most people don't struggle with money because they're bad at math but because they usually don't have a plan figuring out how to come up with a plan can be a scary thing there's so much information and strategies being shared out there it's hard to know what to pay attention to so that's why I created this video so in this video I'm going to give you a 90day plan to reset your finances step by step so by the end of this you'll have a system for building your wealth and having a jump start to your financial Journey we're going to cover topics like investing the prioritization of your money after you get paid and how to save money on some of the biggest expenses of your life all right so let's get started 90 days is roughly 12 and 1/2 weeks or so so I thought it would be easier to just break up this video and what you should do every single week week one is all about reviewing where you currently stand so before we can fix anything with your money we need to get super honest about where our money is going and how much money we have coming in every successful business I know that runs in this world has a sense of how much money they bring in AKA their revenue and how much they are spending also known as their expenses if you go to a local McDonald's you better believe that they know intimately what their profit expenses and revenue look like on a daily basis so in week one what I want to focus on is getting our lives to be coming as close to a successful business as possible and the simple action that we can take here is the following we're going to pull up our last 3 months of statements so anywhere you've spent money in the past 3 months you want to pull these up on tabs on your computer that means your bank accounts your credit card statements your debt payments any other discretionary expenses you've ever made try to pull that up somewhere so that you can see them visually after that you want to categorize every expense and I would do so in the three major categories number one is fixed expenses so these are going to be expenses that you have to pay every single month things like rent utilities car payments subscriptions and groceries number two are discretionary expenses so these are your wants so for example eating out traveling shopping anything that isn't necessary for you to run your life but it's still fun to spend money on and number three any debt payments you might might have like student loans or credit cards now ideally you log every expense and categorize every expense in a spreadsheet and you have a good sense of what categories you are overspending in versus what categories perhaps you aren't spending enough in what we really want to find out at the end of week one is what our average spend is per category on a monthly basis then if we're able to know how much money we have coming in due to our income then it's really easy to figure out what our savings rate is as a percentage in the business analogy we're figuring out how our expenses are broken out we know what our revenue is coming in since that's our income but now we're just trying to figure out what money do we have left over AKA our net profit I promise that if you're able to do this exercise it will really open up a ton of insights about what your spending habits are you might even realize you might be spending too much money on certain categories perhaps you spend too much money on Uber or you might be wasting money on a forgotten subscription so do this exercise in week one and you're going to set yourself up very well for week number two and week number two is all about cutting the fat and by that what I mean is we want to focus on the lowest hanging fruit in order to save the most amount of money so what I would do is go through and sort your expenses from largest to smallest and I'm going to give you guys an example right here I'll put it up on the screen as you can see this person spends about $4,650 total on all of these categories including rent car insurance payments groceries eating out shopping Ubers utilities subscriptions bars and coffee you're going to then analyze each and every category and just simply ask yourself if there's something that you can do about that certain expense to reduce it 10 to 30% over the next 90 days in other words for this example that we have on the screen right here is it possible to get our total spend down $400 to $1,200 a month so with rent it might be pretty hard to do that it's the biggest expense on this list but it might not be easy to find a new place that's say $200 or $300 less per month and while you can negotiate with your landlord I would say in general most people aren't going to be doing that just just straight up to be honest um you can also move locations to be somewhere further away or in a less competitive neighborhood but I also acknowledge not everyone wants to do that either but let's look around this hypothetical list some more where can we find some cost savings so right here there's $225 being spent on Ubers every single month I would personally ask myself why am I spending money on Ubers is it because when I go out on the weekends I might be feeling a little bit too lazy to walk to my destination so therefore I call an Uber you want to try to identify the root habits that make you spend money so in the case of uber perhaps this person just had no idea that they were spending that much on Ubers in the first place in that case it's probably really easy to cut down on this category by at least $100 a month you could even eliminate it all together if you really focus on just traveling everywhere by foot or by public transportation and you'd probably save closer to $225 a month when it comes to the car and insurance payment here at 750 a month that's another easy place to reduce your spend most people don't call around to different insurance providers looking at different offers but if you're able to compare Insurance offers across different providers that could be another easy way to save around $100 a month I will link an insurance comparison website down below in the description where you can easily check to see some of the offers in your area and see if you can save some money that way the next categories that seem a little easier to tackle are shopping and eating out so can you just do a little bit less of each of these categories per month you might be able to save between $50 to $100 in each of these categories on a monthly basis and that'll give you another $100 to $200 of monthly savings for subscriptions cancel any subscriptions that you barely use and then you can see that as we go down this list if we simply pay attention to where our money is going throughout the month we're probably able to cut out unnecessary expenses so long as we ask ourselves the important questions questions like hey is this an important and necessary expense in my life and if the answer is no to that question perhaps we can just hold off on that expense and save ourselves some money in the long run if you're able to cut out $400 a month that's $4,800 that you can save in a year which can either compound really nicely for you in the future or it's an extra flight to Europe or perhaps a Roth IRA contribution or even more money that you can put towards debt so week one and two are all about reducing our spend and knowing intimately what our spend is but week three is all about automation I would also call this paying yourself first the first thing I do here is open up a high yield savings account for short-term savings and make sure you're getting the competitive market rates out there so right now as of recording it's between 3.8 to 4% this will serve as the main place you save your short-term cash anything you're holding for 1 to 5 years as an example $10,000 in a high yield account earning 4% is an extra $400 per year year so that's free additional money you can unlock for an easy 5 to 10 minutes of setting up an account all right then you're going to set up automatic transfers so that whenever you get paid certain percentages of your pay goes automatically towards your goals and this simple Act of automating your finances is going to be one of the most single important things you do because it's going to take out all the hassle and friction of managing your money so here's what I do personally I get paid once a month on the 21st and when that happens the money gets deposited into my main checking account all my usual spending for the month will come out of that checking account so that includes my bills necessities and discretionary spending but here's the genius of automation because in my online banking I set up two automatic transfers whenever I get paid to move a preset portion of my paycheck into other accounts before I even get a chance to spend it you can decide what this percentage looks like for you but I find that if you can automate at least 10% of your take-home pay into your high yield saves account and an investment account so perhaps 5% to each one that it's going to be super beneficial for you in the long run and you'll be be doing way better than most Americans now psychologically this works because you won't be tempted to spend the money because it automatically gets deducted before it even hits your checking account it's kind of like having a 401k you never see that you're investing in the 401K so you never touch that money all right week four is here and you're about onethird of the way through this 90-day program and the goal for week four is to have a plan for any Consumer Debt so if you have high interest rate debt like credit card debt we need to figure out how much the total is and have a plan to pay it off as soon as possible if you go online and search for a credit card calculator you can input your credit card balance and what you pay every single month if you pay an extra 5075 or even $100 per month you can save a lot of money on your total interest payments as well as reduce your payoff date by a lot in this example alone right here on the screen we would save eight months of our payments if we're able to increase our payment per month by $75 on a $2,500 credit card balance you can set up automatic payments when it comes to debt payoff so that you can kill it off as quickly as possible as well another big action item if you have credit card debt is that I will always encourage you to call your credit card company and ask them if they can lower the interest rate on your card even if it's just for a short period of time you can bring up that other credit cards have competitive interest rates and that you've been a really loyal customer often times the credit issuer will just lower your interest rate even if it's just for a temporary period because they want to keep your business but this can also save you hundreds if not thousands of dollars in interest alone the worst case is that they say no and that's okay but you won't know until you ask and this will literally Take 5 minutes and could save you a lot of money money the average credit card APR is over 21% these days so either making payments on this debt or getting your debt interest rate lowered is going to be an instant return on your investment all right now in week five your goals start to change and the week five goal is going to be getting your emergency fund to $1,000 $1,000 is a significant number because it's when your bank account actually crosses the four-digit barrier which psychologically should make you feel pretty good consider that 59% of Americans can't even afford a $1,000 emergency expense that means it's probably a good goal to aim for if you already have $11,000 in your emergency fund and you're watching this video then your goal for this week should be to get your emergency fund to 3 to 6 months of living expenses saved up or at least have a plan to do so for the majority of people though the first step of getting to that $1,000 is a huge psychological win and it also gives you that peace of mind in order to get there faster you can sell things you don't use like old electronics clothes or furniture or you can pick up a side hustle for extra cash another way to do it is that based on your expenses from Week 1 and week two you can redirect any savings that you made towards your emergency fund lastly just make sure that the emergency fund is being held in a high yield savings account so that it earns interest for you some of my favorites include wealthfront Sofi or Ally all right breezing right along into week six the goal of week six is to set up your Investments investing in stocks have produced the best returns over the past 100 years compared to other assets and commodities so I'm going to put up on the screen one of my favorite short videos by Max clco in which he goes to Wall Street and asks people what they think the top 10 Investments are over the past 100 years in terms of their return crypto and equities is that what you're looking for number one is stocks with 5.2% you can see that stocks has the highest average annual return compared to other Investments like treasury bonds Fine Art and other Commodities like Precious Metals like gold real estate surprisingly comes in at number 10 at 3% over the long term stocks have the most potential to transform your life because they have the highest chances of capital gains and whenever I interview or talk to someone with a very high net worth they all agree that in order to build your wealth you need to concentrate the money you do have into appreciating assets so for our 90day reset plan will want to start investing in the S&P 500 via index funds and ETFs an S&P 500 ETF gives you exposure to a diversified portfolio of hundreds of the top us companies with one single purchase this is a passive strategy you just said it and forget it and you basically are relying on the Market's historical average returns of 8 to 10% over time you can invest in the S&P 500 ETF by opening up a brokerage account at Vanguard Fidelity Schwab N1 Finance Etc and then you want to allocate a portion of your automated savings to go into these brokerage accounts and then make sure you're just simply buying an S&P 500 ETF on a regular basis this is a very lowcost way to get invested and it's simple because all you have to do is invest in that one fund look at this table of investing you can see that if you invest 100500 or $1,000 per month what your final balances will be by just getting the average market returns of 8% investing $1,000 a month for 30 years for example will get you a final balance of $1.49 million after all is said and done the most important thing when it comes to having an investing plan is to stay consistent with it and Trust the process and over time your money will grow upon itself and that's the beauty of it okay in week number seven we're going to find ways to level up our income in this video we've talked a lot about cutting expenses and automating what you make already but another thing we want to really make sure we're focusing on is increasing our income in there are are a few options that you can consider when it comes to this so number one you could simply ask for a raise this is especially true if you haven't gotten a raise in over a year and now if it's been longer than 2 years you definitely need to say something to your employer because the rate of inflation has just been reducing your purchasing power this whole time you can research salaries online and just present your case and even if you don't get it at least you asked but still you want to make sure you're getting paid what you're worth I've even made a YouTube video about how job hopping every two years or so can make you 30 to 40% more of your salary every time you switch obviously this is very situational but if it does apply to you it could be another way to increase your income very fast the second way I would try to increase my income is to start a side hustle you could freelance you could flip stuff on Facebook Marketplace or you can do a service based side hustle like watching dogs or perhaps door Dash and a third option to consider is to learn a high income skill like coding video editing sales or design the point of week seven is that you are focused on growth rather than just cutting costs you can only cut a certain amount of cost but there's no limit on how much you can earn so by the end of week seven we should be able to identify one thing that can help us make more money moving forward in the next few weeks all right in week eight we want to Define and write down a savings goal for the rest of the year we've talked about many different goals in today's video already like having a stocked emergency fund having an investing account and paying off debt you could have other goals for saving like perhaps you save for a down payment on a house or save money for a wedding whatever your goal is in week eight you want to write down this savings goal along with how much you think you would need to hit that goal so for example if you want to have $8,000 in your emergency fund and you're currently at $11,000 you would need the difference of 7K over the next year or so that means every month for the next year you would need to save $583 towards your emergency fund to hit that goal which may or may not be possible depending on your situation but the mere existence of writing down your goal will increase the likelihood you achieve it by 42% that stat comes from a study by a psychology Professor who found that the people who wrote down their goals made a plan and share them with a friend were significantly more likely to accomplish them compared to those who only thought about their goals so after you write down your savings goal tell your parents tell your friends tell the internets that way you're more likely to hit that goal in the future all right so that was week eight but let's talk about week nine now week N is a little bit different because we're talking about credit cards credit cards are a dangerous double-edged sword because it's the one category of personal finance where you need to know yourself very intimately so let's talk about whether or not not you should be using a credit card so if you are somebody who has a lot of self-control then the dream scenario is that you get a credit card and you run all of your purchases through it every single month you pay that off in full and that's the best case scenario and if you're able to do this every single month you will get rewarded handsomely for it you'll get cash back points for spending Hotel upgrades lounge access and the list of perks continues so if you do have self-control then you are literally going to be getting free money from these credit card issuers because they try to make money on those that are less disciplined the people that are less disciplined have a hard time with credit cards because they tend to overspend on them if you overspend on a credit card and you don't have enough money to pay it off in full the next month then the average interest rate on a card is going to be 21% that means it's going to be very expensive to carry credit card debt and the average American these days has credit card debt of $723 so if you're not very disciplined I would just stay away from credit cards in general one way to figure out if a credit card is right for you though is to get one with a low credit limit and just test it out for 3 to 6 months to decide whether or not you have the self-control in this testing period you're just kind of seeing what your self-control looks like if you have no self-control stay away from credit cards if you have good self-control maybe you level up your credit card usage the counterintuitive thing about credit cards is that they actually build credit since every time you make a payment on time that's counting towards your payment history which makes up 35% of your total credit score using your credit card responsibly and paying it off each month shows lenders that you are a reliable borrower and over time this helps you qualify for better interest rates higher credit limits and even bigger Financial opportunities like mortgages and business loans where you could save thousands over the course of your life with an excellent credit score all right in week 10 we want to start tracking our net worth this is a practice I find pretty fun because as you age and start to make more money you can see exactly how much your net worth is growing to calculate your net worth all you need to do is add up all your assets and subtract any debts and liabilities and boom there's your net worth worth let's use a hypothetical here if you had a house worth $100,000 and then you had investing in Bank balances totaling 25k but you owed 30k on your car then your net worth is technically 100K for the house 25k for the balances and then minus 30k for the car and therefore your total net worth is 95k I like tracking my net worth on a monthly basis but you can do it every single quarter or every single half year that way you're getting a good long-term view of how your financial picture is changing so I've created a net worth tracker which I'll pull up on the screen and this is going to be completely free to download it'll be in the description below it's currently set up for halfe increments right now but if you want to go in and change it to monthly quarterly or yearly you can adjust the columns as you see fit in any case you just keep track of your assets and your liabilities and therefore your net worth and as long as you're tracking it I feel like if you keep an eye on it it will slowly grow over time all right in week 11 what we're going to do is something a little unorthodox it's a little bit different but we're going to review your spending for week weeks 2 to 10 so in week 11 it's been exactly 8 weeks since we analyzed our expenses in weeks 1 and two so this week it's imperative that we review our spending for the past two months or so and really understand if we're on track or if there are still some Financial leaks that we might be blind to so all you have to do for this week in week 11 is to reassess your spending take an hour and just really deep dive into how much you spent for the past two months you're going to categorize your expenses again figure out the average spend per month and then compare it to what your spending was before you started this whole 90-day reset in a perfect world most of your expenses have not increased but hopefully they've stayed flat or they've even decreased that's especially true for the categories that you've been trying to reduce your spending on if you identify any leaks make sure to patch them up before moving on to week 12 all right in week 12 you're basically at the end here congrats if you're still with me technically 90 days is 12 and 1/2 weeks so really we're going to take these last 7 to 10 days to really plan out our stretch goals into the future stretch goals are big ambitious goals that go beyond just getting by these are things like buying a home paying off major debts launching a business or retiring early so this week you should really figure out number one what do you want to achieve in one year 5 years and 10 years a one-year goal might be something like save $10,000 a 5-year goal is much more of a stretch so perhaps it's buying property launching a business or hitting a huge milestone of net worth like 100k 250k 500k Etc and a 10year goal might be to be financially independent or perhaps you travel the world for a year or you retire early once you have these goals you want to create an actionable road map that breaks them down into smaller achievable steps let's say you want to buy a house in 5 years how much would you need to save per month to get to your down payment that's what you need to figure out and write down what that goal is and then the last step of this critical week is to schedule a quarterly check-in with yourself a quarter from now so you want to set a reminder every single 3 months to review your progress financially and this will help you stay on track and ensure that these past 90 days that you've been really working hard on resetting your financial life weren't for nothing I personally like to review my finances at the end of every month and then at the end of every quarter so March 31st June 30th September 30th and December 31st all right so if you're still with me after all this time thank you for being here I want you guys to drop a comment down below what can I have you say maybe type the word Apple if I see your comment and it's Apple I'll make sure to hard it this 90-day reset is not going to be easy by any means but I promise that if you're able to get through it that you should be well in control of your money by the end of it now remember this is not just the beginning though because wealth is not built overnight it's built through consistency discipline and having that long-term Vision if you got value out of this video make sure to check out this video right here it's going to show you how your net worth explodes after you hit 100K I hope to see you guys in that video or a future one on this channel again thank you so much for spending your time with me I'll see you later bye [Music]