Tips to save money on H1B Visa

 Tips to save 10000 $ on H1B visa 

hi friends my name is coming at you from

Detroit Michigan and today I'm going to

talk to you about how to save extra ten

thousand dollars per year through your

job income all right

but before we get started I would really

appreciate if you can give me a thumbs

up to the video because it allows me to

reach out to more people just like you

all right without further Ado let's get

into the topic and let me show you how I

would save my first ten thousand dollars

all right number one thing you have to

understand that you are getting a

paycheck every two weeks 52 weeks in a

year that means you're getting 26

paychecks which means there will be two

months in a year where you will receive

three paychecks instead of two do you

understand me are you listening so what

that means is that there will be two

months in the year where you will have

this extra paycheck where you don't

really need them they are just extra so

you can plan better and save this money

for example first paycheck was January

6th

now if you see the calendar for the year

I will get three paychecks in March and

September so what that means is in the

month of March I I will I will just be

living my life and I still get an extra

paycheck now if I did not plan for it it

will just come and sit in my account and

most probably just because I have a

little bit extra money I might just go

out and spend it that's what most people

do they see a little bit extra money and

they just go ahead and spend it but if

you plan for it and you plan to save

this money then you will be able to get

much much ahead so let's look at this so

March and September they're going to be

two extra paychecks I'm gonna save this

for two paychecks so here's the thing

let's take an average salary I'm not

gonna like you know let's take an

average income

um of eighty thousand dollars you know

you are a year or two years into the

corporate world and let's say you're

making about eighty thousand dollars

okay so at this point of time with all

your deductions and stuff like that I'm

gonna assume that you're making about

two thousand dollars every two weeks

okay I know most of people at 80 000 are

making way more than that but let's say

you're making only two grand uh

depending upon which state you are you

may have an in-state income tax you may

not have a state income tax so you know

let's take an average of two thousand

dollars so you have two extra paychecks

in that year that means you already

saved four thousand dollars and here's

the thing guys we are not going to plan

anything on this if you're going to an

India trip you go to Air India trip if

you're going something else you're doing

something else do it just because you

have this extra money coming in doesn't

mean take an extra trip or something

like that what our goal is our goal is

to save the money so let's put this

money towards that so let's open up a

bank account or if you already have a

savings account let's take these two

paychecks and put it in there so you

have four thousand dollars saved right

now now let's talk about second wave of

how we can save money one of the most

unappreciated money that you get in my

opinion is your tax returns I feel like

most people when they get their taxes

just go out and spend it instead what I

would do is I would take that tax return

and save it in this account no tax

returns are again really really

complicated it depends upon how much you

get and stuff like that but I'm gonna

average it about three thousand dollars

um I already made a video on how you can

get more tax returns you can watch it

here but a good CPA should be if you're

making eighty thousand dollars guys and

you're paying about 15 let's say 12 to

15 000 of taxes in my opinion you should

be making about three to four thousand

dollars back okay that's my opinion so

but if you hire a good CPA I'm confident

that he will help you make more money

back but let's average it and you are

able to make three thousand dollars you

have seven thousand dollars right now so

where is this extra three thousand

dollars coming from and that is going to

come from your boss your boss is going

to pay you that three thousand dollars

extra as a matter of fact your company

one of the things I feel most young

Engineers especially people who are not

on H1B they miss out on is the 401K you

have no idea how many International

students I talked to who do not have

401k they're just living their life and

letting go of this extra money their

company is giving you guys

don't do that mistake I did that mistake

for first two years my mentor one day

sat me down and told me you are an idiot

start saving money through 401K so at

that year I made a decision I started

putting six percent towards my uh 401K

because if I put six percent then my

company matches that three percent

towards that so they match half of six

percent so up to six percent that's what

they do so basically at that point I was

making maybe 80 grand you know and so

three percent of that is twenty four

hundred dollars but I was also putting

my six percent so that came up to be

about forty eight hundred dollars so if

you know it's like so I really like this

because you know for me to get that 2400

I have to put in that 4800. as human

beings we you know most people love to

spend money as soon as it comes into

their bank account they love to spend it

very few people are actually trained or

designed to save money so for me this is

great because because I like to spend

money money so what I do this is making

this is pushing me to save money I have

to put that 4800 so that I can get that

2400 from my company so if you do all

the calculations so far you're already

close to 14 000 even though like you

haven't done a lot so far guys you see

let's say if you're not

um on 401K right now and you start

putting let's say forty eight hundred

dollars towards that uh 401K let's do

the calculation if you're putting 4 800

how much less money you're going to get

in my opinion you're going to basically

get about 100 125 dollars less per

paycheck that's not a big hit guys and

you know I don't think that's a big hit

guys you can manage it you know if for

example if the like if you have a new

president next year and he just raises

taxes what are you gonna do you're gonna

lose some of that income right so that's

exactly how it works folks so it's okay

to get that head because when you have

less money just coming into your

paycheck you don't plan on it you know

that's how that that's how you should be

planning this you really notice so far

we have four thousand dollars saved up

from your extra two paychecks we have

three thousand dollars saved from your

tax returns and you have twenty four

hundred dollars coming from your company

which is close to nine thousand four

hundred but because you have put your

own four thousand eight hundred ad comes

close to fourteen fifteen thousand

dollars guys how incredible is that and

so far we have not even touched your

monthly income you know the money you're

making every month that two thousand

dollar paycheck and you're getting two

of them that's four thousand dollars

let's say after taxes at an eighty

thousand dollar income if you're making

more money good for you I'm proud of you

if you're making less it's fine even if

you save half of all of this what we are

talking about let's say instead of 14

500 you save seventy five hundred it's

still something something is better than

nothing and remember one thing my mentor

told me one thing

saving money is making money because

it's in your bank account guys most

people underestimate saving money they

just want like they think like okay if

something bad happens I'll just use my

credit card that's a bad mentality guys

understand because you'll have to pay it

back the save the the credit card you

will have to pay it back if you deplete

your savings you don't have to pay to

someone else it's just your savings

so saying that you know here's what an

example I'll give you I'll give you a

little bit of my story

2017 I was sitting down with my mentor

2018 as a matter of Anna sitting down

with my mentor and I told him that you

know I was just showing him my monthly

expenses and stuff like that I wanted to

take some advice from him and he's like

where is your 401k what does it what are

your savings and stuff like that I was

like I don't have a 401k you know I

don't need one right now and he was like

no you need a 401k because just start

putting about five to six percent of

income into 401K because trust me about

five years later you will thank me and

he was like he told me the story of how

he had you know he used to work at GM

and he had saved like seven eight years

he had put money into uh his 401k and

when he quit his job in 2004 at GM he

forgot about it and this was we were

talking about this in 2018 and he was

like oh they just called me and told me

that I had this 401k account and I

looked into it and he had about 700 800

000 in them guys because the compounding

he just for 15 years that money just

kept compounding and he was putting

about 15 20 of his incumbent to his 401k

and that really opened up my eyes so I

started putting about six percent my

first year in 2018 and my company was

giving me three percent but after that

what I started doing every year when I

got a four percent five percent raise

instead of taking that money towards me

I just took that four percent and added

towards my 401k so let's say 2018 the

next year I got four percent raise so I

went from getting six percent from

myself three percent so that's nine

percent I'm putting in so six percent of

mine three percent of the company plus

four so that became how much thirteen

percent the year next year I got a raise

I put it towards that as well so that

way now I'm at about 15 off you know off

my income with my company Edition going

towards 401k and because of that it has

helped me a lot I'm not gonna throw your

number but it has helped guys trust me

like that's close to a Year's worth of

income I've already saved half a year

worth of income have already saved

without doing anything and you I don't

even know it I don't even feel it so

trust me it's going to take you a long

long way

put start putting money into your 401k

start doing these things I hope I hope I

was just you know even if you don't feel

like doing what I just told you I hope I

was able to just make you aware of what

how do you think differently how do you

think differently so you can save more

money remember if you have money in your

bank account you feel very very

confident when you're walking down the

street when you are good when you are

having a tough time at your job or let's

say you are stuck in a job which you

don't like you are going to feel

confident because if you are laid off or

something like that you still have money

in your bank account which can be used

in times of difficulties so make sure

you save money guys all the best to you

see you in the next video bye