Debt is Slavery

This book truly opened my eyes and was one of the best things I've read about personal finance in a long time. As the not-so-subtle title suggests, it is primarily about the dangers of debt to people's financial lives and overall well-being. It is very readable, brief and to the point. I read it for the first time in one sitting, and since then have revisited the book often. Below are the chapter headings and general gist of them.

Chapter 1 deals with debt itself and makes the case that there is no "good debt." Some financial savvy people may disagree, knowing how to carefully use debt to their advantage, but the book makes a strong case for how any debt, to the average person, is the most destructive force in our financial lives. The statistics here in this chapter are scary!

Chapter 2 urges us to see money as a representation of our time and labor, and thus to think about it in those terms. Very insightful to me. Now before I spend money I always ask, "is this item worth that much of my time and labor?"

Chapter 3 is entitled "Possessions are a Prison," and wow, what a thing to say in our materialistic society! This chapter examines the big marketing machine that is always trying to separate us from our money, and advises that we focus on accomplishing and achieving things rather than just accumulating stuff.

Chapter 4 examines the competitive psychology implanted in us by our culture that drives us to spend and go into debt.

Chapter 5 is called "Money Buys Freedom" and examines how less debt opens up more life options. I think this is key. After reading this I see the key to financial happiness is not more money but more freedom!

Chapter 6 discusses how we so often sell our souls for a salary, going day after day to jobs we hate just to be able to pay our creditors. This chapter discusses strategies for doing what you want to do, figuring out how to make money doing it, and how being debt-free gives you that option.

Chapter 7 discusses the importance of ownership, that is, actually owning our cars, houses and other things instead of financing or renting. There is really something to this point, more psychological than financial. There really is a different attitude, peace and even pride that comes from owning. Whatever you have, it may not be much, but it's yours.

Chapter 8 is all about the discipline of spending less than you make and living within your means. If only congress would read this! It is only common sense, but this chapter puts it all in a very motivational way.

Chapter 9 sets the goal of saving 50% of your salary! Seems unrealistic at first, but he shows how it's possible and can be achieved by setting incremental goals.

Chapter 10 brings it all down to the implementation of a practical plan. Here are some good resources for getting started on a budget and having a strategy to save and pay down debt. I'll tell you, this book presents a radical way of looking at money and how we manage it, but everything he suggests makes perfect, practical sense. I think it's a great book in every way, and by implementing much of what it suggests, I can honestly say that I have a greater sense of financial freedom and a bit more peace about my future. I highly recommend it.