A disciplined plan to defeat debt

Jay Rigler's 12 Steps to Eliminate Debt and Build Wealth is a commonsense, concise plan that outlines practical steps to tackle debt and manage your finances effectively.

Many people are unsure about their finances. Financial services company The Motley Fool reports that the average American household debt is $105,000, and delinquency rates are on the rise. We can use all the help we can get.

One of the refreshing aspects of Rigler's 12 steps is that he replaces the popular money coaching strategy of a detailed budget with an undetailed one.

According to Rigler, some money managers suggest more than 80 items for a detailed budget.

"Your Money Coach expects you to account for every dollar, down to the last penny, in advance at the beginning of every month. This is a completely unnecessary shock to the system. It is likely why so few people create budgets and even fewer can maintain detailed budgets for more than a few months," Rigler writes.

The author's undetailed budget reduces revenues and expenses to five key metrics: income, recurring expenses, discretionary income, personal spending, and savings and debt repayment.

Rigler notes: "These five numbers are the perfect way to zoom out from the day-to-day of your financial life and get a full understanding of how cash flows through your household."

The key to his strategy is taking discretionary income—money left after recurring expenses—and using those funds for personal spending, savings, and debt relief. This foundational step, if followed, will help create one-month and six-month emergency funds, eliminate high-interest and non-mortgage debt, and ultimately enable individuals to save for college and long-term healthcare and pay off a mortgage.

Rigler provides many income scenarios and explains how they would fare under his system. It's easy to see oneself in these examples, and it's encouraging to know that debt can be eliminated.

The book may fall short for some individuals with families. The author admits that he does not have children, which he says may make debt relief "a bit more complex or time-consuming." For example, Rigler does not address potential expenses such as orthodontia, traveling sports teams, and private school tuition. This isn't to say his plan won't work for families, but those variables are worth a mention.

Additionally, I would have liked to see his perspective on economic inflation and how to prevent it from damaging finances. As we all know, increases in car prices, groceries, and other consumer goods can leave us struggling to keep up. I wouldn't expect a magic bullet, but I would appreciate insight into how to address this issue.

It's refreshing that Rigler doesn't promise any easy fixes. Sticking to his plan will take discipline, and it will take years to reach financial freedom. He notes that his struggle to conquer the debt he assumed in his 20s took six years. For most of us, the journey will take at least a decade.

Much of the ground Rigler covers is not necessarily new, but he provides enough unique strategies — like the undetailed budget — to make the material seem fresh. That's no small accomplishment given the amount of print already dedicated to the subject. I rate the book a solid four stars.

I received an advance copy of this book from Reedsy Discovery: https://reedsy.com/discovery/reviewers/apply?referral=robertcarpenter6469.