There are very few people who are in position to make decisive comeback from bad phases in their lives.
People should be different to the traditional and mainstream trajectory of living life and making progress. In other word, indulgence into out-of-the-box thinking is imperative for deviating oneself from mainstream trajectory. From this perspective, denial is considered to as important principle.
But the thing which is difficult to identify is the prevalence of the problems in financial condition. Some of them are unable to do this because of their lavish lifestyle. In times of their prosperity, they tend to feel that they are too secure to witness financial problems ever in their lives. In this way, they live with denial- they deny accepting the fact that they are likely to be faced with uncertainties at one point of time in their lives.
Suppose when we normally driving a car on the road and all of a sudden, we noticed a board with “don’t move further. Danger ahead, bridge is broken” written on it. Naturally, we avoid going further after seeing this board with a warning message written on it. Rather, we see other way round. In real life, sometimes we do not see the presence of such cautionary signs in real life. That is why most of us faced financial problems, most of us keep on being entangled into problems because of not being cautious enough.
To avert these problems, we should take some seven baby steps that are needed to be followed for achieving financial freedom.

Baby Step 1- Save 100 dollars

For example, we are riding a cycle (with no shock-up) over a road filled with stones or ditches. We may stumble while driving down the road and get ourselves injured or our cycle may be broken. Therefore, our cycle must have had a shockup. In financial terms, this shockup is referred to as our saved money. To be more specific, we must save our 1000 dollars as soon as possible. As per Indian Rupee, it would be around 70,000. We should at least save a fair amount of money that is equivalent to a one-month’s salary. It would be used as a started emergency fund and it should not be used for indulging ourselves into fulfilling your individual pleasure. Rather it should be used for supporting our financial needs in times of dire emergency. This is the easiest step for one would know what one is supposed to do. It would also be difficult as well for many people for this would be the premier step of deciding to change their lives by making their financial conditions stable. To do so, it is imperative to transform change spending mindset into saving mindset. It helps people to achieve goals by setting them.

Baby Step 2- Debt Snowball

A snowball at its inception is of small size and once it starts falling down from a mountain’s cliff, it will be of comparatively big size. As the snowball gets down from the mountain’s cliff, other snows are stuck to it thereby gradually resulting in the increase of its size. In view of this phenomenon, the first step needs to be completed by framing a list in which the names of individuals and companies are to be included from whom one have taken loans. Out of the listed ones, one should give priority to those from who have given you comparatively low-cost loan. Their loans must be repaid as fast as possible from his or her incomes. In this context, it is to be noted that emergency fund is not to be used during this time. Then go to big amount and later bigger. In this way, one will have had a great feeling of progress. It will give one a sense of excitement and just like a snowball; it will gradually lessen one’s monetary burden. Home loan is not included in this list; however, car loan is included into it. In this financial process one can buy a car with the payment of full cash instead of relying on EMI.

Baby Step 3: Increase Emergency Funds 3 to 6 Months

Once we complete the first two steps, we should do an interesting and important thing. We should keep track of our finance by calculating exactly how much money we are spend every month. For example, approximately 40,000 INR amount is spent every month. The next step is to calculate the amount of money that will be needed for our survival in the next 3 to 6 months. This particular amount of money should be put into savings account. Many people face problems and stress thinking that they will have to pay bills and other amounts. For this, their happiness remains for a short-period of time and they are burdened under stress. This baby step will definitely reduces the stress and somehow, if our health is impacted due to this dire stress or even if we think of leaving or switching job, we should have shock up with validity of 3 to 6 months. It will keep us away of tensions and help us take decisions wisely. Thereby we will not be debt-trapped anymore; rather we will have freedom from the stress of our life arising out of financial debts. While saving money, may feel temptation for purchasing many things. However, we should not forget that your mission is to save only, not to spend. Secondly, if we do not have enough money in our account for surviving 3 to 6 months without working, this signifies that we are living in denial.

Baby Step 4: Invest 15 percent of Your Income

As Murphy law dictates, anything that can go wrong will go wrong. For example, one never drinks cold water thinking of its negative impact on his or her health. One may think he or she may catch cold if you drink cold water. However, if one think of trying to drink cold water without thinking of its consequences, he or she bound to catch cold. Murphy was a very pessimist person. However, his narrative has potential of stimulate us to be involved into deep-thinking. Similarly, many people working as salaried executives in corporations tend to not thinking about the consequences of their removal from job positions or being bed-ridden out of sickness. Salaried persons draw money in exchange of their efforts they invest at workplace. Therefore, every individual should invest at least 15 percent of your income. One can utilise this invested money in times of his or her need instead of working for money throughout entire phases of your lifecycle. Resorting to this is likely to be proved as risky implicating negative consequences. This same advice is resonated through the writings of Robert Kiyosaki (Rich Dad Poor Dad) and George Samuel Clason (The Richest Man in Babylon). They delivered the same teachings regarding the rationale making investment in consideration of financial needs.

Baby Step 5 & 6: Kids College Fund and Pay off Mortgage

Baby step 5 is for parents only. When a baby is born, parent faces financial pressure and they tend to become unhappy. Therefore, it is advised to think about this from the very beginning. With regards to step 6, it is advised not to taken loan and even if one have taken loan, he or she must finish its payment as soon as possible. Many people will oppose the idea about the bad and good credit but one should avoid it.

Baby Step 7: Build Wealth and Achieve Financial Independence

After we handled all things that give us tension, the next fund step comes and that is building wealth. Here, we can avail the opportunity of having fun with our money and investing it. Plus, we can help others as well. At this step, we need to make gradual progression through four important steps-
• Eat right food since we are physical being
• Make deep connection with people through talking and sharing emotion since we are emotional being
• Invest time for yourself by learning and reading since we are intellectual being
• Help poor people in alleviating their distressed conditions since we are spiritual being
We should involve ourselves into doing those things that can give us peace. In the book Total Money Makeover by David Rumsey, all these things that have been highlighted throughout entire discourse, are mentioned. If some one belong to a middle class family, you must read this book. It is because this book is utilitarian for those who are unable to save money through feasible tactics. Some of the people are clueless about what to do with money they generate through their efforts. As Warren Buffet said, “the best investment is to invest in oneself”. Henceforth, investment on ourselves and find our passion because once we know our passion, we can understand in which field we have the capability of excelling and what we can learn with our heart and soul. We should invest money in those fields about which you hold immense interests.
These are the mantras Author Dave utters constantly and repeatedly tells others to follow the same through his book. “Live like no one else now so that you can live like no one else later”.