YouTube personality Graham Stephan has been delivering financial advice on the online video platform since 2016. With over 3.35 million subscribers as of August 2021, this American real estate agent turned YouTube star offers finance-related advice.

Graham started the channel sharing his real estate successes, disappointments, and experiences to help those who want to do the same. He also talked about cars and shared his favorite new models with his audience when he isn’t talking about finance.

When he was profiled on CNBC’s Millennial Money, an interview show in which he discussed how he managed to save and invest his money so that he could live in Los Angeles on $1.6 million per year, it became one of his most popular videos. He has a sizable online following because of his sound financial advice. One example is how he was able to live in Los Angeles without paying rent by purchasing a duplex and renting out half of it.

His channel grew quickly as a result of the CNBC video’s popularity on social media. This created the groundwork for his popular platform, which now has millions of users. Graham fulfilled his objective of making $1 million with his YouTube channel only a year later, despite not achieving it in 2018.

His main YouTube channel focuses on offering financial tips and tricks, such as how to save money on rent, bitcoin, and investing. Here are 11 top tips from Graham on how to be more financially prudent.

#1. Always Track Your Spending

Start with the most fundamental tip because it’s the cornerstone of everything. How can you save money if you have no idea where your money is going?! Some people like to manually enter their spending into a spreadsheet, while others prefer to use programs that do it for them. It makes no difference which method you choose as long as you find one that works for you.

You’ll have a fair notion of how much you spend in each category after three months of tracking where every money goes. After that, you may start determining where you want to make cuts. You were shocked at how much you spent on dining out once you started tracking. The ultimate goal is to identify any needless expenses so that you may eliminate them and live within your means.

#2. Pay Yourself First

When most people are paid, they pay their expenses and reward themselves, with the remainder going into a savings account. However, this is incorrect!

After you’ve tracked your spending for a few months and determined out how much you can save per paycheck, consider depositing that money as soon as you get paid into your savings/investing account. It doesn’t matter if it’s RM50 or RM500; what matters is that you’re developing the habit of paying yourself first. Pro tip: Set up your savings to be automatic so you don’t have to think about it!

#3. Keep Emergency Fun in a High-Yield Savings Account

We all know how important it is to have a three-to-six month emergency fund. That’s probably something you’ve heard a thousand times – and it’s true! However, if you’ve worked hard to save up all of that money, it’s critical to choose where you’ll store it.

Keeping the money in a typical bank account isn’t a good idea. Instead, find another option that will give you better returns.

#4. Pay Off All Your Bad Debt

Make a note of your monthly discretionary expenditures and the costs, according to Graham (like going to restaurants or the movies). Have you noticed the entire amount you’ve spent on the unnecessities?

It’s time to stop having fun so you may devote practically all of your income to bad debt with exorbitant interest rates. It’s painful, but it’s necessary if you want to take it seriously.

If that seems like a drastic adjustment, you can always concentrate on progressively reducing your discretionary spending while putting more and more money toward your debt each month. And if you begin to see results with your debt, you may be inspired to make much more changes!

You can save money by consolidating your debt (for example, transferring credit card debt to a new card with a reduced interest rate). When it comes to paying off debt, some people prefer the snowball technique (paying off the smaller quantities first), while others prefer the avalanche method (paying off the largest obligations first) (paying off debt with the highest interest first).

The former has psychological benefits, but the latter can help you save money. If you’re a homeowner, though, Graham advises against paying off your mortgage rapidly once you’ve paid off all of your “bad” debt. Because your mortgage has such a low-interest rate, you’d be better off placing your money in the stock market and earning a higher return there.

#5. Never Get Starbucks

We all know that giving up your morning coffee isn’t going to make you rich. But Graham is probably implying that we should cease paying for convenience. Is it more efficient to have your coffee made by a barista? Absolutely! Is it, however, good for your wallet? Nope!

The “no Starbucks” philosophy is simply one to acquire and apply to other aspects of your life. Begin to brew your coffee at home. Stop ordering food from apps like Postmates and Grubhub when you can make your dinner for a fraction of the price. When you can pick up the pizza yourself, don’t have it delivered.

You’ll have more money to save/invest if you stop paying all these convenience fees. It’s still acceptable to pay for convenience on occasion, such as when you’re sick or exhausted, but be aware of what you’re paying for and why. Also, be wary of developing a habit out of something that isn’t benefitting you.

#6. Use Your Credit Cards As Often As Possible

You’re missing out if you regularly pay with your debit card or cash. Imagine placing it on your credit card when you go grocery shopping, filling up your car, or paying your Wi-Fi fee. Using a credit card instead of a debit card can result in hundreds of dollars being deposited into your checking account each year due to the benefits. Some individuals like to use their credit cards to earn travel points to acquire free flights and hotels while on vacation, which is also fantastic!

Look for a credit card that offers the benefits you desire. Remember to pay off your entire credit card account at the end of each month! You don’t want to be saddled with those exorbitant interest rates. If you can’t afford to pay off your credit card every month, you should probably avoid this step for the time being.

#7. Never Buy Designer Clothes

Graham is a multimillionaire, yet he still dresses in H&M shirts that cost $7. Why? Because it makes no sense to spend a lot of money on costly clothes when you’re attempting to increase your fortune. Extend this approach to different facets of your life, similar to the “no Starbucks” guideline.

Graham taught us to question ourselves if the price of an item is worth the number of hours you’ll have to work to pay for it. Is that new pair of shoes, for example, truly worth four hours of labor? Otherwise, move on.

The same mindset may be extended to vehicles, phones, and attending concerts, among other things. Whenever you make a purchase, ask yourself if it’s worth it. And if it’s worth it, go ahead and purchase it guilt-free!

#8. Be Smart At Restaurants

Many of us spend time with friends and family by going out to eat. We don’t have to be hermits just because we want to improve our financial situation! Graham taught me that going to a happy hour rather than supper may be just as enjoyable (and much less expensive!)

If you do go out to dinner, an appetizer can always be substituted for your main course. Also, never order alcoholic beverages in a restaurant. They’re so pricey that I don’t believe they’re worth it.

#9. Have Multiple Sources of Income

You’ll hit a ceiling if you’re living substantially below your means and saving/investing as much of your money as possible. You may wish to raise your income to save/invest more money than you now do, and some of it should be passive.

For example, say you have a normal full-time job. However, since you began viewing Graham’s videos, you have also invested in the stock market, implying that your money is working for you and earning you more money. This simple step is in itself creating a second income stream.

Just keep in mind that everyone’s version of this step will be different (i.e. investing in the stock market is not your only option).

#10. Take Care of Yourself to Save Money in the Future

This is a long-term project, but it’s critical. Graham, despite being the world’s most thrifty man, nonetheless pays for a gym membership and spends money on good food. Why? Because it will save him a lot of money and improve his quality of life in the long term.

It’s perfectly fine if you can’t afford a gym membership or a supper with a lot of healthy foods. You can always work out at home or stock up on pre-made salads while they’re on sale at the grocery store.

#11. Avoid Lifestyle Inflation

You will almost certainly receive raises and promotions throughout your life. When you start making more money, it might be very tempting to boost your spending, especially if your coworkers and peers are doing so.

Getting a new automobile, eating out more frequently, or relocating to a larger apartment, on the other hand, all inflate your lifestyle. Consider what would happen if you retained the same expenses for years and invested the additional money. You may attain your financial objectives much more quickly!

The true worth of financial freedom is a life focused not on money but on true freedom in time, wealth, and meaningful relationships.

 

Which is your favourite tip from Graham? Let us know in the comments down below.