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Do These 3 And You’ll Never Be Broke Again! 

But here’s the catch: you have to do all three in the exact order I’m giving them, or it won’t work.

Step 1: Create a Plan to Earn Extra Income Over the Next Year

First, focus on creating a realistic plan to earn at least an additional $10,000 over the next 12 months.

That number might sound intimidating, especially if you’re already feeling financially stretched. But when you break it down, that’s just $27.40 a day before taxes—about the cost of a coffee and lunch. Thinking about it in daily terms makes it feel more achievable and could help you realize it’s something you can actually do.

Likewise, if you want to aim higher, maybe an extra $20,000 in a year, that would mean $55 a day. If you’re working full-time, this translates to roughly $3 to $4 more per hour. To achieve this, you might ask for a raise, and if that’s not an option, look for new opportunities or build your skills to increase your earning potential. This approach takes time, which is why you’re doing it over a year.

The good news is that there are countless ways to earn extra money.

Consider your skills and brainstorm ways to work smarter, not harder. If you’re feeling entrepreneurial, you might create and sell digital products like a specialized journal, a how-to guide, or even a coloring book. Priced at $10 each, selling three a day would help you hit the $10,000 goal. Or, if writing interests you, consider freelancing. Depending on your rate, writing just one or two articles a week could average out to that $27.40 a day. (Related: Download my insider’s tips to making money as a freelance writer and leverage your existing knowledge to make extra money).

Step 2: Reduce Your Spending Without Sacrificing Enjoyment

Once you have a plan to increase your income, the next step (and don’t skip this) is to cut back on expenses.

Now, some people might not be able to cut back anymore – but for most, there’s likely room for improvement. Keep in mind, this doesn’t mean depriving yourself of everything you enjoy—you just need to get smarter with money.

Start by reviewing your spending over the past few months. Track every dollar that came in and went out of your account, and add up how much you spent on eating out, groceries, shopping, entertainment, and subscriptions. Accuracy here is crucial to understand where your money has been going, so don’t guess.

Once you have a clear picture, start making adjustments. For example, if you’re spending $300 a month on dining out, try cutting that down to $150. See if you can reduce other non-essentials by half as well.

The key is to approach this with balance. So don’t cut back so much that you feel like you’re sacrificing all enjoyment, which can lead to overspending later on.

Step 3: Avoid Lifestyle Inflation

Now that you’ve found ways to earn extra money and reduced your expenses, this final step is essential—and it’s where many people slip up.

Do not upgrade your lifestyle…just yet.

When some people see an increase in income, they feel justified in spending more. They buy a new car, upgrade their housing, or start dining out more, and before they know it, they’re right back where they started.

Instead, make the most of your newfound disposable income by building an emergency fund, paying off debt, and handling any outstanding financial obligations that kept you living paycheck to paycheck. Only after taking these steps should you even consider upgrading your lifestyle. (Related: Download your mindful spending MONEY MINDSET BULLET JOURNAL — it’s your personal spending coach). 

Bottom Line: Some people make the mistake of doing only one or two of these steps. However, if you want long-term financial stability, it’s a package deal.

And if or when you decide to make lifestyle upgrades, don’t go overboard. Keep things simple, and make sure you’re still setting aside at least 10% of your income each month. In the end, financial freedom and not being broke is about making wise, balanced choices—not about complicating life with constant spending.