Personal finance influencer Austin Williams is a popular YouTuber that isn’t afraid to share his frugal wisdom. Recently, he shared a video with his over 130,000 subscribers about seven frugal habits that saved him from going broke.
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Here is his no-nonsense advice about how to build a strong financial future one step at a time.
Taking Advantage of Advantages
Known for his low-cost way of life, Williams isn’t afraid for people to know that his frugality started at an early age. He said one of the habits he picked up as early as college was taking advantage of the advantages he had.
During college, for instance, he lived at home, saving around $30,000 on room and board. He also took advantage of things like grants to save additional money. Finally, he chose an affordable public in-state school as opposed to a more pricey out-of-state university. His frugal ways allowed him to graduate college debt-free.
For prospective students hoping to graduate without student loans, choosing an in-state school can make a huge difference. According to Forbes, an out-of-state education can cost four times as much as it would at an in-state school, depending on the state.
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Treating Opportunities Like They Are Fragile
In addition to taking advantage of advantages, Williams said he always treats opportunities like they are fragile. For instance, he received a college scholarship that paid for 80% of his tuition if he maintained a GPA of 3.0. In order to ensure he maintained a high average and kept his scholarship, he said he never missed a class and sat in the front row.
By treating the opportunity like it was fragile and could be lost, he was able to graduate not only debt-free but also summa cum laude.
Starting Off Slow and Simple
The next frugal tip Williams said he follows is starting off slow and simple. He explained it’s easier to reach financial milestones by starting slow and simple. For example, he said he lived simply in his 20s to help him build a solid financial foundation that could help him thrive in his 30s and beyond.
Starting small can help you save big if there is an unexpected expense. According to U.S. News & World Report, 42% of Americans do not have an emergency fund. The same study found that 40% could not cover a $1,000 emergency expense. Without savings, even an unplanned cost of a few hundred dollars could be financially devastating.
Thinking in Trade-Offs
Williams further recommended that people should think about trade-offs. He said he always asks himself what he is giving up in exchange for something he is purchasing and makes sure that he fully understands the cost of every “yes.”
“The people who are the most financially stable aren’t always the ones who are making the most money, but they’re the ones who understand the cost of every ‘yes.’ And learning to think in trade-offs has helped me make smarter, more intentional decisions with my money,” he said.
Limit What Can Go Wrong
Unfortunately, as Williams noted, surprises come up. Whether it’s a job loss, a sudden illness or an unexpected repair for a car, unplanned expenses are going to happen.
He said to handle life’s little surprises, he tries to limit what can go wrong. He drives an older car, has low fixed expenses and avoids big purchases. By limiting what can go wrong, he ensures he has the money he needs to cover any unforeseen expenses.
Always Doing the Math
Williams said one of the things that can get people in trouble is when they act on emotion instead of logic. To keep from going broke, he said he always does the math by never guessing, never assuming and never just hoping for the best.
Budgeting is an important tool for keeping track of spending and staying on track with financial goals. The experts at Experian suggest that budgeting can help avoid overspending, bring goals within reach, keep out of debt and prepare for emergencies.
Planning for Tomorrow
Finally, Williams said he always plans for tomorrow, knowing that something unexpected may happen. In order to avoid being caught off-guard, he takes the steps today to prepare for the future.
Williams explained that now more than ever, it’s important to “plan for tomorrow, to save for emergencies, to invest for the future and to live a sustainable life.”
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This article originally appeared on GOBankingRates.com: 7 Frugal Habits That Save You From Going Broke, According to Austin Williams
