“$60 cover! Are you kidding me? Nobody’s going to pay that to still wait in line just to enter the club.”
That’s what I told the dude at the resort in Cancun, Mexico. He was in charge of organizing the entertainment for the night. The cover charge was $60 for all you could drink.
The catch was that you still had to wait in line for hours and tip heavily just to get served for the drinks that you already paid for. There was no way that young folks could afford this.
I laughed at the idea of paying this much money. I normally wouldn’t even spend this much money when going out at home. I also figured that most folks in town were students or young professionals on a tight budget. Surely, they couldn’t afford to be spending this much money every single night while on vacation.
Long story short: I paid and so did everyone else. The club was rammed with thousands of people partying and long lines everywhere.
How could thousands of tourists afford to pay this?
The dude explained to me that young people will always find a way to pay for partying.
I’ve remembered this ever since. We all have that friend who can’t afford lunch, rent, or their cell phone bill. Yet, they never ever miss a party. They’re always posting on social media about how wild last night was and how they were at the new club opening. It doesn’t make sense because you know they can’t even afford their cell phone bill.
When I went to Panama City Beach in 2014 I met students who did whatever it took to make it out for the trip. Some were staying in hotels illegally while others drove for 20 hours to make it down to party.
Does any of this make sense to you?
At first it didn’t make sense to me. Then I slowly figured out over time that personal finance wasn’t logical. The experts often get it wrong about saving money in your 20s.
Today I’m going to explain to you The Cancun Technique for finally saving money and hitting your financial goals.
Why’s your bank account depressing?
You have no goals, no motivation, and you don’t care to save money.
Think about it. If you don’t have any goals in mind, you’re never going to save money. You’re just going to keep on keeping on.
You also think that hope is a game plan.
Hope is never a game plan. Saving money is all about priorities. I’ve stressed this many times on here. The reality is that without priorities, we will spend our money on any party that comes up because boredom is dangerous.
This brings us to the technique I have created for you…
How do you apply The Cancun Technique to finally start saving money?
“Money is not the most important thing in the world. Love is. Fortunately, I love money.” — Jackie Mason
What’s The Cancun Technique for finally saving money? It boils down to this…
You’re going to save money if you have a clear goal, cut everything out, keep your eye on the prize, and work towards the goal because you actually want to see results.
You already know the deal. The go-to financial advice is to pay yourself first, invest in yourself, and find a way to make more money. The toughest part of the personal finance equation is often saving more money. I have friends who work insane hours only to still be broke at the end of the pay period. Most of us have enough energy to make money. We get lazy when it comes to saving money.
For example, nobody ever really saves money just to save. Nobody will save or do anything without a WHY.
The steps for this technique:
- Set a goal with a specific timeframe and dollar figure.
- Do whatever it takes and ruthlessly cut back on everything until you have the money saved up.
- Automate your savings.
- Repeat this process for every goal in your life when it comes to money.
I call this The Cancun Technique because just like that spring break getaway, when you want something, you’ll save up for it. If you don’t want something, you’ll creative excuses.
Yes, in the perfect world you’re going to have an emergency fund. In real life, you need something to get you excited.
[Must read: How you can save for anything on this planet.]
Let’s go over the steps for this technique.
1. Set a goal with a specific timeframe and dollar figure.
When do you want to have the money in your bank account? How much do you exactly need?
I’m closing a condo this September and I know exactly how much I need. I also know that the mortgage broker won’t accept any excuses or sob stories. This has forced me to hustle all summer.
2. Do whatever it takes and ruthlessly cut back on everything until you have the money saved up.
Okay, so you want a new laptop. What are you going to cut out? Where will you make sacrifices? You don’t need to save on everything. I just ask that you work on your problem areas.
This summer, I’m using a cash system for my food and coffee consumption. I take out a fixed amount of money for this catgeory and that’s all I’m allowed to spend for the time period.
You can find whatever system works for you and get creative with it.
3. Automate your savings.
It’s time to simplify everything. I have everything automated so that I don’t have to physically transfer any money.
Pick a dollar amount and have it come off your paycheck/out of your bank account at the same time automatically.
4. Repeat this process for every goal in your life when it comes to money.
Repeat. When you reach a target, find a new target.
Stop wasting your time on stuff that doesn’t matter!
“Your time is precious, don’t waste it (on video games, tv, etc.) and don’t trade it away for pennies (e.g. wait in line for 4 hours on Black Friday so that you can get a $30 discount on a TV). Don’t value your time at zero. Your time is finite and always decreasing — treat it as such.” — MJ DeMarco
Please value your time. Pick your battles. It’s okay to have your morning coffee if you’re on track with your financial goals. If you’re in debt and can’t breathe, then of course you need to cut back on everything until you humble that annoying debt.
I don’t preach frugality tips on here because they’re usually not realistic and you’ll just end up miserable. With clear goals, you’ll have your eye on the prize.
Here’s your homework…
I want you to apply The Cancun Technique right now. You can read up on saving FU money or what to do when saving seems impossible. Eventually, you need to get into action. I’m like a proud father when one of my readers saves up and hits a goal. I love to hear from you guys.
I need you to complete your homework by answering the following questions:
What do you want to save up for?
Are you willing to cut back on everything else to get there?
Next, you need to sign up for a savings account and start saving! $20 a week adds up real fast.
Saving money isn’t about missing out on life. I want you to save money to have a better life.