Nicole Spector

Tue, Jul 1, 2025, 7:03 AM5 min read

Millions of us are trapped living in the paycheck-to-paycheck cycle. It may not seem like it, but there is a way out of this life if you implement the right mindset and, perhaps more importantly, the right plan.

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Steve Chen, a money coach and the CEO and founder of Call to Leap, posted on his YouTube channel a six-month game plan to build wealth. He broke down how to take control of your finances — one step at a time — and emphasized that you don’t need to make six figures to stop living paycheck to paycheck. These are the six steps to follow over a six-month period.

The first step/month may be the most uncomfortable one, as it’s all about facing the cold, hard facts. This is the time where you ditch your avoidant behaviors (which Chen explained only serve to give a false sense of safety) toward money and take a complete inventory of where you stand in every aspect of your financial life.

“When you finally sit down and look at the numbers, it’s not always fun, but it gives you a starting point,” Chen said. “And that’s what this month is all about … awareness and ownership. You’re taking the first step toward making informed, intentional decisions with your money.”

In this first phase, you will calculate five financial numbers:

1. Your take-home/after-taxes income

2. Debt (Credit cards, student loans, car payments)

3. Essential spending

4. Discretionary spending

5. Savings and investments

Chen recommended using a budgeting app or creating a spreadsheet to document all your income and spending.

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Once you have a precise idea of everything that’s coming in and everything that’s going out, it’s time to implement a goal: Save $1,000 or one month of expenses.

“So if your monthly expenses add up to $3,000, then that’s the number you’re aiming to save,” Chen said. “Or if you want to take baby steps, just start with $1,000. I know that for many people saving feels like a sacrifice at first, because our brains are wired to want rewards now, not later. But you’re not really cutting back. You’re actually purchasing freedom or peace of mind.”

If hitting this goal in one month is totally impossible, spread it out over a few months, but don’t slack or keep extending the deadline.

Step three is all about checking two critical boxes in your financial life: high-interest debt elimination and building an emergency fund in a high-yield savings account (HYSA).