“$ave Dat Money”

While preparing to write this post, I began listening to the song “$ave Dat Money” by XXL freshman Lil Dicky.  Now, I don’t think Lil DIcky is a great rapper but this post is not about that. I think the song is funny in that he is basically giving  financial advice  to rappers about their extravagant spending habits. He touches on things like frugal spending, 401ks, and the business friendly laws of Delaware all with a decent flow over a hip-hop beat.  The song became a hit  and my students loved it.  I ask that you all teach your children financial literacy at home because they will not learn it in the schools.

Saving money and investing starts with a budget.  It is imperative you create one and stick to it.  I use the Mint.com website and app for my budget needs.  I am sure there are more options, however I do not use them so I cannot offer my opinion on their services.  Mint is simple enough for my budgeting needs.

Before showing you my budget, I want to explain a few things.  First,  my budget will be presented in terms of percentages and not the actual numbers.  My reasoning for this is to show you that no matter how much money you make you can create a budget that is similar to mine but tailored to your individual needs. Second, this is the budget of someone whose financial responsibilities only includes himself.  Finally, this budget is the result of 3 years of learning and taking actionable steps, thus easily achievable for you.


  1. Paycheck                            %76.20
  2. AIRBNB Revenue                      %23.80

Total Income Percentage:                 %100


  1. Mobile Phone                         %1.43
  2. AIRBNB Business                      %16.67
  3. Groceries                            %4.76
  4. Rent, Utilities                     %20.83
  5. Haircut                              %2.38
  6. Loans                                %7.14
  7. Everything else                      %4.76
  8. Cash Buffer                          %7.02

Total Spending Percentage:             %64.99


  1. Emergency Fund                      %35.01
  2. Stock Purchase                      %0

Total Goals Percentage:                    %35.01

Total Spending + Total Goals:         %100


Remember, in my last post how i talked about knowing the difference between assets, liabilities, and expenses?  If you did not read it here is the link.

  • Assets:  I have three assets listed.  They are my AIRBNB business, emergency fund, and stock purchases.  Currently, I am not funding my brokerage account because I am trying to make an all out effort to complete my emergency fund goal by October which, if successful will place me one year ahead of schedule.  This results in over a third of my monthly income going toward that goal.  The fund is %64 complete.  Now, the AIRBNB business requires that I commit %16.67 of my income for purchase of the asset, but it accounts for nearly a quarter of my monthly income.  Hence I am able to commit %35 percent of my income to the emergency fund.   By the way (PLUG!!!), you should considering staying at my place if you are going to visit New Orleans.86681f4a-5e4d-4c8d-bdf7-ce917f8eb106


  • Liabilities:  The only real liabilities that I have are my student loans at %7.14 of my income.  After filling my emergency fund I will become more aggressive in paying them off.  I don’t own a car because I live about a mile from my job, so I walk to work.  Actually even If i didn’t live as close I still would not own a car at the moment, too many expenses both expected and unexpected.  I have grown to appreciate public transportation, less pollution.
  • Expenses: My expenses include my cell phone,rent, utilities, groceries, haircut, and everything else.  The section titled “everything else” includes things I don’t normally plan for such as eating out, cleaning supplies, hobbies, furnishings, going out etc.  In total my expenses account for  about one third of my total income.  My cash buffer is there in case I go over  the amount allotted to “everything else”, or if I want to pay more on the student loans or START AN INVESTMENT CLUB WITH 25 LIKE-MINDED INDIVIDUALS.


Before signing off, I want you all to take note of a few things.  First, I save nearly a third of the amount of money I make each month into a liquid emergency fund.  I expense out nearly a third of the money I make and  the remaining third goes toward purchasing an asset, paying down a liability, and providing a monthly cash buffer.  Second, because of my preparation I am able to save %35 into an emergency fund, you make only be able to save %10 of your income and that is ok. Finally, “Save Dat Money” is actually a pretty good song that shows you how rich people think.


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