Doogie's World
Enjoy Your Money Now
How To Do the DOLLAR Method
You use the tool called the DOLLAR Method by allocating your money into separate categories each pay period. These categories are:
10% Self Money
10% Give Away Money
10% Investment Money
10% Improvement Money
60% Expense Money
100% Income
The four categories Self Money, Give Away Money, Investment Money, and Improvement Money are special categories. Each of these categories gets about 10% of your income (for a total of 40%). This is the money you get to enjoy as you spend it. The remaining 60% of your income goes into the Expense Money category. This is the category that has to pay for everything else.
When your start using the DOLLAR Method, your money may continue to go where it already goes. The DOLLAR Method doesn't care so much about what you spend your money on, as much as it is concerned with your attitudes as you spend your money. The DOLLAR Method's recommendation of 10% of your income going to each of the special categories will create balance in your life.
A simple way to allocate the money into each category is to keep the Self Money, Give Away Money, and Improvement Money as cash
tucked away in envelopes. The Expense Money stays in the checking account. The Investment Money gets invested.
Some people will use a ledger to keep track of the different categories. The ledger might be in a book or on a computer
(or in a book that sits on the computer).
Eventually you develop new habitual attitudes towards the money in the four special categories. These are not the unhappy attitudes you have towards money now. As you spend this special money, you get to Enjoy Your Money Now.
