SIMPLE STEPS TO FINANCIAL FREEDOM / I started my business when I was in debt and stressed. So, how did I achieve financial independence in just a few years? In this video you’ll find my very simple steps to financial freedom and strategies that will help you become financially independent. These steps allowed me to build a multimillion dollar business and become debt free and live a better lifestyle! What I want for you is to put yourself in a good financial position so that you can make decisions from a very confident, and secure, and grounded place, because that’s only going to help you grow further and faster as well.
SUNNY LENARDUZZI: These changes have helped me save millions of dollars, and also to be honest, make millions of dollars as well. In my business and in my lifestyle, it is freed up so much financial space and headspace, and that’s allowed me to make more money.
So these are my very simple steps to financial freedom. And I wanted to share these, because I actually never really talked about the fact that when I started my business. I was not in a great financial place.
I wasn’t in a terrible financial place, but I had debt just like a lot of us do, and I needed to figure out how to get out of it while I still wasn’t making very much money at all, and I was really only be able to pay my rent.
And that was about it, entirely about, I did have some months where my parents actually helped me out with my rent. This was a couple years ago, and obviously things have changed since then, but I have never talked about how I progressed in not only in my financial journey but also my mindset around money and the habits that I’ve created for myself.
And the things that help me get into a solid financial place, which I think is so important, because the truth is if you’re not set financially you don’t have financial peace of mind, it puts you in a very vulnerable position.
And I can track back some of the worst decisions that I’ve made and the worst situations that I’ve been in to being in a financially vulnerable spot and it’s not a nice place to be. Yes if you’re excited about the video, hit that like button, be sure to subscribe if you haven’t already yet, which is kind of rude.
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And this is been my method, so lots of lifestyle changes. I’m kind of going to take you on a little like home tour to show you these lifestyle changes in the things that I’ve done, as well this is a bit of a tutorial. So if you want to grab a notebook or something to take notes during this, it will be helpful. And we have also put together, basically a checklist to go along with this video so that you can implement this into your own life as well.
So the first thing, is the first tactic I guess, is what I call runway, and it’s a very common term in business, but I actually first applied this to my personal life. So the reality with your money, and something that a financial adviser told me when I had no money, and it was probably the best advice I ever received.
They said, if you don’t save your money, and if you don’t commit to putting a certain amount of money away every month, you’ll use it. But if you save it, and if you just put it away, you do kind of forget about it. So I started by putting away like a $100 a month, I think it was and just accumulated that over a year and that was $1,200, not bad, right to save that. So how I figured out the best way to kind of set myself up for this was to create runway in my life.
Runway basically means that if my business stopped running today, I would have X amount of months in the bank to be able to pay all my business expenses and still keep the business running even if we made it no more money.
So I’m really proud to say that we’ve gotten to a place where we have over a year of runway in the business right now. So that is a massive security blanket to have for the business. And we started I remember the first time I had this conversation with a mentor and I was like, I have half a month maybe.
And it was such a panicky moments. If you’re feeling that panic, that’s okay, I’ve been in your shoes and all you have to do is do this practice first to really understand the lay of the land, because if you’re unaware about your financial situation, it’s only going to get worse. You have to give yourself that sort of cold slap of reality of what it actually looks like.
So I have this little spreadsheet, and I do this every month, you guys can take a look at it, and it basically helps me track all of my expenses. I just did this and this as an example. Like I said, there’ll be achecklistassociated with this video where you guys can download below. But its things like, okay, what are my monthly expense?
Let’s just get a lay of the land. And again, you can do this for business too, but we’re going to do this for personal, because this is how I started. So monthly expenses are rent, fruit, food, things like groceries or mail delivery, if you do something like that or meal prep, entertainment, this could be like concerts, restaurants, apps, insurance, home, health, car, gym, phone, emergency find, I do like to put this in here even though it’s not an expense.
I like to add it in because it just gives you an extra buffer and then car loan or then student loan, which is what I had and why I was in debt when I first started my business. And then I had card debt as well. So basically you also can add in here a debt free date. So you’re debt free date is your target date for when you want to pay off this debt.
So I put these in here as just examples, and the amount that you would need to put into each of these things, each of these debt places in order to hit that target dates, and the amounts that all of these expenses add up to which is $3,000, so this creates your runway. So basically it tells you that your bare minimum is you need $3,000 a month to survive, so that means that you need to save as many $3,000 months as you can. So the first thing to do is let’s just try and get one month of runway.
So you start to put away a little bit of money every month and save it and forget about it, and that becomes your runway, and your runway you will not touch, it is basically there in case something serious happens where you need a security blanket and a safety net.
Yeah the one thing that I didn’t put on here, but also is a financial game changer for me is understanding compound interest. So I also when I met with a financial advisor, when I had basically no money, they were like, let’s just get you started with mutual funds, and putting money into a place where you’re actually going to make money on your money, so basically having the interest accrue and compounds year over year.
So compound interests are a beautiful thing because your money basically makes money for you. so that’s something to look into once you do you have a little bit of runway, once you do have a little bit of security is how much could you put into, let’s say mutual find or something else that’s going to generate interest for you year over year, and month over month so that your money actually makes money for you.
Again, when it comes to that, talk to accountants, talk to financial advisors, and see what works best for you. But that was one of the best piece of advice that ever gotten I’ve ever gotten. in I started with doing like a $100 a month I think I do like $200 a week now in one of them, and then it’s a lot more in another one.
But I honestly don’t even think about it, and I stopped thinking about at the moment I started doing it, and I thought it was such a big expense at the time, but now it’s been like five years and I’ve saved a lot of money in these accounts that I just do not touch, and every month, every year they are accruing interests and so they’re making money without me doing anything, which is another form of passive income.
Okay. So that’s one of the really known these stuff. Now I want to talk to you about the next thing that I did, which is making less decisions, so reducing your decisions. That’s another big part of the financial freedom.
So one of the big things understands that with more decisions, you got in your brain space and it creates last time to actually work on the things that are going to make you money. If you haven’t watched this video on the one thing that I figured out in order to become a millionaire, and then you probably should watch that next, because I talk about the value of focusing on one thing, and this applies not just to business, it also applies to your life.
So I basically decided I don’t want to make as many decisions as I’m making, so big things were I’m going to wake up the same time every day, I am to go to sleep at the same time every day, because I have to think about it or I’m going to sleep at random times, it messes with my brain, it messes with my productivity and then it messes with my business and the amount of money that I’m actually able to make, save, and put into runway and security blanket.
So reducing your decisions is vital. Something else that I did to reduce my decisions with I decided this is really full right now, it’s not usually this full, and it’s also quite organized. But I decided I was going to get meal delivery, so at first I would just do meal prep for myself and so I would do like a bulk batch of one thing of like, quinoa, vegetable and some sort of protein every single Sunday, and instead of doing that, now I actually pay a company to bring me meals, and my fiancé meals once a week.
So I don’t even have to think about making lunch, because I work from home, and I would go like eight hours without eating. Because I just don’t think about it and I didn’t want to make the decision of where should I go get lunch today?
What am I going to make for lunch today? if you can relate to this, let me know in the comments because the struggle is real for me, and I know it’s a total personal problem, but it was an extra decision to make that took me away from my business and interrupted my flow, interrupted how productive I was during the day, and how much money I was able to make, and how many people I was able to talk to, and how many clients I was able to get into our programs.
So you want to basically take an audit of your life, in your relationships, in your business, in your health, in your fitness. What are the things that you have to decide on doing right now that you could take out so you have that brain space to focus on actually making more money and saving more money?
Another really good example of this is working out. So I know the hardest part for me and actually working out it’s getting to the workout. So one of the things that I did is I actually switched to a new gym for the majority of my workouts because it’s walking distance, it actually takes me 4 minutes to get from my house to the gym, which reduces the amount of decisions I need to make.
I don’t need to get the car, I don’t need to worry about parking, and I just need to get there. So it’s little things like that that seems so silly, but they free up so much brain space. Okay.
So the next thing is kind of along these lines. So we have reducing decisions, we have your runway, and then the next thing is clutter. Oh lord, I used to be a clutter queen, and I would just buy things for the sake of buying them, which is so silly, and it was when I didn’t have a lot of money.
But I just was like sort of collecting crap. And I wasn’t like a quarter or anything like that, but I did have a lot of clothes that I just didn’t wear. So I have been making a very conscious effort in the last year to minimize the amount that I buy, and I’m very Intentional of what I buy, and I only buy pieces that pretty much know everything.
Their basics, they are timeless, and they aren’t really trendy because transfer me are things that tend to go in the back of your closet and just create more clutter. The more clutter you have, the less brain space you have.
Actually prime example of this best, before I open my closet, Steve Jobs used to wear a black turtleneck with blue jeans every single day, and he said that he did it because he knows he has finite brain energy in space, and he wanted to put that brain energy towards business.
That’s a pretty good example and role model to follow for you and your business in your life, to make that, even that little decision has a big impact. So I did a little before and after before on Instagram, which we’ll show right now, but you can see that I have even reduced it down further and I really haven’t noticed a difference.
Like I don’t have a ton in my closet, this is obviously just one side of my closet, and the process is a process, and I’m not saying I’m a total minimalist by any means, and I’m sure you’re probably watching me like I don’t think I can throw out anything, but you can, there’s stuff in there that you haven’t worn.
So I have done a lot of clean out of my closet to make it simpler and to only have pieces that I know will last a very long time that are ethically made, and that are not fast fashion, and make it really easy for me to get dressed every day because they’re very simple.
They’re very simple pieces and their colors that I would wear all the time, black, white, gray, that’s like pretty much what consists of. So it’s just gotten more and more minimal with time. So like I said, this is been a process and these have been the steps for me that have allowed me to build a multimillion dollar business and become debt free and live a better lifestyle.
And like I said, finances make such a huge difference to decisions that you’re able to make in your life. Again my worst decisions have come at times. When I’ve been vulnerable, because I was broke and when you’re broke you’re reactive and you do things that you wouldn’t normally do, when you make decisions.
What are we doing and you’re around people that you don’t even want to be around. So what I want for you is to put yourself in a good financial position so that you can make decisions from a very confident, and secure, and grounded place, because that’s only going to help you go further and faster as well.
So we have a whole checklist with everything there’s one over that spreadsheet is included inthere, it’s in the description below this video and that link. If you like this video give me some feedback to never make a video like this give me a light make sure to comment let me know what you thought subscribe involved in a fight every single time I post a new video.
And check out these videos a next on even more resources on how to become financially free and really become the master of your own money thank you so much for watching I hope this is helpful Phoenix.