Step one- Cut Spending Until You Can Spend Less Than You Earn Consistently
If you want to succeed at turning your financial life around, you have to be spending less than you earn. There’s no way around it. The only way to save money is to spend less than you earn and save the difference. If you want to succeed financially and be free of debts and free of money worries, it has to start by spending less than you earn and saving the difference. The more you can save, the better.
Step two-Build a Small Emergency Fund
An emergency fund is a cash reserve that you have around in case of an unexpected event that you can’t normally handle, like a car repair or a job loss. It’s not there to help you out when you overspend.
Step three-Start Building New Income Streams
What’s an income stream, you ask? An income stream is any consistent method you have for earning money. For many people, a job is their primary income stream. Many people also have second jobs, side businesses, or freelancing gigs.
Your goal here is to make yourself less financially dependent on your primary job.