In 2013, I released my No Nonsense Personal Finance : A Step by Step Guide book with one clear goal: to help Filipinos become more financially responsible and free. Through years of mentoring, speaking, writing,teaching, and learning, I’ve realized that while financial strategies may evolve with time, the fundamentals remain constant. So today, I want to revisit the 5 Steps to Financial Freedom I’ve shared countless times, especially for those who are either starting their journey or finding themselves stuck somewhere along the path.

Let’s walk through the five steps again—with clarity, conviction, and a heart for lasting change. And as a bonus, I’ll share a sixth step that has made all the difference in my own journey.

Step 1: Increase Cash Flow

The first and most important step is to create positive cash flow. It’s impossible to build wealth if you’re consistently spending more than you earn.

This step requires two things: discipline and diligence. You must learn to track your income and expenses—yes, even the small ones like that daily milk tea or your streaming subscriptions. Once you see where your money goes, you gain the power to control it.

But increasing cash flow isn’t just about cutting back; it’s also about increasing income. Can you take on side gigs? Freelance work? Sell items you no longer use? Perhaps you can improve your skillset and position yourself for a raise or a better-paying job.

I always say, “If it’s important to you, you’ll find a way. If not, you’ll find an excuse.” Increase cash flow not just for survival, but so you can take the next crucial steps.

Step 2: Get Out of Debt

Debt is a thief. It steals your peace, your future, and even your relationships if left unchecked. And sadly, many Filipinos have normalized consumer debt as a way of life.

But here’s the good news: you can get out of debt. I’ve seen people dig themselves out of hundreds of thousands of pesos in loans simply by being focused and intentional.

Start by listing all your debts—credit cards, personal loans, salary loans, etc. Then, use a strategy like the debt snowball method, where you pay off the smallest debt first while making minimum payments on the rest. Once a debt is cleared, you roll over that payment amount to the next one. The psychological victories here matter more than you think.

Debt may have become your normal, but it should never be your future. My hope is that being debt-free is the new status symbol for every Filipino.

Step 3: Build an Emergency Fund

Once you’ve started freeing yourself from debt, it’s time to protect your progress with an emergency fund. Think of it as your financial shock absorber.

An emergency fund ensures that unexpected events—medical emergencies, job loss, car repairs—won’t derail your entire financial plan. Ideally, you want to save at least 3 to 6 months’ worth of your basic expenses, depending on your life situation.

And no, your emergency fund shouldn’t be in stocks or mutual funds. It should be liquid, accessible, and separate from your day-to-day account. High-interest savings accounts or money market funds are good options.

This isn’t just about being smart—it’s about being prepared. Life is unpredictable, and this fund gives you peace of mind and financial stability.

Step 4: Protect from Life’s Risks (Insurance)

One thing I often remind people of: the goal of insurance is not to make you rich; it’s to prevent you from becoming poor.

Many of us hesitate when it comes to insurance—especially life and health coverage. But what happens to your finances (and your family) if the unexpected happens and you’re uninsured? A single hospital bill can wipe out years of savings. Worse, if you’re the breadwinner, your untimely passing can leave your loved ones in a financial abyss.

You don’t need to over-insure yourself. But you must be adequately protected. Start with term life insurance if you have dependents. Make sure you have health insurance (PhilHealth + HMO + critical illness if possible).

Insurance is not an expense—it’s a hedge against financial ruin.

Step 5: Invest for the Future

After you’ve stabilized your present, it’s time to plan for the future—and this is where investing comes in.

Don’t get caught up in hype or what’s trending. Instead, start with the basics: know your goals, time horizon, and risk tolerance. Are you investing for retirement? For your child’s education? For long-term wealth?

In the Philippines, you can explore mutual funds, UITFs, stock market, PERA (Personal Equity and Retirement Account), and real estate, among others. But here’s a truth I will never get tired of saying: There’s no one-size-fits-all investment. Educate yourself before you invest. Seek professional guidance if needed.

And remember—investing is not gambling. It’s a long-term commitment to your future self.

Bonus Step 6: Start Tithing

Now, let me share something deeply personal and spiritual—something that has had a profound impact on my financial journey: tithing.

I firmly believe that everything we have is ultimately from God. Tithing isn’t about giving back a portion—it’s about honoring the Giver. Proverbs 3:9 says, “Honor the Lord with your wealth and with the firstfruits of all your produce.” (ESV)

When we tithe, we realign our hearts. We break the grip of greed and acknowledge that God is our true provider. I’ve seen it in my life and in the lives of countless others: when you put God first, He faithfully provides—not always in ways we expect, but always in ways we need.

Tithing isn’t just an act of faith—it’s also a powerful habit that shapes our character, our financial decisions, and our purpose. If you want real financial freedom, it must include surrender—because money is a heart issue, not just a math problem.

A Brotherly Reminder

Financial freedom isn’t just about numbers—it’s about mindset, discipline, and for me, faith. It’s about understanding that your financial life is a journey, not a quick fix.

My 5 (now 6!) Steps to Financial Freedom may sound simple, but they require consistent action and heart-level change. Whether you’re just starting or rebooting your journey, I want to encourage you: It’s never too late to start making wise financial decisions.

I’m still walking this journey too, and I’m glad we can do it together—one no-nonsense, God-honoring step at a time.