How to Change Your Money Mindset and Build Financial Freedom

Creating a budget isn’t only about restriction—it’s all about financial awareness. Podcast power couple Brittany and Anthony Xavier have transformed their relationship with money through deliberate budgeting, tracking their finances with the Every Dollar app. 

“Putting restrictions on spending provides financial freedom,” Anthony says. “It might seem daunting at first, but you want to live below your needs and set financial goals.”

On The Long Game, the Xaviers how they overcame overspending and debit card denials by developing healthy money habits anyone can adopt.

Creating a monthly zero-based budget 

The goal of effective budgeting is reaching zero after deducting expenses from income—ensuring every dollar has a purpose. The Xaviers recommend starting with a simple spreadsheet tracking income and fixed expenses: necessities like groceries, utilities, rent, and transportation. 

“Groceries are essential, but eating out is not,” Brittany says. “When we first did our budget, we weren’t eating out at restaurants. We were only budgeting for groceries.” 

Once you become comfortable with tracking, they suggest transitioning to the Every Dollar app, which automatically populates your spending and income. As you progress, be sure to track your budget spreadsheet or app regularly. 

“You want to be able to check your budget to see where you are with your money. It’s a snapshot for where you are at the month,” Brittany says.

The 50-30-20 rule

For allocating funds, the Xaviers follow a straightforward formula: 50 percent for your needs, 30 percent for wants, and 20 percent for retirement. If you had $1,000, $500 goes to your necessities, $300 for discretionary spending, and $200 into savings. 

A few more money tips: 

• Keep your rent or mortgage payment below 25 percent of take-home pay 
• Limit car payments to less than half your monthly income (to avoid tying up money in assets that depreciate) 
• Direct any extra money into your savings
• Tackle debt using the snowball method—paying off smallest debts first 
• Focus on investing after becoming debt-free

Resetting your relationship with money

There is power in knowing how much money you have and where every dollar is going. “Budgeting is about understanding the amount of money coming in (your income) and the amount of going out (your expenses),” Anthony explains. “You can find yourself in an emergency if you are not set up properly and don’t know where your finances are going.” 

It might seem restrictive, but budgeting ultimately provides financial freedom. “You’ll actually feel like you have more money because everything is accounted for and giving a name for where it goes,” says Brittany, who describes herself as a recovering spender. “All this budgeting is resetting your relationship money and your habit system. It resets how you think about money and how it makes you feel.”

Anthony agrees: “It gives you a great overview of your financial status. Having those financial habits and goals in place sets you in place to succeed.”