The financial story everyone needs and wants pt. 2
Recently, we shared the story of Dave and Julia’s financial redemption. It was a quick little celebration of what happens when a couple is fueled for positive and transforming change. However, we didn’t really spend time talking about how they did it. What plan did they use? How did they get out of debt? Why did they want a change so badly?
Your Freedom Plan
When I helped them put together their money plan, I called it something else. Because to them, it was more than just sorting out the dollars. It was about a new life. They needed to redefine the way they were living so that they could overcome and throw away their financial burdens. For this reason, I called it their Freedom Plan.
The foundational goals of a freedom plan are threefold:
- It gives your money a purpose.
- It reduces and eliminates your financial stressors and burdens
- It helps you live a better and more fulfilling life.
If your plan is not accomplishing those things, then it needs to be tuned and adjusted until it does!
Five parts of a Freedom Plan
We’re going to take a look at five different steps that Dave and Julia took to totally transform their financial life. But I don’t want you to just look at what they did. I want you to use these steps to create your own Freedom Plan! While the details will look different for everybody, here’s a summary of the basics every freedom plan should include:
1. A starting line
Where are you? To answer this question, you need to do what we call “facing the mirror.” You need to track your past 3 months of expenses and find out what your financial life actually looks like. Numbers don’t lie. You might think your situation is actually better or worse than it is, so you need to find out what your habits, lifestyle, and necessities are actually costing you. You will answer the question: “Where is my money going?”
Once you face the mirror, you’ll know exactly where you are. And when you know where you are, you can move forward to where you want to go.
2. A step forward
Once you figure out your starting line, you need to get your money to take you where you want to go! For your freedom plan to work, you need to give every dollar a job. Some dollars are for bills, others are for savings, and some are for fun! You can call this a budget, but it’s more than that. It gives you the ability to focus more on what you love and leave less room for stress. It is essential for every freedom plan. The more specific and thorough you are, the bigger your steps forward will be.
3. A savings plan
You need to prepare for all of the surprises life throws at you. Cars breakdown, job losses happen, and your dishwasher decides it doesn’t want to live anymore! You need to make sure you can stomach the financial punches that come your way, so you need to build up that defense.
At the same time, you also need to have some fun! So save up for all the things that you want in life. Just because you can’t have it now, doesn’t mean you can’t get it later. By making saving a part of your freedom plan, you can sleep at night while also looking forward to tomorrow.
4. A debt freedom plan
People go into debt for all sorts of different reasons, but we can all agree that it is a heavy burden to carry. In Dave and Julia’s case, they were in debt because they wanted to keep up with their friends, enjoy comforts and luxuries without waiting to save, and also because of surprises and emergencies that they were not prepared for. What started as a small monthly payment quickly snowballed into an almost uncontrollable amount. But when they made their freedom plan, they realized that they could live a life where debt wasn’t a part of it.
When it comes to your debt situation, your creditors are taking money that you work hard for. If you want to live debt-free, then you need to make a plan to pay off your debts as fast as possible by using the debt snowball or debt stacking method. If you’d like to learn more about these methods, contact us below!
5. A reason for it all
I firmly believe that you can use your freedom plan to live a financially successful, but purpose-hungry life. Because financial success can’t fulfill you, there needs to be more than just money to inspire you. That’s why your plan should help you live and give the way God intended for you. What is your purpose? What is your passion? Whatever it is He has laid on your heart, you can use your plan to accomplish it!
There are a few more parts that a well-structured freedom plan needs. You might need life insurance, exercises and conversations to get you and your spouse on the same page, and a plan for generous, impactful giving. Just like with all parts of your freedom plan, you need to customize it to your own life and situation.
What is your Freedom Plan?
Now that you know the steps Dave and Julia took to change their financial life, I hope you’re inspired to transform your own! Whether you have a question about your freedom plan or something specific such as saving (or anything else), send us a message. Keep that momentum going!
If you want to get started on your freedom plan right away, we’ve made a course that walks you through every step so you don’t miss a detail. Through videos, quizzes, calculators, and dozens of downloadable material, we’ve done our best to make it easy for you to live and give the way God intended! Click below to learn more.