DMD 011: Beat stress with intentional spending

Master these simple monthly spending habits to gain that feeling of control.

Welcome to issue #011 of DMD.

Last week I was speaking several times in beautiful Boise, Idaho. After asking the audience of mostly 19-25 year olds to give me a wish list of what they wanted to learn from me, a sharp 22 year old named Kelsey quickly replied, “I make good money per month as a server but I spend it as fast as it comes in. How do I become a better spender?”

I know this experience is not unique to Kelsey so here’s the money moves below you can make now to take control of your spending and manage your money with confidence.

Money Moves

1. Track Your Expenses

Start by knowing exactly where your money goes for 30 days. Use a budgeting app or simply a spreadsheet to track every dollar spent. This isn’t just about catching the big expenses; it’s the little purchases that often add up. By the end of the month, you’ll have a clear picture of your spending patterns and can identify areas for adjustment. This really does work.

2. Set Spending Priorities

Align your spending with your values and goals. What’s most important to you? Maybe it’s travel, health, advancing your education, learning a new skill or saving for a house. Prioritizing these goals helps you manage your discretionary spending so you can allocate funds to these areas without guilt or stress.

3. Create Digital Envelopes

Start by creating at least three named savings accounts (digital envelopes) with your bank or credit union. Perhaps you name them clothes/shoes, travel and car repair savings accounts. Automatically transfer money into these named accounts each month. What is left over after your fixed costs of rent, utilities, car payment, car insurance, cell phone bill, subscriptions, giving, etc. is likely for food and entertainment. This is where most overspending happens and you will know by tracking for a month.

4. Review and adjust monthly

At the end of each month, review your spending against your budget. Celebrate areas where you stuck to your goals, and honestly assess where you didn’t. Understanding why you overspent can help you adjust your strategies or budgets for the next month, refining your approach continually. With this newfound awareness, you can begin to adjust your budget as your income grows and begin to feel a lot of financial control.

stock prices on a phone

Markets update (stocks and crypto)

• The S&P 500 (where most of the stocks in your ETF’s and mutual funds are located) is down 8% so far in 2025. It was down more than 12% just days ago so starting to see an uptick.

• The Nasdaq (which has a heavy concentration of tech related stocks) is down nearly 13% so far in 2025 but off its lows like the S&P 500.

• Stock in focus: DoorDash (DOOR) - The food delivery giant’s stock has risen 38% over the last 12 months and 202% over the last 2 years.

• Bitcoin trades around $86,000 and is 10% down YTD and is about 22% from its all time high (ATH) of $109,000.

• Top alternative cryptocurrencies Ethereum, Solana, XRP and Chainlink trade at $1,606, $127, $2.11 and $12.34 respectively with the total crypto market cap just under $2.75 trillion - about $1.1 trillion from an ATH.

Word of the Week - Liquidity

Definition: Liquidity refers to how quickly and easily an asset can be converted into cash without affecting its market price. High liquidity means an asset can be sold rapidly with minimal loss of value.

Importance: Understanding liquidity is crucial for managing personal finances because it affects your ability to cover expenses and emergencies. Investments vary in liquidity; for instance, stocks are generally more liquid than real estate. Knowing the liquidity of your assets helps in planning cash flow and making informed financial decisions.

Practical Example: Suppose you have a sudden medical expense. Savings in a checking account (highly liquid) can immediately cover the cost, whereas selling real estate (less liquid) would take much longer and could potentially require a price reduction for a quick sale.

Incorporating “Liquidity” into your weekly financial vocabulary encourages a deeper understanding of asset management and helps you make decisions that align with your immediate and long-term financial needs.

Side Hustle Differently - Mobile Car Wash and Detailing Service

Overview: A mobile car wash and detailing service provides convenience to clients by offering to clean and detail their vehicles at their home or place of work. This service appeals especially to busy professionals or those who value their vehicle’s appearance and maintenance but lack the time to get it done themselves.

How to Get Started:

1. Gather Supplies: Invest in high-quality cleaning supplies, including soaps, waxes, interior cleaners, microfiber towels, and a portable vacuum. Optionally, consider a waterless wash product for areas with water use restrictions.

2. Pricing: Set competitive pricing for basic washes, detailed cleaning, and premium services like waxing.

3. Marketing Your Services: Create eye-catching flyers and business cards. Use social media to showcase before and after photos of your work. Local online community boards and word of mouth are also powerful tools.

4. Mobile Booking: Use a simple booking system or app that allows customers to schedule appointments. This adds convenience for your clients and helps you manage your schedule efficiently.

5. Offer Package Deals: Include various service packages, such as monthly or quarterly detailing subscriptions, which can ensure repeat business.

Potential Earnings: Charging $50 to $100 per detailing session depending on the service level and vehicle size can quickly add up. Servicing just two cars per weekend could net you an additional $400 to $800 per month.

Why It Works:

• Flexibility: This job can be done on weekends or around a school or work schedule, making it very flexible.

• Demand: There is always a demand for car cleaning and detailing services, and providing a mobile service adds the unique selling point of convenience.

• Scalability: As the business grows, you could potentially hire other students or part-timers, expand your service area, or invest in professional equipment to increase efficiency and service quality.

This side hustle not only helps you earn a significant extra income but also keeps you active, provides the gratification of transforming a dirty car into a spotless one, and hones your entrepreneurial skills in managing a business. Let’s go!

The DMD portfolio (stocks and crypto)

I share my personal investments of stocks and crypto and if I make any changes I share why. I automatically invest weekly or monthly into my Roth IRA, SEP-IRA and one of my personal investment accounts (Acorns).

Stocks

ROTH IRA (held with Robinhood)

• I own the following ETF’s: VOO (tracks 500 stocks that make up the S&P 500 index), VTI (total stock market that tracks 4,000 U.S. stocks) and VYM (tracks high dividend paying stocks).

• I own the following individual stocks as of April 15, 2025: Marathon Holdings (MARA), IonQ (IONQ), and Robinhood (HOOD).

SEP-IRA (held with the Acorns saving and investing app) - this is my “401(k)” because I’m self-employed.

• Vanguard S&P 500 ETF (VOO)

• iShares Core S&P Mid-Cap ETF (IJH)

• iShares Core S&P Small-Cap ETF (IJR)

• iShares Core Total International Stock ETF (IXUS)

• iShares Core U.S. Aggregate Bond ETF (AGG)

Personal investment accounts (Acorns, Robinhood, E*Trade)

• Moderately aggressive portfolio (mix of stock and bond ETFs) inside my Acorns account along with individual stocks of Tesla (TSLA), Nvidia (NVDA), Stryker (SYK), Adobe (ADBE) and Visa (V). This is another long term investment account and I do not trade in this account because it does not allow you to (which is a good thing).

• MARA Holdings, Robinhood and Money Market (cash) inside my E*Trade account. Another long term investment account and I do not trade very often in this account.

Basic tenet of investing in stocks - when you automatically invest weekly or monthly into solid growth stock ETF’s and mutual funds you don’t have to worry about the ups and downs of the stock market. Time, based on historical evidence of the U.S. stock market, does the heavy lifting of wealth creation. Stocks are your primary foundational investments to winning the money game.

Over the last 150+ years the U.S. stock market has given investors about a 10.2% annual ROI. Over the last 50 years, the annual ROI has been closer to 12%. Fantastic annual returns that compound into significant wealth.

Crypto

• I now only own Bitcoin (BTC) and Chainlink (LINK).

I have strong beliefs about Bitcoin as it does represent a store of value asset like gold but even better. Unlike gold, BTC has real scarcity as there only 21 million Bitcoins available. And who knows, with the current global trade war maybe Bitcoin becomes a global settlement currency as some countries are trying to shun or work around the U.S. dollar.

Chainlink, as their website states, is the backbone of blockchain technology that continues to grow rapidly among various industries to create significant efficiencies.

Crypto is part of my high risk, high reward investment portfolio as it has the potential to accelerate my overall investment returns over time.

Partners

I’ve been using Acorns as one of my investment accounts for years. We have helped thousands of people begin their stock market investing journey with Acorns too. With over 10 million users and growing, Acorns is one the best ways for new investors (young and old) to own a diversified portfolio of stocks safely and securely. In addition to recurring weekly or monthly investing, Acorn’s “Round Ups” feature allows you to also invest your spare change into this same portfolio from normal daily purchases.

Click on the Acorns logo above or click this link to get started on your investment journey. You will receive a special $40 bonus as long as you set up at least a $5 or more weekly or monthly recurring investment.

Until next time, thanks for being a valued subscriber to DMD and choosing the path of financial rebellion to create a better life for you and others.

Please take a second to share the DMD newsletter with others to help them do money differently as well. Thank you!

Todd