Financial freedom isn’t something you stumble into — it’s something you design. And like any great design, it begins with a blueprint. Before you can map out your retirement journey, you need to know exactly where you’re starting from.

1. Calculate Your Net Worth

Your net worth is your financial snapshot. Add up everything you own (savings, investments, property) and subtract everything you owe (debt, loans, mortgages). This single number shows whether you’re moving in the right direction — and where adjustments are needed.

2. Track Your Expenses

Freedom doesn’t come from guessing — it comes from knowing. Review your bank statements and credit card bills. Separate your spending into needs (housing, food, utilities) and wants (subscriptions, dining out, impulse buys). This simple act gives you control over your money instead of wondering where it went.

3. Estimate Your Retirement Expenses

Some costs will shrink in retirement (like commuting), while others will grow (healthcare, hobbies, travel). A good starting point is 70–80% of your current income, but a personalized estimate is even better. Think about how you want to live — because your money should serve your lifestyle, not the other way around.

4. Create a Zero-Based Budget

A zero-based budget means every dollar has a purpose. Income minus expenses should equal zero — not because you’re overspending, but because you’ve told every dollar exactly where to go (savings, debt, investments, lifestyle). This approach creates discipline without restriction.

Takeaway

Phase 1 is about awareness. When you know your net worth, your expenses, and your budget, you’re no longer reacting to money — you’re directing it. This clarity builds the confidence you’ll need in every other phase of your retirement roadmap.