Cash for the Save

Hello, my friend and future millionaire. 

Welcome to this episode of The Money Wheel. 

My name is Don Shade. 

In the last episode, I covered how to start carrying cash in your wallet or in your pocket book, and I discussed how you will feel different if you’re carrying cash on you.

What I’d like to do in this episode is kind of continue that and move forward to a couple of key points here that I want to hit.

What we want to do is get you built up, even if you’re flat broke today, I’m sure there’s somewhere that you can come up with $5 a week and start putting that money in your wallet.

And like I said, when the second week you’re going to trade your five in and put a $10 bill in its place and move up to $20.

But we’re going to assume that you’re broke and we will stick with the $5 a week principle.

Now, obviously, if you’re somebody that is better off than that, what we’re looking to do, I want you to be able to carry $500 cash in your wallet that is emergency money, so to speak.

And the reason I do that, it gives you the mindset that you have money; it doesn’t matter what your debts are and it doesn’t matter what kind of payments we’re making. 

It’s all a mindset that, “Hey, I have cash on me, should something come up I would be able to handle it.” 

If your parents called today and said, “Hey, you want to go for dinner?” you have cash in your wallet that you could pick up the tab and it’s not a big deal. 

It’s all about the mindset that it gives you carrying cash and not just making transactions using a card. 

Here’s what happens. People get paid every week or every other week, and they really don’t pay attention to that money because they’ll use a debit card for a lot of purchases so it takes away the feeling away of, “oh, I just spent $20”.

It’s like, oh, I just used a credit card. Well, I’ll pay for it at the end of the month. First thing you know, your credit card balances are creeping up.

What happens with your debit card is you start using it for more and more transactions and, next thing you know, the first check that you get for the month, you’ve spent that money and then another check comes and you spend that money also.

And then you start to realize you’re coming to the end of the month and you’re out of money and there’s never any savings.

I hear people say to me all the time, they’re like, wow, I’ll tell you what Don, you know, I would put that money on a credit card to pay the bill down.

I’m paying 18-20% interest on my credit card. Why would I carry that money around in my wallet? You’re missing the point.

And the point of the whole exercise is this: I want you to get accustomed to carrying cash, so once we get past the $500 mark, then you can start putting it into the bank for savings.

And that’s another thing that people say to me. Well, with that $500, I would put that in a savings account.

Well, let me tell you financial genius, the problem is you don’t have $500 right now because if you’re somebody that’s broke, you’re scraping by.

You’re trying to figure out how to get started again but forget that the way to get started again is to be able to pay yourself first.

Obviously we’re going to take care of keeping the lights on paying your rent, that kind of thing, but I want you to start scraping money up towards building wealth.

I want you to get back to having cash in your pocket and not using a card for every transaction. 

Start learning that you’re going to pull cash out when it’s time to pay for something.

That’s everything I have for this episode of The Money Wheel. 

We’ll see you next time.