I read this book a good while ago when I was first married, and it had such good suggestions and advice. I was particularly struck by the (then new to me - I was a clueless newlywed) concept of paying down your mortgage principal and being able to track those extra payments and watch the interest shrink.

This was the first financial how-to book that really stuck with me. I may have to pull it out again for a refresher!

Here is a link that might be useful: Your Money or Your Life

I haven't read the book, so I can't comment on whether it's good overall, but all I was thinking when reading this post is that the budget in question wasn't drawn very well. Insurance and routine vet bills (yearly exams, shots, and a sick visit or two) are predictable expenses that should be included in one's budget.

People often make budgets that are based almost solely on their regular monthly expenses (mortgage/rent, utilities, food, etc.) and don't go any further. They don't include entirely predictable but non-monthly expenses like insurance and property taxes, and they don't include items that are inevitable but not predictable as to timing and exact amount, such as home and car maintenance, home decorating, gifts, dining, medical deductibles and co-payments, entertainment, vacation, clothing, and so on.

I think that's where the expense tracking comes in. After tracking expenses for several years (hopefully using a computer program like Quicken, which makes this *so* much easier!), you can make a budget that's actually realistic. You'll know that if you're not setting aside $XXX per month, you won't have enough to cover it if, for example, the water heater bursts or the front stairs collapse.

I do agree that it's important to examine purchases to see whether they're worth their weight, but if you only track expenses and never have a comprehensive budget, you'll never know it when you inadvertently let your expenses slide too high.

I think I might have to get this book - it sounds very logical to me. I'd like to read that chapter on tracking expenses. I do a mix of budgeting and expense tracking - mostly because when things go wrong around here, it's usually *really wrong*, and would throw the budget off no matter what (our last unexpected vet bills were each over $400, the last unexpected vehicle bill was over $200 - and was in the same month as one of the vet bills). While you can plan for a lot, you can't plan for everything, and sometimes the only thing you can do is prioritize for the month and play catch-up later.

I'll have to check out the book - thanks for posting your thoughts, MaryLiz.

I've read the book multiple times, and when I'm shopping I often think, " I like this X but I'd have to work Y amount of hours to buy it." It makes me spend less. Other times I think, "I like this item, but not 2 hours of my life worth of liking."

I think I'll go to the library today and see if they have this book. That way I can read it but I don't have to own it, store it or pay for it!

I have to get that book. Don't think I have read it. It is hard to budget for emergency's but I keep some money unaccounted for in my budget. It didn't work when DH was involved in the money decisions because he was the type that called to bank to see how much money was there and then try to spend without thinking that checks didn't clear.

Magazines, yes they can be a challenge when you get to many. I get two subscriptions and read them when I wait for the kids to get off the bus or need some quite time outside by myself. I pass mine off to my neighbor after I am done. I do keep about 12 at most and then I will look at them again and pass them on.

Jannine - I think of the library as the big place that stores my books for me :) I almost never buy a book unless I've checked it out twice first - if I cared enough to check it out a second time, I must want it bad enough to store it.

And for those of us who love our PDAs, it's available at Ereader.com & an ebook doesn't take up any extra space!

Here is a link that might be useful: Ereader version

Sounds like I should read it. Another good one is "How to Get What You Want in Life with the Money You Already Have".
That one really got me saving money and back on the frugal track that I'd fallen off. Whoops - I need it again. I bought 2 copies, one to lend and one to keep. And I think I will read it again, as well as check out "your money". From the sound of it, "Your money..." could be useful for my daughter.
Thanks for the reviews.
kathy

Picked up the book yesterday at the library. Reading something else so as soon as I am done I will start reading it.

Just a note on budgets: Any budget that doesn't include savings is bound to fail. Everyone needs a savings cushion for unexpected events. If you don't have savings these events are going to put you in debt and you aren't going to get anywhere.

eg I got wacked w/ a $1,400 car repair bill in July. On top of the $800 I know I'm going to need to spend on new tires. If I didn't have any savings, I'd also be paying interest on that $1,400.