In his book, Debt is Slavery, Michael Mihalik describes the 10 steps he personally used to gain control of his finances and pay off a large amount of debt.
The key to Mihalik's method is changing the way people think
about money. Mihalik contends that people who do not change their
perceptions about money will never succeed in improving how they handle
their finances because all action is born from thought.
Mihalik's first technique is described in the title - equating debt
with slavery. While this idea may seem extreme to some, people who are
burdened with debt will definitely understand how borrowing money puts
them in financial servitude to the lender. Successfully equating debt
with slavery stops people from accumulating more debt, which is the
first step towards recovery (similar to stopping the leak in a sinking
boat prior to bailing out the water).
Mihalik goes on to
describe other powerful ideas such as equating money with time (to
eliminate unnecessary spending), evaluating the hidden cost of
possessions, and avoiding the insidious influence of ubiquitous
marketing. As the reader progresses through the book, their perceptions
about money will transform until by Chapter 9, they will truly believe
they can 'Save 50 Percent of Your Salary'. The book ends with an
in-depth description of a simple way to plan your finances.
The author states in the introduction that because people are busy and
do not want to be distracted by 'fluff', he has boiled the book down to
the absolute basics. The result is a hard-hitting book that is 128
pages cover-to-cover. There is a gem on every page and even the busiest
person can find time to read this powerful book.
Debt is Slavery
offers hope. The book takes a unique approach to personal finance by
focusing on changing the way people think about money. The author uses
his personal triumph over paralyzing debt to illustrate 10 lessons that
will transform the reader's relationship with money so they too can pay
off their debt, reclaim their freedom, and lead more fulfilling and
prosperous lives.