:02and your your personality but it can be
80. 3:04a really useful tool especially if
81. 3:06you're struggling to get started and
82. 3:09start committing to saving habit and you
83. 3:11don't have to do these things forever I
84. 3:13no longer track my spending I no longer
85. 3:16really have a budget but years ago when
86. 3:18I was starting out I found it incredibly
87. 3:20useful to track my spending for 2 three
88. 3:22months I did this a couple of times in
89. 3:24different years and it really helped me
90. 3:26focus on what I wanted to do with my
91. 3:29money same with the budget although for
92. 3:31me my budget was normally just pay
93. 3:33myself first which is basically as soon
94. 3:36as I got money on payday I would
95. 3:38allocate some of that money to savings I
96. 3:40would allocate some of that money to
97. 3:41Investments and then the rest I didn't
98. 3:42really worry about too much once you get
99. 3:45good at this stuff once you improve your
100. 3:47finances in general you'll have a kind
101. 3:48of sense and so you won't need to track
102. 3:51this stuff granularly anymore and my
103. 3:54coach assures me that the same thing is
104. 3:56going to happen with calories after a
105. 3:58few months of this I'll have a kind of
106. 4:00sense of how many calories different
107. 4:02things have what the the macro
108. 4:03components of different foods are and
109. 4:05I'll no longer need to track it
110. 4:07granularly but for now I'm using an app
111. 4:10called My Fitness Pal that helps me
112. 4:11track my food in a lot of detail and I'm
113. 4:13finding it tremendously helpful how
114. 4:15about you have you tried tracking your
115. 4:17spending or your calories how did you
116. 4:19find it is it something that you would
117. 4:21recommend to others let us know in the
118. 4:23comments thank you for watching do like
119. 4:25and subscribe if you enjoyed the video
120. 4:28and we'll see you in the next one