3 Simple Steps to Financial Freedom

We all know money troubles can take a toll on our mental health, but did you realize they can affect every area of your life? 

The stress of financial uncertainty influences the choices we make, often at the expense of our physical health and overall wellbeing.

This week, I’m diving into the hidden ways financial stress impacts your health and daily life—an issue long overdue for attention.

If you lie awake at night worrying about money or feel that sinking pit in your stomach as bills pile up, this is for you. 

Together, we’ll explore a simple 3-step plan to ease your financial stress, take back control of your finances, and feel more confident about your future.

What Is Financial Wellness & Why Is It Important?

Did you know financial stress is one of the leading causes of chronic stress? 

According to the American Psychological Association, money has been the number one stressor for over a decade! And this kind of stress isn’t just mental—it’s physical, with real consequences for your health.

Financial stress is rarely talked about, probably because money, in general, is still very much a taboo subject in our society.

But it’s crucial that we start talking about it because chronic financial stress can:

• Weaken your immune system
• Raise your risk of heart disease
• Harm your mental wellbeing
• And much more!

Think back to a time you were experiencing financial instability, whether due to a loss of income, debt, or something else. Likely, during this time, you were making unhealthy lifestyle choices – skipping exercise, eating unhealthy foods, and avoiding health checks because of the costs involved.

Early in my career as a medical resident, I was drowning in student debt and credit card bills. 

Long hours, low pay, and constant worry about making ends meet left me living on fast food, skipping exercise, and battling migraines, heartburn, and sleepless nights. Ironic, I know!

Then, when I started working as a family doctor, I saw the same struggles in my patients: a father skipping blood pressure meds to pay rent, a single mother losing sleep over debt, or an overworked woman too exhausted to exercise. 

So you see, the link between finances and health isn’t theoretical—it’s real and deeply personal.

Your 3-Step Plan For Financial Wellness

Money matters, but not because of the numbers in your bank account. Building financial freedom is key because it allows you to take better care of yourself, reduce stress, and safeguard your health.

So rather than embarking on an endless pursuit to make more and more money, work on your financial wellness. This is all about creating a life where your money works for you and your financial situation supports your health and wellbeing rather than stealing your peace of mind. 

To further demonstrate this, I’ve put together a simple, 3-step plan to help you build a more secure and fulfilling financial future.

Step 1: Get Clarity on Your Finances

If you’re living paycheck to paycheck or wondering where your money disappears by the end of the month, you’re not alone—I’ve been there, too. 

But here’s the hard truth – You can’t take control of your finances until you know exactly where your money is going.

That’s why step one is to track every expense for one week.

1. There are many budgeting apps that you can use for this, or you can use a spreadsheet or even the notes section on your phone.
2. Break your expenses into categories, like food, housing, debt payments, entertainment, etc.
3. Every time you make any purchase (no matter how small), make a note of it and the amount.
4. At the end of the week, review your expenses. Look for unhealthy spending patterns (like that daily frappuccino) and areas where you could cut back to save money. How many of your expenses are truly essential?

I’ll be honest: When I first did this exercise, I was truly shocked. I didn’t realize I was making so many unnecessary purchases and allowing so much of my hard-earned money to slip through the cracks.

This exercise alone can help you realize why you’re constantly struggling to make ends meet and what you can do to ensure there is more left at the end of next month.

Step 2: Alleviate Your Financial Stress

Once you have clarity, it’s time to tackle the financial stress that keeps you up at night. This can feel overwhelming, but remember that small, consistent actions can lead to big results over time.

Here are some areas you can take action in straight away:

• Start building an emergency fund – A small safety net (even as little as $500) can give you peace of mind and protect you from going deeper into debt when unexpected expenses pop up.
• Tackle your debt strategically – If you’re carrying credit card debt, focus on paying off the card with the highest interest rate first. This “avalanche method” will help you save the most money in the long run.
• Set up automatic payments for your bills and savings – By automating, you don’t have to worry about missing deadlines or racking up late fees.

Step 3: Build Multiple Streams of Income

The final (and perhaps most important) step to financial security and freedom is creating multiple income streams. 

Relying on just one paycheck can leave you extremely vulnerable, so I recommend having at least one small additional income stream.

There are various ways to build multiple sources of income, such as:

• Leveraging your skills – Turn your talents into freelance work, like writing, design, tutoring, or consulting.
• Creating side hustles – Sell a product, offer services, or launch a small online shop.
• Building passive income – Create an eBook, blog, or online course. These require upfront effort but can generate income long after.

To make this easier, I’ve created a free cheat sheet: 50 Ways to Build Multiple Streams of Income. Whether you want to earn some extra cash, pay off your debt faster, or create more freedom, this checklist is full of practical and actionable ideas you can start today!

By “faking it until you make it,” you’ll eventually find that these traits become part of who you really are.

Final Thoughts

For a deeper dive into these 3 steps to financial freedom, watch the full video episode on YouTube:

And remember, the quicker you take action, the faster you can break the cycle and start building a future you’re excited about.

Start by tracking your expenses this week and share one surprising thing you discover in the comments below.

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