How to Budget on Any Income (and Build Wealth)

In this episode, Jonny and Jan cut through the noise around budgeting. Forget complicated spreadsheets or patronising advice about skipping coffee, we share our own stories, the practical frameworks we use day-to-day, and the simple mindset shifts that make budgeting feel like freedom, not punishment.

You’ll learn:

• Why living below your means is the foundation of financial freedom.
• Where most people overspend (and what to cut first).
• The exact steps to set saving goals and automate them.
• Watch-outs like lifestyle inflation, “subscription creep,” and cutting the wrong things.
• How to budget with purpose so you can start investing and building real wealth.

Whether you’re just starting out, running your own business, or trying to get control of your finances, this episode will give you the tools to budget smarter, without feeling miserable.

Connect with us (via LinkedIn)

Jan: https://www.linkedin.com/in/jan-watermann/

Jonny: http://www.linkedin.com/in/jonny-pease

Got a question or topic you want us to cover? Drop us a message at jonny@technicallymoney.com

Transcript

00:00:00:00 - 00:00:02:22
Unknown
many people waste money on stuff that has no value to their lives.

00:00:02:22 - 00:00:11:01
Unknown
And the brutal truth is, when you do that, you're not just wasting money today. You're actually stealing it from your future, potentially financially free self.

00:00:11:01 - 00:00:20:16
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So if you want to live life on your terms with wealth that buys you freedom, then you need to break the habit of spending on things that don't serve you. Now, budgeting can sound boring.

00:00:20:16 - 00:00:29:05
Unknown
People hear the word and think spreadsheets or patronizing lectures and about skipping takeaways, but in reality, it's much simpler than that.

00:00:29:05 - 00:00:34:01
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It's just about deciding how much of your income you'll spend and how much you'll save.

00:00:34:01 - 00:00:45:19
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And in this episode, we're just going to tell our own stories how we like to budget day to day, and the practical frameworks that you can actually use to take control of your money without feeling miserable or like a monk.

00:00:45:19 - 00:00:46:08
Unknown
Now, Yann,

00:00:46:08 - 00:00:55:21
Unknown
I don't think I know anyone else as stingy as you, and I mean that in the kindest way possible. But I know that you've built wealth, so why don't you spend it?

00:00:55:21 - 00:01:14:20
Unknown
question, Johnny. I think one of the main reasons why I was, be able to to reach a financial position that I on right now. Was because I, I, intuitively live below my means that just something that was. I don't know if I was born with it, but it's definitely a, a huge part of my mindset.

00:01:14:22 - 00:01:18:13
Unknown
I don't enjoy spending money unless I get something.

00:01:18:13 - 00:01:25:22
Unknown
return. That really, really, Yeah. Helps me that I really need. And in my opinion, living below your means.

00:01:25:22 - 00:01:31:17
Unknown
Yeah. For me, it creates more freedom in the future. That's why I enjoy doing it. And, it's something I do on a daily basis.

00:01:31:17 - 00:01:42:23
Unknown
And for most people, I think, budgeting. Well, you know, spending less than they, than they earn is the single most important aspect in, in building long term wealth.

00:01:42:23 - 00:01:54:10
Unknown
Is that attitude something that you've always had? You know, like the almost like the scarcity attitude? Or is that something that you actually applied later on in life when you started to build wealth?

00:01:54:10 - 00:02:10:20
Unknown
think it's something I, I had at least from a very early age. My mother told me a story once that I was I was, yeah, maybe a toddler. And, you know, these these shopping cart. Sometimes they have a a seat. And especially for a child where you can put a child in, so it doesn't have to walk.

00:02:10:21 - 00:02:19:03
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And I was looking at the price tags. Right. Obviously not understanding what these mean. And I said, yeah, too expensive. Too

00:02:28:03 - 00:02:29:05
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didn't always

00:02:29:05 - 00:02:32:17
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share the same sentiment. Like, I've definitely become stingy as I've got.

00:02:32:17 - 00:02:41:10
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Like, I don't want to say wealthier because I'm definitely not rich. But as I've like, accumulated more wealth, I've become stingy.

00:02:41:10 - 00:02:42:21
Unknown
that word. I think being stingy.

00:02:44:19 - 00:02:45:11
Unknown
Okay.

00:02:45:11 - 00:02:50:19
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budgeting is all about being very clever with your purchases. Asking yourself maybe

00:02:50:21 - 00:02:51:11
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Okay.

00:02:51:11 - 00:02:55:04
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Whether you need something before. Before going ahead and buying

00:02:55:16 - 00:02:56:23
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matter. The price tag, even if it's

00:02:57:11 - 00:02:58:22
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a few few dollars, right?

00:02:58:22 - 00:03:05:23
Unknown
These these small purchases, they do sum up as well, the end of the month. If you can save, $5 on a daily basis of something,

00:03:05:23 - 00:03:09:01
Unknown
it's $150. You know, just just to

00:03:09:05 - 00:03:10:04
Unknown
Yeah.

00:03:10:04 - 00:03:27:05
Unknown
Yeah. Well I think I think you're right I think. Okay then take it from your perspective. I've become smarter with my money as I've accumulated more of it, because I think I've had to go through the struggle and the like, just the difficulties of building wealth. Just working hard is not easy.

00:03:27:05 - 00:03:30:21
Unknown
And so as a result, I've become more protective over it.

00:03:31:03 - 00:03:50:17
Unknown
Whereas when I, when I was younger, you know, if I was given money by my parents to spend, you know, just blow it, you know, which is quite sad really, because that would be awesome. Free money would be fantastic. And I would probably hoard as much of it as possible now at least. But things have changed since I've started to accumulate more wealth because I've had to work hard for it.

00:03:50:17 - 00:04:11:07
Unknown
good point. Yeah. Working hard for it. Right. You're kind of, exchanging your lifetime with money, right? You're getting money in return of of, Yeah. Dedicating your life time towards something, that creates some value for for someone else or maybe for yourself. But that's something. Yeah. You shouldn't you should not take that lightly.

00:04:11:07 - 00:04:12:21
Unknown
It's a serious thing, right?

00:04:12:21 - 00:04:21:02
Unknown
don't take the work that you've done lightly. And I think when you frame it in that way, if you struggle with budgeting at least, but you are someone that's working, working hard,

00:04:21:02 - 00:04:33:07
Unknown
I think when you start to frame how work is so impactful on the time that you have on this planet and how it drains the time that you have, then you might start to see how important the money is that you've accumulated and that you've tried to save it.

00:04:33:07 - 00:04:52:00
Unknown
That's it. And thankfully, now I'm in a position where I enjoy what I do on a daily basis very much. To be honest. But it hasn't always been like that. If I have to think back, I went through two periods in my life where I had to do. Yeah, hard, hard work. Right. Tough labor. I was literally working on farms at some point.

00:04:52:02 - 00:05:04:02
Unknown
And moving furniture as well. So that was something I hated. But I had to do it in order to, you know, make a living. So that's maybe that that contributed, probably towards the, the mentality of right now.

00:05:04:02 - 00:05:16:06
Unknown
I can also sympathize with people that do just spend their money on pointless things that provide very little productivity or value, possibly just on alcohol, or just on constantly eating out, or just the social aspect of spending.

00:05:16:06 - 00:05:24:04
Unknown
Because I can sympathize with people that don't enjoy their lives or their jobs, because they probably derive a lot of happiness, joy, dopamine from doing those things.

00:05:24:04 - 00:05:30:21
Unknown
that's going to be tricky for someone that wants to budget. Because if you don't enjoy what you're doing day to day, where you're spending 8 to 9 hours at the office

00:05:30:21 - 00:05:38:06
Unknown
or whatever it is you're doing, if you're out on the farm carrying stuff, lifting stuff, but you don't have to enjoy that, it's going to be hard for you then to go home and live a frugal life.

00:05:38:06 - 00:05:44:15
Unknown
you know, we've got to try and cut to budget. So how do you approach a lifestyle where possibly you don't really like what you do for a living?

00:05:44:15 - 00:05:51:10
Unknown
You're not that happy with your life. And spending does bring you some joy. Where do you even start with something like that?

00:05:51:10 - 00:06:02:10
Unknown
you're in that position, you probably have to change the fundamentals a little bit. Before you go, go further. So if you can change your job towards something that, that provides happiness, that's obviously the best case.

00:06:02:10 - 00:06:17:07
Unknown
what I would do is probably, Yeah, budget for a while. Right? Really? Cut back on your expenses for, let's say, six months. Even if you have to suffer a little bit, it will be worth it, right? You'll get that dopamine back later on.

00:06:17:07 - 00:06:21:01
Unknown
try to save enough money that you have at least some,

00:06:21:01 - 00:06:21:12
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buffer.

00:06:21:14 - 00:06:43:18
Unknown
You know, when, when you, when you leave your job. Right? Your current job, looking for a new job, that you can at least sustain yourself for a few months. That would be very important. And then find something you really like doing. I know it doesn't. It's not easy. It's definitely, definitely going to be challenging, even, but once you found something that provides some joy, it will be worth it.

00:06:43:18 - 00:07:00:09
Unknown
And then things do change. Trust me on that. If you if you enjoy what you do on a daily basis, it's just so much easier not to not to be dragged into this. This, Yeah. Necessity to get dopamine out of out of purchasing stuff. And I think for a lot of people that that that's a problem.

00:07:00:09 - 00:07:07:03
Unknown
I never understood how some, women in particular, but also some men enjoy going shopping. Right?

00:07:10:13 - 00:07:14:10
Unknown
Yeah.

00:07:14:12 - 00:07:15:15
Unknown
Yeah.

00:07:15:15 - 00:07:18:10
Unknown
I just don't don't get that for me, it's it doesn't make sense.

00:07:18:10 - 00:07:19:00
Unknown
And,

00:07:19:00 - 00:07:26:13
Unknown
Yeah, but a lot of people are they they still do it. Right. And I believe that comes from maybe not being fully satisfied internally.

00:07:26:13 - 00:07:46:10
Unknown
Yeah. We're also at the behest of marketers that are trying to sell us, enjoyment from spending a lifestyle from brands and from products that are available that we could have if we make a purchase. You know, if we buy that iPhone, if we buy that camera or if we buy that television, if we buy that watch, if we buy that jewelry, if we buy that drink,

00:07:46:10 - 00:07:53:17
Unknown
I think a big part of budgeting is about trying to ignore the noise of marketers and trying to say, you're not going to have my money.

00:07:53:19 - 00:08:09:13
Unknown
I'm not going to be sold by your advert. Instead, I'm going to look. I'm going to be introspective, look at myself and go, is this something I really need? Is this something that really adds value or makes my life more productive and makes my life better and more useful

00:08:09:13 - 00:08:12:10
Unknown
you will feel good about something when you buy in the short term.

00:08:12:10 - 00:08:19:07
Unknown
You know if you get a new watch, you get a new car, you get a new television. It will make you feel good in the short term, but that will quickly wear off as that product starts to

00:08:19:07 - 00:08:28:13
Unknown
age and weather. And it's really important that you're looking and thinking internally. Is this something that can truly benefit me, this purchase that I'm going to make?

00:08:28:13 - 00:08:36:14
Unknown
where does one begin? Is it like a number that we can say, like we want to save X percentage of our wealth or our income, our paycheck,

00:08:36:14 - 00:08:50:00
Unknown
the best way to get started with it is to track your expenses for a month and then decide what percentage of your income you'd like to save. To what could that be? Maybe you could start with 10% or something. If you're currently, like, literally spending all your income,

00:08:50:00 - 00:08:53:13
Unknown
20%, 30%. That's obviously a lot better.

00:08:53:13 - 00:09:05:05
Unknown
The higher number, the better. I mean, it's it's obvious. But then also be realistic about it. If you're earning, let's say, no, no about salaries in the UK, but let's say 2500 pounds,

00:09:05:05 - 00:09:11:13
Unknown
Yeah. You'd not be saving 50% of your income. It's not going to happen. Living costs are high, so be realistic about it.

00:09:11:13 - 00:09:16:08
Unknown
But set yourself a goal. Whether it's 10%, whether it's 20%, where that 30%.

00:09:16:08 - 00:09:34:01
Unknown
and then you go to look at the areas where to, to cut, these expenses and, speaking from experience, most people they overspend in. Yeah, very predictable areas. It's eating out. Takeaway coffee is very dangerous in my opinion. Subscriptions, apps that

00:09:34:01 - 00:09:36:00
Unknown
you don't use on a daily basis.

00:09:36:02 - 00:09:51:03
Unknown
So think twice for that. You need, the Disney Plus subscription and the Netflix subscription. Maybe one one is sufficient for you, you know, clothing also very, very dangerous. You know, you should always be well-dressed, but

00:09:51:03 - 00:09:56:12
Unknown
don't don't fill up your, your wardrobe with clothes that you're not going to wear on a, on a regular basis at least.

00:09:56:12 - 00:09:57:21
Unknown
think it's interesting to

00:09:57:21 - 00:10:15:11
Unknown
frame saving and budgeting from the perspective of what you earn. And looking at that number and not saying okay I'm going to put this amount on my rent, I'm going to put this amount on my food, this amount on my entertainment etc., etc. and just going through all your costs and then saying, okay, this is what I'm left with, this is what I'm going to save.

00:10:15:15 - 00:10:26:06
Unknown
I thought it was really interesting where you said, look, pick a number, say 10%, and if you own 2500 pounds, you immediately or 2 to 5. Oh, I can't remember what you said, but you draw 10% from that.

00:10:26:06 - 00:10:32:22
Unknown
And that's like the first thing that people, I think should be doing when it comes to budgeting is paying themselves straight away from their paycheck.

00:10:33:00 - 00:10:52:08
Unknown
Of course, if you're in a position where you are just about breaking even, then that's not going to be possible. And then you need to look at how are you going to fix that? But try not to go through your paycheck and cover all your expenses and your costs first. Try to just say, look, I'm going to take 10% straight away, and then you work away from there and you try to cover your costs.

00:10:52:10 - 00:11:01:02
Unknown
That, I think, is the fundamental of budgeting and saving, because if you're just working away. Right. Yeah. And then you're just left with a 2 or 3%,

00:11:01:02 - 00:11:06:01
Unknown
Oh, absolutely. Has to be two digits. Right. Well, not be less than two digits. And

00:11:06:01 - 00:11:08:10
Unknown
Has to be has to be two digits.

00:11:08:10 - 00:11:11:00
Unknown
and ideally has a two in front okay

00:11:11:00 - 00:11:16:15
Unknown
Yeah. Well okay 20% minimum. Okay. Okay.

00:11:16:15 - 00:11:17:08
Unknown
people at least.

00:11:17:08 - 00:11:24:19
Unknown
As a, like a solo solopreneur or like, as someone who's self-employed, running a, content creation business on YouTube.

00:11:24:19 - 00:11:34:19
Unknown
I have a limited company. And, as a result, I'm able to pay the right amount of tax, but pay possibly less tax than someone that was on my pai here in the UK who was like employed by a business.

00:11:34:21 - 00:11:55:14
Unknown
But my point of that is I love this way. I love how I have it set up because I have to then pay myself. I have to pay the limited company has to pay Johnny Piece, and I can make sure that's as little as possible so I can pay myself roughly. It varies depending on the earnings because my earnings can vary from month to month, but it could be anywhere between ten, not 20%, I'm afraid.

00:11:55:14 - 00:12:09:10
Unknown
But I've already I've already failed the test, but it could be up to 15%. And that sets up that I've got in terms of like saving money with tax actually benefits me in terms of budgeting as well. And I think I'd like to interject one point about tax here

00:12:09:10 - 00:12:14:17
Unknown
have a look at the sort of tax you're paying and have a look how that relates to the work that you do.

00:12:14:19 - 00:12:25:10
Unknown
If you're in a position like me, you don't have to be a content creator or a YouTuber, but you could be someone who's a a plaster or a painter. Is there any way that you can set up a limited company, maybe pay a little less tax,

00:12:25:10 - 00:12:30:20
Unknown
Always seek tax advice from the accountant, of course, but that could be a good place to look as well.

00:12:30:20 - 00:12:45:12
Unknown
So does that mean you really have to, Yeah. Cut back on everything you enjoy? No. Absolutely not. My personal approach is I do have a few few categories, that I spend quite a lot on, to be honest. That's, for example, housing,

00:12:45:12 - 00:12:49:03
Unknown
groceries and, a gym membership. A good gym is very important.

00:12:49:03 - 00:13:00:12
Unknown
And, I definitely see an ROI there personally, for my for my productivity. For example, my my house. I have a great view here. It's inspiring. It makes me feel better on a daily basis.

00:13:00:12 - 00:13:07:17
Unknown
And, yeah, also, in terms of health. Right. If I eat great, great food and processed grocery and processed food.

00:13:07:17 - 00:13:16:08
Unknown
Right. High quality groceries. And I go to, to a good gym, and I don't mean like a luxury gym or something, just a gym with decent machines.

00:13:16:08 - 00:13:22:17
Unknown
Definitely. There's an, a health related. All right, as well. So that's that's what I, I personally spend quite a lot of money on.

00:13:22:17 - 00:13:24:15
Unknown
areas I save on is eating out.

00:13:24:15 - 00:13:34:20
Unknown
Almost never do it. Not because I can't afford it, just, I, I just don't don't. Yeah. My girlfriend cook's grateful to be honest. And, I don't just don't enjoy eating restaurants that much.

00:13:34:22 - 00:14:07:15
Unknown
So the budgeting tip people is find that, find it. Find a lady who can or man who can cook well. And then you tend to go out. With that. But that would be that. But sign up for the free tier of Tinder. Yeah.

00:14:07:15 - 00:14:12:07
Unknown
think clothing is a big big big expenditure for many people. And it's super unnecessary

00:14:12:07 - 00:14:19:18
Unknown
My wife laughs all the time because I wear clothes until the whole is a pair, until they literally deteriorate.

00:14:19:18 - 00:14:25:23
Unknown
You know, I bend over one day with a pair of jeans on, and I'm in an airport and a hole rips down the middle.

00:14:25:23 - 00:14:28:20
Unknown
I mean, you have to draw the line somewhere. Sorry, but that's unacceptable.

00:14:28:20 - 00:14:33:23
Unknown
Yeah.

00:14:34:01 - 00:14:35:14
Unknown
Yeah. Okay.

00:14:35:14 - 00:14:45:22
Unknown
I mean, this t shirt. This t shirt. Yeah. And this t shirt. Right. Looks pretty, pretty good, right? It's like six years old. It's six years old. Is six years old a.

00:14:45:22 - 00:14:47:14
Unknown
you'll replace it, I'm sure. But

00:14:47:14 - 00:14:54:17
Unknown
don't wear, a washed out T-shirt or something that that's that's something where I personally draw the line because, you know, I want to look decent, at least,

00:14:56:02 - 00:15:06:09
Unknown
Yeah. Yeah, yeah. And I think there's a lot to be said about image and perception and like personal growth and moving forward the in the professional world like you you've got to put your best foot forward

00:15:06:09 - 00:15:06:16
Unknown
But

00:15:06:16 - 00:15:14:11
Unknown
don't want to inflict damage on the wealth that you might have in the future by buying loads and loads of clothes today, to appear to be the person that you want to be in the future.

00:15:14:11 - 00:15:32:21
Unknown
Does that make sense? Like people are buying luxury clothes, premium brands so they can appear to be the person they want to be, and that's someone that you could be in the future if you save now. But by doing what you're doing, trying to appear like you're wealthy, successful is only hamstringing yourself later on. Which is,

00:15:32:21 - 00:15:35:00
Unknown
yeah, it's it's hilariously ironic, but

00:15:35:00 - 00:15:37:01
Unknown
I want to share something I, I do

00:15:37:01 - 00:15:38:10
Unknown
I like to go to charity shops.

00:15:38:10 - 00:15:38:19
Unknown
Yeah. And

00:15:38:19 - 00:15:49:05
Unknown
They have charity shops in Panama, like a lot of people think that it's not very classy or it's dirty, which I think is so sad, but I go to charity shops and spend money,

00:15:49:05 - 00:16:07:23
Unknown
because you can find good deals. Shoes. So sad to say out loud. But you can get your decent shoes and you can get decent like electronics, you get stationery, you can get cooking stuff, but utensils, I mean, I'm into a charity shop.

00:16:07:23 - 00:16:11:18
Unknown
There's loads here in the UK these days, which is probably a sign of the times,

00:16:11:18 - 00:16:13:17
Unknown
there are so many good deals to be had

00:16:13:17 - 00:16:31:08
Unknown
I'm probably the last person, or least I'm definitely not the demographic. It's like the socio economic demographic, at least for a charity shop customer. But I don't care. I'm proud of the fact that I'm not buying new things all the time and giving corporate Britain or corporate America my money for something that's poorly.

00:16:31:08 - 00:16:39:15
Unknown
Bill won't last. Like if you go buy something from a charity shop, it's like a decade old and it still works. That tells you something, tells you it's going to last.

00:16:39:15 - 00:16:48:17
Unknown
Good point. Honestly, there are no charity shops here. To come come back to your question, but, definitely have to have been to some in Germany and I like the mentality. Great.

00:16:48:17 - 00:16:51:13
Unknown
give some more practical advice on how people could,

00:16:53:12 - 00:16:54:07
Unknown
Yeah.

00:16:54:07 - 00:16:55:11
Unknown
these steps in their, in their

00:16:55:14 - 00:17:02:02
Unknown
Yeah. Yeah. Just like a really easy to digest practical framework. Yeah. And about how we approach this.

00:17:02:02 - 00:17:05:13
Unknown
So, as mentioned before, track one month of expenses. How do you do that best?

00:17:05:13 - 00:17:19:06
Unknown
most banking apps nowadays. They offer, categorized expense tracking. It's pretty easy. Just make sure, if you're using if you're using two cards, for example, just make sure that, one banking app fits data into the other.

00:17:19:08 - 00:17:24:14
Unknown
Really depends. But, yeah, some some fintech banks offer that. For example, I think Revolut does,

00:17:25:01 - 00:17:25:21
Unknown
And for free.

00:17:25:21 - 00:17:37:13
Unknown
that's that's where you get your data from and then, yes. Set saving savings ideally directly in the app. And what I personally would recommend is, as you mentioned before, just putting aside,

00:17:37:13 - 00:17:45:02
Unknown
your goal, your savings goal, onto a separate account, ideally or maybe, you know, a different, different bucket within your banking app.

00:17:45:02 - 00:17:51:11
Unknown
Some banking apps allow that. Then you try not to touch this unless there's an emergency

00:17:51:11 - 00:18:06:04
Unknown
Does that mean that, with with the rest of your your your income, you can just go ahead and, Yeah, spend it as you want. I would, I would still try to, to save as much as possible, in order to potentially, you know, even even save more in that month.

00:18:06:04 - 00:18:15:17
Unknown
Gamify it with yourself. That's what I like to do. I like to try and have game like competitions with myself each month and seeing how if I can beat how much I saved from the previous month

00:18:15:17 - 00:18:37:17
Unknown
That's great. That's honestly just it's amazing. Yeah. And, don't overcomplicate like 99% of the YouTube videos, too. You don't need a fancy spreadsheet. Mostly. Just try to keep it within one app. Use the expenditure tracking functions that are built in already, and then. And then just go ahead. The basics are definitely enough in order to reach 99% of the result.

00:18:37:17 - 00:18:42:05
Unknown
So if you wanted to start budgeting. Yeah. And what, what are the things that we have to look out for.

00:18:42:05 - 00:18:50:14
Unknown
Yeah, definitely a few things. First of all, I would not cut on the wrong things. You know, being being clever with your money. Budgeting

00:18:50:14 - 00:18:52:17
Unknown
Your health insurance.

00:18:52:17 - 00:18:54:22
Unknown
live like a monkey. Said it in the beginning. Really? Well,

00:18:54:22 - 00:19:03:04
Unknown
for example. Yeah. Saving money by by moving into a stressful home that might, might hurt you more than it would help.

00:19:03:06 - 00:19:17:07
Unknown
The same thing with buying, like, super cheap clothes that would break all the time. Or that that present you and, you know, in a bad way. You still want to look professional, you want to look decent. So these kind of things, don't cut. Definitely don't cut in the wrong areas.

00:19:17:07 - 00:19:20:18
Unknown
And then, lifestyle inflation sneaks in as your income grows.

00:19:20:18 - 00:19:22:13
Unknown
And trust me, I'm speaking from experience.

00:19:23:07 - 00:19:32:08
Unknown
be once you're once you have more money available, right? Once you've budgeted, maybe for a year or something, you'll have a significant amount of savings very likely accumulated.

00:19:32:08 - 00:19:43:01
Unknown
Try not to spend that on, on on stupid things. And it's. Yeah, that that becomes tempting. Maybe, you know, maybe you've saved you've saved 25,000 pounds or something.

00:19:43:03 - 00:19:59:12
Unknown
Within, within 1 or 2 years. When that money's no available lying on your bank account and, you might, you might be tempted to spend that, but just try to try to avoid it. Just really try to build, a good foundation and instead go ahead and invest that money if possible. Right. Because that's how it will,

00:20:00:05 - 00:20:02:21
Unknown
provide, the biggest advantage to your future.

00:20:02:21 - 00:20:13:16
Unknown
that's the beginning really. I'm afraid to say that after 1 or 2 years of investing. Sorry. Saving you'll really just starting the process because you're then beginning to build a foundation of wealth that you can

00:20:13:16 - 00:20:24:10
Unknown
either earn interest through compounding as you add more money, as you add more and more savings. Or like I said, this money that you can invest do not make the mistake of going and spending it.

00:20:24:12 - 00:20:28:01
Unknown
That would be a terrible idea because you just worked really bloody hard to save it

00:20:28:01 - 00:20:41:22
Unknown
that's your opportunity. Then start growing it. And over the course of, say, two decades, if you invest that 25,000 in the S&P 500, and then there's, you know, we don't have some sort of nuclear fallout or an apocalypse that 25,000 could be worth as much as half 1 million pounds.

00:20:41:22 - 00:20:43:06
Unknown
So or dollars.

00:20:43:06 - 00:20:45:17
Unknown
mean, one last thing to add to your. It only works if you track

00:21:09:15 - 00:21:14:11
Unknown
And as you start to build wealth, you need to look at where you're going to spend it and how are you going to invest it.

00:21:14:11 - 00:21:19:20
Unknown
because if you are leaving these savings in a bank account, real world inflation will eat away at your money.

00:21:19:20 - 00:21:22:03
Unknown
And in real terms it will lose value over time.

00:21:22:03 - 00:21:32:10
Unknown
that's just part of the fun because trust me, investing can be extremely fun. But you have to do it responsibly. So yeah, we've got a video on the best or some of the good apps to use for trading.

00:21:32:10 - 00:21:41:03
Unknown
And if you enjoyed today's video, if you have any questions for either Yann or myself, please drop them in the comments. If you're watching on YouTube, if you're listening on Apple Podcasts or Spotify Podcast, please do rate us.

00:21:41:03 - 00:21:43:22
Unknown
If you'd like. Give us five stars. That would be amazing.

00:21:43:22 - 00:22:00:06
Unknown
everyone for listening. I definitely want it to be a measurable drop in the UK's GDP. The next, measuring period after this podcast. So please, go ahead, follow the, the steps that we outlined here. And, let's save as much money as possible.