Step 3: Budgeting: The Path to Financial Freedom

Making money is just the beginning. The key to financial freedom is keeping that money. The simplest and most powerful tool for this is a written budget. A budget is a plan for your money. It’s a simple estimate of your income and expenses over a set period, like a month. Instead of reacting to bills as they come, a budget helps you be proactive and take control.

Here is How It Works

1. You write down your Total Monthly Incomes.

2. You write down your Total Monthly Expenses.

3. You follow one simple rule: Your expenses must never exceed your income.

This isn't complicated. You don't need a special degree to understand it. With a little practice, managing your finances becomes a simple and joyful habit.

Here is the visual chart

Total Monthly Incomes: Assets Total Monthly Expenses: Liabilities

Affiliate Marketing comm. $4000 Mortgage. $6000

TikTok shop Aff. $5000 Electric/Gas/Lawn care $5000

Digital Products $5000 Food & Drinks $2000

D& R Digital $1000 Gas and Car payments $3000

eCommerce $10,000 Health Insurance $600

AdSense $2000 Misc $2000

Total $27,000 Total $ 18,600

$27,000 Minus $18,600 = $8,400

In this scenario, you have a positive balance of $8,400. The rule of financial freedom is that your expenses should never exceed your income. It sounds simple, yet millions of people fail to take a moment to create a budget. They fall into the category of what we call "impulsive buyers."

Impulsive Buyers

Millions of people struggle to manage money. You probably know a few of them—those who rush to buy whatever they want as soon as they have cash. They fall into the category of impulsive buyers.

Impulse buying behavior refers to the spontaneous and unplanned purchases driven by emotions rather than rational decision-making, often resulting in immediate gratification.

Studies developed by Meena (2018) show that from a young age one begins to have a preference for one product/service over another, as we are confronted with various commercial stimuli that shape our choices.

The sales promotion has become one of the most powerful tools to change the perception of buyers and has a significant impact on their purchase decision (Khan et al., 2019). Advertising has a great capacity to influence and persuade customers and can cause changes in behavior that affect the consumer's purchase intention.

You don’t have to fall into this pattern anymore.

Once you understand how money works, you won’t feel the need to buy everything you want. You understand the difference between Assets and Liabilities and learn how to build wealth that lasts for generations.

Always prioritize paying yourself first.

Set aside 20% of your gross monthly income and allocate it for Step 4.

👉Step 4: Financial Vehicles for Wealth Generation