#102 Budgeting & Better Leadership

Welcoming you back to January’s Personal Growth edition.

However you’re trying to improve yourself this year, it’s important to understand that there will be mistakes and setbacks along the way. But they are not failures; they’re opportunities to learn and get better. Essential steps on the path to success.

The next time you make a mistake on your quest for self-improvement, let the wise words of James Joyce (famous author) wash away your frustration:

THE HIGHLIGHTS THIS WEEK🕺 

FATTENING THE WALLET 💰️ 

• Making Cents of Budgeting

• Hustle Hub: Small Business & Side-Hustle Inspo

ELEVATING YOUR BRAND 📈 

• Did You Know That The More You Can Talk About, The Better You’ll Be at Networking?

• Cool Communicator: Instead of Micro-Managing, Be This Kind of Leader!

BOOSTING YOUR PRODUCTIVITY🚀

• A Food For Thought on DISCIPLINE

MAKING CENTS 💰️ 

When It Comes to Budgeting, Don’t Budge!

Short and Sweet: It’s all about what money’s coming in, what’s going out, and where it’s going. Paying attention to detail with regards to your finances will help you tackle your debt, afford that big purchase without stress, or finally start that Emergency Fund you’ve been thinking about.

Q&A Time:

Why should you care about budgeting? 

• The prime reason to foster strong habits, especially for our younger readers, is to help you build a financial foundation.
  
  Budgeting isn’t about having it all figured out to the exact dollar; it’s about developing traits that lead to success. Responsibility, organization, awareness - having the proper mindset with regards to how much money you have and where it’s going will help you both in your personal life and if/when you finally decide to become your own boss.

How can I make budgeting feel less like a chore?

• Here’s a suggestion - make it personal. Budget first for things you enjoy, like going out to eat, buying tickets to a concert, or planning a weekend getaway. While focusing on these fun things, figure out where you need to cut back to afford them. After you get in a rhythm, then begin to incorporate all other expenses, like essentials and bills.

What’s a quick hack to start budgeting without overcomplicating it??

• I LOVE this one (which you’ve probably figured out since I mentioned it several times last year): The 50/30/20 rule.

  • 50% of income goes to needs (rent, groceries, etc.)

  • 30% for wants (night out with your people, hobbies etc.)

  • 20% for savings / paying off debt.
    

• The key: don’t stress about being perfect - use it as a guide so you’re not simply winging it every month.

O.T.F. 
O.F.T - One Final Thought

Actionable Advice: Take 30 minutes today to try the 50/30/20 rule. When you’re done with that, create a “Fun Fund.” Think of this fund as something that you contribute to that will help you buy a new pair of shoes or finally try that new restaurant you’ve been meaning to check out.

Handling and getting control over your money can feel overwhelming, so incorporating reward systems will make it more fun and easier to stick with.

HUSTLE HUB 📈 

YOUR SUCCESS:

Get Started - Here’s the framework you need to build a successful digital business, courtesy of Entrepreneur.

THEIR SUCCESS:

Get Inspired - Two brothers started a business together; they’ve generated over $45 MILLION in just three years.

YOUR SUCCESS:

Get Prepared - Experts predict small business trends for 2025 - how can you use this knowledge to your advantage?

DID YOU KNOW🕺 

• Self-Interest: Do you know how to respond when someone’s being a jerk to you?
  

• Human Interest: Have you heard about the 2-Day Rule that emotionally-intelligent people use to make habits stick?
  

• Artificial Interest: Did you see that AI can now be used to fight health insurance denials?

COOL COMMUNICATOR 🤝 

The Power of Abstraction in Leadership

This week’s communication tip, courtesy of Fast Company, is about the power of speaking more abstractly to direct reports rather than over-communicating concrete instructions.

TL;DR Takeaways

1. “Over-explaining as leaders may stifle our power and our team’s creativity.”
   

2. “Powerful people think and speak more abstractly. They see the big picture. This big-picture view allows them to navigate new environments a set a course forward.”
   
   In this context, “power” is not talking about a position within a company, per se; it’s talking about an “individual’s belief in their own capability to create impact.” People with this strong self-belief think and speak more abstractly because they are most concerned with the vision.
   

3. “Less powerful people focus solely on the concrete details. Focusing on metrics only, for example, [they] miss the big picture. Those who focus on details are thus less suited to guide high-level strategy.”
   

4. “Harvard scientists studied what makes startup pitches successful in securing funding [and] found that pitches containing more abstract language were seen as more investment-worthy. One reason…is because they created higher perceptions of future growth…Over 70% of pitches [that the author studied] contained a vision.”
   

5. Abstract language also:

   • “wins respect”

   • helps employees “understand how they fit into the big picture,” thus allowing them to “derive meaning from their work.”

   • “empowers teams by inspiring creativity,” giving them the confidence to “test various solutions.”
      

O.T.F
O.F.T: One Final Thought

This is not to say that the details aren’t important. As we just discussed in Making Cents, attention to detail is crucial in both our personal and professional lives. This article makes it clear that those details are still important but emphasizes that leaders should delegate them to their subordinates.

For me, the main takeaway is this: leaders who “get stuck in micromanaging” are less powerful because the desire to micromanage is “derived from fear.” Fear that they haven’t communicated the company’s vision clearly enough. Fear that they haven’t built the well-oiled machine they thought they had. Fear, perhaps, that they’ve hired the wrong subordinates. And those subordinates will lose respect because of it.

Abstraction on the other hand - thinking and speaking about big-picture goals and values - builds a culture of trust, confidence, and care.

FOOD FOR THOUGHT🚀 

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Before You Go

First, my thoughts and well wishes go out to everyone affected by the wildfires in California. As someone who just moved back east from Los Angeles, this terrible tragedy really hits home. Just know that OTF stands with you, and if there’s anything we can do to help, don’t hesitate to reach out: [email protected].

Next week, we’ll be back with January’s AI Edition, with an “AI Masterclass” review, more ChatGPT hacks, and much, much more. In the meantime, we’d love to hear from you via this week’s poll ⬇️

Community Poll 💡 

The second edition of each month typically focuses on Personal Growth. With that…

Last Week’s Poll Results:

HOW MUCH DO YOU PAY YOURSELF EVERY MONTH?

• $0 - $50 - 25%

• $50 - $150 - 50%

• $150 - $500 - 25%

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