Stage 2: Creating a Solid Plan to Control Spending and Create a Path Towards Creating Wealth

You’ve changed your mindset; now it’s time to change your behaviors and build the foundation of your Financial Freedom. To give you an idea of where we’re going, here’s an overview of the process.

The Basics of Getting Out of Debt & Building Wealth:

1. Spend less than you make
2. Cut up the credit cards
3. Start a Small Emergency Fund (Fund It As Fast as Possible!) $1K to $2.5K
4. Pay off all of your debts (Excluding Your Home)
5. Create Your Emergency Fund
6. Increase Your Income
7. Focus Your Extra Income on Wealth Building (investing)
8. Pay Off Your Home for Total Financial Freedom

That’s your road map to Financial Freedom. But it’s a big elephant, so we’ll take our first big bite now. These are the habits that you create to start crossing off your “steps to financial freedom”, very similar to Dave Ramsey’s 7 Baby Steps to Financial Freedom here.

Step 1 is to STOP THE SPENDING. Before you can begin to think about paying off your debts, you must stop spending yourself into an ever-deepening hole.