These five money hacks changed my life – and they can help you too

SAVINGS goals can be achievable with the right research and direction.

For twenty-something year olds, thinking about retirement may seem too far in the future when you’re just starting out, but this is the time to make sure you set yourself up if you’re looking to retire at the age of 65.

YouTuber Vincent Chan shares five hacks to build your savings

A YouTuber and finance major shared his personal finance tips to start guiding you to financial freedom.

Vincent Chan studied economics and corporate strategy at Vanderbilt University.

He goes beyond the savings advice of don’t eat out or unsubscribe to streaming platforms you don’t use to save money.

Rather, he shares money tips he uses to build his savings.

Here are the five money hacks which changed Vincent’s life.

1. Realization

Vincent advises not to compare yourself to your friends or neighbors.

He said people like to give the illusion of wealth.


People use things like credit cards and taking out loans to leverage their future cash flow for instant gratification.

Vincent said the worry is when the cash flow ends or your instant gratification needs get out of control, you can find yourself one paycheck away from a crisis.

You don’t want your life tied to continuing to work at your current level or greater in order to pay off the debt you accumulated.

2. Don’t pay off all your loans early

Vincent said it sounds like it goes against what you’ve been told, but he wants you to take a look at all your loans and see if they meet this very specific criteria. If they do, then, you might be better paying off the loan early.

When you look at your loans to try to figure out which you should be paying off the quickest, he said paying off the largest amount doesn’t necessarily make the most sense.

The trick is you want focus on the loan with the highest rate debt.

For example, if you have student loans with an interest rate of 2%, Vincent says you probably should not pay it off early.

His personal critera: if he has a loan with an interest rate of less than 5%, he deprioritizes that loan because he believes his money would do better in the stock market where you can get a return on average of 7% or more.

3. Money multiplication

Money multiplication, or compounding returns, is the rate of return for capital over a cumulative series of time.

As Vincent explains it is investing for a very, very long time.

He highlights the age you start investing become more important.

The earlier you start, the greater you are off because of the potential on return on investments.

Vincent gave two examples:

  1. Someone at age 25, starts with $2,000 and contributes $300 a month for 40 years with an average rate of return of 7%. When he retires at age 65, his investments would have grown to $820,066.
  2. Someone at age 35, starts with $2,000 and contributes $600 a month for 30 years with an average rate of return of 7%. When he retires at age 65, his investments would have grown to $748,215.

Vincent highlights that the 35 year old started saving 10 years later and in spite of contributing two times the amount monthly, the 35 year old still cannot catch up because the 25 year old was able to start 10 years earlier and compound his money earned for an additional $70,000 on average.

4. Stop trading time for money

Vincent advises to adjust the relationship between time and money.

He says your income will always be limited for two reasons: 1) We all only have 24 hours a day, and 2) your hourly rate is relatively fixed.

He suggests starting your own business. While it may not be for everyone, you get the sense of stability and security.

5. Expanding the streams

Vincent says having multiple streams of income is the most efficient way to build your wealth and gain greater control of your financial life.

It’s important to have another stream of income in case something happens to your job.

He says the sooner you get started expanding your streams of income, the more likely you’re able to discover the ones you are good at and can profit and can succeed in.

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