For many years during my working career, I thought I had freedom. I made great money, I was able to work in a field that I loved, and I knew I was helping people every day until October 2, 2003. Working in the Financial field, I saw many companies laying off, but our firm had yet to. However, in October 2003, after three years of financial market declines, we knew it was coming soon to our company. 

The rumor mill was running strong with everything happening in the markets. Working with some of our company's largest and most influential clients, I was confident that I would be ok along with all of my friends in the same role. Our bosses even said that.

The morning of October 2, 2003, was like any other day coming into the office in Dallas. The difference was that the department director wanted to meet with our small team immediately. Thinking like all my friends were at that time, I knew this was just a meeting to reassure us that we would be ok. Nope. 

Our director told us in this meeting that our positions were eliminated. The clients we worked with would be transitioned to other advisors in the country where the clients were located. We decided to be laid off and get one week of severance for every year of service (I had seven years at this point) or take a demotion and support the people in the field working with our old clients. 

At this point, I didn't have a choice; I took the demotion and settled into what would be a low-paid hell until I could figure something out. A few weeks later, the company reversed its decision in our case, but the damage was done. 

In this article, I talk a lot about freedom and its definition. At that time, my definition of freedom was four weeks of vacation, a well-paying job, and a Saturday and Sunday after every Friday. 

The problem with my definition was that there was a Monday after every Sunday and a Monday after every vacation. After being laid off and brought back, I feared losing my job again. This led to bouts of anxiety and insomnia that persisted for over ten years. 

While I feared this at one company, it followed me to the next couple of firms I was with. It manifested itself as a tightness in my stomach starting on Sunday afternoon, insomnia overnight, and fear as I pressed my badge against the badge reader as I entered the building on Monday morning (not that they wouldn't let you into the building to fire you). 

This irrational fear followed me until March 1, 2016, when I quit my job and went to work for myself as an entrepreneur. That night I had the best sleep I had had in years. I knew I could no longer be laid off or fired; I was the boss. I would have to fire myself. I had experienced freedom, or so I thought. 

The problem with my plan is that I needed one. I knew I wanted to work for myself. I built a business plan for the business and secured financing. What I should have done was build in contingencies, underestimated our early success (or lack of it), and thought I knew more about running a business than I did. Those things cost me a significant amount of my retirement savings, almost caused us to lose our house, and almost lost our business. 

Over the last ten years, I have made all the mistakes that I hope you don't. I have cost my family hundreds of thousands of dollars, which I hope you don't do. Over that time, my ideas about the Financial Planning world and Retirement Planning, in general, have changed radically, leading to the creation of Freedom Day (™) and the Freedom Day Method(™)

With the Freedom Day Method, you can make the work-optional lifestyle a reality. This step-by-step plan combines smart budgeting, debt elimination, income generation, and passive investing strategies to help you achieve true financial independence. The techniques discussed in this article are what I eventually used to reach my own Freedom Day. Let's dive into the core principles of the Freedom Day Method and show you how to make it work for you.

1. Build a Realistic Budget and Identify Your Minimum Required Income

The first step towards financial freedom is understanding your finances. To do this, create a realistic budget that outlines your monthly expenses, savings, and income. Begin by listing all your essential and non-essential expenses and categorize them. Then, calculate your minimum required payment (MRP) – the least monthly money you need to maintain your current lifestyle. Your MRP will serve as a benchmark for your progress toward financial independence.

2. Calculate Your Debt and Build a Debt Snowball to Eliminate It

Debt is a significant obstacle to financial freedom, so the next step is to eliminate it. List all outstanding debts, including credit cards, student loans, car loans, and mortgages. Arrange them in order of the smallest balance to the most significant balance. This is your "debt snowball."

Start by focusing on the smallest debt first. Make minimum payments on all other debts and allocate extra funds towards the smallest debt until it's paid off. Then, move on to the next smallest debt, and repeat the process. You'll build momentum and motivation by tackling one debt at a time, accelerating your journey towards a debt-free life.

3. Recalculate Tax Withholding and Apply it to Debt Snowball

Many people receive a tax refund yearly, indicating they've overpaid their taxes. While it might feel nice to receive a lump sum, that money could be better used throughout the year to eliminate debt faster.

To optimize your tax withholding:

1. Consult a tax professional or use an online calculator to determine the appropriate number of allowances to claim.
2. Adjust your W-4 form with your employer accordingly.
3. Add the extra money from your paycheck to your debt snowball to speed up your debt repayment process.
4. Create a Bucket List and Prioritize 3-4 Things You Must Do in the Next 6 Months