The First Three Steps to Financial Freedom

It may seem counter-intuitive to discuss the first three steps to financial freedom in a single post, but I think there is a great reason to do just that:

It takes the same intensity, focus, and efforts to achieve each of these babysteps and you do not slow down until they are all complete!

The First Three Steps to Financial Freedom

As we continue our Financial Freedom Book Club discussing The Total Money Makeover, we must understand the driving force behind our big picture goal: financial freedom.

If you’ve finished the book by now, you read about how Dave says many people stop before completing the babysteps, failing to pay off their home. He compared this to marathon runners hitting the wall about mile 18 and beginning to think, “This is pretty good, most people wouldn’t even make it this far.”

When we start our Total Money Makeover, we need to be committed to work the first three babysteps with the same intensity and focus until they are all done.

I believe there are a few key points from the book we must follow in order to make this successful.

  1. Plan a budget and have a complete list of all debt in order to begin
  2. Work with gazelle intensity to complete babystep 2 in approximately 18-24 months
  3. Consider selling larger tickets items if they will cause babystep 2 to take longer (expensive cars)
  4. Understand completion of babystep 3 is just the beginning of financial freedom and requires the same gazelle intensity

Let’s talk about that gazelle intensity. What made you pick up this book or seek out answers for changing your financial picture? For many of us who have debt, it often relates to being sick & tired of being sick & tired!

  • Tired of knowing our paycheck is spent before it ever hits the bank.
  • Sick of hearing from our spouse (or saying to them), “We can’t afford that.”
  • Tired of wondering when we will begin making “enough” to travel to the places we really want to see.

When you reach that point, the point where you know something’s gotta change,you’ll be content even if things don’t turn out as you planned because at least you tried to do something about it.

That is the intensity we need to carry with us all the way through the first three babysteps and Dave knows our steam is only going to hold out for a while!

So let’s take some time to look at this month’s budget and track our expenses by this weekend. We can complete our new monthly budget before the first of the month. Then, use an online tool or calculator to determine how long your debt pay off will take.

If we want to go after this step as hard and fast as possible, it’s time to take action. Work extra hours, sell anything we don’t absolutely love or can’t replace, and edit the spending categories each month to help direct as much income as possible to paying off all consumer debt.

Soon I’ll be sharing ideas on how to generate snowflakes, extra or unplanned income to help get the snowball rolling and send our debt flying down the hill. I’d love to add yours to the list so comment below or join the discussion over on Facebook.

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