Sal Fiorilli
Design Financial Freedom Coach
Certified Ramsey Solution Financial Coach
Disclaimer: Please Read
The information provided in this resource, "Our Road to Financial Freedom" is intended for educational and informational purposes only. While we strive to offer accurate and up-to-date content, the financial strategies and advice presented herein are general in nature and may not apply to every individual’s specific circumstances.
The authors and publishers of this ebook are not licensed financial advisors and do not provide personalized financial advice. All financial decisions should be made based on your own research and, if necessary, consultation with a qualified financial professional.
The content in this ebook does not constitute financial, investment, legal, or tax advice and should not be relied upon as such. We make no guarantees regarding the outcomes or results of implementing any of the strategies discussed. Any financial actions you take are at your own risk.
By using this ebook, you agree to hold harmless the authors, publishers, and any affiliates from any claims, losses, or damages arising out of the use of the information provided.
Always perform your own due diligence and consider seeking professional guidance tailored to your personal situation before making any financial decisions.
Note: Some of this information coincides with Dave Ramsey’s Baby steps. However, some of our information is different.
Follow Our Financial Freedom Path:
Step-by-Step
Follow Our Financial Freedom Path: Step-by-Step
Welcome to Financial Freedom Path
How to Read & Use This Resource
WHY People Fail to Achieve Freedom
Step 2: Set Up Monthly Cash Flow Plan
Step 4: What's Monthly Difference?
Step 7: Eliminate Debt (Debt Snowball)
Step 8: Build Emergency Savings
Welcome to Financial Freedom Path
Welcome! This our Financial Freedom Path and the way we your step-by-step guide to achieving financial independence! Here, you'll find no fluff, extra jargon, or theory— just the facts you need to take control of your financial future.
Our approach is straightforward and practical, providing you with clear, actionable steps to
manage your money, eliminate debt, and build wealth.
Whether you're just starting out or looking to refine your financial strategies,
our path is designed to empower you with the knowledge and tools to succeed.
Begin your journey to financial freedom today and take the first steps toward
a more secure and prosperous future.
One last note. To really know how to achieve financial freedom,
you MUST take necessary time to do each step (and micro step) before moving
on to the next big step.
Each micro-step builds, and you will not know the answers to future steps without completing the each prior micro step.
How to Read & Use This Resource
We help people just like you, get on the right path, beginning with the most important elements in the PATH first.
Once we complete the first task, then we move to the next.
Each task reveals information we need to go on to the next task.
The information (numbers and figures in terms of dollars) helps us to make more informed decisions about what to do next.
Are you ready to learn about OUR PATH?
WHY People Fail to Achieve Freedom
I want to get right to the point. The #1 reason financial freedom eludes so many is...
No planning or poor planning.
Not their job, the economy, or inflation.
These do matter, as it can make financial freedom easier or faster.
But consider this. If you began your journey to financial freedom with a proven plan when you first started working, would you likely be there today?
I would say, yes!
But, without a wise plan, you likely made many, many mistakes along the way that made it very difficult or not possible for you.
Consider this over the years:
- Money wasted on needless purchases
- (Increasing) credit card debt
- (High) student loans
- Don’t know how to save
- Don’t believe financially freedom is possible
- Undisciplined monthly spending
- Expensive vacations
- Paying for things you couldn’t afford
- Spending money as soon as you got it
See what I mean?
This isn’t even an exhaustive list.
But, it reveals a common thread.
You never had a real plan for your money.
So now you know you need a plan.
And that PLAN is a path.
And that PATH is, our roadmap to Financial Freedom that we teach here at Design Financial Freedom.
This isn’t the only way to achieve financial freedom. But, for most people, it’s the smartest way we know how to teach it.
Follow this Path Step-by-Step
Before we begin, I want to remind you that there is NO SINGLE WAY to achieve financial freedom.
And, in no we are we suggesting that our way is the only, or even the best way.
Rather, we are outlining the step-by-step process we use to coach and guide clients toward their financial freedom, one step at a time.
However, I want re-iterate in very clear terms, that these steps MUST be followed sequentially, in the exact order I give them.
That’s because the information and experience gained in each step lays the next step in the ground work to make financial freedom possible.
Let’s begin...
Starting a journey without knowing your location is like setting sail without a map—you might end up anywhere, BUT where you want to be.
Step 1: Assess Where You Are
We wouldn’t know if, how or when financial freedom is possible, without first assessing a few core things.
In order to get to the point, over these next 3-6 months, you will need to take time needed to get your finances organized, and accurate predict your financial situation (to the best of your ability).
And, we’re gonna tell you how.
For right now, assessing where you are means...you must mentally commit to taking action starting today.
Step 2: Set Up Monthly Cash Flow Plan
A cash flow plan (some call it a budget) simply tells you where your money is/should go each month.
I recommend using Google Sheets.
List all MONTHLY expenses in one column.
Amounts in another column.
Make sure you leave nothing out.
Check and check again.
Popular cash flow may categories include:
- Food
- Mortgage/ Rent
- Utilities
- Daycare
- Insurance (list each one)
- Shopping, Amazon
- Transportation
- Loans and Credit (list each one)
- Miscellaneous (anything unplanned for)
Discover the perfect financial budget planner tailored to your needs and start your journey to financial freedom today!
Step 3: Track 3 Months Expenses
However, just as important is the plan itself, you need a way to track variable monthly expenses. There are purchasing decisions eating up your dreams!
Track every bill and expense. Do this for 3 months to get a realistic average for each variable expense. Continue after 3 months to stay on track!
If you want to save yourself time each month to go through your checking account expenses for things you bought, I recommend Quicken Simplifi.
Track every expense for things like: food medical prescriptions, co-pays, and Dr. visits, gas, online shopping, Amazon, and anything else that comes up. Update these numbers on your Cash Flow Plan.
Unplanned and untracked expenses are like financial termites—they silently munch away at your dreams of freedom before you even notice they're there.
Step 4: What's Monthly Difference?
If you followed the first 3 steps, you should have set-up a MONTHLY cash flow plan.
The monthly cash flow plan should have category line items, with allotted dollar amounts next to each category.
For the past 3 months, you should also have tracked and updated your cash flow plan to ensure you have a realistic monthly average for ALL VARIABLE EXPENSES. Remember, fixed expenses don't change, so those number remain constant.
Hopefully, during the 3 month process and experience, you learned where your money is really going.
Or, how much money is going to (unplanned or additional) expenses you didn’t realize or expect.
At this point, you should be able to look at your monthly expenses and income to take the next step.
Task 1: Assess Your Monthly Income
You need to look at your paystubs.
What is your monthly take home pay (net income)?
If you earn tips or bonuses on a consistent basis, you can add these ONLY if it’s reliable and you already count it as material income you need to pay the bills.
Otherwise, write down those bonuses or whatever inconsistent income and set that number aside for now.
Come up with that total monthly income right now.
Task 2: Monthly Difference
What is THE difference between how much you earn in contrast to how much you actually spend per month.
Are you short?
Are you breaking even?
Do you have a surplus of sorts?
Write down the monthly difference (whatever it is).
Whether facing a shortfall, break-even, or surplus each month, your financial status provides crucial insights into how slow or fast your financial freedom is possible.
It also tells you where ANY surplus funds can/should go to expedite the process in the wisest manner.
Step 5: What's Next?
Once you know how much you have (or don’t have) leftover at the end of the month, you know have the ability to make the wisest decisions to advance your goal of financial freedom.
There are 3 scenarios here. I’ll briefly address each one.
Scenario 1: Over-Spending
Which expenses should you cut out? Subscriptions are first to go. Are food expenses staying within budget?
Scenario 2: Breaking Even
Can you earn extra income to provide at least a $1,000 - $2,000 safety net to keep in the bank just in case.
Scenario 3: Monthly Surplus
Great! I’ll talk about this in the next step.
Mastering financial freedom isn’t necessarily about having more money—it's about directing your funds where they’ll work hardest for you.
When you direct funds intentionally and systematically, your efforts and goal of financial freedom will be attained.
Where Surplus Funds Should Go
If (or when) you are in the category of MONTHLY SURPLUS, you can really start making progress toward financial freedom!
Surplus funds can be extra income:
- after expenses paid end of month
- bonuses
- tax refunds (of sorts)
- 2nd job
- gift money
- job raises
- any unexpected income
A sinking fund can turn financial setbacks into minor detours, not dead ends.
A well-maintained sinking fund is a silent partner in your financial stability.
Step 6: Set up Sinking Fund
A sinking fund finances large yearly expenses, or big ticket items such as:
- Birthday gifts
- oil changes
- car repairs
- larger medical bills
- anything additional your monthly cash flow miscellaneous money can’t cover
Pre-Fund Savings
Ideally, you want to PRE-FUND the account with $2,000. If you get an unexpected tax refund, this could be just the place to put this money.
Monthly Auto-Draft Savings
I recommend auto-drafting at least $100 per month for this account. Why? Because it will be depleted and you’ll be strapped to pay for these big ticket expenses.
This should be a separate checking or savings account from your regular checking or savings account. Take $100 and go open it today.
A solid 3-6 month savings reserve transforms stress into security, providing the assurance that you're prepared for whatever comes your way.
Step 7: Eliminate Debt (Debt Snowball)
Allocate extra funds to pay off your smallest as fast as possible. Then, add that minimum payment from debt 1 to the minimum payment of debt 2 + Surplus funds, and so on...
Repeat, by adding new surplus amount to the next largest debt, until all non-mortgage debs are paid of. Can you see how you can be debt free in just a few years?
When all debt is eliminated, you’ll gave yourself a guaranteed raise!
Here's what it looks like each Month, when you apply your monthly surplus and debt minimum payment to the next debt.
Surplus + Debt 1
Surplus + Debt 1 + Debt 2
Surplus + Debt 1 + Debt 2 + Debt 3
Surplus + Debt 1 + Debt 2 + Debt 3 + Debt 4
Surplus + Debt 1 + Debt 2 + Debt 3 + Debt 4 + Debt 5, etc.
Can you see the power of this?!?
Not to mention, all along while you are putting all your surplus to attack 1 debt at a time, you continue knocking down the principal of the other debts until it's that debt's time to get paid down/off.
Discover the perfect debt snowball plan to pay off all your debts, and take the first step towards financial freedom!
Step 8: Build Emergency Savings
Now that your debt is paid off, now it’s time to stop living paycheck to paycheck.
How?
By having a large safety net of 3-6 months in the bank!
With the economy, unexpected pandemics, inflation, stagnating wages (among other factors), there has never been more critical time for EMERGENCY SAVINGS.
Think of all the years we splurged on keeping up with the Jones’, when we should have been thinking like Rockefellar.
We spent money on luxury items, rather than saving for unexpected economical times of hardship.
But here’s the good news. Those days are over. Now that debt is gone, we can start saving to avoid the financial stress we were once subject to.
One last thing. It's my opinion that once you pay off debt, you should build this 3-6 month emergency savings as fast as possible.
You might be thinking, "isn't it better to put that newfound money into the stock market?
Perhaps build your retirement nest egg?
But, that money isn't liquid (cash). In the event of another economic hardship, you won't have access to that money. That means you'll be back to using credit cards and taking on debt (once again).
And that after you worked hard to eliminate all your debt.
Not to mention that if the stock market goes thru a Global Financial Crises like 2008, you could be in trouble!
- According to a study by the Urban Institute, retirement accounts in the U.S. lost nearly $2.7 trillion in value between 2007 and 2008.
- The average 401(k) retirement plan lost nearly 20% of its value in 2008 alone.
- Households nearing retirement (ages 55-64) saw their retirement assets decline by about 25% during the crisis.
Every small victory in the debt snowball journey propels you closer to a life of financial freedom and peace of mind.
Eliminating debt with the snowball method isn't just about numbers—it's about building confidence and discipline to secure a debt-free life.
Step 9: Two Peace of Mind Accounts
I’m going to present to you additional “peace of mind” savings accounts. Each of these accounts are separate from your regular checking or savings account.
These 2 accounts provide emotional, mental, and even marital benefits.
That’s because each account allows you (and your spouse and children) to have things to look forward to while you are paying off debt and moving toward financial freedom.
However, you should not open these accounts or set any monthly money for these until after your debt snowball plan in firmly and completely in place!!
This means you:
- mathematically know when last debt is paid off
- stay on track with monthly surplus + minimum payments
Account #1: Holiday Fund
Depending on your debt free goals and available monthly funds, auto draft $50-$100 per month for Christmas or holiday gifts. That way, you’ll never charge Christmas gift again, while having money is a separate account for ALL holiday gift purchases.
Account #2: Vacation Fund
Depending on your debt free goals and available funds, auto draft $200-$400 per month for a yearly vacation. When you see that money growing in your Vacation fund account, it gives you the joy of planning a vacation you/your family can look forward to - without wondering where the money will come from, or feeling stressed about debt.
Remember, these 2 accounts provide peace of mind to you because they are separate accounts designated only for these purposes. Plus, according to your debt snowball plan, you already know the month you’ll be debt free, so enjoy!!
A HOLIDAY PEACE OF MIND ACCOUNT is not just about saving money, but also about preserving the joy and tranquility of the holiday season.
A VACATION PEACE OF MIND ACCOUNT turns your travel dreams into stress-free realities, giving you the freedom to explore without financial worries.
Step 10: Increase Your Income
Let's recap here...
- you know your monthly expenses (and current reliable monthly income)
- you know if your short, breaking-even, or have a surplus of funds, esp. on a monthly basis.
But, you may be thinking, "how do I acclerate my paying off my debt, increase my savings, and even fund my retirement faster?"
Increase your income.
Here are things you can do to increase your income:
- Side Hustles: Take on a part-time job or freelance work in areas such as writing, graphic design, tutoring, or driving for ride-share services.
- Sell Unused Items: Declutter your home and sell items you no longer need on platforms like eBay, Craigslist, or Facebook Marketplace.
- Online Gigs: Participate in online surveys, testing websites, or becoming a virtual assistant.
- Rental Income: Rent out a spare room on Airbnb or lease out storage space.
- Investing: Invest in stocks, bonds, or real estate to generate passive income.
- Monetize a Hobby: Turn your hobbies or skills (such as photography, baking, or crafting) into a money-making venture.
- Teach or Tutor: Offer tutoring services or teach a skill you are proficient in, either online or in person.
- Work Overtime: If possible, work extra hours at your current job to increase your paycheck.
- Affiliate Marketing: Promote products or services through affiliate marketing on your blog or social media channels.
- Create and Sell Digital Products: Develop and sell digital products such as eBooks, courses, or printables online.
Remember, these 2 accounts provide peace of mind to you because they are separate accounts designated only for these purposes. Plus, according to your debt snowball plan, you already know the month you’ll be debt free, so enjoy!!
A HOLIDAY PEACE OF MIND ACCOUNT is not just about saving money, but also about preserving the joy and tranquility of the holiday season.
A VACATION PEACE OF MIND ACCOUNT turns your travel dreams into stress-free realities, giving you the freedom to explore without financial worries.
In Conclusion
By following this step-by-step plan, you’re well on your way to achieving true financial freedom.
Each action you take builds a stronger foundation for your future, bringing you closer to your goals.
Don’t wait to start transforming your financial life – take the first step today and discover your personalized path to financial freedom!
P.S. Find out if you're a good fit for financial coaching and start your journey to financial success today!
We empower you— with a clear curated content path with practical steps, and expert advice to achieve financial freedom in the shortest time possible.
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