How to Optimize Token Usage in Claude Code
Learn how LLM pricing really works and why careless token usage can quickly explode your API costs. In this video, I'll break down how models like Claude calculates token usage, then walk you through practical tips to reduce waste, optimize performance, and save money with every prompt. TIMESTAMP 00:00 - Intro 00:39 - How LLMs Calculate Costs 02:23 - LLMs are stateless (important!) 03:08 - Token Calculation - Example Walkthrough 06:42 - Tip 1 - One Chat Per Task 08:36 - Tip 2 - Summarize Long Chats 11:52 - Tip 3 - Manually Choose the Right Model 14:48 - Conclusion
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