Four Laws of Debt Free Prosperity

"The Four Law of Debt Free Prosperity" is a book written by Blaine Harris and Charles Coonradt. The book follows the financial woes of Paul Smith, a man drowning in debt. He eventually meets Mary Sessions, a former IRS officer with $20 million in the bank. She convinces him to move into her house and learn the four laws of living debt-free. Enticed by her offer of $2 million dollars, Paul agrees and learns how to create a financially secure life.

The book, based on a true story, explores the four laws of debt-free prosperity and gives practical, easy-to-understand advice that you can use to get out of debt, just like Paul.

Tracking

According to the book, keeping an accurate record of every penny you spend is the first step to getting out of debt. Too many people spend money without understanding where the money is going. The authors, using Paul's story as an example, show how writing down every penny spent or earned allows you to understand where your money is going.

Targeting

After tracking your money, the next step is to set achievable money targets, or goals. The authors explain that each financial goal must be written down, be specific, be measurable and have a deadline. The authors explain that financial goals must also be achievable -- setting a goal to pay off $10,000 in credit card debt in three months with an annual salary of $30,000 is not achievable, but paying off $10,000 in three years on a $30,000 salary is possible.

Trimming

Once you've tracked your spending and set goals, the next law to follow to debt freedom is trimming. Trimming means cutting the excess spending out of your budget to have more money for savings and debt payments. The authors suggest paying yourself first--meaning you immediately take 10 percent out of each paycheck and put it in a saving's account. They explain that saving immediately allows you to adjust your spending right away--if you try to save after all your bills are paid, you won't have enough left over to save.

Training

The authors assert that many wealthy people got to where they are because they understand the importance of intelligent investing. They recommend taking financial education courses to help you understand your money and the intelligent ways you can use it to grow wealth once you're eliminated your debt.