Humphrey Yang does not state the exact percentage of his paycheck that he automatically allocates to savings or investments, only that he finds automating at least 10% to be beneficial.
This video outlines fifteen small, consistent habits ("micro habits") that the speaker, Humphrey Yang, credits with contributing to his financial success. The core message is that incremental improvements, consistently applied, compound over time to yield significant positive results in both financial and personal life.
1% Better Every Day: Small daily improvements compound significantly over time. This could involve saving a small amount extra, cutting back on minor expenses, or finding new income sources.
Pay Yourself First (Automate Finances): Automatically allocate a percentage of each paycheck (e.g., 10%) to savings or investments before spending any of it. This removes the temptation to spend it and ensures consistent savings.
Write Down Your Goals: Writing down goals increases the likelihood of achieving them. The speaker recommends setting multi-year, yearly, quarterly, monthly, and even weekly goals to make them manageable. Specificity (e.g., "$100,000 down payment in 3 years") is crucial.
Invest in Yourself: Spending money on self-improvement (mental, physical, knowledge) is a valuable investment that builds skills and increases future earning potential.
Track Spending Daily: Regularly recording expenses provides awareness of spending habits, enabling better financial planning and resource allocation.
Bias on Action: Prioritize action over perfection. Execute plans even without complete information; progress over perfection is key.
Exercise Regularly: Exercise improves mood, self-esteem, and productivity. Even short, regular sessions are beneficial.
Shop Around for Better Offers: Periodically (e.g., quarterly) compare prices for services (internet, insurance) to secure the best deals.
Log Focused Hours: Track the actual hours spent on focused, productive work, rather than total time spent in the office. Deep work is more impactful.
Accountability Partner: Having a friend to share progress and struggles with greatly increases the likelihood of achieving goals.
Time Block: Schedule specific blocks of time for particular tasks to improve focus and efficiency.
Journal Gratitude: Regularly writing down things you're grateful for improves mental well-being, which can positively affect financial decisions.
Dip Your Toes: Take small, calculated risks in new ventures while maintaining existing income sources. Learn from experiences, even if unsuccessful.
Don't Worry About What They Think: Ignore the opinions of others when pursuing goals. People are generally too preoccupied with their own lives to pay close attention.
Schedule Reflection Time: Regularly schedule time for reflection (e.g., a "think week") to evaluate progress, adjust strategies, and maintain focus.
