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So we’re two full months into the new year and how many of you have been sticking to the New Year’s resolutions you made on January 1, 2011?
…Crickets?…
…Don’t wanna think about it??
Well let’s look at some “fun” facts…
Stat #1: About 100 MILLION Americans make a New Year’s resolution (CNN). That’s 1 out of every 3 Americans!
Courtesy of icanhascheezburger.com
Stat #2: Out of the top 5 resolutions, two are finance-related: Pay Down Debt and Save Money!
Stat #3: But only 12% of us actually achieve our resolution goals by the end of the year (WSJ)…
Stat #4: And 35% of us have already fallen off by February (CNN)!
So which bucket do you fall in? If you’re not happy with your current bucket, you can make a change today!
We’re in the CRITICAL ZONE, so here are my top 5 tips to making sure you have a fighting chance to meet your financial goals before 2012 rolls around!
1) Mindset, mindset, mindset!
It’s not about doing a crash diet budget. It’s about adjusting your lifestyle over time. As good ol’ Dave Ramsey says, personal finance is 20% knowledge…80% behavior!
REMEMBER: Until your mindset changes, your finances never will!
2) Plan how you are going to actually meet your goals.
Write it down, step by step. Track your progress in a spreadsheet or use free software.
3) Motivate yourself with mini-rewards along the way.
When you reach small milestones, it’s good to recognize that and keep momentum toward reaching the next step.
4) Tell a friend! A lot of friends!
They can encourage you AND hold you accountable.
5) Automate it!
Don’t leave it up to willpower. Decide what you want to accomplish, then set up automatic deposits or automatic payments. Out of sight, out of mind – don’t even give procrastination or excuses a fighting chance to change your mind.
What kind of challenges have you run into with your own resolutions? What tips do you have for others?
I’m sure some of you are probably wondering how I got this alias. My own mother said to me, “Are you sure you want to be known as Dolla Thug??? Do you know what a “thug” is??? Why can’t you be Dollar Diva or something?”
I just had to assure her that “Dollar Diva” just doesn’t quite do it for me…doesn’t quite do my mission justice. “Dolla Thug”…is perfect…and you’ll see why with this post.
Courtesy of www.superchefblog.com
IT WAS NEW YEAR’S DAY…JANUARY 1, 2008…
You may recall from a previous post that my personal finance revolution happened a few short months before this day. I was extremelyfocused and watching EVERYTHING I did with my money – from that $1.99 Snapple I shouldn’t have bought for lunch to that $6.99 cold medicine I bought when I felt a cold coming on. Every expense was just taking away from the money I was using to pay off my debt and build up my savings. EVERY.DOLLAR.COUNTED!
IT’S A CELEBRATION!
Now…when it came to celebrating New Year’s Eve…it was my first NYE in NYC so I wanted to do it big with my friends (don’t worry, I budgeted for it so I made it work!). Within the last few days leading up to the big event, my friends and I were all excited about our dresses and hair and shoes and the party and dinner and open bar and etc, etc, etc!
In the midst of it all, one of my friends needed me to spot her a little cash; it wasn’t too much – maybe $15-20 bucks. I can’t remember if it was to buy the perfect necklace for her dress or to cover the cost of the cab back to my place. Either way, I obliged because I knew she’d pay me back, it was no problem and I had it on me so I was fine helping her out. BUT…just like the $1.99 Snapple and the $6.99 cold medicine, I definitely kept a mental tally of the money I was putting out each day and this small loan was no exception… Continue reading How I Got the Name “Dolla Thug”
How did I have fun AND save money during my initial Dolla Thug Phase?
Courtesy of http://www.watchmojo.com
1) I DIDN’T LIVE IN MANHATTAN (unless it’s above 120th Street); try decent neighborhoods in Brooklyn or Harlem.
2) I made sure to go to FREE events (i.e. enjoy the park, free museums, Summer Stage concerts, River to River festival, etc. – or just hang at a friend’s place and watch old DVDs or shameful reality tv)
3) If I went out, I made sure to get to the venue BEFORE they started charging (“Free before 11″ meant I was ready and leaving my place at 9pm to get anywhere in Manhattan by 10:15!)
4) Liquor can be expensive – I definitely didn’t get caught up in the bottle-buying Manhattan high life; I took a cash budget of about $20 and I needed to make the most out of it (i.e. Long Island Iced Tea!) because when that was gone, I needed to be good for the rest of the night…unless someone else was buying! Tip: Being a lightweight saves money!
5) My preferred transportation of choice was the SUBWAY, no more cabs (living in Queens or Brooklyn guarantees a bill of at least $25 from Manhattan). Even now, I will take the subway at pretty much any time of night…alone…probably not safe, but I figure subways are lit, people are always riding 24/7 and my stop is fairly peaceful. Famous last words, I know – but it is what it is…
DOLLA THUG MENTALITY – SCHWARZENEGGER INTENSITY!! The Dolla Thug Revolution forced me to stop wondering where my money went and made me focused enough to say, “Ok, I’m going to take care of the necessities, and everything else in my paycheck is going to this credit card debt.”
Courtesy of pictureschat.com
After the credit card debt was paid off, I was able to say, “Now I’m putting all extra money toward savings for my emergency fund.”
Then, “Ok…now I’m going to use this money to rapidly pay off my student loan debt and build up some investing funds.”
During my initial Dolla Thug phase (which doesn’t last forever!), I just pretty much spent the bare minimum for a good 8 months. You’d be surprised what you can do when you STOP spending money! Utterly amazed! Continue reading How Dolla Thug Came To Be (Part 2)
There comes a moment in every personal finance success story where the person has to realize the error of their ways and (most importantly) TAKE ACTION to do something about it. Whether they realize they work TOO hard to have NOTHING but bills and debt to show for it. Or they have an emergency scare that snaps them back to the reality that they need to have savings and stop living above their means.
Courtesy of http://www.stoptherobbery.com/Intention.html
It’s that “A-HA” moment. That “something’s gotta give” moment where the light finally turns on in your head and you realize you have the power to make the future better – NO MORE PAYCHECK TO PAYCHECK!!!
Mine happened…October 2007. (More to come…)
The Personal Finance Revelation is a financial “Come to Jesus” moment. It marks the end of financial insanity and chaos, and marks the beginning of the journey to financial achievement.
It’s like that moment in A&E’s Intervention, when the person decides to go to rehab. Yeah…it’s like that…
FEELING NEEDY? What do you “need” that isn’t really a “need”? For me, it’s my cell phone. Not a cheap fake “need” either – I literally spend $1000+/year just to have the luxury of being able to check gmail every 10 seconds (if I want!) on my Blackberry.
Courtesy of weheartit.com
Seriously, whenever I (rarely) leave my phone at home, it’s like I’m going through withdrawal at work. Twitching and scratching…it’s not pretty. Sound familiar? Have you ever done that and thought to yourself, “I might have time to go home and get it during lunch…maybe?…” NO? It’s just me?…oh…
IT’S ALL PSYCHOLOGICAL
But how do we stop that “want” from becoming a fake “need” in the first place? Cell phones are a lost cause – not trying to give that one up. BUT what are some other “wants” that are costing us money we could really stand to cut out of our budget?
We must make a conscious decision to NOT pay for XYZ product. Here are several examples of how the Dolla Thug mindset can really set the stage for how much one is willing to spend (or not) on a fake “need”. Continue reading But I Need Need NEED It! (PART 1)
WELCOME
Hello. With this blog, I bring to you the knowledge that I have equipped my mind with via books, internet, tv, media, and fellow personal finance blogs. My credentials in the world of Personal Finance include:
- an undergraduate degree from the Wharton School of Business,
- a budding career at one of the most respected financial services companies in the world (which will remain unnamed),
- volunteer work with organizations such as Junior Achievement, Citi, and New York Urban League.
HOWEVER…
I have an alter ego. Her name is Dolla Thug. Dolla Thug???
Yes. Dolla Thug.
No, I’m NOT a rapper.
I’m just passionately obsessed with personal finance and very assertive with how I spend, save, and invest my money. I’ll write an article about how I got this name later…
GOAL
In this blog, I’ll give it to you straight. I won’t sugarcoat things. If you ask me a question about a financial matter, I will give you the most financially savvy answer I can and will direct you to the website that can provide more information. I want this site to be an open forum and I welcome challenging questions, thoughts, and ideas. So feel free to COMMENT, please!
DON’T BELIEVE THE HYPE
Dolla Thug is here to challenge the laws of consumerism and marketing propaganda that has been fed to you since birth!
TO EACH HIS OWN
In case we have differences of opinion, I try very hard to not come off judgmental or condescending in any way. When it comes down to it, your money is your money. My money is mine. What you do with yours is your business.
BOTTOMLINE
I have a frugal-focused opinion aimed to get you to at least THINK about the opportunity costs of frivolous spending. For some, that opportunity cost involves their emergency fund…or the ability to afford the purchase of a home…or the ability to EVER retire…Whatever it may be, there is a cost to every financial decision we make in life.
DISCLAIMER For the record, I am not a certified financial advisor of any kind and will not be held legally responsible for any misuse of the content of this site.
So ask yourself…do you have a lil Dolla Thug in you?
To contact me with any ideas, questions, suggestions, or feedback please email: dollathug@dollathug.com
Or: dollarthug@dollarthug.com
For the record, I am not a certified financial advisor of any kind and will not be held legally responsible for any misuse of the content of this site.
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