The Chinese Secret to Saving Money Revealed

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.

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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

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

[humphrey]

Next week's video is going to be awesome - make sure you're subscribed! Thanks for all the love on this one all 💙 Also make sure to check out

[jameshendel]

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.

[lyarcadia]

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

[lilybliblablubb]

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.

[eq]

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.

[demita]

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

[tonypopondopoulo]

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.

[mariceldb]

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.

[Deedeevenice]

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!

[dreadfairy]

"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.😭

[sl]

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.

[emersonstagnitta]

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.

[the_original_jc]

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.

[wb]

I’ve always believed it’s more important to have money than simply look like you have money 👍.

[minzhu]

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.

[MyLifeThai]

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.

[CameronFussner]

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.

[keahi]

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.

[tazg]

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.

[McPhersonz]

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!