A 6-Month Game Plan To Build Wealth, From Financial Influencer Steve Chen
Written by
Nicole Spector
Edited by
Molly Sullivan
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Millions of us are trapped living in the paycheck-to-paycheck cycle. It may not seem like it, but there is a way out of this life if you implement the right mindset and, perhaps more importantly, the right plan.
Steve Chen, a money coach and the CEO and founder of Call to Leap, posted on his YouTube channel a six-month game plan to build wealth. He broke down how to take control of your finances — one step at a time — and emphasized that you don’t need to make six figures to stop living paycheck to paycheck. These are the six steps to follow over a six-month period.
Month 1: Own Your Numbers
The first step/month may be the most uncomfortable one, as it’s all about facing the cold, hard facts. This is the time where you ditch your avoidant behaviors (which Chen explained only serve to give a false sense of safety) toward money and take a complete inventory of where you stand in every aspect of your financial life.
“When you finally sit down and look at the numbers, it’s not always fun, but it gives you a starting point,” Chen said. “And that’s what this month is all about … awareness and ownership. You’re taking the first step toward making informed, intentional decisions with your money.”
In this first phase, you will calculate five financial numbers:
- Your take-home/after-taxes income
- Debt (Credit cards, student loans, car payments)
- Essential spending
- Discretionary spending
- Savings and investments
Chen recommended using a budgeting app or creating a spreadsheet to document all your income and spending.
Month 2: Launch the Goal of Saving 1 Month of Expenses or $1,000
Once you have a precise idea of everything that’s coming in and everything that’s going out, it’s time to implement a goal: Save $1,000 or one month of expenses.
“So if your monthly expenses add up to $3,000, then that’s the number you’re aiming to save,” Chen said. “Or if you want to take baby steps, just start with $1,000. I know that for many people saving feels like a sacrifice at first, because our brains are wired to want rewards now, not later. But you’re not really cutting back. You’re actually purchasing freedom or peace of mind.”
If hitting this goal in one month is totally impossible, spread it out over a few months, but don’t slack or keep extending the deadline.
Month 3: Eliminate Debt and Build an Emergency Fund
Step three is all about checking two critical boxes in your financial life: high-interest debt elimination and building an emergency fund in a high-yield savings account (HYSA).
Chen champions the debt avalanche method, where you list all your debts from highest to lowest interest rates.
“You want to prioritize paying off anything from 7% to over 12%,” Chen said. But if you’re someone who wants quicker wins, you might like the debt snowball method, of which Chen also approves (though he prefers the debt avalanche method). With this method, you list out your debts from highest to lowest amount and work your way down. It’s the same thing but going by amount as opposed to interest rate.
Once you’ve tackled your debt, you need to prioritize building an emergency fund in a HYSA.
“Your goal right now is to save three to six months of core living expenses.” The more unstable or volatile your income, the higher your emergency fund target needs to be. Chen said he has 12 months set aside in his emergency fund.
Month 4: Start Investing
Congrats, you’ve reached the month where you stop saving money. You’ve graduated onto the phase of the plan where whatever you have left over is going into investing.
“Saving money is a good habit to have, but after a certain amount you’re actually going to have opportunity cost,” Chen said. “So instead of saving your money in a high-yield account that might beat inflation by just a little bit, you want to put your money into something that’s going to grow more in the future.”
Invest by doing the following:
- Taking advantage of job benefits (maxing out your 401(k) plan).
- Open a tax-advantage account to invest in. Chen’s favorite is a Roth IRA.
- Invest in low-cost, diversified index funds. Aim to keep it “simple and responsible,” Chen said — and invest regularly, every week or few weeks.
Month 5: Build Your Skills and Increase Your Income
Month five is Chen’s favorite month in this six-month plan, as it’s all about learning new skills and making more money. Chen’s own money-making journey took off when he grew skills in digital marketing, sales, AI implementation and teaching/tutoring.
“You can learn pretty much everything online for free nowadays,” Chen said. “I typically recommend people to start with YouTube and ChatGPT.”
The goal here is to put those newly learned skills to work and make them make you money. “If you can make an extra $500 a month, it’s going to drastically help you speed up your savings and investing.”
Month 6: Automate and Set the Bar Higher
The final step/month is about increasing momentum and upping your game. Focus on automation in all aspects of your life to make things happen without effort or friction. Here’s how to apply that to your finances.
- Automate recurring bill payments.
- Automate savings and investments.
- Review and update your overall financial plan. As life changes, so do your goals. Stay informed and be flexible. Don’t let your financial plan sit idle. Check it regularly and ensure you’re doing everything you need to do to keep building wealth.
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