The Debt-Free Spending Plan: An Amazingly Simple Way to Take Control of Your Finances Once and for All

473 Pages·2012·1.58 MB·English

by  JoAnneh Nagler

Advance Praise for The Debt-Free Spending Plan
“A riveting debt-breakthrough and a great read. In the world of debt-free living, this book is a trailblazer!”
—Stephen Dover, International Chief Investment
Officer, Franklin Templeton Global Advisers “The Debt-Free Spending Plan offers real-world, practical,
and pragmatic advice to help those struggling to balance their cash inflows and outflows. In minutes each
day and without a lot of technical mumbo-jumbo, JoAnneh teaches us to set goals, stop racking up debt, and
create long-lasting financial security. I loved reading this book and will recommend it to many in need of its
wisdom!”
—Mary Crawford, Professor, Stanford Continuing
Studies Program, Values-Based Life & Wealth
Planning and Twenty-First Century Retirement “If you’re struggling with debt or can’t get your money
under control, following JoAnneh’s plan will get you on the right track ASAP! The Debt-Free Spending
Plan provides a great, easy-to-understand system for getting a grip on anyone’s finances.”
—Trent Hamm, author of The Simple Dollar: How One Man
Wiped Out His Debts and Achieved the Life of His Dreams
THE DEBT-FREE SPENDING PLAN
The Debt-Free
Spending Plan
An Amazingly Simple Way to Take
Control of Your Finances Once and for All
JOANNEH NAGLER
AMACOM AMERICAN MANAGEMENT ASSOCIATION
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This publication is designed to provide accurate and authoritative information in regard to the subject matter
covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or
other professional service. If legal advice or other expert assistance is required, the services of a competent
professional person should be sought.
Library of Congress Cataloging-in-Publication Data
Nagler, JoAnneh.
The debt-free spending plan : an amazingly simple way to take control of your finances once and for all /
JoAnneh Nagler.
p. cm.
Includes bibliographical references and index.
ISBN-13: 978-0-8144-3243-3
ISBN-10: 0-8144-3243-3
1. Finance, Personal. 2. Consumer debt. 3. Budgets, Personal. I. Title.
HG179.N33 2012
332.024’02—dc23
2012010889
© 2013 JoAnneh Nagler.
All rights reserved.
Printed in the United States of America.
This publication may not be reproduced, stored in a retrieval system, or transmitted in whole or in part, in
any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior
written permission of AMACOM, a division of American Management Association, 1601 Broadway, New
York, NY 10019.
About AMA
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the skills of individuals to drive business success. Our mission is to support the goals of individuals and
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doing—with opportunities for ongoing professional growth at every step of one’s career journey.
Printing number
10 9 8 7 6 5 4 3 2 1
This book is dedicated to Theresa Hanneman Boer, who encouraged me to write
it, to Bonita Banducci, who helped me learn to live debt-free, and to Michael
Nagler, with whom all good things in my life are possible.
CONTENTS
Preface
Introduction
CHAPTER 1 The Heart of Our Debting Issues
The Debt-Free Spending Plan Is Not a Budget
What This Book Will Do for You
How Did I Get into This Mess?
So, What Have I Been Spending, Anyway?
Stop Debting, One Day at a Time
Pick Your Poison: What Going to Stop You?
CHAPTER 2 In with Structure, Out with Stringency:
The Simple Tools of the Debt-Free Spending Plan
First Things First: Determine Your Income
Introducing the Debt-Free Spending Plan
Step One: Your Monthly Bills
Step Two: Your Daily Needs
Step Three: Add It Up
The One, Hard-and-Fast Rule
CHAPTER 3 Make It Work Every Day:
Your Personal Debt-Free Spending Plan in Action
A Typical Debt-Free Spending Plan
A Quick Emotional Read on the Numbers
Do Your Plan Once a Month, Every Month
The Magic Little Notebook
Your Personal Tracking Record
Your Bill-Paying Plan
What to Do if You’re Behind
How to Catch Up
What to Do if You’re Ahead
“Payday Debting”: Consultants, Home Office Professionals, Entrepreneurs, and Artists
Debit Cards versus Cash
Putting It All Together
Begin Today
CHAPTER 4 Deprivation Will Never Get You Debt-Free:
A Plan for Everything We Need, Want, and Dream of
Why Have a “Healthy Reserve” Account?
You Also Need Short-Term Savings
Fun Money and Special Projects Accounts
Weddings, Vacations, and Special-Event Debting
Simple, But Not Always Easy
Learn to Live Well First
CHAPTER 5 To Cut or Not to Cut:
Taking a Reasonable Look at What You Can and Can’t Afford
Cutting Means Financial Freedom
Making Cuts in Your Daily Needs Categories
Making Cuts in Your Monthly Bills Categories
Start Simply and Incrementally
CHAPTER 6 Nailing Down the Octopus Arms: How to
Pay Back Your Debts without Gouging Your Living Expenses
The Value of a Debt-Repayment Plan
Easy-Does-It Payback Plans
Credit Ratings and Less Than Minimum Monthly Payments
How to Talk to Creditors
A Note About “Forgotten” Debts
Making Your Peace with the Payback Timeline
CHAPTER 7 Our Aphrodisiac Spending Plan: A Loving Approach to Approaching the One You Love
About Debt Problems
Lay the Unresolved Issue on the Table
A Debt-Free Spending Plan for Two
Victoria and Mark’s Spending Plans
Nobody Wants to Be Told What to Do
The Aphrodisiac Quality of a Debt-Free Spending Plan
Lawyers, Guns, and Money
Hope, Backed by Action
CHAPTER 8 “Mom, Can I Borrow…?”:
How to Stop Asking for Money and Start Paying It Back
How Much Do You Owe?
You Pay What You Can
How to Make Money Amends
Loans, Gifts, and Debt Forgiveness
The One-Third Windfall Money Rule
CHAPTER 9 Creativity, Not Credit Cards:
Learning from the Spending Plans of the Newly Debt-Free
Downsizing Means Things Are Looking Up
Five Real-World Examples
Alanna’s Debt-Free Spending Plan
Pete’s Debt-Free Spending Plan
Michaela’s Debt-Free Spending Plan
Jake and Anna’s Debt-Free Spending Plan
David and Ellie’s Debt-Free Spending Plan
CHAPTER 10 Keeping on Track and Keeping It Real:
Using the Tools That Help You Stay on the Plan
Tech Tools
Bottom-Line Tools
Coaching and Other Support Tools
No Excuses
CHAPTER 11 To File or Not to File:
Bankruptcy and Our Future Financial Health
Do I File for Bankruptcy?
Attorneys and Agencies
Ethical Issues
Be Honest
The Fallout of Filing
The Devil in Disguise
CHAPTER 12 Building a Life of Financial Integrity
Success Is Going to Look Different Now
The Real Jackpot
The Happy Life
This Book Is for You
Index