Hi There!
I remember the payday rush.
The direct deposit would hit my account and for a split second, I felt good. Then, the mortgage cleared, groceries, gas, an online order I barely remembered making, something for the house, something for someone else, and in the blink of an eye, the number was gone. I would ask the same question every time:
"How is it possible to earn this much and still feel like it's nothing?"
I have sat across from enough clients to know this question is universal. The first thing I ask when we start working together is whether they know their numbers. The answer is always yes. When I ask them to actually track their money flow and come back, the session that follows is always an eye-opener. Then comes the "I had no idea it was going there," revelation.
They knew their income, have a rough idea of their expenses, but they did not know their flow.
Earning well and understanding your money flow are two separate skills.
You can earn a good salary, handle your responsibilities, pay your bills on time, show up for everyone who depends on you, and your money still feels like it evaporates. The account balance drops faster than it should, and you cannot quite explain where it all went.
This has nothing to do with discipline or how responsible you are. Nobody taught most of us how to see our money flow clearly. The tracking skill is learnt separately from the earning skill, and most people were only ever taught one of them.
Every dollar that touches your account goes to one of three buckets.
When your money feels like it vanishes, it is flowing heavily into one bucket, spending, with little or nothing reaching the other two. The flow already exists. The allocation is what needs to be adjusted.
So how do you fix this?
Most people try to fix their money by creating a budget. However, budgets fail because they start with restrictions. Instead, start with the numbers you can measure using the following steps below.
Step 1: Find out what is actually leaving your account.
Pull up your last 30 days of transactions. If you paid for any item or service in cash, including tips, add a note in your phone or notebook. Do not feel embarrass during this exercise. Just count how much dollars went to spending, how much went to saving, and the amount that went your growth accounts.
Most people doing this for the first time discover that 90% or more landed in the spending bucket. This number is your starting point. You can use the allocation chart below to adjust that percentage.
Step 2: Assign a destination before the money arrives.
When the next paycheck lands, move a fixed amount to savings before spending begins. The amount does not matter yet; the habit does. Even moving $5 or $25 to a separate account first trains your money to flow somewhere other than your spending bucket by default.
Step 3: Name one growing vehicle and put something in it.
This can be a 401(k) contribution, a Roth IRA deposit, traditional IRA, and/or a recurring investment of any size like purchasing $50 worth of Bitcoin every Sunday (hint, hint, hint). The growing bucket does not require large sums to start working. It requires consistency. Compound growth rewards time in the market far more than the size of the initial deposit.
You do not need to rebalance all three buckets at once. One change in how your income is allocated makes a big difference (as shown in the pie chart below).
Alright, let’s dig in!
The market bounced back last week.
Markets climbed through last week's uncertainty. AI momentum, a potential U.S.–Iran agreement, and cooling oil prices kept buyers engaged.
Stocks
Major indexes recovered from the prior week's tech pullback. AI-related names led the rebound, driven by a major chip deal between NVIDIA and SK Hynix, and reports that Intel will manufacture chips for Alphabet (Google’s parent company). The SpaceX IPO added to overall market optimism.
What it means for your growing bucket: When markets recover this quickly, long-term investors who stayed in benefit most. The growing bucket rewards patience. Timing the market is far harder than simply staying in it.
Inflation
Headline inflation rose to 4.2%, the highest level since mid-2023, driven by energy and transportation costs. Core inflation, which strips out food and energy, held at 2.9%.
What it means for your spending bucket:
Higher energy and transportation costs show up in groceries, gas, and everyday purchases. Inflation is why the spending bucket fills faster than it used to.
Crypto
Bitcoin gained 4.09% and Ethereum gained 5.68% on the week. More than 50% of Bitcoin's circulating supply is currently held at a loss. Historically, periods like this have often occurred near major market bottoms, though history never guarantees future results.
What it means for you: Crypto remains volatile. For anyone with exposure in their growing bucket, this week is a reminder that position sizing (how much of your total portfolio sits in any one asset) matters more than price movement in any given week.
Caribbean & Regional Update
The Caribbean Development Bank (CDB) wrapped up its 56th Annual Meeting in The Bahamas. A new US$25 million trade finance partnership was launched between CDB and The Inter-American Development Bank (IDB Invest). The Eastern Caribbean Central Bank (ECCB) policy rates held steady.
What it means for you: Easier regional trade finance can lower borrowing costs and support small business access to working capital. Worth noting for anyone with ties to the Eastern Caribbean.
On The Radar This week
One big decision lands Wednesday. Keep an eye on:
Wednesday's Federal Reserve interest rate decision is the event that will set the tone for markets this week. Most investors expect no change to rates. The Fed is likely to hold steady and monitor whether inflation continues to rise.
If the Fed holds rates, borrowing stays expensive and savings yields stay relatively attractive. If the Fed signals more hikes are coming, growth assets like stocks and crypto may face short-term pressure. Neither outcome requires action. Both are worth understanding.
Other releases arriving through the week: retail sales Wednesday and jobless claims Thursday. Friday is the Juneteenth Holiday. U.S. markets will be closed.
Quick Lesson
Income include more than your paycheck.
When people think about money coming in, the first thing they picture is their salary or hourly wage. Several other income sources arrive regularly and often go untracked.
Employer benefits with dollar value. Health insurance, retirement matching, commuter benefits, tuition assistance. These are compensation, not perks. Most people never assign a dollar figure to them. Knowing the full value of your compensation package changes how you evaluate financial decisions.
Interest and dividends. If you have a high-yield savings account, a 401(k), or any investment account, money is being added to it regularly through interest or dividend payments. Be sure to check these numbers. Income that goes unnoticed also goes undirected.
Side income and irregular payments. Freelance work, cashback rewards, tax refunds, gifts, selling items online, tips. These dollars land in accounts and fold into spending because they were never assigned a bucket. Irregular income without a destination almost always defaults to spending.
Government and program benefits. Child tax credits, HSA contributions, FSA reimbursements, government assistance programs. Many eligible people leave these unclaimed or fail to count them as income worth directing. Every dollar has a job. Assign one to these too.
A complete picture of your money starts with knowing everything that comes in, including the number on your pay stub. The three-bucket framework only works when the full income picture is on the table.
Tool Spotlight
Budget AI: A Personal Finance Planner
Tracking three buckets requires a system. Spreadsheets work, but most people abandon them within two weeks. This is the tool I have been testing instead.
Budget AI is a personal finance planning app created by Charles Forrest Jr., a colleague and someone whose work I respect. The interface is straightforward; fill in your numbers and let the tool do the analysis. No financial background required.
Two features stand out to me:
The 50/30/20 compliance tracker maps your spending, saving, and growing buckets, so you can see at a glance whether your allocation is balanced.
The Dollar Cost Averaging section connects your money flow map to a disciplined investing approach, which is one of the most underused strategies for long-term wealth building.
A built-in chat and personal finance analysis feature breaks everything down visually through tables and charts. For anyone who learns better from seeing than reading, that makes a real difference.
Visit budgetai.biz to try it.
Worth exploring for yourself, for a partner, or for introducing a young person to the habit of tracking their money early.
Follow the creator Charles Forrest Jr. on X: @TheCryptoBlack
IF YOU DO NOTHING ELSE THIS WEEK
Track your spending for three days. Write down every dollar that enters and leaves your account.
Don’t be harsh on yourself and do not guess. This is just to see where you are. You’d be amaze at how much three days will reveal to you.
Food for thought
Your money is flowing exactly as it has been set up to flow.
The question worth sitting with is whether you are directing that flow or simply reacting to it.
You are at the point where awareness needs to increase. Once you know where your money is actually going, you get to decide where it goes next.
We are going to keep making this make sense, one report at a time.
~ Rhoda
If this resonated, share it with someone who needs it.
Disclaimer: This newsletter is strictly educational. The information this report provides does not constitute investment, financial, trading, or any other advice. You should not treat any of the report’s content as such. Please be careful and do your research.
