Getting rid of debt is very similar to de-cluttering. You want to take action, but when you actually sit down and look over just how much there is – more than can be got rid of quickly – it soon becomes daunting, and easier to retreat than to move forward.

Trash Your Debt, by Arnold D. Fredrick, is a nice little book that can help you make progress.

He tells the tale of his early days of maxed out credit cards, car loans, medical bills (he’s in the U.S.) and more, leaving “about $25 per two weeks for food,” and finding themselves “$100 more in the hole every two weeks.” He had out of control debt that was growing, he explains.

The way forward, he writes, is “do something! Sounds a little simple, but in that simple statement lies the secret. Doing something is going to get you out of debt years faster than doing nothing. Doing something will propel you to financial freedom and out of the slavery of debt.”

First, he advises, write down the “why” of getting out of debt, the goals you want to achieve, and the “daily, weekly or monthly steps to achieving your goal.” The goals are important – setting a target means you can measure your progress.

The how involves setting a budget, he writes. And it involves the seemingly simple idea that you must “stop spending more than you make.” He likens the situation to a bathtub that leaks – the more leaks you have (expenses), the more money it takes to fill the tub.

When he looked at his family’s income and expenses, he saw that he was consistently spending more than he earned. So he made spending cuts – cable TV was cut to basic, lunches for work were packed, a meal plan assisted grocery shopping, they bought in bulk and on sale, they shopped for a better phone plan, and more. “Save all the savings,” he says.

Another nice concept in the book is that of the “10 per cent, 10 per cent, 80 per cent” rule. Consider giving 10 per cent to charity, save 10 per cent for your future, and live on the remaining 80 per cent, he explains.

In addition to setting aside money for good causes or charity, setting aside 10 per cent “for you” is essential. “So many people go through life working for someone else and never pay themselves from what they earn,” he explains. Putting away money as you start your career can make your retirement much easier, he notes.

Fredrick is not a believer in cash. He likes a “Visa check card,” (similar to a debit card) because he has a record of all his spending and can quickly spot “trends” where his family may be overspending. With cash, you get no such record, he says. He also recommends cancelling credit cards as soon as you pay them off. Try, he writes, to pay off the higher-interest card first.

Near the end of the book he says there is a monster within us that gets in the way of financial freedom. “The monster is the thing within you that stops you from achieving your greatest potential. For some, the monster is fear – fear of success, fear of change, fear of being responsible or fear of failure. Fear is a strong monster.”

The monster can be killed, he concludes, by small, steady and daily actions. “Don’t let a single day go by without taking a stab at your monster,” he says.

This is a fun, candid, and well-thought-out little book that’s a fine addition to your financial bookshelf.

Just as we can kill a large debt by chipping away at it slowly and regularly, we can also build up our retirement savings little by little. The Saskatchewan Pension Plan permits you to contribute via your online banking platform. SPP can be set up as a bill, and you can chip in little amounts — $10 from a scratch ticket, $5 from returning empties, $100 from a yard sale – as you go. You’ll be amazed how those tiny additions to your nest egg can add up. Check out SPP today!

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