Level One: Getting Debt-Free
"The rich rules over the poor, and the borrower becomes the lenders slave." — Proverbs 22:7

The Level One column in the SMI newsletter helps you begin your journey toward financial peace of mind. This column offers advice and encouragement on paying off credit cards, car loans, student loans, and other short-term debts. Level One is where we provide motivation as you make the sacrifices necessary to get debt-free. We also provide strategies to help you reduce your living expenses.

Level Two: Saving For Future Needs
"There is precious treasure and oil in the dwelling of the wise, but a foolish man swallows it up." — Proverbs 21:20

Even if you haven't fully paid off your consumer debt, it's still a good idea to set aside some portion of your monthly surplus for emergencies or large purchases. This Level Two column will teach you about the various fixed-income investments useful to savers, update you about trends in interest rates, and tell you where to get the best low-risk yields that will help you build your Level Two contingency fund.

Level Three: Investing for Retirement
"Well done, good and faithful servant. You were faithful with a few things, I will put you in charge of many things." — Matthew 25:21

When you venture into the stock and bond markets, you take the risk of losing part of your money. That's why you move to Level Three only after you've paid all your consumer debts — and only with money over and above your Level Two contingency fund. In our Level Three column we teach stock market and mutual fund basics, and help you develop a personalized strategy and long-term perspective.

Level Four: Diversifying For Safety
"Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth." — Ecclesiastes 11:2

Once your Level Three investing account reaches $25,000, it's time to move up to Level Four for further diversification. By adding holdings that "march to different drummers," you will create a more-efficient, less-volatile portfolio. At Level Four, we explain how to use SMI's "investing personalities" and "seasons-of-life" guidelines to more closely align your allocation between stocks and bonds in accordance with your personal situation.