Why Everything Changes Once You Save $10K

ladies and gentlemen D gabos contrary to popular opinion the most significant financial milestone for the average person is not $1 million or $100,000 no the most significant financial Milestone is just $110,000 because the second you save your first $10,000 Everything Changes reaching $110,000 in savings is such such a significant financial Milestone because this is the moment when options start to appear doors start to open and you start to become more financially free having $10,000 saved doesn't mean that you're set for life but having $10,000 saved is the financial Milestone when things start to change for

the better and in this video I want to explain why this is and talk about eight things that happened to you after you save your first $110,000 and the first thing is you can cover 99% of life's surprise expenses now as I just said saving $10,000 doesn't mean you're set for life you're actually pretty far from it however having $10,000 saved does mean that you can cover pretty much any surprise expense that life throws at you your car needs a new engine you're covered you need to get a root canal you're covered your dog gets

SI sick they're covered there are a few surprise expenses in life they're going to cost you more than $10,000 I mean the most expensive surprise expense that I've ever had happened 2 years ago when my car engine died and I had to pay $7,000 for new engine when you save your first $10,000 you can cover 99% of Life surprises which gives you the peace of mind that if anything happens to you you are least covered financially in and that is an amazing feeling now the second thing that happens to you is you can stop asking

can I and start asking do I want to for the majority of people in this world their decisions in life are all based around the question can I afford this many people have very little money saved and so all their decisions are based around whether or not they can afford it which makes their life Revol rolve around money however once you have $10,000 saved your financial decisions in life begin to be based around the question do I want to buy this having $10,000 saved means that you can afford most things without any negative financial implications

and so the price tag is no longer the top concern for example next week I am taking a vacation to Mexico with some old friends and before I bought the tickets the main thing I considered was whether it was what I wanted and if it would bring value into my life and so I bought the ticket obviously $10,000 can go very quickly and you don't want to blow all your money but when you have $10,000 saved you can start to base your life decisions on whether you want to do it rather than if you can

afford to do it in that ability makes life a lot richer now the third thing that happens is you can have more fun guilt-free again having $10,000 save doesn't mean you're rich and you can just start blowing money but it does mean that you could have more fun without any guilt attached to it for example imagine two people at a bar one who has $10,000 saved and is paying with cash and the other who has financial problems and is paying with credit card the person paying with their own money will truly enjoy the experience and

not worry about the money whereas the other person will still have fun but in the back of their mind they will feel a bit of guilt they won't enjoy the experience as much because they know that it's probably not the best financial decision and that it's possible that it will cause problems later down the road people often think that saving money is about deprivation but it's really about empowerment because when you have money in life you can enjoy more things without any guilt being attached to it you can have more fun doing things things that

you want to do and not feel guilty that you're spending money you don't have now the fourth thing that happens is you have more confidence now if you're a regular viewer of financial videos like this one you know that us personalities often talk about extremely high numbers like $100,000 or $1 million and there are so many articles and videos of people saying things like if you were between the ages of 30 to 34 the average net worth is $122,000 but the truth is the average person doesn't have anything close to those numbers I mean according

to some sources 78% of Americans are living paycheck to paycheck and 63% of Americans can't cover a $500 emergency expense the average person is barely making it and for the average person $10,000 is a lot of money and it's the first time you see five figures in your bank account and I think that there's a very special feeling that comes from seeing five figures in your bank account for the first time it's a sign that you're above average and it gives you a sense of confidence the richest that I have ever felt is when I

saved my first $10,000 because there's something so cool about seeing five figures in your bank account it's sort of a symbol that you're doing well financially and it gives you a sense of confidence that you can't get with a four figure bank account money does give you confidence in $10,000 five figures is when you start to feel more confident now the fifth thing that happens is you can say no to things more when you boil down money it is just a tool that gives you options in life and those who have money have options and

those who don't have money don't have options and having options is really about having the power to say two very different words yes and no those are the two most powerful words in the world and $10,000 is the moment I think that when you can say those words a bit more freely because $110,000 is the number when you start to feel like you have some Financial cushion and that Financial cushion allows you to tell people no more freely if you don't want to comment on Saturday because you're going for a hike you can say no

whereas a person living paycheck to paycheck can't say that due to fear of what'll happen $10,000 I think is the moment when you start to feel a little bit more secure in life and that security gives you options it makes you not desperate it gives you the ability to say say yes to things you want to do and no to things you don't want to do and it is so empowering to be able to say those two words with confidence now the sixth thing that happens is your savings rate speeds up most people have trouble

saving money because they have to worry about things like being behind on their bills debt and paying their current bills when you don't have money saved and are behind financially it is very hard to get ahead which is why so many people are trapped in that paycheck to paycheck life however once you have $10,000 saved you are caught up financially you don't feel like you're behind and because of that you're able to accomplish a lot more financially you can use that money you would have spent on being behind to get ahead and your savings rate

begins to speed up it's a lot easier to save money when you have money and $10,000 I think is the moment when you are caught up financially and you could go full force to getting ahead financially and your savings rate speeds up a lot quicker now the seventh thing that happens is investing becomes less risky for the average person the number one wealth building tool that you have at your disposal is the stock market in what determines whether or not somebody makes money in the stock market or loses money in the stock market really boils

down to two things the first thing is patience many people don't make money in the stock market because they don't have any patience they want to get rich quick through day trading and end up losing money The Proven way to make money in the stock market is just to invest in lowcost index funds where you'll get an average return of 10% a year however this is slow and requires a lot of patience the second thing is margin and margin is basically a buffer between you and being broke and if you don't have margin you might

sell your Investments at a low price because you need cash now whereas if you have margin you can hold out through the bad times because you have cash already and I think having $10,000 in a savings account for emergencies is when you start to have a decent amount of margin to hold out during the bad time is something like a recession happens if the stock market tanks you don't have to worry about withdrawing your Investments because you have cash for backup investing is always risky but when you have margin as well as patience investing is

slightly less risky because you have the ability to hold and I think that $10,000 saved gives you a decent amount of margin now the final thing that happens is Life Starts starts to get easier as I explained in this video saving your first $10,000 is a very significant Milestone on many people's personal finance Journey because saving $10,000 means you can cover most surprises in life money stops dictating your decisions you can have more fun guilt-free you have more confidence you can say no more often your savings rate increases quicker in investing is less risky in

all of these things make your life slightly easier $10,000 doesn't mean you're rich but it does mean that your life is beginning to get a little bit easier it is the first Milestone where you start to go from just surviving to beginning to feel a little bit more comfortable you don't have the same worries and struggles that people have who are barely making it and so if you on your journey to saving your first $10,000 know that the sacrifices you are making today will ultimately lead to a much easier future because the second you save

your first $10,000 life changes and things start to be a little bit easier and with that