This month we celebrated Independence Day, but let’s talk about a specific kind of freedom: financial freedom.

Financial freedom may mean different things to different people, but ultimately it comes down to taking ownership of your finances–making your money work for you and not the other way around.

Many of us live paycheck to paycheck, and even if that describes you, you can achieve financial independence.

Let’s break it down a bit.

1. Budget

You can’t reach financial freedom without knowing exactly where you stand with your money. You need to take an honest assessment of how much income you make each month and what your expenses are. This can take a bit of a learning curve if you are new to it, so don’t get discouraged. There are several free apps available to help you think about all your possible expenses in a month, but when you are just getting started it’s definitely easy to forget something.

To get you started, write out all your income. If your paychecks aren’t always the same amount, try to make your best guess and aim on the lower side. That way you will not spend more than you know you will make.

Then, try to list all your expenses. Start with the things you can count on (like your basic bills). Then add in groceries, household supplies, doctor visits, medicines, eating out, entertainment, subscription services, clothing and debt payments. Don’t forget special events coming up like birthdays or holidays. Everyone won’t have all these expenses and some may have other categories but this is just to get you started.

2. Set Goals

Now that you’ve budgeted, you have a clear idea of your money (which by the way may take a month or two to get accurate. If you aren’t used to tracking your groceries or how much you spend on cleaning products, for example, that may take a few tries to get right). It’s time to set some financial goals. If you need to save money or pay down some debts, you now should have an idea of where you can cut out some expenses, like possibly not eating out as much or spending less on entertainment or streaming subscriptions. Shopping at thrift stores instead of clothes new off the rack. If you need to save money, find ways to temporarily sacrifice for your ultimate goal.

Here are some great goals to start with:

• Pay down debts, especially if there are any in collections or any with very high interest rates
• Build an emergency fund of at least $1,000
• Start saving for something bigger, like a down payment on a new home
• Invest in your future

3. Grow your income

There are only so many expenses a person can cut. And if you are living minimally, you may be out of options (you can’t cut your power bills and house payments, unfortunately)! It may be time to consider other sources of income.

You don’t necessarily have to get a higher paying job, though that could always be an option. You could consider taking up a side hussle or selling some of your goods on Facebook marketplace. You could even have a yard sale.

All of these things are great ways to either temporarily or for the long run make some extra money.

4. Celebrate milestones

When working toward a financial goal, especially if it’s a lofty one, it can be easy to get discouraged or lose sight. So it’s important to celebrate victories along the way, no matter how big or small they are! For example, if you are paying down multiple debts, reward yourself with a little treat when you pay down the first one.

If you are saving $1,000, celebrate being half way there.

No matter how lofty or little your income is, financial freedom is within your reach. Give yourself a lot of grace, and take one step at a time. This is a marathon and not a sprint, and with determination and careful planning you can achieve your goals.