What to do with your dollar?

What to do with your dollar?
What to do with a dollar? It’s a good question! As a parent who tries very hard to instill in my children the value of a dollar, I find myself facing similar questions from my children.

It’s only a dollar? It’s only five dollars or its only ten dollars – is what my son likes to say. So while I often find myself trying to teach him the value of a dollar. I often forget to teach him what you can do with a dollar. After all, it all starts with a dollar. That is to say the mentality is the same. What to do with your dollar is the same as what to do with a hundred dollars. What to do with a thousand or ten thousand dollars. The mentality is the same. The problem is we only concern ourselves with big amounts and forget the small amount.

What to do with your dollar?

If you can’t manage a dollar, how on earth can you manage ten of thousands of dollars? This is where we all fail. The “it’s only” mentality kills us because we forget that every penny and every dollar adds up to hundreds and thousands of dollars.

So while teaching children the value of a dollar, we should also teach them how to manage it – what to do with your dollar.

Sure you may say that it’s only a dollar, but your financial journey starts with your first dollar. Now this principle I learned from a financial advisor and personal development speaker by the name of Jim Rohn.

If you want to watch the video below that is fine, but I tweaked his points a bit to add a broader view of life. This helps with not only children but as well as adults.

What to do with your dollar?

In order to make it easy we are going to speak in terms of a dollar. As a child or as an adult you may receive a larger amount in the form of allowance, hourly pay, salary or self employed income (own a business). But for the sake of easy math we keep the amount at one dollar.

So we get money, get paid, or we earned it – in whatever intervals it may come. We have to have a plan as to what we will do with this money. Without a plan you are destined to failure.

“A failure to plan, is a plan to fail.”

This is how you should manage your dollar or What to do with your dollar. Like Jim said, it is a suggestion, you can tweak it as need be.

You should divide your dollar into five parts.
1. Charity – 10%
Nothing helps more than knowing you can help others. Be it through church or other organizations. Life is more than just thinking of yourself.
2. Savings – 10%
Short term or long term goals will never be accomplished if you do not save for them. This also reduces debt and other anxieties. Nothing fills you more with hope, than knowing you can accomplish a dream.
3. Investments – 10%
This is geared towards retirement plan. Sure 10% of a dollar sounds insignificant, but add it up after a few months and you can start investing for your future. There is a story of a man who earned $30,000 a year and retired with $70 million.
4. Emergency fund – 10%
This is my add on. This is to deal with those unexpected surprises life loves to throw at us. Things happen, the fridge breaks, car gets a flat or something like that. This insures that if a surprise happens you don’t have to touch your savings or investment fund.
5. Daily living – 60%
This amount is used for daily living. The bills, the expensive Starbucks coffee my wife loves so much and so forth.

What to do with your dollar

I know, you want to believe it is not enough, but it is. We have to learn to live within our means. We all have dreams and the only ones who achieve their dreams are those who plan for it and effectively execute their plan. Another fact is that you should also be growing your income through whatever investments you begin to dabble in. This is more technical but the next step in what to do with your dollar is to build secondary sources of income (passive income, investments, business, and etc.).

Now before you go off on how you can’t live like this you have to remember that this is a guide and a teaching tool for those starting out. This is a way to form good money management skills for children and teens to learn. If you are an adult I understand that you already may be in a financial bind and your thinking it can’t be done. Trust me, I understand. But if you want things to change for the better, you have to change the way you do things. Sometimes this requires sacrifice, commitment and courage.

Watch the video below and Jim Rohn will do a better job of explaining in detail how this works.

What to do with your dollar

I tried explaining this to my twelve year old and he said – “but then all my money is gone”.
It took a while but he somewhat got it.

Leave a comment below!
Let me know what you think of my addition to Jim Rohn’s helpful money managing tips.

What to do with your dollar


Happy, crazy loving father of two who believes the world is a bit off kilter. I spend a lot of time trying to teach my children to be better than me - I hope they appreciate it.

Tagged with: , , , , , , , , ,

Leave a Reply

Your email address will not be published. Required fields are marked *


Time limit is exhausted. Please reload CAPTCHA.