How to Change Your Finances in 6 Months (Starting With $0)

About this Video

• Video Title: How to Change Your Finances in 6 Months (Starting With $0)
• Channel: Austin Williams
• Speakers: Austin Williams
• Duration: 00:19:13

Introduction

This video presents a six-month plan to improve one's financial situation without requiring drastic income increases or multiple side hustles. The plan uses a free spreadsheet (linked in the description) to guide users through monthly steps focusing on awareness, budgeting, debt reduction, and investing.

Key Takeaways

1. Establish Your "Why": Before starting the plan, identify your motivation for improving your finances. This helps maintain momentum throughout the six months.
2. Awareness & Assessment (Month 1): Record all income sources and meticulously track every expense for 30 days to understand your current financial reality.
3. Cutting Back & Budgeting (Month 2): Analyze expenses, identify areas to cut back, and create a sustainable budget allocating every dollar to a specific purpose (savings, debt payments, etc.).
4. Financial System Structuring (Month 3): Organize banking into separate accounts for spending and saving. Automate bill payments and savings transfers, and establish a weekly financial check-in ritual.
5. High-Interest Debt Attack (Month 4): List all debts, choose a payoff strategy (snowball or avalanche method), and begin aggressively paying down high-interest debt while making minimum payments on others.
6. Investing (Month 5): Learn about compound interest, index investing, and different investment account types. Open an investment account and make your first investment.
7. Long-Term Goals (Month 6): Set clear, measurable, and time-bound financial goals, creating a roadmap for future success.