Everyone talks about financial freedom, but very few people know how to actually achieve it. The truth is, becoming financially free doesn’t require complicated strategies or advanced financial knowledge.
In fact, I call this the simplest formula for becoming financially independent.
If you understand this principle and apply it consistently, I can assure you that within the next 3 to 12 months, you’ll stop worrying about money.
I explained more about this in my book Achieving Your Greatest Dreams
Let’s break it down step by step.
Step 1: Calculate Your Monthly Expenditure
The very first thing you need to do is know your numbers.
Sit down with a pen and paper and list all the things you spend money on every month. Focus on your needs (not wants) the expenses that are non-negotiable.
Your list might include:
Food (including water)
Rent
Transport
Electricity
Water bills
Medical expenses
Gas
School fees (divide by months if paid termly)
Loan repayments
Insurance
Miscellaneous (for unexpected expenses)
Add all of these up to get your total monthly expenditure.
Step 2: Break It Down Into Daily Figures
Once you know how much you spend monthly, divide it by 30 (days).
For example:
If your total monthly expenses = ₵7,100
Then, ₵7,100 ÷ 30 = ₵236 per day.
This means that whether you like it or not, you must make at least ₵236 every day just to survive.
Step 3: Earn More Than You Spend
The next target is simple:
Your income must always be higher than your expenditure.
So, if you earn ₵10,000 a month and your expenses are ₵7,100, that leaves you with ₵2,900 extra.
That extra money is where your financial freedom begins.
Step 4: Save and Invest the Difference
Most people stop at saving, but that’s not enough.
Here’s what to do:
Save consistently even if it’s daily. (For example, ₵100 a day).
Invest those savings into assets that can produce money on their own.
Examples of smart investments:
Landed property (land appreciates without effort).
Treasury bills, bonds, or mutual funds.
Passive businesses or partnerships.
Your own business (if it generates income without your constant presence).
The key is to channel your surplus into income-producing assets.
Step 5: Build Passive Income Until It Covers Your Life
The ultimate goal is to reach a point where your passive income = or > monthly expenses.
That’s the moment you become financially free.
It means even if you stop working for 6 months or a year, your investments and assets will still take care of you. That’s real independence.
What If You Don’t Earn Enough Yet?
Maybe right now, your income can’t cover your monthly expenses. Don’t panic.
Start small.
Automate your savings using tools like MTN Mobile Money Yellow Savings (or any automated savings plan).
Even saving ₵5 or ₵10 daily consistently builds discipline and momentum.
Financial freedom is not about the amount you start with, it’s about the habit you build.
Inconclusion, the simplest formula to becoming financially free is this:
Know your monthly expenses.
Earn more than you spend.
Save and invest the difference.
Build passive income until it covers your life.
That’s it. No magic, no shortcuts. If you apply this principle faithfully, you’ll be on your way to living the life you truly desire.
Over to you: Are you currently tracking your monthly expenses? If not, start today your journey to financial freedom begins with that one step.
Read a sample of my ebook for free here
Know your monthly expenses → Earn more than you spend → Save and invest the difference → Build passive income until it covers your life
Start by listing all your monthly expenses food, rent, transport, utilities, school fees and loans. Then divide the total by 30 to find your daily cost of living.
Example: ₵7,100 ÷ 30 = ₵236/day.
Your goal is to earn and invest enough so that your passive income covers this amount consistently.
Start small. Even saving ₵5–₵10 daily builds consistency. Use automated tools like MTN MoMo Yellow Savings, or any savings app that encourages daily deposits.
As your income grows, increase your savings rate and invest in income-producing assets such as land, mutual funds, or side businesses.
Landed property (appreciates in value)
Treasury bills, bonds, or mutual funds
Passive businesses or digital ventures
Dividend-paying stocks
The goal is to have assets that make money even when you’re not working.
With consistent saving, disciplined spending and smart investing, most people can begin seeing results within 3 to 12 months. The timeline depends on your income level, spending habits, and how quickly you build passive income streams.
In Achieving Your Greatest Dreams, I break down a practical, step-by-step plan to help you reach this stage faster.
David Asaana is a Digital Marketer, Author and Entrepreneur with over five years of experience. He has worked with 4,000+ clients across Ghana, the USA, the UK, and beyond, and his YouTube channel where he shares step-by-step tutorials on digital marketing and business growth has reached more than 1.9 million views.
