How To Save $50,000 Per Year For Financial Independence

Whether you're pursuing financial independence retire early or not, a high savings rate is going to get you to where you're going faster. The side benefits from saving more money go beyond just having a larger bank or investment account. I've found that it gives you a lot more freedom in every other area of your life. Who doesn't want more of that?
In this video, I go through the things that I'm doing in my life to achieve an 83% savings rate. This is an extremely high amount so if you're nowhere near the same number then don't feel discouraged. I had a 3% savings rate at one time, but have taken the proper steps to build it up to this amount over time. It's really not difficult- all it takes is a few small changes, compounded over time, to be able to increase your savings rate to a number you'd never expect.
Check Out My Recommendations (It helps support the channel):
🔥 M1 FINANCE Investing- Free $10 (once you deposit at least $100 within 30 days) bit.ly/427KBBn
📚 Here's a video on how to use M1 Finance • M1 Finance Investing T...
📝 NewRetirement - The retirement planning tool I personally use to make sure I'm on track with saving for retirement. It's perfect for "Do it yourself" investors bit.ly/3EAAhrJ
🔒 AURA - 14 day free trial to see if your personal information has been leaked online and have it removed aura.com/jarrad
📝 Empower - Free Net Worth Tracker bit.ly/3NUNtwq
📧 Business Inquiries: [e-mail]
YOU'LL FIND THESE PLAYLISTS HELPFUL:
🏆 Financial Independence Retire Early Playlist: bit.ly/2PO7RCa
💵 All Things Investing Playlist: bit.ly/2NExPFT
📕 Learn How To Budget Playlist: bit.ly/2ps5LgT
📲 Follow me on Instagram: bit.ly/2vazxXf
Affiliate Disclaimer: Some of the above may affiliate links. Support the channel by signing up or purchasing through those links at no additional cost to you. I appreciate you for helping me keep this channel running
Disclaimer: This video is for entertainment purposes only. Everyone's situation is different so do your own research before making any decisions with your money. If you need help then contact a Certified Financial Fiduciary before trying anything that is mentioned in this video. I prefer a Fiduciary financial advisor that charges an hourly fee as opposed to an ongoing fee based on a % of your portfolio. Always remember that incentives determine the type of advice they give you so one that charges an hourly fee is less likely to be problematic.

[@JarradMorrow]

Check Out My Recommendations (It helps support the channel): 💰 M1 FINANCE - Invest In Fractional Shares For Free (where I invest my Roth IRA) m1finance.8bxp97.net/eX16D ---------- 🏠 FUNDRISE - Start Investing In Real Estate The Easy Way! (I have money invested here) fundrise.sjv.io/ZDeAz ---------- 💎 WEBULL - Free Stock Investing Platform (Get 3 FREE stocks worth up to $1600 when you deposit $100 upon opening your account) bit.ly/WeBullJM ---------- 📈 BLOOOM - FREE 401k and IRA Fee Analyzer. Are your 401k and IRA fees too high? blooom.pxf.io/q3Orn ---------- 💵 ROBINHOOD - Free Investing Platform (FREE stock worth up to $200 when you open an account and fund it) robinhood.c3me6x.net/PoaWz

[@dgidanny2840]

Bro I really look up to you, thanks for the motivation, keep up the grind 💪

[@JarradMorrow]

I appreciate that! I will!

[@irochkafahrni5748]

Thank you for sharing your life experience, that is very valuable!!

[@JarradMorrow]

Thanks. Glad it helped 👍🏻

[@kristenm8221]

Parent of 4 and paid off $10,000 on my car in a year! Boyfriend and I managed to save $20,000 in 2 years. So yes having kids is definitely a self limiting belief!

[@JarradMorrow]

That's amazing. Nice job!

[@carieyoung1111]

Mental health is everything! It should be everyone’s first priority- it feeds everything else

[@JarradMorrow]

Agreed!

[@whitrobinson]

Great advice (from you and grandpa)!

[@JarradMorrow]

Thanks :)

[@19oco94]

thanks for keeping it real man. appreciate the video

[@JarradMorrow]

Any time!

[@Seoulsearch616]

Very sorry to hear about your hardships and losses. 😟 Thanks for the reminder that financial health is just a part of the bigger picture... Life as a whole. Thanks for sharing so honestly and great work on the channel. I'm a new sub but have already watched several videos and I'm learning a lot. Thank you! 👍

[@theplantainchiplover]

hi Jarrad! I stumbled on your FIRE playlist recently and I wanted to let you know it is really informational. I'm currently a pre-med student in my 3rd year of college and while I won't be making big income soon, I know this advice is still useful! I'm planning on continuing to live like a broke college student throughout med school lol

[@JarradMorrow]

Thank you. Yes, do your best to resist living like your co-workers to do smart things with your money.

[@RobinTaylorMusic]

I've had a string of traumatic incidents the past 6 years happen to me as well. Literally one trauma after the next with no breaks in between. Finally at a full time job in finance with amazing benefits. Able to build my investment accounts and pay off my debts. Had to live at home at 32 now but it's helping me a lot financially. I trail run, hike, and have recently started therapy focusing on CBT and EMDR to help with the trauma. Wishing you the best. Thank you for sharing your story and your insight!

[@failurescanbeblessings2209]

Hey Jarrad, subscribed when you had 4K subscribers, first time commenting. Thank you for your honesty and great tips. I was raised by single parent (my father) and we struggled financially. As a result, I'm a great saver, but struggled with a "lack" mindset for years. That mindset made me feel like I was in bondage. I've managed to overcome that "lack" mindset by focusing on spending and investing wisely and sharing with others. I've reaped a lot of gains, both financially and mentally, following these steps. Children are a blessing AND expensive. They are worth the cost. :-)

[@JarradMorrow]

Thanks for sharing!

[@katiejarvis9445]

I'm impressed with your personal savings rate. I have turned my financial perspective around & now save 48% of my post-tax salary. Most people are floored by that and here you are proving it's possible to do even more. I appreciate seeing that so I continue to strive toward more savings!

[@JarradMorrow]

Nice work on getting to 48%! One thing I want to mention is to make sure increasing your savings rate even more isn't going to cut into your quality of life. 48% is already extremely solid and it puts you way ahead of the game. Don't feel like you "have" to increase it a lot more for some arbitrary reason. The whole thing is a balance based on what works best for you and your values.

[@2TOTGA]

Binged on your vids and I gotta say: this one is my fav thus far for many many reasons. 👊🏼 Much respects. You are a great human being Jarred. I’m glad that you’re on here to share/inspire others (esp. the younger generations) to achieve their goals all the while along on your own journey. Yes, many of us have been on a tough path; but it is HOW we choose to perceive those “lemons into lemonade” that makes A-L-L the difference, I can attest to that. Personally, many of the things you covered were just confirmations of what I already know but I enjoy watching them b/c it is comforting to know that there are other likeminded nerds out there heading in the same freedom path. I’m grateful. This made my weekend, thx Jarrad. 🙏🏼 I’m truly excited for you on your new channel! 🤗 ((big hugs))

[@JarradMorrow]

Thanks, I appreciate that.

[@inea-fijourney22]

Awesome content, just found your channel, liked and subbed! Binge watching your vids, just began my FI journey and started my channel to document each step of it!

[@JarradMorrow]

Awesome! Thank you!

[@js5072]

Hey jarred, what's you're opinion on the BRRR method? I'm trying to calculate the numbers but only see it being a good idea if you see a ridiculously good deal.

[@JarradMorrow]

It's an extremely good method. In todays market it's going to take some work to find the deal where the numbers work so just keep looking. The deals are out there.

[@dwalker6868]

Thank you

[@JarradMorrow]

You're welcome

[@FriskyDingo1983]

I save 50% now, would love to up that number. Good video.

[@JarradMorrow]

Thanks. 50% is really good!

[@PointsInbound]

Sorry to hear about your losses. Sam Harris got me into meditating too. 👍

[@JarradMorrow]

Thanks. He's been a big part of why I do it on a regular basis.

[@cynthiagreencmt7709]

This was great!!! thanks for letting us get to know you a little more then remind us to hustle & be wise with our money 💰 always great content & I look forward to your other Channel 😎👍🏽

[@JarradMorrow]

You are so welcome!

[@QuesttoFIRE]

Jarrad!!😱 83% is goooooooals!!!🙌🏻👍🏻🔥🔥🔥

[@JarradMorrow]

You can do it!

[@YubaaNYC]

You are so honest about your advice, I have been doing somewhat similar but not the same level you do, maybe some day... inspired by your good advice.

[@JarradMorrow]

You can do it!

[@infinitewriter8135]

The thing about me personally buying a used car is that I spent most likely more maintenance fees on the car than paying off a lease so that balances out to about the same for me.

[@KateKaden]

I’ve always had multiple jobs also. What will your second channel be about?

[@JarradMorrow]

It's become my new normal haha

[@its.rachel.hickey]

Donuts and salt & vinegar chips are my THING!! I love this video! Not having kids has been a huge financial win for me as well. Thanks for sharing your story, lots of inspiration here!

[@randomclicks1496]

Completely agree multiple Source income helps a lot. To achieve your financial goal you should have at least 3 different income source.

[@JarradMorrow]

It's extremely helpful.

[@ginarivera1881]

How do you invest your “car payment” money?

[@JarradMorrow]

Index funds

[@danielkurtz9305]

Lots of really good advice in this video and definitely deserves a second watch. Just curious, what philosophy books are you into these days? Keep keeping your head up and be good my guy.

[@JarradMorrow]

Thanks. I read a lot of Stoic philosophy. Letters From A Stoic by Seneca and Meditations by Marcus Aurelius are probably my favorite. I enjoy the original texts, but they can be a little tough to read if you're not used to that old style of writing. If anyone wants to get their feet wet with Stoic philosophy then I always suggest starting out with the book The Daily Stoic. The writer (Ryan Holiday and one of my favorite authors) will take a piece of Stoic text then break it down into how to think through it in modern terms.

[@thowlett2681]

You remind me that I have to start working out more. I have a small home gym and I’m not using it as much as a should. Little kids are extremely expensive but trust me when the get a little older they really don’t add much cost. I have 2 and both pay for there own stuff. One is great at saving. I’m in the 60 percent saving. I’ve thought about getting into rental property’s but 💯 sure yet. Always love your videos.

[@JarradMorrow]

Gotta stay physically healthy. Thank you!

[@ominous450]

Not related but what lights are those near the monitors?

[@JarradMorrow]

The ones on my desk are off of Amazon. I had to replace one of them so I wouldn't recommend them.

[@gpvalued1577]

Wow 83%! That’s amazing!

[@JarradMorrow]

Thanks!

[@lemonarry]

Same here! 85%! Peace of mind!

[@JarradMorrow]

Nice job!

[@liamweng2708]

Great advice. Mind telling how old you are and how long it took you to build to your current position?

[@JarradMorrow]

65 years young

[@liamweng2708]

@@JarradMorrow Ok boomer :D

[@JarradMorrow]

😂

[@adrian3747_]

how old are u jarred? :) just curious. This is inspiring

[@JarradMorrow]

👍🏻

[@kathysutton2631]

Jarrod. So sorry about your traumas. Very sad. Your losses are heart wrenching. Hope you’re okay. BTW Where can I keep cash now to make interest? Any good dividend stocks you recommend? Thks. Kathy

[@JarradMorrow]

Thanks. Na, no reason to be sad about things that happen out of your control. I'm not a dividend investor so I don't have any. I'd suggest checking out my buddy JJ Buckner who makes dividend investing videos. I trust his judgement and know him very well.

[@nicktaylor8178]

I'm not sure if anyone else is having this issue but your transition right before you go into talking about not having children crashes my TCL smart tv. Not upset as it seems most aren't having this issue just curious if there are other TVs crashing due to this.

[@JarradMorrow]

Not that I'm aware of.

[@dynamichunter843]

I hope to live off of less than 50% of my new grad income after I graduate college with a CS degree, trying to lower it each year! Getting pay raises and switching jobs will definitely help that

[@JarradMorrow]

You can do it!

[@TheRetirementality]

I used to own a mortgage company and 99% of my clients' first question was "what is the maximum mortgage we can qualify for". And then they would come back every year to refi and use equity to pay off credit card bills and then they thought they were a genius because the didn't have any credit card bills anymore.

[@JarradMorrow]

Oh no!

[@abidashah4943]

Sorry for the lost of your family .yes mental health is important .you come first .look after your self .god bless you and family .merry chrismas and happy new year .take care keep safe .❤

[@JarradMorrow]

Thanks! :)

[@MezPT]

Can you do a video on how to prepare for a corrextion? I keep reading how over valued the market is, even Buffet bought gold etc.

[@JarradMorrow]

Unless you need to pull money from your investments to live off of within the next 1 to 4 years a correction in the short term isn't anything to worry about or any reason to change how you're investing. There's a ton of useless noise going around from the media and other KZbinrs about everything that's going on in the world. It's good to take note of what's happening, but be very very careful about making a knee jerk reaction to any of it. Stay the course and continue to invest consistently.

[@MezPT]

@@JarradMorrow Jarrad, thank you for your reply. Ill stay the course. Question if you can. For long term investing, wouldnt covid19 affected stock prices be a buy now? Airlines, retail, restaurants, all are very low. Even if it took years to get back, mega corps will soar eventually right?

[@JarradMorrow]

It honestly just depends on the particular company's stock. This is why I just continue to buy index funds with the majority of my money. I don't have to play that guessing game as to which stocks will come back to life. Another thing in regards to your initial comment about Buffet buying gold- be careful when thinking it's a good idea to mimic exactly what he's doing. Keep in mind that he's making financial decisions for his multi billion dollar company, not for himself personally. The reasons he makes trades don't apply to people like us the majority of the time. It's fine to take note of what he's doing, but don't assume you have to do something he does because he's at a whole different level.

[@davidfrank5174]

Love it!!!! FIRE movement is so smart. The earlier you find it the better. The Dave Ramsey way is good but FIRE movement is much better. I have 2 young ones and let me tell you there is always ways to save more.

[@JarradMorrow]

Totally agree! DR is great to start out, but after that it's better to ignore his advice.

[@SQLUniversity]

Jarrad! Did you say 40K in 2 months? Is that partly from affiliate links?

[@JarradMorrow]

I said at least $40k because I didn't want to give away the number. It's a mixture of a few different income sources.

[@SQLUniversity]

@@JarradMorrow Good for you, brother! You've been really working hard, and you've been helping others. You have truly earned your success! Happy for you! Truly an inspiration to us all.

[@JarradMorrow]

I appreciate that

[@xocolifestyle]

immediate fan. looking through your videos for people late to the investing game. if you (or anyone) sees this request, please direct me to that video. THANKS! XO

[@istvanpraha]

As per your beginning part, I live in NYC and know loads of single people around 40 who make decent amounts and live basically paycheck to paycheck because they want the perfect NYC lifestyle, so yeah, you can definitely make good money and be childless and be broke.

[@JarradMorrow]

Very true!

[@GrownManGames]

Boss man

[@JarradMorrow]

👍🏻

[@52msdiane]

Where’d ya go Jarred? You ok? It’s been a long time since you released a video!❤️🙏🧐

[@JarradMorrow]

I'm here! Released a video last week. Working on a few things behind the scenes for the channel and getting a few things in my personal life in order as well. I appreciate you checking on me :)

[@52msdiane]

Jarrad Morrow oh good! 👏 I think my notifications didn’t alert me...ugh! Carry on Jarred! 🎉✅😉

[@Nepthu]

I hit like to help your income stream! ha ha. On a serious note, I'm sorry to learn about your struggles. I sometimes feel that controlling money is a comfort. It's a bit like hording except we're obsessed with keeping those numbers high. The only time I've been a workaholic is when I've been avoiding something on my mind.

[@JarradMorrow]

Thank you. It's like a real life video game!

[@katara4955]

Wait I was multitasking when I watched this (twice)---can someone just answer...how do you save $50K? other than creating multiple streams of income?

[@JarradMorrow]

Cut back on expenses, reduce bad debt, get a job where you have the potential to make more money as opposed to one where your income is capped to an extent.

[@katara4955]

@@JarradMorrow haha thank you!

[@JarradMorrow]

👍🏻

[@crazybay8mile]

I’m currently paying school and my loans off but should be debt free by next spring. Have 10k in emergency fund and 125k in a couple different investments. Currently 22 and will have my finance degree by next spring as well. After that, my goal is to say at the least 50% of my income and aim for that 1 million mark by 30!

[@JarradMorrow]

You're doing all of the right things to get there. Nice job!

[@calebshafer2569]

Ketamine & Psychedelic Assisted Psychotherapy FTW!

[@JarradMorrow]

Great guess but I cannot confirm anything.

[@andrewnielsen8032]

Jarrrad you can't unpoop your pants!!

[@JarradMorrow]

Hahaha

[@Mixmastermez]

Ahhhh that child support though.... 32% of your gross.. I still manage to save quite a bit Im not in debt besides a mortgage. Need to learn to invest my hsa now because I'm bored. I've paid of my 28k car in two years and I have a year of living saved up in savings. I make only about 45k gross a year sitting on a 800+ credit score for over a decade. But I have no idea how to invest.

[@arcaneknight9799]

83% is a new standard.

[@JarradMorrow]

I'd love that

[@minihorses]

You should do a series on how to start a youtube channel and get it monetized. I'm impressed on your hitting 83%!

[@JarradMorrow]

I would love to do that. Might not fit in with the content on this channel so I'd have to create another one.

[@CaedenV]

*phew* how do you save that much? We live on a pretty modest budget, and have a dual income where we live entirely on my income for all day-to-day expenses, and then my wife's income is for investments, working on the house, and the occasional 'nice to have' things. Right now we are saving somewhere between 20-30% of our income, and I feel like that is a pretty tight stretch. We did recently pay off our last debts, and are now in the process of buying a few things we had been putting off, so once that is done maybe we could realistically put away closer to 40%? And when the house is paid off in a few years, then bump that up closer to 50%? Beyond that seems unimaginable right now lol. For the kid thing though... yeah, when they are little and pooping their way through diapers they are expensive, but after that, naw. A few school supplies, every year, and some school fees. If you buy new clothes all the time then that can add up, but we buy used because they are going to grow out of or destroy any clothes we buy them lol. Private school is insanely expensive, but we do public. Saving for college can be expensive, but there is no guarantee that they will go to college as other post-highschool options are becoming ever more viable. And honestly they eat a lot, but not THAT much. Plus, kids are awesome ;) Everyone should have at least 1. It is a truly eye-opening experience.

[@JarradMorrow]

It took me a few years to get to this savings rate. It didn't happen over night.

[@wyattpotter2103]

Wow Jarrard that's really impressive that you earned like 40k in just 2 months from KZbin.

[@JarradMorrow]

Making money on the internet is pretty wild. I’m just a normal guy so if I can do it then anyone can.

[@wyattpotter2103]

@@JarradMorrow Nice that's really awesome.

[@mistyblevins-stepp5285]

You can't un-poop your pants!🤣

[@georgesideropoulos6704]

Isn't that so bad that in order to really LIVE we actually have to sacrifice so many things.... Sacrifice our time to find investments and/or other jobs only to increase our savings in order to invest more to help us become financially independent... Have people calling you crazy and not just people the hardest of all is family... When they don't understand your reasonings... They can't comprehend that you need to do all these sacrifices to maybe see that "light of freedom" at the end...

[@JarradMorrow]

It is crazy.

[@MezPT]

I got 2 properties before my girl had enough lol.

[@JarradMorrow]

Haha hopefully I can get away with more

[@TheAndrewLopezFinancePodcast]

¡BuT jArRaD lEaRn To LiVe In ThE nOw!

[@JarradMorrow]

😂

[@bluegillmich]

Sorry, i judge coworkers when they drive full size Dodge Ram trucks..$600 a month payments/ crazy insurance payments..and they live in town ..and can't really afford it..Mostly Pity, that is what i feel when there Not saving retirement money

[@JarradMorrow]

😂

[@SumanVisu]

Kudos for not having kids. You’re already an environmental hero.

[@JarradMorrow]

😂 not sure we agree on that but okay 👍🏻

[@seren1ty755]

I would argue that financing a car is the way to go, but this depends on what you want and what your goals are. paying cash is great if you want to play it safe. but i like to play it a little bit more risky and try to increase my net worth by any means necessary so here is a technique I try. cuz for me driving an enjoyable car matters for me. Here is why I think you should almost always finance a car no matter the cost. Reason 1: depreciation. Almost 99% of cars will depreciate one way or another. unless you are buying a 2008 lotus exige or some other car that holds or appreciates in value, then your car will probably depreciate unless it is essentially at the end of its depreciation. rather than letting all of your money get tied up in a car, you could invest that money in stocks and attempt to earn more than the amount than the car is depreciating. (my go to stocks for this are usually VTI and VOOG. i have a few more i also like to use but this is just my opinion). This could also be a way out earn the interest on your loan and just profit the difference between your interest on the loan and the ROI of your investments (assuming your investments dont go under) . Reason 2: Credit. If you are eventually in a position where you are financially free and you are making that sweet passive income from either real estate or dividends or something, than you might want to get a nice car because you are in a position to do so. Well, typically banks dont want to be the first to lend you a large car loan without either charging you a lot of interest or having a higher down payment.(a favorable LTV ratio for them) You want to build up your car credit and also build a good relationship with the bank you are with for the future. Reason 3: Safety newer cars typically have a lot of safety features and are typically much safer and reliable (depending on the brand of course) and reasonably cheap to own depending on the car and brand. I would say it is absolutely worth paying a little bit more for a car that has safety features that might be able to protect you and help maintain your safety on the road. The last thing you probably want is an accident that leads to a hospital bill potentially not covered by insurance of some kind. I only recommend this method for those that are comfortable with taking a certain level of risk, but also want to enjoy cars that they like/want rather than buying the cheapest car they can afford. By doing this method you might come out on top. you might lose money. or you might own a car a little bit more "cheaply" than if you had just bought in cash. I also only recommend doing this if you already have the total amount of money to pay for the car in the first place, so that way your principal on your loan can instead basically be tied up in other investments. If you can leverage your money in real estate with cash out refinances and mortgages to buy even more property, then i see no reason why you can't leverage your money in cars to make you more money elsewhere. If exotic cars is your dream with financial independence here is a video by VinWiki talking about financing exotic cars: kzbin.info/www/bejne/b6inoXSneLmdqLc

[@JarradMorrow]

Great points. I prefer to play it safe with cars because I personally feel like they're a waste of money but necessary evil.

[@seren1ty755]

@@JarradMorrow understandable, I have friends that feel the same way. They just don't care about cars and need something to get from point A to Point B which is completely fine if that's what you want. I'm a bit of a car enthusiast so I always to try to find a way to minimize costs of my hobbies.

[@JarradMorrow]

That's really smart. I also have friends that are the opposite of me as well. They love their nice fancy cars. As long as you have the income to back up your love for cars then I can't fault anyone for wanting to spend money on vehicles.

[@seren1ty755]

@@JarradMorrow agreed, enjoy your hobbies but be financially responsible with it.

[@migueld24]

11:58 He is talking about CBD; I believe.

[@JarradMorrow]

Negative. CBD is pretty widely accepted now a days and isn't psychoactive. Good guess though.

[@priscillavon]

My guess is he's talking about not masturbating bc it makes you more productive (from what I've learned from my guy friends) @@JarradMorrow

[@JarradMorrow]

😂 you’re way off as well. Think along the lines of psychedelics

[@crazybay8mile]

Jarrad Morrow definitely acid, micro dosing is apparently makes people very efficient

[@JarradMorrow]

Close, but not acid. Believe it or not I’ve actually never micro dosed with psilocybin before.

[@petereinert7581]

Ain't no poor person got $5,000.

[@JarradMorrow]

Of course not. If they did then they wouldn’t be poor.

[@familyguypro1]

YES no children!

[@JarradMorrow]

They're cool, but my savings rate loves that I don't have them haha