How I Stopped Living in Constant Financial Stress & Took My First Step Towards Financial Freedom
What I learned about budgeting, savings, and money mindset, and how it changed my life.
For most of my adult life, I lived with a knot in my stomach.
Every week felt like a financial fire drill.
Bills would come through the door, and I’d pray the card wouldn’t decline at checkout.
I was a mother.
A student.
An employee.
A dreamer with plans—but no plan for my money.
It wasn’t that I didn’t work hard. I did.
But I was constantly one surprise away from spiralling into debt: a broken washing machine, a school trip I didn’t expect, my kids’ birthday party I didn’t plan, something happening to my car, and much more.
Every month felt like starting from scratch.
Until one day, I hit my breaking point.
The Turning Point: “I Can’t Keep Living Like This.”
I remember sitting in my kitchen, surrounded by unopened letters and a half-finished list of bills on a napkin.
I’d just borrowed money from a payday loan to cover a gas bill.
Again.
And I thought, this isn’t how I want to live.
I didn’t want to model this stress for my children.
I didn’t want to feel like money was something that “just happened” to me.
That night, I made a decision:
I was going to learn financial literacy.
Not just for me.
But so I could teach it to my kids and everybody else around me, because too many of us are trying to survive in a system we were never taught to navigate.
I enrolled with the National Financial Educators Council and became a
Certified Financial Literacy Professional and later, a Certified Financial Education Instructor.
What Financial Literacy Actually Looks Like
It’s not about being perfect with money.
It’s about understanding it. Controlling it. Planning for it.
It’s about taking the guesswork out and replacing it with calm.
Here’s what I wish I had known sooner—broken down simply for anyone to follow.
🧠 Step 1: Understand Your Needs vs. Wants
I used to spend emotionally, especially when I was tired or overwhelmed.
That’s how a “quick trip” to the shop turned into a £30 haul of things I didn’t need.
Learning the difference between needs and wants changed everything.
Needs:
- Rent or mortgage
- Utilities
- Food (groceries, not takeaways)
- Transportation
- Essential clothing
- Medication supply
- School supplies for your children
Wants:
- Takeaways and eating out
- New gadgets or decor
- Upgrading phones when it’s not essential
- Non-essential clothing
- Impulse buys from local shops and Amazon
👉 Financial Freedom starts with being honest about your priorities.
Case Scenario:
Single Mum of 2 on a Low Income
She reduced weekly takeaways and used that money to build an emergency fund. Small shifts made a big difference.
💰 Step 2: Build Your Emergency Fund – Even On a Low Budget
You’ve probably heard that you need 3–6 months of expenses saved. Not earning, but living expenses!
And if you’re barely making ends meet, that sounds impossible.
But here’s what I tell my clients and students:
Start small, but start now.
Even £5–10 a week can grow.
Open a separate savings account, name it “Emergency Fund,” and treat it like a bill you must pay.
Set a target. Example:
| Monthly Expenses | Target (6 Months) |
|---|---|
| £1,500 | £9,000 |
| £1,000 | £6,000 |
| £500 | £3,000 |
If that number feels overwhelming, break it down into chunks:
- First goal: £500 emergency buffer
- Next goal: £1,000
- Then build from there.
Case Scenario:
Young Couple with Unpredictable Income
They committed to saving 10% of every paycheque into their emergency fund. When one of them lost work unexpectedly, they didn’t fall into debt.
📊 Step 3: Budgeting Basics – Keep It Simple
Budgeting isn’t about rules.
It’s about awareness.
Here’s a basic structure anyone can follow:
✅ Budget Categories to Include:
- Fixed Bills – Rent, utilities, phone, insurance
- Groceries – Be realistic about what you eat
- Transport – Fuel, bus/train passes
- Toiletries & Household – Cleaning supplies, nappies, soap
- Kids’ Needs – Clothes, school stuff, snacks
- Personal Expenses – Clothes, self-care, etc.
- Debt Repayment – Minimums + extra when possible
- Savings – Emergency + Sinking Fund
- Fun Money – Guilt-free category!
Case Scenario:
Single Person Living Alone
They overspent monthly on eating out. After reviewing their expenses, they added a “Fun Money” category of £60/month to still enjoy life, without blowing the budget.
🪙 Step 4: Create a Sinking Fund (Your Budget’s Secret Weapon)
Ever had your child outgrow their shoes… and your budget couldn’t handle it?
Or a family member or child’ birthday came up, and it threw your whole month off?
That’s where Sinking Funds come in.
A sinking fund is money saved in advance for irregular but expected costs.
Common Sinking Fund Categories:
- Kids’ clothes and school needs
- Car maintenance
- Christmas or Eid gifts
- Birthdays
- Back-to-school
- Home appliances
- Self-development (courses, exams)
Split the amount over 12 months, and save it bit by bit.
Example:
If you need £300 for Christmas → Save £25/month from January.
Case Scenario:
Family of Four with School-Age Children
They listed all their yearly “surprise” expenses and built a sinking fund plan. Now, they’re prepared every September, Christmas, and birthday.
💳 Step 5: Include Debt Repayment in Your Budget
Ignoring debt doesn’t make it go away.
But paying it down consistently—even in small amounts—builds momentum.
One method you can use is the Debt Snowball Method:
- List debts from smallest to largest.
- Pay minimums on all.
- Put extra toward the smallest.
- When that’s done, roll that payment into the next.
Make it visual. Track your progress. Celebrate the wins.
🚀 Financial Freedom is a Journey—Not a Destination
When I started learning about money, I didn’t expect to fall in love with teaching it.
But the power I felt from understanding my finances was something I wanted every woman, every mum, every young person to experience.
I now help others get clarity, make peace with their past mistakes, and build financial stability from the ground up.
And it all started with learning how to budget, save, and plan for real life.
💡 Quick Win Download: Financial Clarity Worksheet
Evaluate your current financial health and take your first step toward financial freedom.
“Financial freedom doesn’t start with more money. It starts with more awareness.”
The balanced wealth studio
