The Chinese Secret to Saving Money Revealed
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- Опубліковано 18 чер 2024
- 🐪 Hump Days Newsletter ➭ humpdays.substack.com
Here's how the Chinese save so much money. China’s Gross Savings Rate is 45.9%. Meanwhile, data in the US suggests that the savings rate is closer to 3.5-5%.
How is it that the Chinese Save SO much money? I explain in today's video! Enjoy.
www.forbes.com/2010/02/02/chi...
www.wsj.com/articles/less-sav...
www.britannica.com/topic/one-...
www.scmp.com/economy/china-ec...
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Timestamps:
0:00 - Intro
0:27 - Stats on Savings
0:54 - Why Chinese Are Excellent At Saving
3:22 - Demographics
5:19 - The Secret
6:54 - 4 Factors the Chinese Prioritize
7:32 - The 10:1 Rule
8:50 - Factor 3
10:11 - Factor 4
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PS: I am not a Financial Advisor, any investment commentary are my opinions only. Some of the links in this description are affiliate links that I do receive a commission for & they help support the channel
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Well, I already had all of this GREAT TIPS as good behavior when I got married.
It took me a while to share the thoughts and teachings to my wife.
Now she fully understands the concept but I will still enjoy this video again with her to show her how this is a doctrine of life for so many people in the world.
ooo excited!
My parents only took us out to eat once a year for dim sum. Then every few months we got pizza take out. I thought we were super poor but they were just super frugal.
Simply thank you,
I hope you understand that you taking time to teach others, is like lighting a candle(placing it in their hand) for people who (through no fault of their own aka was not taught...) are in the dark,
Godbless you sir,
That's a vietnamese I'd card isn't it?
My wife is Chinese from China and she taught me how to be very smart with money. That is just another reason I know not only love her but like her. I do construction and I always buy used tools and equipment but the asset value is increased because of the replacement cost new. I also by my work clothes at thrift shops. I never buy new trucks I always buy used trucks so I don't have payments and my insurance is lower. She looked at my receipts from buying lunch at Wawa and I thought she was going to take my head off so now I pack my lunches and save a lot of money and it tastes better and is more healthy for me. I always carry a thermos of coffee rather than buying it from a store so not only can I get it to taste best but it is much cheaper. She is the best thing that ever happened to me, she is very wise and beautiful and I thank God that I met her.
Can we be good friends
Your comment is ABSOLUTELY BASED. I'm from Uruguay, I have almost everything I want, and the reason why I do is exactly what you're describing. Buying new stuff is almost not a thing at home, buy something with little to nothing use and it's an instant saving ❤ God bless you and your family!
Those ppl here think theit shit is worth more in my country.. Selling used at same price like new. Telling they haven't used it. It's in israel. I'm jew and I know why ppl hate us around the world
Indeed, you’ve met a woman worth keeping for a lifetime. Congratulations! Hope she knows how lucky she is to have a husband that valued her that much.
So packing lunch and making yourself coffee is something groundbreaking? Not trying to be disrespectful, but wtf 😂
These are very valuable rules for anybody who wants to get rich. Unfortunately, most people who will watch this video will not really be able to apply the principles. We may not want to admit, but as Warren Buffett once said, investing is like any other profession-- it requires a certain level of expertise. No surprise that some people are losing a lot of money in the bear market, while others are making hundreds of thousands in profit. I just don't know how they do it. I have about $89k now to put in the market.
Although stocks are now rather volatile, you should be okay if you perform the proper calculations. There have been stories of people making over $50,000 in a matter of weeks or months, according to Bloomberg and other finance media, so if you know where to look, I believe there are many wealth transfers during this recession.
The best course of action if you lack market knowledge is to ask a consultant or investing coach for guidance or assistance. Speaking with a consultant helped me stay afloat in the market and grow my portfolio to about 65% since January, even though I know it sounds obvious or generic. I believe that’s the most effective way to enter the business at the moment.
@@hasede-lg9hj Could you kindly elaborate on the advisor's background and qualifications?
The advisor that guides me is Sharon Ann Meny, most likely the internet is where to find her basic info, just search her name. She's established.
Thanks a lot for this recommendation. I just looked her website up, and I have sent her an email. I hope she gets back to me soon.
If you learn to declutter your house and live minimally then as you declutter you'll realize the pain of your spending. The pain of getting rid of everything you've purchased and the pain makes you not buy things you don't need
I've moved house almost every year in adulthood and it's painful having too much stuff, so I'm trying to be a bit more minimalistic. It has defo increased my savings, because I dont shop for fun anymore.
I'm over 40, has only moved once. From a 3x2 townhouse to a 5x4 house. I recently had to mover and realised how much I bought! My clothes needs 2 full size rooms and it takes removalist days to move... still moving. Cost me heaps to get people to come in to move and shift things, unpack etc. it's like have a boutique in my house. Make up is more than those in shops.
I will hopefully not buy anymore things until I use some up...
Your comment is very valuable. I am currently trying to accomplish minimalism.
@@seagirl1100 the less I have and the more I clear away the more time I have to fulfill my purposes in life. Because there's not as much cleaning to do
@@demita840 beautiful thought. I try to keep our small home clean but it seems to accumulate quickly. Wish I was better at letting go of things not used. (I think i have “Poor Man Syndrome”, worry I can’t afford things later so don’t get rid of it.). 😂
I'm German and watch a lot of American financal audit and I noticed that the Americans have a very debt-positive mentality, financing literally EVERYTHING. No one just buys a (used) car, they finance it. Almost everyone has crazy college debt. Credit cards are used to finance a lifestyle one cannot afford. It's vastly different to how I was raised: You buy what you can afford, and if you can't, you save up until you can. To speed that up, get a job/more jobs/more hours. The only thing we finance are houses/flats because you can't save up for those, only for the deposits. I'm a university student and my car is a 20yo VW that cost me 1k, that was the budget I had and it's absolutely fine. It works and belongs solely to me, no payments, no worries.
It's because if they can't pay the home or car it just gets taken away and then they can discharge the remaining debt in bankruptcy. Then they go out and buy another car and another home and if they don't learn their lesson the cycle repeats again.
@Veronica C. Absolute Truth, I was shocked to learn there was an entire segment dedicated to giving loans to people who just got a bankruptcy. The logic being they can't write it off for a handful of years so they are most likely going to pay it back and at higher interest with their new bottom feeder credit score making them a win for the lender.
@@arbyharwig1837 It depends, if they filed a chapter 7 the first time they still can file a chapter 13, I see this all the time as I work with people filing bankruptcy. Many swear off credit cards but a good portion ask how soon they can get into debt again.
So it sounds like you think USian economics works like German economics, without your safety nets and controls...
Do you, personally, no help from anyone, pay $300 for a single college textbook? And each semester requiring up to 25 textbooks? If you have to pay US prices for your education, would you choose to be uneducated, crippling your future? or would you choose debt?
Your 20 yo VW... Can you still get parts for it? Or has planned obsolescence and lax safety regulations made it unsafe to drive? Not to mention our huge potholes.
Do you imagine that the German VW, made for and sold to German citizens is the same machine made for and sold to USians? I have a 2008 VW that in the past year has cost me $8,000, and close to $12,000 since I bought it, to keep it running. I paid $7,000 for it 2 years ago because I didn't want a car loan and I could afford it. I wish I'd gotten a car loan.
Fact is, most of us aren't thrilled about our debt load. While I admit, there're certainly times we don't handle our debt wisely, there's also a thing called doing our best with no safety net.
VW 😂 you definitely are GERMAN
I have two friends from high school who are Chinese and their ability to save money always amazed me. They lived in their parents house well into adulthood and the whole family pooled all their savings together. They now own a Chinese restaurant, a Chinese supermarket, multiple rental homes and just finished building a couple of apartment buildings in town. It’s pretty amazing what they have accomplished.
I should have married one of their daughters. 😃
@@govinda102000 All sons lol 😅
Families can never pool their savings together here in the western world, the culture doesn't align with that belief/system which is sad.
Indians are the same, if they £10, guaranteed they will reluctantly spend less as possibkevrest is saved. Seems the 2 oldest civilisations on planet Earth..Great minds think alike
We do that as Indians or pakistanis too. We live together until we can afford to purchase a house in cash or unfavourably with a mortgage if required. I owned my house at age 22 outright, car was also bought in cash. When covid came i was not bothered, sat at home and relaxed for 2 years. My 'white' friends are soooo broke its beyond belief. They move out at 18 and get into the rent trap
Hi Humphrey. I remember having a consultation with a fiduciary last August, and it was incredibly insightful. Can’t stress enough how helpful experts in this field are!
Absolutely agree! A good fiduciary can make a world of difference. What specific insights did you gain?
I learned that investing is not rocket science. I got into stocks, index funds, and REITs, myself but wasn't getting the results I wanted the first couple of months. Got tired of losing and decided to seek mentorship from Jonas Herman, a certified fiduciary who helps oversee my investments.
@@McPhersonz In my experience, there is no such formula, it is nearly impossible to achieve success with investing. It’s all just gambling.
I started working with Jonas back in June, and my financial goals have never been clearer. It’s like having a strategic partner for my money with a solid track record. That man is a genius! I'd definitely choose to work with him over and over again.
I’ve been contemplating hiring one since I can’t get a hang of investing even after buying courses. I’d like a discussion with him. Any means to reach him?
My grandparents grew up during "the great depression." Both of my grandpas worked full time at their jobs until they were 80 years old. They never let go of that scarcity mindset.
thats sad
My mom was so frugal but invested on lands. Now that she’s gone, we, her children are reaping happily the fruits of her labor.
That's what we can generational wealth, to ensure your children have and upcoming ones have a good starting base.
Yeah, this is what I am trying to achieve for my daughter.
Thats what im doing for my 9 year old son. Im 35 year old single mom and very frugal, I recently bought a Lot so when he grows up he can build his house. Property must be way more expensive after 20 years.
The fruits of her labor😂 what the hell did you do?🎉😅
@@Already100 does it matter?
In China, we don’t only save “money”, we save “things”. We were taught not to waste food because there are still many hungry people in the world. And if your Dad cooks for you and your Mom sews your clothes, you are supposed to appreciate their work, more than if they just buy those things for you
Yuan, that’s absolutely so true about not wasting food. We were taught the same when we were little and not to leave the table until you have eaten all your food.
You save "things" Ummm sounds sus
Yeah, leftover habits from the great famine in China where many millions starved and years of poverty
@@billted3323 you have no idea lol. My grandparents were so frugal they didn't want to eat food and would keep it for days until it went bad and had to be thrown away. Read up the history of China and the famines
That’s not isolated to China unless I’m chinese. LOL
"He didn't save money as a means to build wealth. He did it to ensure that he would never have to sleep hungry again"
You said this statement almost In passing.
But it really struck a chord in me and got me choked up.😭
Well that's how it was in many regions in communists China
@@glui2001 you missed the entire point of my comment. For what? What exactly did your smart little comment add to this discussion? After watching this informative video that's the little nugget you want to insert on the internet? Groundbreaking. Stunning.
My heart is breaking as im imagining his poor young father, or ANYone for that matter, hungry every day, stretching out every bit of food he had and money to get food, never knowing if he'll have a next meal, going to bed starving so many times in his young life, that once he had control of his own destiny he skimped on any wants, saved every penny he could and only ever bought necessities. Just to never be hungry again. Brings a tear to my eye again that any human has to suffer in this way.
And then big brain you just chimes in 💩🤡"Yep cuz commie China" 🤡 💩
👏👏👏👏👏👏👏
I know, he mentions it alot to me, it is truly heartbreaking - thanks for your comment.
@AN-Nuke M it's ESPECIALLY true in communist countries, in the west at least there are safety nets like food banks, soup kitchens, welfare EBT, etc. With communism the homeless will be eating tree bark (and getting caught doing so as "damaging state property" will result in execution of whole family)...
@@glui2001US also. Don’t kid yourself
I married a part Chinese and part Jamaican wife. And we do a zero based budget and she was always insistent in saving. Our savings rate is around 30% of our gross income. She is extremely frugal and it's rubbed off on me.
My dad had “one third rule”!
1/3 for bills
1/3 for groceries and other items
1/3 savings!
All my family has passed on the same ethos to the next generation, and I am always harping on to my grandchild! She is 9 years old!
Except basic "bills" are 2 grand a month now. So this works if you are making 72k a year and living like a student.
@@mitchhedberg4415 Hi Mitch! Long time no see. RIP you. I agree, my rent is nearly half of my income, never mind all bills encompassing 1/3.
my rule is 2 3rds for dishes.. 1 3rd for bishes.
The avg American makes 32k. times .33 Avg rent is 2500. So much for that👀
@@mitchhedberg4415 exactly
I am a Filipino but I enjoyed saving money💰...more than spending it ❤️...I teach my children how to be frugal too!
Empty johnson baby powder piggy bank, empty rubbing alcohol as well....80s
I'm white European and I'm like you! I also enjoy more saving than wasting ... spending money.
I’ve always believed it’s more important to have money than simply look like you have money 👍.
Saving is overrated. it is a good start but truth remains that your savings would never be enough. The economy is designed that way. It's always better to put your spare cash into profitable things and increase your sources of income. That's the American secret to having money.
motivational speakers always sound this way and make everything sound so easy... tried to put mine in stocks months back, came out with way less... would have been better off saving or even lavishing my money...
I've been in your shoes and I'll assure you that it's because you rushed into it. You must either understand the process well enough or use a pro. for 'it' to count. I made close to a hundred grand late last year only after some months of throwing my money in the wind. You should try again, good thing is you now know better. Goodluck!
This is also me ah. I have also considered using an FA but I don't know how to go about it. please, what are the steps for getting one? like a really good one.
You should start by looking out for those from known firms and good track records. You should also make sure the person is licensed. Personally, I use Kelly Matwick. She's good and you could also look her up.
bad news for you. i saved pretty much🤗
Inflation is far more harmful to individuals than a collapsing stock or property market because it directly affects people's cost of living, which they immediately feel. It is not surprising that the current market sentiment is extremely pessimistic. In today's economy, assistance is critical if we are to survive.
If you lack market knowledge, your best bet is to seek advice or support from a consultant or investing coach. Contacting a consultant may sound simple, but it's how I've managed to stay afloat in the market and increase my portfolio to roughly 65% since January. It is, in my opinion, the best way to get started in the industry right now.
@@fresnaygermain8180 Please let me know the name of the investment consultant you work with and, if possible, how I can contact them.
@@bernisejedeon5888 My advisor "Julia ann finnicum", is a highly respected financial consultant in the industry. For further information or to connect with her, a simple online search with her name will suffice. I wish you every success in your endeavors
No
this is a scam
I came from Shanghai and both my parents growing up poor. They became so called middle class later but I always thought we were short of money. They never had any luxury things, not even a wedding ring, but when my mom passed away, I was shocked to find large amount of savings she had. Nowadays, I still put half of my earnings away for saving or investing and trying prevent any unnecessary purchases in the house. I admit that I have the mentality of money scarcity and maybe should have enjoyed life more if I was not growing up like that. But given the current global economy, survival is a priority.
I too have a money scarcity complex. My wife and family benefit from this tho bc I'm more fiscally responsible
Having fewer things means less to clean and take care of.
Sadly most single people have roommates to save on rent but can’t save half their paycheck as rent can cost that same amount now…
Your parents make a good point
I literally HATE the Word LUXURY 😠
Thank you for this. Brought up in Hawaii, my neighbors were always Chinese. I tried to do as they did, but now you put this into the right words for me. As a child of eight when I actually started budgeting on my own, I didn't know what ZERO budget was by name; but that is what I have done for the last 63 years. I simply always saved money that way even though I didn't know what I was doing was "a way". And truthfully the 10:1 rule is how I did it. I start with knowing what I make, not "WHAT CAN i SPEND". I have always suspected there are other wise Chinese financial ways. Such as parents leaving money and showing the next generation how to grow money, so for years now instead of having the spend it before I die mentality, I work hard at being frugal, putting the max ($6500) money into my son's ROTH, and as I get closer to death, have made the house title in his name already. And while not spending a penny of my ROTH have taught him to first, give his wife a ROTH, and also my 3 grandkids as they begin to have little pay checks. I am not wealthy, by I will be the key to my family retiring with out some of the worries.
Ugh 😩😩
I am Indonesian born Chinese. What you are saying is 100% true in my family too!! My dad literally worked till the end in the job he hated even though he had saved enough to live for years. Growing up poor he could never let go scarcity mentality.
U are Indon period. Not Han Chinese.
Not making upto a million before retirement is an unfulfilled retirement. I’m 54 and my wife is 50 . We are both retired with over $3million in net worth and no debts. Currently living smart and frugal with our money. No longer putting blames on the FED for our misfortunes. Saving and investing lifestyle in the stock market made it possible for us this early. Even till now, we earn weekly.
I must also give credit to Larysa Caba. She made all this possible through the great decisions she made with my portfolio.
I feel one Of the greatest challenges that we first timers face in the ma rket is that we end up losing all we have,making it difficult to find ourselves back to our feet. My biggest advice is to always seek the services of a professional just like I did when I ventured into it for the first time. Big thanks to Larysa Caba. I now make huge profits by weekly through her services while still learning to stand on my own.
I think she trades for everyone I meet. I met her twice at a meeting in Germany and after her lectures from Ella I had to personally ask her to be my financial advisor. she is definitely good.
I trade with her every week and make huge profits from her. her consistency is crazy.
I have never seen a trader as open and transparent as Larysa Caba with her clients. The way she decides to make a profit for her clients. she allows you to express your fears and she still rests your fears and that is my respect. I don't normally comment on videos, but this word should be included. she is really cool.
As a Chinese who currently lives in the U.S., NYC to be specific, one of the difrerences that I've noticed was that in the U.S. it's much easier to "waste" money than it is in China. For example, because of the difrerences in city landscaping the urban planning in both countries, in China it's much easier to do grocery shopping on a daily basis due the walkability of almost every Chinese city, whereas in the U.S. one has to plan their groceries for days or even weeks, as in most U.S. cities, things are spreadout and one has to drive everywhere. Let's be honest, most of us are not good at meal planning. Therefore, it's more likely for people in the U.S. to overstock their groceries only to find out later things are spoiled and have to be thrown out, hence, the waste. This is just one of many examples why not so much money is wasted for people living in China.
For sure, makes sense
That’s true. I am not Chinese but I have been living in China for 7 years. Actually all Chinese grannies have a good habit of buy fresh food from a local market on a daily basis.
To mention the landscaping is a great insight & different. I'd never thought about that aspect of it.
Yes! I also live in NYC, I really resonated with the phrase living in NYC is having a random $38 charge 12 times a week and not knowing where it went.
That's a good point food waste is what I have seen in my fridge as well especially if I buy stuff from Costco.
Your father is proud of you. You have taken his wisdom and multiplied against the markets available to you that weren't available to him. Good job man.
The stock market rally run is over but I don't know if stocks will quickly rebound, continue to pull back or move sideways for a few weeks, or if conditions will rapidly deteriorate.I am under pressure to grow my reserve of $250k.
very true! I started investing in 2021 and that same year I pulled a profit of about[$300,000] with no prior investing experience, basically all I was doing was seeking guidance from a financial-advisor, so you don't necessarily need to be a perfect investor, just have a professional assist you.
How can one find a resourceful FA, I buy the idea of employing their services, its a shame market crashes as of late have become a sort of habit for stocks.
My advisor is ’DELLA MORLEY PRATHER’’ In terms of portfolio diversity, she's a genius. You can glance her name up on the internet and verify her yourself. she has years of financial market experience.
I just looked up Natalie on the net and researched her accreditation. She seem very proficient, I wrote her detailing my Fin-market goals.
SCAM
My grandmom was exactly what you describe in saving. My parents were rebels and adopted American ways in early adulthood. Both were chain smokers and fiscal train wrecks. I didn't know my finances were a Chinese secret. I love my parents but subconsciously I did the opposite to what they did. I'm a rebel too.
A country that is recently war torn will have a population majority of fiscal conservatives. Most of Europe and Asia are prime examples. America didn't experience such devastation and had the infrastructure and was ready to grow immediately, cowboy style. Anybody with a pulse can get a loan or a charge card to buy whatever their hearts content. Bankruptcy was no problem, other countries using the petrol-dollar paid the forgiving of those loans (effectively printed money) though American inflation.
Probably not SUBconciously
When I moved out of my parents i was pretty frugal for a number of years. But when I took a job in a bigger city I started to spend more because I wanted to be accepted. I hate shopping period but I bought thing the best quality as I could in hopes things lasting. But I quickly realized I didn't have enough money and my income wanting great and these things that were good quality but the multi usage of the items was low. 2 years before before covid I did a big review of my stuff and finances and reverted back to what I was taught at home from my Chinese family. Got a new job just as lockdown was lifting and because of that revived mindset. I saved... 60% of my total income from my new job because I did all my calculations based off of my old salary. And stuck with it even with my new salary. I did it for a year just to build my emergency savings rapidly and pay off the debt I had. Then I recalculated. Now I don't worry as much for the routine stuff.
In the UK we say "keeping up with the Jones". Seeing what our neighbour us driving, the house they live in and the clothes they wear". I'm a Brit born Chinese. My parents grew up poor. To them money means security for them but mostly for their children. There are downfalls because over obsessing to money can lead to later overspend and even gambling (because Chinese always talk about "luck")
Something I read a long time ago was "Pay yourself first". What that meant was to set aside a certain percentage of your income for savings BEFORE you paid bills or anything else. It's a mindset designed to emphasize the importance of savings.
I've only recently figured this out. I setup a high percentage contribution to my 401k and a decent portion of my paycheck into my brokerage account each month. This makes it so much easier to be financially secure and not allow my lifestyle to creep up.
It's not just a mindset, but also practical advice. Pay yourself first by automating your investment accounts to pull out some portion of your paycheck every time it hits your account.
Also on the same day or close to it buy groceries and fill up on gas. Then learn to cook and enjoy free activities using said gas.
Rich Dad Poor Dad bullshit right there.
@@SSJBenI get that only saving is foolish but outside of long term investments like property I don’t know wtf to get into. Any suggestions?
I've lived and worked in China for the past 5 years and while I agree with most of what you said from a cultural perspective I do believe that there is a massively shifting mindset when it comes to money among China's youth. The consumer market is booming and has become the largest for luxury goods globally. Social media has exacerbated the capacity to turn 'wants' into 'needs' for many young Chinese people. The influx of Western brands into China has added a new measure to how wealth is defined. Owning a LV bag or Hermes scarf is as much of a symbol of success as saving a million bucks even though you may just be a debt ridden person with an hermes bag or LV scarf. I think the ideas you have shared are sound and many still practice them but no doubt its all changing very fast.
I have lived in China for almost 25 years and agree that things have 100% changed. Young Chinese people today are going into massive debt buying homes and cars they can’t afford because that is what is expected from them. They also place a massive value on luxury goods and status.
Some own a Hermès scarf and are willing to only live on water and plain rice 🥲 that’s how important status is right now…
I'm Chinese. Totally agree what you saidm
As a Chinese Malaysian the things u said in this video are common sense to me.
awesome to hear
As an Australian it is just common sense to me also
eating at home is definitely no1 tip for everyone. For 10 dollar budget, you can cook very good and very healthy food. Most of the time, you can have high quality meat or protein with very fresh veggies and even a certain amount of alcohol or soda. But when you go out, 10 dollars can only get a meal from a fast food chain. Also make coffee at home. I purchased a set of grinder+espresso machines for around 1200, learned some espresso skills thru UA-cam university. 2022, I saved more than 1500 for Starbucks, even with top notch organic milk and recent roasted beans.
I agree, you can buy really expensive, high quality ingredients and make yourself great food for not much money.
I only have Italian espresso coffee pot which costs around 20 euros. I had espresso maker but it was too much hustle and I don't feel a difference in coffee. I just don't understand why people buy themselves coffee every day. I do as well, but only from time to time.
@@barbthegreat586 making coffee becomes my hobby. But even with a 20 dollar mocha pot, I can still get very good coffee with good milk. Save tons of Starbucks tax.
Great video. To avoid a scarcity mindset, a simple process can overcome this. Set your savings amounts and always pay yourself first. Lets say you save 10-40% a month. Now, what you have left, enjoy it fully. Don't skip that latte, or nice new pair of shoes, you have already made your savings quota. Enjoy the rest.
Not sure where you're at in the word, but saving 10-40% a month and then enjoying the rest is no longer feasible in many parts of the world. I lived in the San Francisco Bay Area up until two years ago, and the prices of housing and food are now so high that only the healthiest of my friends are still enjoying the lattes. And yes, they are wealthy - with at least a couple of million $ in the stock market. When they talk about insane food prices, I listen. I now live in Germany, and the food banks here are overrun because of severe price hikes in the supermarkets. Your advice of saving and then enjoying the rest was sound for some people years ago - these days, a lot of those same people cannot save the way they used to. Moving to areas with more affordable housing may not be possible if their job markets are centered in high price housing market (think tech and Silicon Valley). You might be making really good money as an admin in a tech company (yes, those companies have admins as well) - and that might, in a very good company, mean that you make $65K a year. less taxes. Then you go apartment hunting and find that a one-bedroom apartment will cost you minimum $2K + utilities per month... just how anyone would be able to save big time with those numbers, I don't know.
@@nette4307 Chinese people tend to live with their parents for a long time. I'm living with my parents and saving 90%+ of my income. My only expenses are groceries, health insurance, and the occasional $10 shirt. They idea of "treating yourself" with lattes and expensive shoes is insane to me.
I am Chinese living in the US and this way of thinking is very true. My parents migrated to Canada😢 when i was 6 years old and am 72 now and because of this way of thinking have managed to retire very comfortably. I don't think most Americans or Canadians can live humbly.
Korean here. My parents taught me not to spend money I don't have. Pretty simple to understand and did many good things for me.
Being ethnically Chinese, I once shared a thought with an American. What I found out is, for me, losing my money (from buying useless superficial things) is shameful, but for him, not having the latest and greatest is shameful.
I think that's the cultural part that make Chinese very good at saving.
What ethnic group was that spendthrift American a member of? There are big cultural differences..
That is in no way cultural. Spending on superficial things, status symbols, and other nonsense is rampant throughout China. People have literally sold their own internal organs for phones. People are openly judged for their vehicle, address, clothes and whatnot.
@@j.joseph5353 well many ethnic Chinese not from the mainland jump through hoops to not get associated with typical mainland Chinese, but that's another topic, perhaps something that not supposed to be said on UA-cam.
I guess I'm rather traditional, almost half my networth is in my houses and another half is in cash/investment, only a small portion is in depreciating assets. Because I don't like losing money.
There's got to be a happy medium. It's important to save but we should all remember that you can't take it with you so don't forget to live a little while you're on this world.
@@LG123ABC 100% agree, problem is there are the YOLO people who uses it as an excuse to spend money they shouldn't. I'd rather have left over money than ran out before I go.
For me, happy medium is that I don't lose my money to stupid decisions. I still do from time to time, but I chalk them up as lesson fee and vow to never make it again.
I just found your channel. I am Chinese (my husband is Germans and Irish) and follow my maternal grandparents' way of living. Paying cash has served us well. Thank you for your video.
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My parents, who are hispanic, taught me to have two accounts for direct deposit. 50% to the checking and 50% to a banking account that I have no access to other than going to the physical location. It was extreme but it definitely worked!
Spot on. “Olvida que lo tienes ahi“ is what they told me
I never linked my checking and savings acct for this reason . Cuts down on impulse !!
That's smart but investing 25% is better. Inflation will take a toll on the savings you have. It won't be the same value when you're 70/80 years old
@@bivianacoyomani515 Indeed , folks often forget this fact.
I always show up in person for deposits. Then, when I need something they know my odd voice.
A good thing to remember is---If your outgo exceeds your income, your upkeep will be your downfall! To make things easy, save at least 10% of your income. This has worked very well for me. I started saving in 1970 and by the time I was 45 I would not buy anything I couldn't pay cash for, including cars and even my house. Another thing to think about is when buying a car. Always buy a used car about 3 to 5 years old. Let the really rich and those who think they are rich buy new cars and you can get their trad-in for less than half price. When you drive a new car off the lot it looses at least 10% of what you paid for it. There is no down side to saving! Make your money work for you and not the other way around. Try it, you'll like it.
This was great advice about cars before the semiconductor shortage of 2020. Nowadays it's practically the same price to buy a 3-5 year old car vs a brand new car (sometimes the used car even costs slightly more!), so you might as well buy the new one.
@@matthewsouthall736thankfully used prices are coming down. Right now luxury/sport cars are going down the most around winter economy cars will be on par
I've really put in work to eliminate the unnecessary consumption. Next looking at different ways to save and clear debt, debt causes so much stress and depression.
Knockem out! Highest interest rate to lowest (aside from student debt) then any negative items on credit that got sold to collectors. Good luck.
I'm an immigrant from Europe and I was raised to spend money this way. I feel like this applies to a lot of cultures around the world except for the American nations.
Anglo nations - British are the same.
These are so true, my mom does something like the zero based budget where she moves everything into savings, leaving only enough money in the account to pay off the credit bill cycle in full. But of course, it was never described as a method, just what she did.
Similar to when I wanted to buy stuff to fit in with the kids at school, and she said something like " I can't afford to buy you all those things you want, but I will always have food to keep you full ...at home"
exactky!
as it ought to be. and surprisingly the kids who are taught those values at an early stage are the ones who grow up to understand financial management and do better at it than most others.
I’m Scottish and as a teenager going into the workforce, we always had the 3:3:3 method. A third of your wages went to your parents for rent, a third was for expenses such as bus fares, clothes and entertainment and a third for saving. Obviously the “rent” money included food so living at home was the economical option. I’m now in my 70’s and both my sons are excellent savers as they were also taught this when they were teens.
Oh a famous scottish here :D
I envy you a lot... In US I paid 25% - 30% directly as taxes and 15% to 401k which is a retirement account. Now, on my hands usually I'd just have less than 60% of my wage to spend and do real saving....
@@stanliu8709 I think he means after taxes and pension / health contributions. The UK is very similar to the US in that way you described.
Im Asian Am from the PI, I came to the US 45 years ago got married, and raised two grown men. My husband and I are now retired. Your reference in saving money is from your father's Chinese roots which is brilliant. The 4 money savings principles you shared though you said its a Chinese secret, its generally used broadly in other Asian countries. When I saw your list I was amused because those were exactly the principles I grew up under as a child. So I taught my two kids the same principles. And they are benefiting from them to this day. Since were both retired our younger son has taken over the oversight of our financial management to help us be organized without the stress. He graduated in accounting and finance many years ago. We are truly grateful that because of the training we gave to them when it comes to money concepts we are now reaping the benefits through their understanding and lifestyle choice. It really works when parents educate their children about saving money and its intrinsic value and meaning to them when they become adults.
No it's not. I use it and have done for a long time. I'm not Chinese. It's just smart.
It is perhaps also important to note that China was very poor 20, 30 years. 30 years ago, my parents used to struggle to pay 100 dollars for my tuition, and we could eat meat only a few times every month. When my mom was a child, she dropped off school because my grandmom could not afford 0.1 dollar for her tuition. At that time, saving money was essential to prepare for some big (sometimes unwanted) spendings, such as education, travelling, illiness... Now, China is not as poor as it used to be, but the idea of saving money is still deep in our mindset.
Thank you for this video! These money principles should be taught in high school along with other money management skills. I married a Chinese woman and learned a great deal about china and its culture through her teaching me through these money management principles. You’ve got a new subscriber!
Building wealth involves developing good habits like regularly putting money away in intervals for solid investments. Financial management is a crucial topic that most tend to shy away from, and ends up haunting them in the near future. Putting our time and effort in activities and investments that will yield a profitable return in the future is what we should be aiming for. Success depends on the actions or steps you take to achieve it. "You're not going to remember those expensive shoes you bought ten years ago, but you will remember every single morning when you look at your bank account that extra 0 in there. I promise, that's going to be way more fun to look at everyday", I pray that anyone who reads this will be successful in life too 🙏🙏🙏
I agree with you had a senior colleague at work who was doing well but never had an investment. Unfortunately he lost his job and went from living a comfortable life to hardship. There would had been something to fall back on if he had an investment
I urge everyone to start somewhere now no matter how small, this is literally the time for that, forget material things, don't get tempted,i became more better the moment i realized this.
yeah investment is the key to sustaining your financial longevity but venturing into any legitimate Investment without a proper guidance of an ex pert can lead to a great loss too
exactly! That's my major concern and what kind of profitable investment can someone do with the current rise in economic downturn
Hello nice comments, please what exactly kind of investment are you talking about here, I'm really interested too
I am Indian , and when I get paid , I pay myself first , no matter what , I put some in savings account and then I spend, dont shop, dont travel, dont go anywhere , just spend on food in home or outside , plus I do a side job that I use to save money , I save as much as I can.
What are you saving for?
What about enjoying life a little?
I think this is mostly true for the Gen X and older Chinese, most younger Chinese are spending as much as American.
Talking about spending on food: I know people at work that spend $30 a day on breakfast and lunch eating out. Even though they are managers making twice what I make, they are financially hurting and don’t know why. Thats $150 a week or $7,800 over 52 weeks! You wonder what else is like that in their life. Meanwhile I pack my lunches and stay around $3-4 a meal.
I grew up in Germany in the 80/90s with very similar values and I’m very happy about it. I believe it has to do with our parents being born post-war with literally not a dollar to their name and really appreciating the wealth our country was able to built since.
In the past savings rate in Switzerland was also around 45% (also because of WWs). Nowadays it is a bit lower though. I am surprised that it is still high in Switzerland though. Generally I exptected that savings rate goes down after incomes go up. I'd love to see a investment culture in a society... but that is too much wishful thinking I guess haha. Amazing video :) Thanks for sharing your family's story.
Switzerland is the most affluent country in the world so it doesn't really make sense to compare it. Also you can take advice from your own culture, seeing as there is so much financial security.
I also use a zero-based budgeting system as I pay myself (savings, investing, etc.) and count them as expenses.
I admire the way older Chinese people accumulate wealth, and prioritize investing in the education of their children.
Automatic savings deductions are the easiest. When you get a raise, increase saving.
We the 80s also do it now for kids.
I agree most of what you said but when it comes to luxury items, i honestly feel like more and more people especially young Chinese adults are obsessed with buying brands. There’s one time I went to Nanjing and I was in shock that most of people wore LV like they were the shopping bags.
Btw I am Chinese
We're seeing a cultural shift with Chinese people. Here in Australia, I'm starting to see a lot of Chinese Australians spend money like a rapper.
Excellent video Humphrey B Yang.
I'm Caucasian Australian but married a Chinese Singaporean.
What made the assimilation smooth WRT finances was having a father who was an accountant.
It turned out that I was raised with Chinese values after all!
Respect to your dad, sounds like he had a large and positive impact on you.
I like this mentality. I’ve been budgeting recently saving $500 per paycheck after my expenses and free cash flow. Equals to 1K per month going into saving.
Love it Jason
Living in a food desert where good restaurants are far and few encouraged me to learn how to cook or make the foods I crave. It’s cheaper, you get lots of left over and it feels really fulfilling learning new skills
Growing up we were never denied anything and my father said thats because you dont remember us being poor. My father saved money and made good investments but we always lived below our means and thats because he remember what being poor is like.
Growing up on China i was always taught that a Panda has two colors. Those two colors were Black and White. I saves a ton of money on tv's thanks to this teaching.
I am Chinese and I will deduct my fixed expenses, deduct the amount I want to save, then the balance will be the amount I can spend. I will work out my meals accordingly. Saving is very important.
The greater the passive income you can build, the freer you will become. Taking the first step is the hardest, but 7 house later living off passive income since June 6, 2016. You’ve got to start taking steps to achieve your goal.
All passive income ideas work as long as you put the work in. I focus more on cryptos, NFTs, real estate crowdfunding and IDOs. With the assistance of a financial consultant, I’m doing well for myself.
@Aileen Shi You can make a quick internet research with her name *Olivia Charlotte Oswald.* The rest of the information is there for you to read and get in touch.
Olivia is the best in this space, I'm happy to come across these recommendations. I have worked with her and I am impressed with the thoroughness and professionalism of the investment diligence packages she provides.
@aileenshi112That's a good decision if you start now. I invested in real estate with the help of a Fin. consultant and was able to buy my third house last year September and hope to buy more if things keep going smoothly for me.
I just start saving more the last few years. I used to have a lot credit card debts, now I'm more careful about what I buy. No more fast foods, subscriptions, memberships
My wife and I are both Chinese, very well put together!
i am a croatian living in switzerland and i live according to all chinese secrets that you mention here. i feel less alone knowing that majority of humanity actually shares my financial lifestyle.
哈哈很幸运在职业初期（也是财富积累的初期）看到你的视频❤
Eating at home really does save money. The only time we splurge is on a rice cooker 😅 to make rice and more fast and money saving meals
My dad knew every single penny that left his bank account. He did it all old school style by writing down every single dollar he made and every single dollar that he spent. and he checked his math 100 times afterwards to make sure the calculations were on point.
Reminds me of my Dad . Meticulously wrote down everything.
Mine too... from Jamaica
What you are sharing is not specific Chinese, it's common economical sense. I am Italian and grew up exactly with those principles. It was my mother who took care of that and in my retirement age I am glad she did. 😊
It's much more common for immigrants. If you're born in America/Canada/Australia, no matter what ethnicity you are, it's likely that you'll start spending money like an American.
I spent so much while growing up
Even a decade after I inherited a bucket load
Then suddenly I began saving. Now almost doubled what I had, two more decades to save 😊
Building wealth is in your mindset, work on that and your financial potentials becomes exponential, develop good habits like avoiding debt, cutting costs and regularly putting money away in intervals for investments .The stock market has plenty of opportunities to earn..I was able to grow to 7 figures on a diverse portfolio strategy spread across bluechips, top etfs and coins. my broker James Fletcher Brennan, handles all my investments and ensures I stay above the market
I also think that we salary earners need to realize that monthly income will not make you rich.
I did read about James Fletcher Brennan on the web., quite a great resume he has
Financial management is a crucial topic that most tend to shy away from, and ends up haunting them in the near future.
Did a quick web search, he has a pretty decent bio, I wrote him and I'm waiting on his reply, you're so wise sir, personally it feels like i have no goals anymore, the only thing i look forward to these days are fortnite updates and new movies
Great video. Thank You for sharing it. Families in the subcontinent, "Pakistan and India" also have very similar views about money aka "focus on saving rather than spending frivolously"
Excellent video! I'm a first time viewer and I signed up for your newsletter right away. I love the 4 tips for saving!
Welcome aboard! Geej! Make sure to subscribe
Growing up, we may have eaten out 2 - 4 times/year. Most moms were still stay-at-home moms and one of their responsibilities was making dinner. I think the eating out habit exploded when women began to work. There was no longer a full-time home-maker and men were not accustomed to sharing the house work. While that situation has improved over time, 50 years later women are still doing more of the house work than men 🙁
😊😊My mother retired with plenty of money to last well into her 90’s because she has always lived simply and avoided debt. She was a cake decorator and a secretary.
thank you for sharing your culture with us
thanks for listening to it !
I think one of the biggest pieces of advice to follow is LIVE WITHIN YOUR MEANS. Our society, especially the younger subset, feels the need to show what they have and try to one-up each other that it is driving so many into debt. If you can’t comfortably buy a wanted item with cash then you simply should not be buying that item. Understanding wants versus needs has become so skewed. It’s time to get back to basics.
Yes this
I totally agree. Too much emphasis is placed in status or at least the pursuit of it. I was always taught by my parents to "Live within my means" and this philosopjy generally has served my personal financial means well👍
Ty Sir! Great video and some great lessons.
Learning how other people view and interact with money in a healthy way is a great lesson for me. Growing up, we were told to never ask our parents about finance. It was considered inappropriate. SO, now I'm playing catch up so I have a healthier relationship with money. Look forward to your next video. All the best to you and yours!
Always a pleasure to watch you, Humphrey.
The zero based budgeting system is great. I use something called the cash envelope method which Dave Ramsey touts. Is essentially the same at its core but you use envelopes to manage all of your cash.
Thanks for sharing!! great idea
I use YNAB which uses zero based budgeting
Yeah I switched from cash envelopes to YNAB app too. You Need A Budget
Can you do a video on a scarcity vs. abundance mindset and pros and cons? As someone who has built a career with much higher pay compared to my parents, i am very much interested in this topic. Thank you for the awesome content!
When I spend money I have been keeping track on where my money is going. I make sure to check my transactions save receipts and write down what I bought.And I also think about what I need and what I want. So I buy what I need and save for what I want. And then it's and need and a want. That's how I do it. This helps me save more.
I don't eat out regularly ,I make my food at home it saves money and time. I 'm not a impulse buyer I 'm a bargain hunter. I like some sales, I shop at Marshalls, Burlington, Ross Dress for Less, I even go to thrift stores etc. I was taught how to save and how to shop from my mom.
She loved to go to garage sales yard sales and the thrift stores. So I learned a lot from her. If I really need something and I will make sure it is quality product that I won't have to keep buying so I do that. I might have to pay a little more but don't go over my budget.
When I go grocery shopping I have a list of what I need. So I can be within my budget.
This was great !! It is very interesting to hear some insights about culture that is well known for saving money. The Why part was fascinating.
Well put Humphrey. You the man!
Conspicuous spending IS currently a big part of Chinese culture. In Fuzhou they flaunt their wealth big time! I'm sending this video to my Chinese partner so maybe they will decide to stop going into luxury car debt...
If we use Douyin short form dramas as a guage of the younger generation's mindset, I think you are correct. There's definitely a sense that conspicuous consumption is a signal of social status for a fairly large sector of modern urban society. A lot of the bosses follow the traditional thinking about saving, but their 'young second generation rich' sons and daughters are flaunting wealth instead of following their parents' examples.
I think the humble aspect of the Chinese culture has gone out the window these days… it’s all about buy buy buy…
My parents (Mom, actually) insisted we learn to handle money, how to budget, how to save, and to avoid debts at all costs. This served my entire family with benefits for our whole life.
Super accurate to how we handle finances in our culture! Great job explaining it in such an organized and concise way!
Thanks so much!
You forgot to mention the mass starvation under Mao Zedong, and the multiple generations that grew up in poverty until 30-40 years ago. This leads to people conserving what they have because they come from a time where they had nothing. This is passed on to new generations.
Literally, it’s in their DNA
From Beijing as well your videos are right on point. I just hope more people would follow your advices than the consuming oriented mentally. I have learnt a lot from your videos, thank you and keep going.
Born in Shanghai grew up in Hong Kong, lives in UK for 5 yrs. I agree most of your points. Save cash preparing for the hardship is the old motto of ordinary Shanghainese mentality.
Thank you for this episode. This brings me to remember during my younger years, my father would always advice me to save, save and save while my mother would also kept reminding me to be prudent on spending. I grew up by that kind of money management concept. Having my own family now we’ve adapted this concept and in effect good reserves multiplies. Although it’s almost 30 years my parents have gone but the wisdom my parents instilled in me will always be a treasure. Forever grateful to them.
No gy
,❤
4:00 Abortion is not a type of contraception. Contraception is done before conception.
Thank you for this video. It helped me A LOT. Could you possibly do a video on how to save while on a fixed income? I am on SSDI and due to this saving money in standard ways, (more than one bank account, stocks, IRA accounts) can actually cause me to lose some of my income. I would love some tips on how to save money without this risk.
Educational content, kudos for sharing your culture Mr. Yang!
Excellent video! THANK YOU! Have many wonderful Chinese friends who grew up during Cultural Revolution where everyone was very poor. They follow the points in your video exactly and are amazingly good with money. All are comfortable today. Like the book Millionaire Next Door. Love it. Also have Chinese friends who are the 1 child and some are spoiled by 4 grandparents and 2 parents. The grandparents and parents LOVE the grandchild and sacrifice for the child ... but ... sometimes it does not work out well... the kid grows up with no respect for money, spoiled, selfish, gets all of the $$ when grandparents die and parents die ... this is a problem. Sometimes there is a hidden advantage when you have wise parents and grandparents who grew up poor (often at no fault of their own) and learn how to manage money so when life gets better they prosper year after year and build security and safety... and importantly pass along smart money habits to their children... your family makes a big difference.
Glad you also flagged scarcity mindset, which holds many people back when it stops serving it’s purpose (I’ve found my parents didn’t switch out of their scarcity mindset when they already had accumulated enough money to be secure, and that was a disadvantage to them in the long run). Solid video.
I knew someone who was 90 and she was understandably upset when her spouse died. She had no idea he had $500,000 (he managed the money) and had spent her life not going on vacations and always maintaining a scarcity mindset. You're right, it's very important to switch to a value mindset once you get past struggling.
My grandparents were raised in the Great Depression. When I realized what that was like, their odd behavior around putting one slice of turkey on a sandwich, or counting out exact change to repay someone for an errand made sense. They have had a very blessed life with second homes and vacations, but never lost discipline around all the small things. They mastered the art of a simple life I aspire to, that met their needs and brought joy without being frivolous.
It certainly worked in my Mum's favour. She is retired, owns her home outright and has income from superannuation all because she skimped on luxuries and indulgences and saved her pennies. In spite of the years she put up with my father wasting money splurging on things we didn't need, after she left him she managed to get in front of the 8 ball by bringing her lunch to work every day instead of buying it, caught the bus instead of driving the car, was never extravagant and planned for the future by making voluntary contributions into her superannuation. Now she has much more than she needs and was able to travel around the world visiting more than ten countries before covid hit.
Last year I was working full time budgeting groceries, unable to afford date nights, and missing time with my kids. Now I learn how to make money online. Now I'm a SAHM, homeschooling and making profits every week.
About the wallet: I bought one in 2016 for 5 $ and tapped it. My calculation is: 5 $ / 7 years = 0,72 $ per year or 0,06 $ per month. i´m still using my tapped wallet.
I'm Chinese, I like Chinese wisdom. I observe and learn from them. You guys are super resourceful group. I didn't know about the New Year's wishes, but I like them. Also, the concept of frugal spending on cloths is not necessarily followed by young Chinese girls in California. They are dressed up in Gucci and other expensive brands like no other.
They are from a different generation. Their parents coddled them and they probably don't appreciate how hard it actually is to make a buck.
@@nicholaslu4069 they seem pampered, but that’s understandable. Their parents made it here in America or possibly in China and they want to help their children.
I knew w some Chinese girls that would go to school with some considered amount of money and give it to her school mates, In country they are successful in what we call Chinese stores and Chinese food restaurants and buffets.