Below are the three chapters I've written for you to post to the site. I'll write the budgeting chapter by the end of the week.
Dave
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Weekend at Bernie's, Trixy's or the Club de jour Chapter??
We all remember the Johnny Kemp song from 1988… "Just got paid… Friday night… party hunting...feeling right." Those lyrics sum up a payday weekend, with partying and spending that would go on for years.
Let's break down a typical payday weekend.: You meet up with some friends at the bar/restaurant. You grab appetizers, a few drinks and then probably hit the club later that night. Depending on how late the club closes, you might stumble into a nearby diner for breakfast and from there, hop into a cab and head home.
For many of us, all of that takes place on a weekend when there are no bills due. Rent and mortgage are already paid up and maybe cable or phone is due this week. So you can afford to go out and blow some cash. And let's be real: experts say PAY YOURSELF FIRST! Right? WRONG!
True, the experts recommend taking a portion of your salary and setting it aside for the future, not running around town blowing cash on the weekends. Now you're probably thinking that this money is just 'party cash' and you can't save nything substantial on just a few bucks bi-weekly. Nothing can be further from the truth.
Let's do some math:. In NYC, a meal at a restaurant would run you about $12 -$15 with tip. A typical club cover costs about $20. A drink would set you back about $12 a pop and breakfast at a diner the next day about $10. A metered cab ride home would average between $15-$20 depending on where you live.. If you round off these numbers, you have just blown about $80 on hanging out. But think about it like this: that same club money could go toward laying down your foundation for an emergency fund. Add $20 to that $80, you have $100. Set that aside every two weeks and within 3-4 months, you will have $1000 for your emergency fund. If that's too much for you, try to save about $25 a week until you hit that magic number.
Why $1000? That's that average costs of most emergencies. Car breaks down? About $1000 to get it repaired. Emergency room visit? A deductible would be covered if you had $1000. And let's not forget those unexpected bills that creep up from time to time.
And as for the club, restaurants, movies, cab rides? Matinees and Blockbuster are good alternatives. And don't cut out going to the club; just cut back. You can still get your dance/mack on once a month and watch the rest of the masses spending their emergency funds.
YOU MATTER TO MADISON AVE. Chapter??
So what happens after you hit that $1000 mark? Do you stop putting that money aside? As Whitney would say "Hell to the NO!" You open up another account with your bank and credit union and begin putting the same amount of money into a savings account. THAT is the savings account that YOU DON'T TOUCH! Have the money automatically taken out of your check, so that you don't even miss it. I would even recommend opening an account where you don't do your regular banking; just so you wouldn't be tempted to withdraw or transfer those funds. For instance, if you have an account at Citibank, open your savings at Chase. Or even one of those obscure, but efficient credit unions where you have to go out of your way to access money.
Experts recommend you have at least 6 months of cash reserves on hand at any given time, just as a cushion again job loss. That money is supposed to cover your bills at the same rate it would if you were employed. But a recent study shows that most Americans have no savings account. In fact, some of the lesser affluent countries save more on average than most Americans. And there are many factors that contribute to that.
MARKETING TO THE MASSES Chapter??
2 years ago, ABC debuted its hit hospital drama Grey's Anatomy as a mid-season replacement on Sunday night. The show was an immediate success, and when it was renewed, the network moved it to Thursday nights. The reason? YOU!
Media buyers believed the move would have allowed ABC to pull in more money from advertising. Film studios, department stores and other businesses could by advertising targeted toward the coveted 25-54 demographic. In other words, all of us who watch the weekly antics at Seattle Grace hospital would be subjected to some ad encouraging us to spend money.
But why Thursday? When Bill Cosby premiered the Cosby Show on NBC in the 80s, the success of that show cemented Thursdays as a win-win for advertisers. It was even given a nickname in the 90s "MUST-SEE TV." To this day, the Thursday night slot remains the most valued by advertisers and network programmers. Wednesday is way too early to advertise for anything and by Friday, you are already hanging out. Who rushes home to watch anything on a FRIDAY? To quote Dr. Yang and Dr. Grey: "SERIOUSLY?"
Advertisers divide their demographic into separate categories. 18-34, 25-54 and then there are the women's demographics. And let not forget the TWEENS, those kids from age 8-12. Years before High School Musical, That's my Raven and other Disney shows became a huge hits on cable, Saved by the bell established a forgotten group of kids who would later prove to have a spending clout that rivaled their peers. Every demographic is targeted by advertisers.. High School Musical 2 debuted to RECORD numbers. The Disney Channel broadcasted it on Friday. Mall and movie attendances in many big cities dropped as a result, even though there were many ads targeted toward tweens that aired during the program. (The next installment of the series is expected to be released in the theatres. What a coincidence.)
Now you are probably thinking, "Why I need to know all that? Simply so that you can cut through the clutter and begin building your road to financial freedom. The advertising executives already built theirs. And you funded it.
