7 steps plan to financial freedom

I am so excited to share these 7 steps with you. Right now I’m at step 5.
My journey towards financial freedom follows these and I document the entire journey. Become inspired and start your own journey 🙂

emergency fund
Small emergency fund


emergency fund

First, you must be prepared for the worst. If you pay off debt or invest, you still need to establish a smaller emergency fund as anything can happen at any time.

It is too uncertain and unsafe to live on the edge.

To begin with I will suggest that you save 1000 USD/EUR.

This shouldn’t take more than 1-2 months to save.

Also use this opportunity to make a budget and find out how you can save more money. Your financial freedom journey starts now! 😊

My main goals in this step

1000 USD/EUR
Emergency fund

Save +40% of my income on average

It took just 1 month to complete this for me.
Pay loans
Pay off high interest loans


Pay off
high-interest loans

It’s time to remove dirt in your life 😛

Most people agree that expensive consumer loans are a bad thing to have and must be paid off as quickly as possible.

Loans with a high-interest rate take money away from you and make it even harder for you to become financially independent.

If you have any credit card debt or consumer loans they usually have a high-interest rate.


I think everything above 7.5% APR is too high interest and needs to be paid off immediately.

It’s not easy to get a much higher return in the long term. So better be safe than sorry.

You can try out negotiating your interest rate if you have a lot of debt and save some money. Simply just ask them.

My main goals in this step

Pay off a high interest loan (I had none)

Save +40% of my income on average

I never had any high-interest loans so this step was quick and easy for me.
emergency fund
emergency fund
Strong emergency fund


Strong emergency fund

While investing

This emergency fund will for sure make you sleep well at night 🙂

I have chosen to save money that potentially can cover 6 months of expenses.

This money is not considered as an investment but should be used in emergency cases and is available immediately.

I’m actually a bit lucky because I have an agreement with my bank and my emergency fund has an interest rate of 3%. In most cases, you will not get any interest but maybe you can figure out something.

Start investing…

I think it’s also important that you get started with investing. It will give you motivation, valuable experience, and a potentially great return in the long term.

My first investment was in some stocks and I knew very little at the time. I just wanted to get started and learn. You can start out slowly.

Here are some suggestions
you can look into:


Index funds

P2P lending

Real estate crowdfunding

Out of your monthly savings rate, approximately 60% should go to your emergency fund and 40% should be invested in my opinion. 

In this way, you will have a little more focus on minimizing risk and create a financial foundation. It will help you reach financial freedom.

You also need to focus on saving. For most people, it’s very difficult. However, you should aim for at least 50% of your income goes into this plan.

My main financial freedom goals in this step

6 months emergency fund​


  • January: Started the goal
  • February:  4,54% (+4,54%
  • March: 9,09% (+4,55%
  • April: 14,77% (+5,68%) 
  • May: 11,36% (3,41%
  • June: 18,18% (+6,82%) 
  • July: 27,27% (+9,09%
  • August: 29,54% (+2,27%
  • September: 32,38% (+2,84%) 
  • October: 48,29% (+15,91%)
  • November: 57,38% (+9,09%
  • December: 64,28% (+6,90%)


  • January: 76,70% (+12,42%
  • February: 100% (+23,30%)

Save +50% of my income on average

I didn’t achieve the 50% savings rate, but it’s also in focus in the next step. It was more likely at 40%.
I was in step 3 for 1 year and 2 months.
Pay off any other loans


Pay off any other loans

While investing

It is time for you to only have your mortgage or rent 😀

In this step, you continue to pay off all the loans while investing.

I have no consumer loans but I do have a student loan and a leverage loan. They will be paid off in the step.


Out of your monthly savings rate, approximately 60% should go to your loans and 40% should be invested in my opinion.

In this way, you will have a little more focus on minimizing risk.

My main goals in this step

Pay off my student loan

It’s paid off !!

My goal was to pay off this loan 3,5 years earlier. Before summer 2019. The annual interest rate is great but I feel that the loan has been in my life for too long.

  • 8 years loan agreement (2022)
  • 1% (APR) annual fixed interest rate

Monthly payment of income in % / Remaining payment in %


  • January: 4,53% / 82,81%
  • February:  0,00% / 82,81%
  • March: 4,40% / 79,87%
  • April: 0,00% / 79,87%
  • May: 3,99% / 76,92%
  • June: 0,00% / 76,92%
  • July: 4,54% / 73,99%
  • August: 0,00% / 73,99%
  • September: 5,13% / 71,06%
  • October: 0,00% / 71,06%
  • November: 3,91% / 68,13%
  • December: 0,00% / 68,13%


  • January: 4,24% / 65,20%
  • February: 1,96% / 62,72%
  • March: 4,37% / 59,79%
  • April: 14,88% / 44,88%
  • May: 3,85% / 41,95%
  • June: (Used opportunity money) / 00,00% 😎

Pay off my leverage loan

I paid it off after 1 year and 10 months 😎 

I used my opportunity money and 36% of my income in October 2019 to pay it off. I had a great desire to pay off this even though I made money on this leverage loan.

  • 3 years loan agreement (2021)
  • 7,45% (APR) variable annual interest rate
  • Invested mostly in P2P Lending

Monthly payment of income in % / Remaning payment in %


  • January:  0,00% / 100,00%
  • February:  0,00% / 100,00%
  • March: 11,91% / 98,35%
  • April: 11,63% / 95,25%
  • May: 10,49% / 92,15%
  • June: 12,48% / 90,72%
  • July: 11,94% / 87,62%
  • August: 11,60% / 84,52%
  • September: 13,51% / 82,97%
  • October: 12,20% / 79,87%
  • November10,30% / 76,77%
  • December: 12,71% / 75,08%


  • January: 11,16% / 71,98%
  • February: 6,06% / 68,88%
  • March: 11,49% / 67,02%
  • April: 7,68% / 63,92%
  • May: 10,14% / 60,80%
  • June: 8,34% / 58,82%
  • July: 10,50% / 55,72%
  • August: 12,64% / 52,63%
  • September: 11,96% / 50,39%
  • October: 36,00% / 00,00%

Save +50% of my income on average



  • June: Started the goal – 89,46% 
  • July: 87,64% (-1,82%
  • August: 85,76% (1,88%
  • September: 85,88% (+0,10%
  • October: 85,44% (-0,42%)
  • November: 84,38% (-1,06%
  • December: 80,18% (-4,20%)


  • January: 77,30% (-2,88%
  • February: 79,84% (+2,54%)
  • March: 84,64% (+5,02%)
  • April: 88,28% (+3,64%)
  • May: 82,44% (-5,84%
  • June: 85,82% (+3,38%)
  • July: 82,16% (-3,66%
  • August: 81,66% (-0,50%
  • September: 80,14% (-1,52%)
  • October: 81,40% (+1,26%)
  • November: 81,52% (+0,12%)
  • December: 82,52% (+1,00%)
  • December: 82,52% (+1,00%)


  • January: 100% (+17,48%)
I was in Step 4 for 10 months. When I had paid off my loans, my savings rate increased to 50%.

Great blog posts at this step:

 ★ Increase savings rate

 ★ Inspiring financial independence quotes

Pay off the mortgage


This is my current step 😎

Pay off the mortgage

While investing

This step will take some time to complete.

I recommend that you are able to pay off your mortgage within 8-10 years.

I plan to pay my mortgage within 4 years (2024). Yes, it’s crazy fast! ⚔️😊

Furthermore, I suggest you really focus on increasing the savings rate. You can find ways to save more but also to earn more at the same time.


Out of your monthly savings rate, approximately 40% should go to your mortgage and 60% should be invested in my opinion.  

In this way, you will have a little more focus on creating wealth and benefit from compound interest.

My main financial freedom goals in this step

Pay off the mortgage

Monthly payment of income in %
/ Remaining payment in %


  • January: 25,86% / 92%
    (Started the goal)


Save +70% of my income on average

I expect this step to be completed in 2024-25.
I will also have short term goals at the same time.

Great blog posts at this step:

 ★ Rent or buy a house?

 ★ Money affirmations

 ★ Inspiring save money quotes


debt free
Be totally debt free


Be totally
debt free

While investing

This step is a dream for many (including myself) because it’s a huge step to become debt free.

You are getting closer to financial freedom!

I’m pretty sure this will give me a great feeling of control.

The stress about money will be gone and everything is about to fall into place.

Now you can invest 100% of your monthly savings rate.

I can’t wait for this level and every skill I have learned at this time 🙂

My main goals in this step

Save +70% of my income on average
I expect this step to be completed within  2027.
I will also have short term goals at the same time.

Great blog posts at this step:

 ★ Early Retirement Extreme Stories


financial freedom
financial freedom
Be financially independent


Be 100% financially independent​

Financial freedom in my reality!!!

It’s unreal right now but maybe it becomes more realistic when I approach this goal.

I have a good feeling about this day! 😎


My very clear vision

(My financial freedom dream)


I will wake up in the morning and drink my morning coffee, while I can hear the waves of the ocean.

Then I will swim in the ocean, stretch my body and breathe deeply.

I will train my inner voice and be thankful for everything I love.

Afterward, I will set goals for my day to make progress and follow up on my investments and projects.

I will use what I have learned and is the best version of myself.

My focus will be on eating and live healthily and take care of my family.

Finally, I will write down new value knowledge in my journal in the evening to take action the next day.

I’m financially free and 100% independent.

My life is in balance and I’m in control over my own life 😍

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Financial freedom is possible!

“Your dream can come true if you set the right goals and train your inner voice to execute the steps”