How $12,000 Dollars Can Be Worth More Than $120,000

 In this video, we're going to talk about the difference between earning a dollar versus saving a dollar. This video is for anyone that loves the concept of making more money or will say, I'll just make more money. I don't need to be efficient on taxes or save money or invest my money. I'm just going to make more in the future. This video is going to put the math behind that and it might shock you as it shocked me the value in some cases, the massive value of saving one dollar versus earning a lot more than that one dollar. My name is Caleb Williams. I run the Better Wealth channel and the purpose of this channel is very simple to do videos on money, finance, and business to help you live more intentional. Today we're going to talk about a subject that is very near and dear to my heart because I have the opportunity to have a ton of friends that are entrepreneurs and also have just a ton of clients that are entrepreneurial driven. What I love about entrepreneurs is they think like, oh, I can just make more money or they're always looking for abilities to make more money. A lot of times they'll say, I don't want to do that tax strategy. I don't want to invest that money. I don't want to put my money over there. I'll just make more money. I'll just make more. I'll just make more. We all know people like that and maybe you are that person. I'm not saying this out of hate because I very much input in that category of I'm always thinking about how can we make more money? How can we provide more value in the marketplace? I want to make myself very clear that this is not an anti-making more money, but hopefully I can share this concept and it can really help you quantify the value of saving more money. We look at the average savings rate in America depending on when it is. It could be anywhere from 10% to 5% to 0%. What we're going to do is we're just going to look at a few individuals and we'll start by saying someone has a savings rate of 5%. That means for every $100 they make, they're saving 5% of that. That person and the irony is a lot of entrepreneurs are not great savers. Let's say that person is 5% savings rate. They have taxes. They have a nice house. They have nice cars. They live a very amazing life and they come to us and we are able to save them $12,000. They might just be like, $12,000. Why would I even care? $12,000 is like pocket change. I could just easily go make $12,000 extra and it's not an issue. What they don't think is okay, if you make $12,000 extra there's taxes. There's a lot of fixed costs to that. Then if lifestyle just hits in, we end up just spending that amount of money. What's interesting is $12,000 savings, if we're able to look within and look at their 95% of the money that they're spending, we're able to find $12,000 of that, that's an equivalent of them earning $240,000. Need that to sink in. I literally wrote this down because this is so insane. If you're able to find $12,000 with someone that's only saving 5%, that's an equivalent of them earning an additional $240,000 in their current scenario, at their current savings rate. I need that to sink in because the question is, what's easier? Making $240,000 or saving $12,000? Some people might be super efficient. We haven't met a person yet that can't be more efficient in at least one area and how they're paying their dad or how they're paying their taxes or how they're funding different initiatives in their life. A lot of cases we have so many inefficiencies. What I would say is go make an extra $240,000 and be efficient and have a double whammy. If someone's saving 10% of their savings and we're able to save them $12,000 in that year, that's an equivalent of them having to go earn $120,000. Let me ask you this, what's easier? To go make an additional $120,000 or to save $12,000? It depends on your situation. Again, I stand by saving money and being efficient in the inefficiencies. A lot of times you can find $12,000. The reason I'm using $12,000 as an example is it's a very typical number for many people that go through our x-ray and what they can save. It's just one of those really quick wins that is like, yeah, we're not anti-making money, but when people realize the significance, it's not like you're just going to make $12,000 extra. You have to make way more in that when you factor in all the fees and costs and just behavior of our life. I have some friends that save over 50% of their income. What I would say to them is saving $12,000 is an equivalent of them making $24,000. That's where they could go down and if saving the $12,000 is really going to prohibit some things that are near and dear to their heart, yeah, go make $24,000 extra. That's way different than over $200,000. The moral of the story is this. No matter where you're at, saving money, saving a dollar is greater than making a dollar. I can say that with confidence because we're all have some type of headwind, whether it's debt or taxes or whatnot. The principle should be as you make more money, you should save more. That reality is a lot of times people don't do that. They just increase their lifestyle. If that is the case, you want to have the mindset and you want to work with somebody that can really help you be more efficient because, again, making more money is not bad, but you have to make a lot more money just to create the same value of being efficient. Some of the efficiency items that you should look at are taxes. Many of the people that come to us have some type of inefficiency when it comes to taxes. Make sure that you really have some type of tax strategy or are really maximizing your deductions, making sure that your entities are figured out, making sure that if you have corporations that they're structured properly, making sure that you're taking advantages of all the credits and all the what we like to call legal loopholes as it relates to that. Many people can be inefficient on debts. That's how you pay off your debt can make or break $12,000 over your financial life. I say that sincerely. There are debt strategies out there that can make you be way more efficient, that can free up money, that can be an equivalent of you having to go out and earn six plus figures just by looking at your debt. Last but not least, and this is not a fun one to talk about, but it's just looking at your spending and asking the question, am I spending on what I value? Am I trying to keep up with the Joneses? Am I spending money to impress people that I don't even like? Or am I spending money on the things that I value? A lot of times if we just track the money that we are spending, we realize that there, in some cases, are a gap between what we truly value and what we're actually spending our money. Those are three fast ways that you could find money that you might be unknowingly spending and as a result, create a massive bottom line to your financial life. That would be remiss without saying this. If this is something that you want to learn more about, if you're someone like, man, I want to learn more about this concept of saving money and being more efficient, you can see down in the comments or in the description below. There's going to be something called the Better Wealth X-Ray. We have a quiz that we go through this for free and then we also have a service that we do, what's called the Financial X-Ray, that literally will show you exactly where you're at. We're going to highlight a bunch of inefficiencies and our whole goal is to find you a significant amount of money so that you can go out and make more money, but you can do that and have savings and be more efficient in the process. Let me know what your thoughts of this video. Let me know what efficiency hacks you have been using in your own personal life and if you have any specific questions about different scenarios, I'm going to do a lot more videos like this because our key mission at Better Wealth is to eliminate inefficiencies to help you live more intentional. The more I just meet people and interact with people, I realize that a lot of us are trying to build a foundation of wealth on a very sandy, inefficient foundation. If we can just solidify that, there's going to be so much good and so much opportunity that comes from that. Again, making more money is not bad. Saving more money is not always the ticket. You both, but a lot of times savings can make a dramatic impact in your life depending on your scenario.