You Can Change Your Finances in 3 Months (Here’s How)

Summary

This 90-day financial reset plan guides viewers through a step-by-step process to overhaul their personal finances. The plan includes tracking spending, cutting unnecessary expenses, automating savings, managing debt, building an emergency fund, and investing in the stock market. The focus is on reducing financial leaks, improving discipline, and setting clear financial goals for the future. By the end of the program, individuals should have a structured approach to wealth-building and a clearer path toward achieving long-term financial security.

Takeaways

• 😀 Assess your current financial situation by reviewing your last 3 months of statements and categorizing expenses into fixed, discretionary, and debt payments.
• 😀 Reduce unnecessary spending by identifying areas where you can cut 10–30%, focusing on high-cost and easily adjustable categories like subscriptions, dining out, and transportation.
• 😀 Automate your finances by setting up high-yield savings accounts and automatic transfers to savings and investment accounts to build consistent habits.
• 😀 Manage high-interest debt by calculating payoff plans, negotiating lower interest rates, and setting up automatic payments to save money and reduce payoff time.
• 😀 Build an emergency fund starting with $1,000, then progressing to 3–6 months of living expenses, using savings, side hustles, or selling unused items to fund it.
• 😀 Start investing in diversified assets like S&P 500 index funds or ETFs, contributing regularly to take advantage of compound growth over time.
• 😀 Increase your income by asking for raises, exploring side hustles, or learning high-income skills, recognizing that income growth has no strict limit.
• 😀 Define and write down savings goals for the year, calculate monthly contributions, and share goals to increase the likelihood of achieving them.
• 😀 Use credit cards responsibly by testing self-control, paying balances in full, and leveraging them to build credit and earn rewards, avoiding high-interest debt.
• 😀 Track your net worth regularly, review spending habits periodically, and set long-term stretch goals for 1, 5, and 10 years with actionable steps and quarterly check-ins.

Q & A

Why do most people struggle with money according to the video?

Most people struggle with money not because they are bad at math, but because they usually don't have a clear plan for managing it.

What is the main goal of week one in the 90-day financial reset plan?

The goal of week one is to review your current financial situation by gathering your last three months of statements, categorizing expenses, and calculating your income, spending, and savings rate.

How does week two suggest reducing expenses effectively?

Week two focuses on cutting unnecessary expenses by analyzing spending categories, identifying areas to reduce by 10–30%, negotiating bills, canceling unused subscriptions, and addressing discretionary spending like dining out or rideshares.

What is the purpose of automation in week three?

Automation, or 'paying yourself first,' ensures that a set portion of your income is automatically allocated to savings and investment accounts before you can spend it, removing temptation and simplifying financial management.

What strategies are recommended in week four to handle consumer debt?

Week four suggests calculating total high-interest debt, using credit card payoff calculators to increase monthly payments, setting up automatic payments, and calling credit card companies to negotiate lower interest rates.

Why is an emergency fund important and what is the initial goal in week five?

An emergency fund provides financial security, and the initial goal is to save $1,000, which is a psychologically significant milestone. This fund should be held in a high-yield savings account.

What investment strategy is suggested in week six?

Week six recommends investing in S&P 500 ETFs through brokerage accounts, focusing on long-term, passive growth with historical average returns of 8–10%.

How can you increase your income as suggested in week seven?

You can increase income by asking for a raise, starting a side hustle, or learning a high-income skill such as coding, sales, or design.

What is the purpose of writing down a savings goal in week eight?

Writing down a savings goal clarifies what you want to achieve, quantifies the amount needed, and increases the likelihood of achieving it by 42% according to psychological research.

What is the advice regarding credit card use in week nine?

If you have self-control, use credit cards responsibly to earn rewards and build credit. If you lack self-control, avoid credit cards to prevent high-interest debt accumulation.

How do you calculate net worth as described in week ten?

Net worth is calculated by adding all assets (like property, investments, and cash) and subtracting all liabilities (like loans and credit card debt). Tracking it regularly helps monitor financial growth.

Why is week eleven focused on reviewing spending from weeks two to ten?

Week eleven is about reassessing spending habits to identify any remaining financial leaks and ensure that reductions in spending have been maintained throughout the program.

What should be done during the final week twelve of the 90-day reset?

Week twelve involves setting long-term stretch goals for 1, 5, and 10 years, creating actionable roadmaps to achieve them, and scheduling quarterly check-ins to track financial progress.