The Four Laws to Debt Free Prosperity
The object of this book is to teach people how to manage their money in order to stay out of debt and plan ahead for the future. This book goes over several suggestions or "laws" but focuses on four main ones.
To work with the other "laws" you must first learn and master the first which is "Tracking" daily expenses. By doing this one sees how to ease financial problems by finding money that slips through the cracks. If one pays attention to every detail of what they are spending they can not help cutting back on frivolous spending when they see how unnecessary spending money on that really is.
The second law is "Targeting" your goals. By targeting your goals you will have something to push yourself for. If you have nothing to compare yourself to you will not have anything to work up to. When setting your goals they should be written down and answering the following: Where you are; where you want to be; and how long it will take you to get there. By having your goals with you at all times it gives you an incentive to follow the first law as well.
The third law, "Trimming" works with the first two, in order to help you set up for future plans. With trimming you set up a standard of living which is lower than your level of income rather than at the limit of credit worthiness. Once one starts living on less than they earn they pay themselves to accelerate debt payments and then to build wealth. If one takes out, at the beginning of the month, 5%, 10%, or even 15% identified as surplus to reduce debt that forces one to live on what is leftover.
The fourth and final law is "Training". This law deals with investing money after out of debt so it may earn interest and set one up for retirement. If a person invests their money wisely when they retire after working hard their whole lives, they could live off the interest alone depending on how much they invested in the first place. What is...
Please join StudyMode to read the full document