The Five Foundations

The First Foundation: Save a $500 emergency fund

An emergency fund allows you to have money available for any surprise expenses. If you don't have money saved up for these kind of things debt looks like an easy answer.

The Second Foundation: Get out of debt

The problem with debt is, people overspend and get them self in too much debt. Debt has been marketed to us with so much intensity for so long that to imagine living without it requires a completely new way of looking at things.

The Third Foundation: Pay cash for your car

There are 3 huge ways to lose when buying a car. Payments, interest, and depreciation. Spreading the purchase of a car over 4 years hinders your ability to pay off debt or to save money for that time.

The Fourth Foundation: Pay cash for college

If you pay cash for college, you wont have any student loans to pay off after you have finished your education. A student loan will take you years to pay off, and you will have to pay interest on the loan, so you will be paying more than you have to pay for college.

The Fifth Foundation: Build wealth and give

We often hear about people and families with no food, adults with no homes and kids with no parents. So it's good to give when you can and help others out. Even if your action is small you can make a big difference in somebody elses life.

The relationship between the 5 steps

If you follow these five steps you can become very successful in life and not have any debt.