How To Change Your Finances In 6 Months

About this Video

• Video Title: How To Change Your Finances In 6 Months
• Channel: Steve | Call to Leap
• Speakers: Steve
• Duration: 00:14:46

Introduction

This video presents a six-month plan to improve personal finances. Steve, a former public school teacher and current personal finance instructor, guides viewers through a step-by-step process to gain control of their finances, stop living paycheck to paycheck, and build wealth.

Key Takeaways

• Month 1: Own Your Numbers: Calculate take-home income, debt, essential spending, discretionary spending, and savings/investments. Use budgeting apps or spreadsheets to track finances.
• Month 1: Save $1000 (or one month's essential expenses): Prioritize saving, even if it requires temporary cutbacks on non-essential spending. View saving as purchasing freedom and peace of mind.
• Month 3: Eliminate High-Interest Debt & Build an Emergency Fund: Use the debt avalanche (highest to lowest interest rate) or debt snowball (lowest to highest amount) method to tackle debt. Establish a 3-6 month emergency fund in a high-yield account.
• Month 4: Transition from Saving to Investing: Take advantage of employer-matched retirement contributions. Invest in low-cost, diversified index funds or ETFs in a tax-advantaged account like a Roth IRA. Avoid risky investments like meme stocks, penny stocks, or cryptocurrencies.
• Month 5: Learn New Skills & Increase Income: Explore online resources (YouTube, ChatGPT) to learn in-demand skills, increasing income streams through freelancing (copywriting, social media management, tutoring, etc.).
• Month 6: Automate & Set Higher Goals: Automate bill payments, savings, and investments. Regularly review and adjust your financial plan to reflect changing circumstances and increased income. Incrementally increase savings and investment goals over time.