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"If you want something you've never had, you must be willing to do something you've never done"

Step by Step Guide to Building Financial Independence for beginners!

Kia Ora tatou katoa!


Welcome to Maori Millionaire if you are new, if not - welcome back!


I've been asked so many times, where do I start??? I live pay check to pay check, what can I do??


If I were starting from the start, I'd begin with the following steps:


  1. Saving a $1,000 emergency fund so that you won't need to get in to high interest consumer debt.

  2. Paying off all high interest consumer debt ( that laptop, personal loan, your phone)

  3. Save your 'Safety net'

  4. Research the following to gain an understanding of finance:

  5. Creating a circle

  6. Increasing your income.

I'd say that these 6 steps will get you started. They will open your eyes to finance and teach you some of the skills you need. Here is a breakdown of each step.



Step #1 - Saving an Emergency Fund


The first step I always recommend is to save an 'emergency fund'. Emergency Funds are really important because when unexpected costs arise, they wont cause you to go in to high interest debt that accumulates, digging you in to a whole that grows deeper and deeper.


What are the things that will be covered by an Emergency Fund?


  • You accidentally spill a coffee on your laptop and need it for work.

  • Your kid comes home from school and you realize that they need a new jersey as it doesn't fit.

  • Your cat becomes sick and needs an operation.

  • You have one pair of work shoes and they break.

What is it not for?


  • Going out to dinner.

  • Going on a holiday.

  • Buying a new handbag.

  • Shopping sprees.

  • Gift giving.

You have to be disciplined with yourself in what this fund is for, and not for.


Step #2 - Paying off Debt


Consumer debt can be one of the most debilitating things in adult life. A feeling of never ending payments and continuing struggle is common amongst those with large amounts of debt. There are different reasons for entering in to debt such as needing money for emergencies, or others that chose to go in to debt to live above their means.


If you have debt at a variety of providers, for example 2k credit card debt, 3k for a laptop at noel lemmings, $1500 at a loan shark, etc, etc - I think that the best way to manage this is independent to you. There are a few different ways that you could do this, including:

  • Debt consolidation - This is when you get one personal loan and use the money to pay off all of your debt at all the different locations. The perks of this is that the interest rate will be one rate and not mixed. The con of this is that you may find yourself spending more money on interest. Sometimes, the extra cost is worth is because you find it easier to pay one bill than become overwhelmed with several.

  • Organizing your debt from highest rate to lowest and start there.

  • Organizing debt from highest amount to lowest.

  • Organizing debt from lowest amount to highest.


Step #3 - Safety Net


My Safety net is 12 months worth of expenses. I like this as I am a student and if I were to ever become unemployed I would still be able to go grocery shopping and pay my bills. For some though, this is unrealistic. Some people rely on 1-3 months and others 3-6 months. It's up to you and what makes you feel most comfortable, and what is realistic for you to achieve.


Step #4 - Research

Research and becoming educated in finance is one of the biggest down falls amongst many people. One reason for this is because it is not taught in school and a taboo topic amongst a lot of people. Here are the topics I would research to start off:


  • Market Cycles

  • Index Funds

  • Yourself

  • Investing

  • Cashflow quadrant

  • assets v liabilities

On top of these topics, I would also recommend reading the following books:

  • Rich Dad Poor Dad

  • Cash Flow Quadrant

  • How to Win Friends and Influence People

  • The Barefoot Investor

  • The Millionaire Next Door

If you can't afford to buy a book, borrow one- or go to the library! Have no excuses.



Step #5 - Your Circle


Step 5 is one of the most important steps. Who you surround yourself with is very important. If you hang out with gang members you'll likely become one too, if you hang out with millionaires so too will you become one. If the people you surround yourself by in real life aren't people working on their money mindset or personal growth then create a solution. I use online resources to find friends for this. Start by doing this:


  • Follow Maori Millionaire on Instagram and DM me ' Group Chat ' to be added to our exclusive group chat. Here, we discuss new ideas around investing.

  • Join the Facebook Page for Maori Millionaire to do the same.

  • Find a community for finance!


Step #6 - Increasing your income


Read https://www.maorimillionaire.com/post/22-side-hustle-ideas-how-to-generate-an-income-outside-of-work to find out how you can increase your income.




Thank you again for reading, and comment what step you are on!



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