Article by Tommy Bryson
Hi, my name is Tony Bryson. I know a lot of people think the first $10,000 is the hardest to save, but the truth is the first $10,000 is actually the hardest to save. You may have heard that a million is just a number on a clock, but saving your first $10,000 takes a serious commitment.
—
💡 The first 10,000: an important milestone
Many people think saving $10,000 is impossible, but with the right attitude and strategy, it’s definitely achievable. Tommy Bryson shares his experience saving $10,000 twice. The first time was within six months, the second time took longer. But the most important lesson he learned is that the real challenge is saving money, not spending it.
—
💸 Money Ritual: Routines for Financial Success
Tommy stresses the importance of discipline when handling money. Just like we have a morning routine, a fitness routine, and even a makeup routine, a money routine is also essential. Tommy calls them “money rituals” or habits that ensure you don’t waste your money and make your money work for you.
—
🏠 Set spending benchmarks
Tommy explains that living within the baseline is crucial. This baseline is the amount of money you need to live a comfortable lifestyle and achieve your goals. This includes your four major expenses: housing, utilities, food and transportation.
❖ Shelter
Typically, people spend around 33% of their monthly income on housing. Tommy advises against overspending and recommends living within your means. If you can afford to buy a home, that’s great, but make sure the mortgage fits your budget.
❖ Public Utilities
Additional charges such as electricity, gas, internet and phone bills are essential and must be included in your basic bill. Tommy gave an example of utility bills being around $300 a month.
❖ Food
Tommy acknowledges that people are often trying to save money when buying groceries, but eating healthy is also important. He recommends budgeting about $200 per month for groceries.
❖ Transportation
Shipping costs, including car costs, should be factored into your basic calculations. This may include car payments, fuel, maintenance and insurance. Tommy estimates his monthly transportation costs to be approximately $766.67.
—
⚖️ Handling basic income and budgeting
Tommy explains that once you’ve established your baseline, you should try to save the remainder of your income. He offers three main goals: getting out of debt, saving for emergencies, and investing for the long term.
🔀 Goal 1: Get Out of Debt
Tommy recommends paying off short-term debt like credit cards, personal loans, and student loans within five years. He recommends using the avalanche method to pay off the debt with the highest interest rate first. By paying off debt, you free up more money for other goals.
📚 Goal 2: Prepare for emergencies
An emergency fund is critical to financial stability. Tommy recommends saving three to six months of expenses. The fund can help with unexpected circumstances, such as a job loss or a medical emergency.
🌱 Goal 3: Long-term investment
Investing in a retirement account like a 401(k) or index fund is a smart move to prepare for the future. Tommy recommends putting 10-20% of your income toward retirement. Additionally, paying off your mortgage faster can also be considered part of your long-term financial goals.
—
💼 Practical application of money rituals
Tommy stresses the importance of putting your goals into action every time you get paid. Whether you get paid weekly, biweekly or monthly, he recommends sticking to your routine. He recommends dividing your funds into a separate account to avoid temptation and ensure it’s reserved exclusively for necessary expenses. This contributes to an economical and comfortable lifestyle.
—
All in all, saving your first $10,000 is a real challenge, and Tommy Bryson shares insightful tips and strategies for achieving this milestone. By setting a baseline and clear financial goals, individuals can work toward financial success and create a secure future.
—
[tags: saving money, financial goals, budgeting, debt free, emergency fund, investing, retirement]
Disclaimer: The video content displayed above was created and is the property of TommyBryson. We do not claim any rights to this content and are not in any way endorsing or affiliated with the creators. This video is embedded here for informational/entertainment purposes only. The accompanying articles, although sometimes narrated in the first person, are independently written by our editorial team and do not necessarily reflect the views or expressions of the video creators.
