Have you ever noticed how some people seem to have their money life all figured out? They’re not different, I did the same for my wealth planning, you can also follow these seven manageable baby steps to achieve your financial freedom.

1. Track and Budget Your Monthly Expenses

Let’s be honest – most of us have no clue where our money vanishes each month. That coffee runs, those random Amazon purchases, and the “I deserve this” add up faster than you’d like to admit. 

Start by playing detective with your spending for a month. Grab your bank statements, and credit card bills, or just jot down every penny you spend in your phone’s notes.

Create a budget that works for your life – Just make sure the purchases you make fit into your bigger financial picture. The goal isn’t to become a miser; it’s about spending mindfully on what truly matters to you.

2. Avoid Lifestyle Inflation as Your Income Grows

Remember when you got your first raise and thought, “Finally, I can upgrade my life!” Next thing you knew, that extra money vanished into a fancier apartment, a newer car, or a pricier wardrobe. That is lifestyle inflation, when your spending rises to match (or exceed) your growing income.

Here’s a smarter way I used to overcome it: whenever your income jumps, pretend it didn’t. Keep living like you did before, and funnel that extra cash into savings or investments. Sure, treat yourself to something nice – you’ve earned it! But don’t let every raise become an excuse to upgrade your complete lifestyle.

3. Build an Emergency Fund

Building an emergency fund is important, as life can be unpredictable. Your car can die right after you pay for a vacation, or your pet needs emergency surgery the same month your rent goes up. 

Start small if you need to – even $1,000 can save you from a minor crisis. Eventually, work your way up to 3-6 months of living expenses. Keep this money somewhere boring but accessible, like a regular savings account. 

Now the hard part here is to pretend this money doesn’t exist unless there’s a real emergency.

4. Stay Debt-Free by Avoiding Unnecessary Loans

Trust me credit cards and loans can make it feel like you’re living the dream until the bills start piling up. The truth is, most of us fall into debt buying stuff we don’t need, with money we don’t have, to impress people we don’t even like. 

Before you swipe that credit card or sign up for another loan, I need you to ask yourself: “Do I really need this, or do I just want it right now?” If it’s not essential (like groceries or medicine), wait 24 hours before buying. You’d be surprised how many “must-haves” become “maybe laters” in 24hrs. 

And if you already have debt? Make a plan to knock it out, starting with your highest-interest loans first. Freedom from debt payments feels better than any purchase ever could.

5. Automate Your Savings and Investments

Let’s face it – we’re all busy, and sometimes saving money falls to the bottom of our to-do list. That’s where automation comes in play. Think of it as putting your savings on autopilot. Set up automatic transfers that move money to your savings account the day after your paycheck hits. When you never see that money in your checking account, you won’t be tempted to spend it.

The key is consistency. As you get used to living on less, gradually increase the amount. Before you know it, you’ll have a nice chunk of savings without feeling like you’re sacrificing your daily lifestyle. Remember, it’s not about how much you start with – it’s about making it a habit.

6. Start Investing for Retirement

I know I know – retirement feels like a lifetime away, especially when you’re juggling current expenses. But here’s the thing: time is money when it comes to investing. The earlier you start, the harder your money works for you, thanks to the magic of compound interest.

If you have a low income like I did, you can start with 1% of your paycheck and increase it by 1% every few months or quarters. You’ll barely notice the difference in your take-home pay, but your future self will have a much bigger nest egg to enjoy.

7. Create Multiple Income Streams

Relying on just your day job for income is like putting all your eggs in one basket. It’s risky, but don’t worry as creating additional income streams doesn’t mean you need to launch the next big startup or become a social media influencer overnight.

Start small and play to your strengths. Maybe you’re great at graphic design and could pick up some freelance work on weekends. Or perhaps you’ve got a spare room you could rent out occasionally. 

Even selling stuff you no longer need can become a decent side hustle. The goal is to have money coming in from different sources, so if one stream dries up, you have a backup. Plus, there’s something incredibly satisfying about making money from something you enjoy doing.

Remember, financial freedom isn’t about getting rich quickly, instead it’s about making smart choices consistently over time. Take these steps one at a time, and don’t be discouraged if you slip up occasionally. What matters is getting back on track and being consistent.

Stay Financially Aware Stay Financially Secured!