LEVEL 1 BLUEPRINT
A. Income
Include all sources of income, such as:
○ Salary or wages (after taxes).
○ Side hustle income.
○ Rental income or passive income.
○ Government benefits (if applicable)
B. Expenses
Categorise spending to identify where money goes. Examples of categories:
○ Fixed Expenses: Rent/mortgage, utilities, insurance, loan payments.
○ Variable Expenses: Groceries, dining out, transportation, subscriptions.
C. Debt
Compile a list of all debts, including:
○ Credit card balances.
○ Personal loans or payday loans.
○ Car loans.
○ Student loans.
○ Mortgages.
1
The Blueprint
1) Your weekly/monthly income after tax
2) List out your expenses in the order they come out
3) Subtract and to see what you have left at the end of the month
2
Roadblock Ready
At this level, your goal is to save £500 as fast as you can. Your emergency fund will cover those unexpected life events you can't plan for. And there are plenty of them. You don’t want to dig a deeper hole while you’re trying to work your way out of debt!
Get that £500 saved as fast as you can! 1-2 weeks, sell everything!
3
Debt Destruction
Using your Blueprint, starting with the smallest debt, begin paying off aggressively while paying minimum payments on the rest. Once that one is paid off, use the extra money from that and move onto the next one and so forth.
(We are not including the mortgage at this point)
4
Upgrade the armour
With the debt gone, don’t slow down yet! Take all that money you were throwing at debt and start building up a 4 month emergency fund. This will cover life's bigger problems like a car breaking down or even a job loss.
5
Retire with dignity
Now you can shift your focus off debts and start thinking towards the later years. This is where you begin regularly investing 15% of your gross income for retirement. Are you really going to hope that the government will take care of you after retirement?
6
Pave the way
By this level, you've paid off all debts (except the house) and started saving for retirement. Next, it's time to save for your children’s university expenses if that's the path they want to take. If they don’t then it can be used for the hand up into the real world
7
The last fight
One more fight. Level 7 is the dragon! Your mortgage is the only thing between you and complete freedom from debt. Can you imagine your life with no house payment? Think of the thousands of extra pounds in your pocket when you get rid of the mortgage
8
Freedom valley
Dust yourself down… You don’t owe anyone a penny, ‘now what can I do?’ Anything you want! The last level is the most fun. You can live stress free and give generously. Pay it forward by sharing your journey with friend or family member