how to manage your money? take control over your finances?never go broke again?

If you give me 10 to 15 minutes of your

time today I can show you how to manage

your money so you will never go broke

again if you can pause what you're doing

out of your busy schedule and just give

me your attention I can show you how to

manage your money so you will never have

to worry about your car breaking down

paying bills on time or losing your job

and I'm not even going to ask you

anything in exchange just that one penny

for reading

this article deal maybe even read it two

times and pay me two pennies but anyways

in this article  I want to share a

five-step plan in order to break away

from the paycheck to paycheck life a

plan where you can take control over

your finances and don't have to worry

constantly about money and this is not a

get rich quick side hustle Article where I

tell you to befriend an old person

online now this is actually a practical

article where you can apply everything I

say in your life and over time if you

manage your money this way you will

never have to worry about going broke

again so here is my five-step plan to

managing your money so you will never go

broke again

step one understand exactly why people

are living paycheck to paycheck

I want to start this BLOG off just by

saying that money isn't random it isn't

evil it's not out to get you money is

just basic math and I am sure that you

understand basic math so I just want to

start by getting you to understand

exactly why people are living paycheck

to paycheck because it's so simple now

99 of people in this world will trade

their knowledge skills in labor at a job

in exchange for a paycheck then they use

that paycheck for the first round of

spending on big payments like bills rent

and groceries and after that there's a

much smaller amount of money left over

that smaller amount of money goes

through a second round of spending on

extra things like Amazon eating out in

ice cream and after all that spending

there is no money left over so they have

to do it over again work make money

first round of spending smaller amount

of money second round of spending no

money

over and over most people live their

lives this way most people don't

understand that this is not a

sustainable way to live because for

example what happens if you lose your

job well money stops coming in and the

entire thing collapses

and even if you have a 10-year job where

you think you never have to worry about

losing your job it's just a vicious

circle where things never get easier and

there's no light at the end of the

tunnel you can't live your life this way

this is just existing it is not living

you need to get out of this way of

thinking and develop a more sustainable

plan so now I want to talk about exactly

how to develop that plan and let's start

with the basics

step two adopt a Frugal mindset

one thing that I preach over and over

again in my channel is that being Frugal

is not about pinching pennies and

depriving yourself but frugality is

managing your money in a way where

you're not depriving yourself nor

wasting anything

most people could save so much money and

create a much more sustainable lifestyle

if they just adopted Frugal habits and

cut their wasteful spending so let's go

back to the Chart I just showed you and

adopt some Frugal habits and see how it

changes the flow

so just like before they work make money

but now they've adopted more frugal

mindset and they choose to move to a

smaller house where they don't have a

bunch of extra space they get a cheaper

car with a smaller payment and they take

steps to lower some of their bills well

because they did that they now have more

money left over in the second round so

they use their superhuman Frugal habits

and cut out wasteful spending on the

smaller expenses like stop eating out so

much cut down their Amazon shopping and

only get ice cream three times a week

and in the end they have some money left

over

you see how much of an impact the tiny

decision of being Frugal and cutting

wasteful spending made on the flow

because they were making intentional

decisions to lower their expenses at the

end of the cycle they even had a little

bit of money left over before the next

paycheck in this step alone isn't gonna

change your life but it's a good place

to start it's the first step in getting

out of the paycheck to paycheck life so

now that we talked about this basic

thing let's go in a little bit more

detail and move on to the third step

step three begin establishing the

emergency fund

all right although you adopted some

Frugal habits that made you in a better

financial position you can't just depend

on frugality in order to have a healthy

relationship with money you have to

develop a plan where you're not one

paycheck away from catastrophic disaster

like 58 of Americans are

so let's go back to the chart and I'm

going to show you exactly how to do this

now just like before you work make money

but this time before you start the first

round of spending take a small amount of

money out whatever you can afford and

put it in a savings account this is

called paying yourself first and we're

going to put it towards the emergency

fund

and you need to do this to set aside a

specific amount of money every single

paycheck for this emergency fund because

what happens if your car breaks down or

you lose your job you're gonna need some

money and Santa Claus he ain't coming to

town so you put the money in the

emergency fund and you never use it

unless there's emergency got it all

right back to the chart

you work make money pay yourself first

then do the rest and over time slowly if

you are consistent this will grow and

ideally the rule of thumb is this should

be 6 to 12 months of living expenses in

case you lose your job or something

expensive comes up you have the money

ready

and because you did this simple thing

imagine if you suddenly lose your job

well because you have this emergency

fund you can just take money out of that

in the meantime to pay your bills until

you get a new job and so at this point

you're no longer 100 reliant on a

paycheck you have this emergency fund to

use in case something goes bad and so

you're slowly breaking out of this

paycheck to paycheck life and developing

a more sustainable way to live you're no

Elon Musk but you're getting there so

now let's keep moving and move on to the

fourth step

step four begin getting your money to

work for you

now once you reach enough money in your

emergency fund to cover 6 to 12 months

of living expenses

congratulations you don't need to add

any more money into that because of a

little thing called inflation

and you probably have heard of this

before but for some reason over time the

price of a Big Mac just keeps going up

there ain't no dollar menu anymore and I

don't know why this is maybe greed maybe

selfishness maybe corporate welfare I am

no Economist but this thing just happens

over time but once you finish your

emergency fund you start to get your

money to work for you you get your money

to make you more money and you do that

by opening a brokerage account and

investing in something called index

funds and I made a step-by-step article up

here of how to do that but let's go back

to the charm and let me show you exactly

how this works you work you make money

and since your emergency fund is

complete you stop putting money in it

instead you begin putting the money into

an investment account into the stock

market then over time that money will

make more money

but the thing about making money from

this is that when you make money you

don't spend it you just let it keep

growing and keep making you money

without you doing anything and this is

called passive income

it's money that you're making without

doing any work and if you look at the

chart all you have to do is put the

money in the stock market then over time

it'll make you more money and then that

money goes back into the stock market

and over time it will make more money

and so on and you can go on YouTube and

see all these people promising you that

you can make fifty thousand dollars a

month in passive income by doing these

things but in my opinion index investing

or investing in the stock market is one

of the only true forms of passive income

the other source is you're going to have

to work for like 10 years and then it'll

eventually become passive income so

let's go back to this chart and watch

the flow of this

so like always you work you make money

emerging funds complete you invest and

then continue on the rest work make

money invest

over and over in index investing or

investing in the stock market is not

going to make you rich but it is going

to grow your money and help you fight

inflation rather than just putting it in

a savings account and so if you look at

the flow of this it's a much more

sustainable plan because if you lose

your job you now have the emergency fund

to depend on and you have these

Investments

it's becoming much more sustainable you

don't have to worry about this vicious

circle of living paycheck to paycheck

and what's going to happen if you lose

your job and you no longer have a

paycheck so now that you're becoming

more financially secure let's get a

little bit creative and move on to the

final step

five get creative and continue expanding

when you become less dependent on a

paycheck by establishing an emergency

fund and investing in the stock market

options start to open up because you're

not as desperate anymore sure you still

need money but you're always going to

need money and I think that you're

always going to want to work too it's

more about doing work that you don't

despise

and so at this point in our journey you

can be a little bit more creative you

can figure out new ways to generate

income on your own terms so let's look

at the chart and see how this works an

extremely basic way is maybe a side

hustle like being an Uber driver to

bring income outside of your normal job

or you can consider starting a business

for example I make money from this

YouTube channel which I use as income

and in this day and age they are an

infinite amount of possibilities to make

money you don't need a small loan of a

million dollars from Daddy anymore you

just need to think outside the box

you have to be creative and figured out

on your own and I don't claim to be the

successful millionaire that has it all

figured out but I'm learning a lot about

this right now it is very hard to figure

out ways to make money outside of a

paycheck there's no instruction manual

but as tough as it is it is very cool to

make money without depending on a

paycheck and so that is the system of

how to manage your money without ever

running out most people's financial

situation looks like this a vicious

circle of make money spend money and

need to make more money

but a more sustainable plan looks like

this adopt Frugal habits to lower your

expenses create your emergency fund

start investing to grow your money and

start generating other forms of income

and so the system isn't dependent on one

single source of income you could afford

to go without a paycheck every now and

then because you have these other

sources backing you up and I could lie

and tell you that I know how to make

fifty thousand dollars in passive income

and you could do it too but that doesn't

help out anybody this actually works

it's slow it's boring but if you take

steps in your life today to develop a

more sustainable plan and get out of

this paycheck to paycheck Vicious Circle

you will never have to worry about going

broke again and with that.