Dollars in Order: Your First Step to Freedom

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Before we dive in, a quick note: This post contains affiliate links. This means I may earn a commission if you purchase through these links, at no extra cost to you. I only recommend products and services I trust

What is it?

Let’s talk about the foundation of any successful financial journey: organization. If you don’t know where your money is going, how can you budget it? Save it? Or even spend it wisely without guilt? This is where financial organization becomes a game-changer.

I’m not just talking about having a vague idea of what’s in your bank account. I’m talking about a clear, detailed breakdown of every dollar you’re working with. If “Freedom Fund in Progress” has taught me anything, it’s that taking the time to organize your finances is the first major step toward achieving financial freedom.

The more organized you are, the easier it becomes to make progress. When you can clearly see where your money is going, you’re in a better position to:

Pay off debt.
Build savings.
Take control of your financial future.

That’s why I started with a simple but powerful tool: a financial spreadsheet. In this sheet, I’ve broken down all my bank accounts, credit cards, loans, and debt into one place. Trust me, seeing everything laid out in black and white is both sobering and motivating.

Why is it so important?

So, why is financial organization such a big deal? Here are just a few reasons:

Clarity: There’s something empowering about seeing all of your finances written out. It removes the mystery and the anxiety of the unknown.
Awareness: Knowing exactly where your money is going each month is a crucial step in stopping the cycle of overspending. Awareness leads to intentionality.
Visualization: When you have everything organized, it’s easier to visualize your progress. This is where tools like my debt spreadsheet come in handy. It’s not just numbers—it’s a roadmap to success.

If you’re serious about achieving financial freedom, in progress or otherwise, you need a clear picture of your current situation. This isn’t just about paying off debt; it’s about creating a sustainable financial future.

I remember a time when I didn’t have everything written out. My anxiety was through the roof, and I found myself in plenty of “oh no” scenarios. You know the ones—waking up to discover a large charge has been deducted from your bank account, one you completely forgot about. Let’s prevent this together! Getting organized not only eases your mind but puts you in control of your finances.

How do you do it?

Ready to get started? Here’s how I organized my finances to kick off my journey:

Calculate Your Bills: Start with the essentials. List every single bill you pay each month—from rent to utilities, insurance, and minimum debt payments. These are your fixed expenses, and they should always come first in your budget. And don’t forget those subscriptions!
Maintain Two Checking Accounts: One for bills, one for spending. This approach has been a lifesaver for me. By separating your money, you’ll always know how much is reserved for necessities and how much you can safely use for groceries, gas, or other spending. As mentioned in my blog post, this has been the easiest way to change my life!
Example: Let’s say your monthly income is $3,000. Allocate $2,500 to your bills account and $500 to your spending account. Now, you can swipe your debit card for groceries without worrying that you’re dipping into your rent money.
Break It Down Little by Little: Paying off debt can feel overwhelming, but the key is to focus on small, consistent wins. Whether you’re tackling the smallest debt first (the snowball method) or paying off high-interest debt (the avalanche method), it all starts with staying organized.
Use a Spreadsheet: I can’t stress this enough. Create a simple spreadsheet or use a budgeting app to track your progress. Include categories like income, fixed expenses, debt payments, and savings goals. Refer to it regularly to stay on track. (Need inspiration? Check out my budgeting spreadsheet FOR FREE! And check out my blog for some tips on staying organized with your budget.)
Automate: Automate as many transactions or bills as possible. This setup may take you a little while but it definitely pays off in the end. This has allowed me to think less, organize more, and in some cases it even lowers your interest rate on loans.
Set Realistic Goals: Goals are the secret sauce to any financial plan. For me, one of my big goals is to have at least three no-spend days per week. Small actions like this add up over time and contribute to a healthier money mindset.

Best Practices for Success

If you’re just starting out, here are a few tips I’ve learned along the way:

Be Consistent: Financial organization isn’t a one-and-done deal. Check in with your finances weekly (or daily if needed) to ensure you’re staying on track.
Adjust as Needed: Life happens, and your budget should be flexible enough to handle unexpected changes. Don’t beat yourself up—just adjust and keep moving forward.
Celebrate Small Wins: Every dollar paid off or saved is a step closer to freedom. Celebrate those milestones, no matter how small.

Final Thoughts

Financial freedom doesn’t happen overnight. It starts with small, intentional steps—like getting organized. Once you have a clear understanding of where your money is going, you’ll feel empowered to make smarter decisions.

I have definitely learned that organizing your finances is not just a chore; it’s an investment in your future. And if you’re willing to put in the work, there’s no limit to what you can achieve. Step by step, day by day. So, grab a pen, open a spreadsheet, and start laying the groundwork for your financial transformation. Remember, the journey is just as important as the destination!

Some products that have helped me become organized:

Erin Condren Notebooks – my favorite notebooks with so many design options, great quality, and make me feel organized just by owning it!
If you prefer writing your bills on paper: Check register books
I use my iPad for notetaking, using my organization sheets, calculations and more!
I started with a budget planner that I could write in and erase. Started simple!

Check out my blog post about setting up and maintaining two checking accounts as mentioned in this article!