The Dollabuzz Money Plan
To get your money right, you need to have what we call a “Money Plan.” You need a Money Plan because…
if you don’t have a plan, then your money won’t do what you need it to do.
At Dollabuzz, we believe in keeping things as simple as possible. The Dollabuzz Money Plan is a three-step process that will show you how to:
- Get rid of debt
- Save and invest money
- Boost your income
The Money Plan: Step Number One
The first step of the Money Plan is to get rid of and stay out of debt. Make a list of all your monthly bills, from lowest to highest. Then grab your scissors and start the hair cutting!
Credit cards will kill your Dollabuzz faster than a shot of Jager at the Wayside Central, and we’ve done a post on the evils of credit cards. The point is that “little” bills will quickly add up to kill your Dollabuzz.
If you have credit card or student loan debt, use the money saved from “hair cutting” to pay those balances off as soon as possible. Getting rid of all these “little” bills will allow you to start saving and investing money so you can Dollabuzz.
After you’ve given your budget a haircut, you need to save $1,000 for emergencies. An unexpected car repair or medical bill qualifies as an emergency. A winter vacay to somewhere warm does not count as an emergency.
A $1,000 emergency fund is important because…
it will keep you from going broke. $1,000 will cover most expenses. That $1,000 not going on the credit card is even more important, especially after your budget “haircut.” There’s nothing more annoying than paying off your credit cards and two months later charging $1,000 to fix your whip. Trust me. It is NOT fun.
The Money Plan: Step Number Two
The second step of the Money Plan is to save and invest all the money you freed up during step number one. A great option for saving is setting up a Roth IRA. What’s a Roth IRA? It may sound complicated, but a Roth IRA is an investment account where you contribute after-tax money into your account, making all future withdrawals 100% tax-free.
The Roth IRA offers flexibility in that you can access your contributions (but not your earnings) any time, tax-free and penalty-free. Any time without penalty?? Any time, my friend; and that flexibility is how you Dollabuzz. See more benefits of a Roth IRA and check out our post on opening a Betterment account.
The Money Plan: Step Number Three
Step number three is to Dollabuzz your income. If you are single and not making at LEAST $50,000 a year, then your money ain’t right. Straight up. To Dollabuzz, you need to be bringing in the cash money by getting paid more or working more hours. It’s that simple.
One way to upgrade your skills is by checking out the skilled trades program at your local community college. There’s a shortage of skilled trade workers in my home state of Michigan right now. Shout out to all my readers from the Mitten! Binary Star!! Okay, okay. Back to gettin’ money.
Electricians, plumbers, and welders (just to name a few) are great-paying job,s and you won’t go broke upgrading your skills to pay the bills. It’s okay to work long, hard hours, but Dollabuzz is all about working SMART.
A Hustler’s Holiday Is to Dollabuzz Every Day
In addition to upgrading the skills to pay the bills, you need to have a certain mindset. What mindset is that? A hustler’s mindset. Jeezy sums it up nicely on “Hustlaz Holiday” when he says, “I got hustlin’ on my resume.”
Granted, Jeezy don’t need to hustle like he used to, but he’s still out there gettin’ it, and you better be out there hustlin’ too. That hustlin’ can be working 60 hours a week or taking five classes a semester to finish that degree.
Hustlin’ simply means doing whatever it takes, 24-7, to Dollabuzz. It’s a mindset, where you channel the emotions of determination and perseverance to Dollabuzz.
Money Plan = Dollabuzz
A Money Plan is essential for a Dollabuzz. The Money Plan is a three-step plan, and it’s guaranteed to help you get your money right.
The first step is to get rid of and stay out of debt. Make a list of your monthly bills and do this using EveryDollar or one of the budget tools available at Mint.com. Have fun with hair cutting your bills. Snip snip!
Step two is saving and investing the money freed up in step one into your 401k or though a Roth IRA. A great resource for investing is Betterment.
The third step in the money plan is to boost your income, which requires obtaining the skills to pay the bills and having a hustler’s mindset.
Follow these three steps and you will Get. Your. Money. Right.