Time for another Financial Friday! I gave myself a challenge
of reading one financial book per month throughout 2015. You can find the
entire series
HERE if you would like to catch up!
Alright so you have already figured out I am a little biased
when it comes to Elizabeth Warren. I do however promise to not sugar coat my
feelings about this book. The book was written in 2005 so a bit out of date.
There is very little investing information however which would be the first
things to become outdated. The majority of the book is about taking control of
your finances and learning to live on the authors’ ideal of a perfect budget.
Elizabeth and Amelia break down their budget process to
three categories: Must Haves, Savings, and For Fun. Each category has a certain
percentage associated with it. The though being that if your spending for each
category remains in the targeted percentage then your budget will balance and
you will be doing well.
I added up our spending…….we are nowhere near their
recommended percentages. It seems our Must Haves and our Savings take up too
big a portion of our budget leaving very little money for our Just for Fun
categories.
*Don’t tell my husband that!*
The entire book is not just about their categories however.
The book is broken down into the 6 Steps to Lifetime of Riches. These include
escaping the thinking traps, counting the dollars not the pennies, building
your future by paying off your past, building your dreams and more. The book really does cover all of the basics
required for starting and maintaining your budget over time. Complete with
ideas of what to cut out if you are having trouble getting your budget to
balance properly.
This is a great book to start with if you are feeling
overwhelmed by budgeting and maintaining a budget over time. The authors cover
such a wide variety of material that the book is extremely helpful to those
just beginning the process of fixing your financial ship. Or those like myself
that are always looking for new ways to tweak their budget to get the most for
their income and time.
****I was not asked to review this book and received no
compensation for doing so****