What do you think?
Rate this book
All Your Worth: The Ultimate Lifetime Money Plan
This personal finance guide from 2020 Democratic presidential candidate and Massachusetts senator Elizabeth Warren, offers a new way of thinking about and managing your money that will allow you lifelong emotional peace and financial well-being.
You work hard and try to save money, so why is there never enough to cover all the bills, to put some away in your child’s college fund, to pay off your credit card debt—or to relax and have some fun, for once? In the New York Times bestseller All Your Worth , mother/daughter team Elizabeth Warren and Amelia Warren Tyagi—authors of the acclaimed The Two-Income Trap —tell you the truth about money. The authors lay out a groundbreaking approach to getting control of your money so you can finally start building the life you’ve always wanted. The result of more than twenty years of intensive research, All Your Worth offers you a step-by-step plan that will let you master your finances—for the rest of your life.
The secret? It’s simple, get your money in balance. Warren and Tyagi show you how to balance your money into three essential the Must-Haves (the bills you have to pay every month), the Wants (some fun money for right now), and your Savings (to build a better tomorrow). No complicated budgets, no keeping track of every penny. Warren and Tyagi will show you a whole new way of looking at money—and yourself—that will help you get your finances on track so you can enjoy peace of mind for the rest of your life.
You work hard and try to save money, so why is there never enough to cover all the bills, to put some away in your child’s college fund, to pay off your credit card debt—or to relax and have some fun, for once? In the New York Times bestseller All Your Worth , mother/daughter team Elizabeth Warren and Amelia Warren Tyagi—authors of the acclaimed The Two-Income Trap —tell you the truth about money. The authors lay out a groundbreaking approach to getting control of your money so you can finally start building the life you’ve always wanted. The result of more than twenty years of intensive research, All Your Worth offers you a step-by-step plan that will let you master your finances—for the rest of your life.
The secret? It’s simple, get your money in balance. Warren and Tyagi show you how to balance your money into three essential the Must-Haves (the bills you have to pay every month), the Wants (some fun money for right now), and your Savings (to build a better tomorrow). No complicated budgets, no keeping track of every penny. Warren and Tyagi will show you a whole new way of looking at money—and yourself—that will help you get your finances on track so you can enjoy peace of mind for the rest of your life.
304 pages, Paperback
First published January 1, 2005
About the author
Elizabeth Warren
136 books852 followersElizabeth Warren (born 1949) is an American academic and politician, and the current senior U.S. Senator from Massachusetts and a Democrat. She is the Leo Gottlieb Professor of Law at Harvard Law School -- where she taught contract law, bankruptcy, and commercial law -- and devoted much of the past three decades to studying the economics of middle class families. In the wake of the 2008-9 financial crisis, she became the chair of the Congressional Oversight Panel created to investigate the U.S. banking bailout (formally known as the Troubled Assets Relief Program). In that role, she has provided a critical check on the U.S. Department of the Treasury and has been a leading advocate for accountability and transparency. Since 2007, she had advocated for the creation of a new Consumer Financial Protection Agency, which was established by the Dodd–Frank Wall Street Reform and Consumer Protection Act signed into law by President Obama in July 2010.
Ratings & Reviews
Friends & Following
Create a free account to discover what your friends think of this book!
Community Reviews
Displaying 1 - 30 of 266 reviews
June 5, 2011
The #1 thing I learned from this book is to divide your expenses into 3 categories; must-haves, wants, and savings.
Your MUST-HAVES should ideally be no more than 50% of your take home pay and include the bills that you would have to keep paying even if you weren't working (housing, utilities, modest food budget, etc). If you keep this number in line, it clears the path for your savings and discretionary income. HUGE lightbulb moment for me once I did my math!
Your SAVINGS should be 20% of your take home. (Retirement, emergency fund, investments, etc)
Your WANTS are the other 30% (pedicures, cable, movies, books, restaurants, clothing, entertainment, going to the bar, getting chips out of the vending machine, travel, internet, ancestry.com, taking classes, etc). You can spend your WANT money on whatever you want, but it's good to visualize that you're choosing one thing over another. It's helped me see the impact of my everyday choices. Would I rather get a pop at the gas station every day on my way to work?... or would my soul be better served if I socked that money away for a trip to Scotland?
Budgeting made easy! It's the first time I've seen it explained like this and it really simplified the way I view my finances.
Your MUST-HAVES should ideally be no more than 50% of your take home pay and include the bills that you would have to keep paying even if you weren't working (housing, utilities, modest food budget, etc). If you keep this number in line, it clears the path for your savings and discretionary income. HUGE lightbulb moment for me once I did my math!
Your SAVINGS should be 20% of your take home. (Retirement, emergency fund, investments, etc)
Your WANTS are the other 30% (pedicures, cable, movies, books, restaurants, clothing, entertainment, going to the bar, getting chips out of the vending machine, travel, internet, ancestry.com, taking classes, etc). You can spend your WANT money on whatever you want, but it's good to visualize that you're choosing one thing over another. It's helped me see the impact of my everyday choices. Would I rather get a pop at the gas station every day on my way to work?... or would my soul be better served if I socked that money away for a trip to Scotland?
Budgeting made easy! It's the first time I've seen it explained like this and it really simplified the way I view my finances.
October 3, 2017
I have become *such* an Elizabeth Warren fan. Don't know who she is? She's a Harvard Law Professor (bankruptcy) who is also on the TARP oversight committee. She's done really fascinating studies comparing 1970s finanaces with today's finances and her findings are scary and astounding and worrying. The woman is absolutely brilliant and I'm very intrigued to see what she has to say about what people can do for their own personal finances in light of all the odds they're up against.
Edit: 2017 reread: I read this book 8 years ago and though, oh my goodness! What wonderful ideas! And then the book was due and I returned it to the library and promptly forgot about everything. Eight years later and since then I've bought a new car and a house and two months ago I started working on a debt snowball because I bought a new car and a house and a few inadvisable and frivolous expenses on a credit card. So, this reread was a bit terrifying because there's a section after some of the financial worksheets where you score your financial health and you're given your results and I found myself in the RED ALERT! FINANCIAL RUIN IS AROUND THE CORNER! category. But then a few paragraphs later my pulse calms down where they list scenarios that are quasi-acceptable - one of which was having less than a year left to finish up car payments, which is exactly where I'm at. It was reassuring, because I even knew when I bought my house that the first few years would be tight while I finished up the car payments, and this book reinforced what I already knew. And as I've already done extensive work on a snowball worksheet, I already knew my priority spots and had a plan for exactly how to clear some of this up.
There were 2 things that were most applicable to my situation in this reread:
1. I knew I had debt and I already knew how to clean it up when I came back to this book. What I had forgotten was the criteria, or the template, if you will, on what an ideal month of budgeting should look like. I'm still in a bit of a RED ALERT zone for the next nine months, but once the car is paid off, then I can really start focusing on bringing my wants, needs, and savings into better alignment. This is giving me further hope.
2. I also hadn't given much thought to what happens AFTER everything is paid off. I've included my mortgage in my snowball spreadsheet, and God willing and the creek don't rise, I should have that thing paid off after 10 years instead of 30. But I hadn't gotten to thinking about what happens after it's all done. I guess in the back of my head, I was thinking my house WAS my retirement plan, which is really pretty foolish. I do have a pension with my employer, but I know that won't be enough, so now I'm looking at retirement for real, and all that will really involve. And how now it's not something to be afraid of, but something I can eagerly plan for and start doing something about.
Edit: 2017 reread: I read this book 8 years ago and though, oh my goodness! What wonderful ideas! And then the book was due and I returned it to the library and promptly forgot about everything. Eight years later and since then I've bought a new car and a house and two months ago I started working on a debt snowball because I bought a new car and a house and a few inadvisable and frivolous expenses on a credit card. So, this reread was a bit terrifying because there's a section after some of the financial worksheets where you score your financial health and you're given your results and I found myself in the RED ALERT! FINANCIAL RUIN IS AROUND THE CORNER! category. But then a few paragraphs later my pulse calms down where they list scenarios that are quasi-acceptable - one of which was having less than a year left to finish up car payments, which is exactly where I'm at. It was reassuring, because I even knew when I bought my house that the first few years would be tight while I finished up the car payments, and this book reinforced what I already knew. And as I've already done extensive work on a snowball worksheet, I already knew my priority spots and had a plan for exactly how to clear some of this up.
There were 2 things that were most applicable to my situation in this reread:
1. I knew I had debt and I already knew how to clean it up when I came back to this book. What I had forgotten was the criteria, or the template, if you will, on what an ideal month of budgeting should look like. I'm still in a bit of a RED ALERT zone for the next nine months, but once the car is paid off, then I can really start focusing on bringing my wants, needs, and savings into better alignment. This is giving me further hope.
2. I also hadn't given much thought to what happens AFTER everything is paid off. I've included my mortgage in my snowball spreadsheet, and God willing and the creek don't rise, I should have that thing paid off after 10 years instead of 30. But I hadn't gotten to thinking about what happens after it's all done. I guess in the back of my head, I was thinking my house WAS my retirement plan, which is really pretty foolish. I do have a pension with my employer, but I know that won't be enough, so now I'm looking at retirement for real, and all that will really involve. And how now it's not something to be afraid of, but something I can eagerly plan for and start doing something about.
February 6, 2009
I've been reading personal finance books on and off in an attempt to learn about it. The problem is, most of them are either written for a someone who only reads magazines, or are so preachy I find them off-putting. I'm not in debt, so one of the main thrusts of this book is irrelevant to me...but I liked it a lot anyway. Lots of useful stuff, nuts and bolts practical advice, worksheets, delivered in a way that's both informative and supportive. (And...it motivated me to finally call about my 401K, so it apparently was motivational - I've been meaning to do that for about six months.) Highly recommended for anyone who doesn't quite feel like they are in control of their budget.
April 20, 2013
Elizabeth Warren, you are fantastic. (Even with your association with Dr. Phil...nobody is perfect.) This book showcases her understanding of contemporary financial issues facing the 99%, and you can see her growing concern at the increasing lack of government regulation on the financial industry.
All Your Worth is a stellar book, albeit in places a bit dated, on how to manage your finances, regardless of where you are in life. As a single twentysomething, the chapters on buying a house and discussing money in a relationship were the least valuable to me right now, but the information will come in handy in the future.
Warren & Tyagi's thesis: "Money isn't that hard. Getting straight with your money can be challenging--in the sense that you may have to make some difficult choices and break some long-standing habits--but it isn't complicated. You don't have to be great at math, and you don't have to understand a lot of specialized financial terms. Heck, you don't even have to like finance. Getting your money into balance is less about whether you're left-brained or right-brained, and more about your willingness to put in some effort and stick with it." (57)
Their money advice is similar to that of LearnVest's--and without the "no sh*t Sherlock" blog posts. 50% of your income is for Must-Haves (rent, insurance, etc.), 30% for Wants, and 20% for savings ("Twenty for Tomorrow"). For the 20% savings, Warren & Tyagi propose 4 stages of saving (170):
1) Save $1,000
2) Pay off Steal-from-Tomorrow debt (credit cards, personal IOUs, etc.)
3) Build a 6-month Security Fund (6 months worth of your Must-Have expenses)
4) Save for retirement (their recommendation: index funds)--Pay off your house--Save for your other dreams
They address the psychological issues behind not saving and encourage readers that really and truly, every little bit saved is a step forward. "Saving something is always better than nothing. Every dollar you save is a dollar toward a brighter future." (193) Their response to the concern that "I'll never save enough" isn't compelling enough for me, in these times of rampant job loss, stagnant wages, and the increasing cost of everything. They say, "Real wealth is built one dollar at a time," (193) and that's it. You really can't save enough--the cost of everything is increasing, and with many people on the margin of unemployment, there can never be enough money in the bank. NEVER.
Warren & Tyagi caution against 20/20 hindsight: "When you get in financial trouble, it is tempting to beat up on yourself (and your mate) about the smarter choices you might have made. Maybe you shouldn't have bought a new car, maybe your mate should have applied for more jobs, maybe you never should have tried skydiving. That 20/20 hindsight can keep you up all night, endlessly reliving past mistakes. In the end, second-guessing leaves you with nothing but bleary eyes and a sore heart. So get over the past mistakes, and focus on making smart decisions now. Go easy on yourself and the people you love." (251)
While the bulk of the book is rather timeless, accessible information, it's clear that this book is written in the early 2000s. Having a cell phone is considered a Want, not a Must-Have, and the authors don't address in nearly enough detail what people should do when they're unemployed--quite possibly the pressing need of the 2010s. The chapter on "Financial CPR: When Things Get Tough" but briefly touches on this.
Overall, a great book that I would recommend to everyone. Solid information if you're starting to read up on financial literacy and straighten out your finances, and a good refresher course if you're already strong on personal finance.
All Your Worth is a stellar book, albeit in places a bit dated, on how to manage your finances, regardless of where you are in life. As a single twentysomething, the chapters on buying a house and discussing money in a relationship were the least valuable to me right now, but the information will come in handy in the future.
Warren & Tyagi's thesis: "Money isn't that hard. Getting straight with your money can be challenging--in the sense that you may have to make some difficult choices and break some long-standing habits--but it isn't complicated. You don't have to be great at math, and you don't have to understand a lot of specialized financial terms. Heck, you don't even have to like finance. Getting your money into balance is less about whether you're left-brained or right-brained, and more about your willingness to put in some effort and stick with it." (57)
Their money advice is similar to that of LearnVest's--and without the "no sh*t Sherlock" blog posts. 50% of your income is for Must-Haves (rent, insurance, etc.), 30% for Wants, and 20% for savings ("Twenty for Tomorrow"). For the 20% savings, Warren & Tyagi propose 4 stages of saving (170):
1) Save $1,000
2) Pay off Steal-from-Tomorrow debt (credit cards, personal IOUs, etc.)
3) Build a 6-month Security Fund (6 months worth of your Must-Have expenses)
4) Save for retirement (their recommendation: index funds)--Pay off your house--Save for your other dreams
They address the psychological issues behind not saving and encourage readers that really and truly, every little bit saved is a step forward. "Saving something is always better than nothing. Every dollar you save is a dollar toward a brighter future." (193) Their response to the concern that "I'll never save enough" isn't compelling enough for me, in these times of rampant job loss, stagnant wages, and the increasing cost of everything. They say, "Real wealth is built one dollar at a time," (193) and that's it. You really can't save enough--the cost of everything is increasing, and with many people on the margin of unemployment, there can never be enough money in the bank. NEVER.
Warren & Tyagi caution against 20/20 hindsight: "When you get in financial trouble, it is tempting to beat up on yourself (and your mate) about the smarter choices you might have made. Maybe you shouldn't have bought a new car, maybe your mate should have applied for more jobs, maybe you never should have tried skydiving. That 20/20 hindsight can keep you up all night, endlessly reliving past mistakes. In the end, second-guessing leaves you with nothing but bleary eyes and a sore heart. So get over the past mistakes, and focus on making smart decisions now. Go easy on yourself and the people you love." (251)
While the bulk of the book is rather timeless, accessible information, it's clear that this book is written in the early 2000s. Having a cell phone is considered a Want, not a Must-Have, and the authors don't address in nearly enough detail what people should do when they're unemployed--quite possibly the pressing need of the 2010s. The chapter on "Financial CPR: When Things Get Tough" but briefly touches on this.
Overall, a great book that I would recommend to everyone. Solid information if you're starting to read up on financial literacy and straighten out your finances, and a good refresher course if you're already strong on personal finance.
December 16, 2008
So I am trying to learn about how to have a solid financial life...something my parents, and many 30-something's parents, were never able to teach me. This book was recommended by the head of the credit union at Harvard and it's GREAT! It's easy to use and understand and really do-able. I suggest anyone who needs to learn the basics of setting up a financial foundation get this book.
UPDATE: I PAID MY CREDIT CARD OFF!!! I attribute that to this book 100%. This is a MUST get and read and follow book. No dogma, just reasonable sensible information from two women who know what the hell they are talking about. Might not make you a millionaire, but it has been making my financial life way less stressful and way more secure. Hurrah!
I will be leaving it on my "Currently Reading" shelf forever because I will be!
UPDATE: I PAID MY CREDIT CARD OFF!!! I attribute that to this book 100%. This is a MUST get and read and follow book. No dogma, just reasonable sensible information from two women who know what the hell they are talking about. Might not make you a millionaire, but it has been making my financial life way less stressful and way more secure. Hurrah!
I will be leaving it on my "Currently Reading" shelf forever because I will be!
November 16, 2019
Anyone struggling with money or simply worrying about money could do well to read this book. Written before she entered politics, Elizabeth Warren's appreciation for the financial and life difficulties faced by ordinary people comes through here, and it is easy to draw a straight line from her advice in this book to her national economic policies. The book is easy to use and provides sensical reasoning to money management, no matter how little you earn. She accounts for emotions and does away with absolutes. My favorite bit, is regarding which of your debts to pay off first: the one that bothers you the most.
April 17, 2019
I’m convinced at this point that not only is Elizabeth Warren a genius, her whole orientation is rooted in a deep kindness.
September 24, 2007
I had been reading several personal financial planning book when I discovered this one. I like the Balanced Money formula they use because it is practical (meaning that is leaves room for your extra expenditures that are wants more so than needs) and it is very do-able. i can say that this book, along with the accompanying worksheets, help you to get a clear view of your present financial situation and assist (step-by-step) in planning for your future. Great stuff all you have to do is get the info and apply it to your life.
October 25, 2019
Το υποτιθέμενο μυστικό Lifetime plan για να είσαι πάντα μπροστά από τα οικονομικά σου, είναι το 50-30-20. 50% του μηνιαίου εισοδήματος για τα Must have που περιλαμβάνει νοίκια, λογαριασμούς, δίδακτρα, τέλη κυκλοφορίας αυτοκινήτου - όλα όσα δεν μπορείς να αποφύγεις, 30 για τα θέλω και 20 για να μπουν στην άκρη. Η βασική ιδέα είναι ότι δεν πας να σωθείς μετρώντας τα σεντς και κυνηγώντας προσφορές στα σούπερ μάρκετ (όχι ότι είναι και κακό, αλλά γιατί να αναλώνεσαι σε μικροπράγματα, σύμφωνα με το βιβλίο, πας για τα μεγάλα) αλλά στοχεύεις στο να κρατάς τα πάγια στο μισό των εσόδων σου, πράγμα που σημαίνει ότι αν χρειαστεί κάνεις και δραστικές αλλαγές.
Μέχρι εδώ καλά. Θα έπρεπε να το δοκιμάσω κάποιους μήνες για να έχω μια καλύτερη εικόνα, αλλά γενικά δεν το λες και άπιαστο. Το θέμα είναι πως (φλυαρεί και παπαρολογεί απίστευτα μέχρι το δια ταύτα, αλλά οκ, με το 50-30-20 δε γράφεις βιβλίο, πρέπει να γεμίσεις σελίδες) προτείνει ως δραστικές αλλαγές προκειμένου να διατηρούνται τα πάγια στ�� 50% του μισθού, τη συγκατοίκηση (ακόμα κι αν μιλάμε για οικογένειες), να φορτωθείς στους γονείς σου και να γυρίσεις στο παιδικό σου δωμάτιο, ή να μπαστακωθείς στον Χ συγγενή που έχει δικό του σπίτι. Εντελώς άκυρο πρακτικά, θεωρητικά ναι, βγαίνει. Πιο ρεαλιστικό μου φαίνεται να σου πει βρες σπίτι με μικρότερο νοίκι, ή πιο δραστική αλλαγή, μπες στη διαδικασία να αλλάξεις ακόμα και περιοχή. Τώρα το πόσο μπορεί αυτό να σε βολέψει στη δουλειά σου είναι άλλο καπέλο. Αλλά σου λέει οκ, άλλαξε δουλειά. Πούλα το αμάξι. Νννναι. Αλλά όχι.
Η ιδέα σε γενικές γραμμές είναι καλή. Πρακτικά ελάχιστα πράγματα μπορείς όντως να κάνεις. Δεν είναι κακό πάντως να έχεις σε μια άκρη του μυαλού σου το 50-30-20 και να προσπαθείς όσο μπορείς έστω και κατά προσέγγιση να είσαι κοντά σε αυτά τα νούμερα.
Μέχρι εδώ καλά. Θα έπρεπε να το δοκιμάσω κάποιους μήνες για να έχω μια καλύτερη εικόνα, αλλά γενικά δεν το λες και άπιαστο. Το θέμα είναι πως (φλυαρεί και παπαρολογεί απίστευτα μέχρι το δια ταύτα, αλλά οκ, με το 50-30-20 δε γράφεις βιβλίο, πρέπει να γεμίσεις σελίδες) προτείνει ως δραστικές αλλαγές προκειμένου να διατηρούνται τα πάγια στ�� 50% του μισθού, τη συγκατοίκηση (ακόμα κι αν μιλάμε για οικογένειες), να φορτωθείς στους γονείς σου και να γυρίσεις στο παιδικό σου δωμάτιο, ή να μπαστακωθείς στον Χ συγγενή που έχει δικό του σπίτι. Εντελώς άκυρο πρακτικά, θεωρητικά ναι, βγαίνει. Πιο ρεαλιστικό μου φαίνεται να σου πει βρες σπίτι με μικρότερο νοίκι, ή πιο δραστική αλλαγή, μπες στη διαδικασία να αλλάξεις ακόμα και περιοχή. Τώρα το πόσο μπορεί αυτό να σε βολέψει στη δουλειά σου είναι άλλο καπέλο. Αλλά σου λέει οκ, άλλαξε δουλειά. Πούλα το αμάξι. Νννναι. Αλλά όχι.
Η ιδέα σε γενικές γραμμές είναι καλή. Πρακτικά ελάχιστα πράγματα μπορείς όντως να κάνεις. Δεν είναι κακό πάντως να έχεις σε μια άκρη του μυαλού σου το 50-30-20 και να προσπαθείς όσο μπορείς έστω και κατά προσέγγιση να είσαι κοντά σε αυτά τα νούμερα.
May 10, 2014
I wish that this book had been published 40 years ago. Warren, and her co-author daughter, have a plan for how to allocate one's funds. The plan is practical and simple and makes sense. Many readers may need to begin with financial CPR before they can adopt the plan: 50% of your budget for the MUST HAVE items and 30% for the "want to have" items and 20% for savings.
Some people are in "legacy" debt or in "splurge" debt. Most very dire financial situations are caused by medical bills and/or job loss. Warren and her daughter explain how to get started from any point in your life. No matter how indebted you are (or are not) there's a place for you to begin.
The book is now 8 years old and does not seem dated to me. It is solid and practical and I am going to try to follow the "plan". It would be a fantastic gift for any young adult who would be receptive to financial discipline.
Some people are in "legacy" debt or in "splurge" debt. Most very dire financial situations are caused by medical bills and/or job loss. Warren and her daughter explain how to get started from any point in your life. No matter how indebted you are (or are not) there's a place for you to begin.
The book is now 8 years old and does not seem dated to me. It is solid and practical and I am going to try to follow the "plan". It would be a fantastic gift for any young adult who would be receptive to financial discipline.
March 6, 2015
It didn’t take much for me to fall in love with Elizabeth Warren. Her progressive politics, her earnest concern for the plight of all Americans, her frustration with policy decisions that routinely reward big finance over honest people, her ability to shut down detractors with facts and heart, her near-obsession with the stories of bankrupt families in an effort to figure out how we can help them… she just makes me swoon.
Warren’s memoir, A Fighting Chance, left me quite smitten with the Massachusetts senator. It also lead me to an even earlier work of Warren’s entitled All Your Worth that has the potential to transform the way most Americans handle their money for the better. Written with Warren’s daughter Amelia Warren Tyagi, All Your Worth is a financial how-to for the average working American. The two Warren girls set out strict but clearly outlined (and thus, easy to follow) rules for the way we should spend our money in order to maximize the value of both our saving and our spending. I don’t usually write about (or read about for that matter) financial books, but I couldn’t fail to provide some humble promotion to a book as rare, useful and comprehensible as All Your Worth (and much more practical than the lottery or a Mr. Money Mustache lifestyle). Plus I think a book like this, one that is so unfaltering in its commitment to helping everyday people, proves yet again why Mrs. Warren would be a wonderful leader of this country if she ever decides to take the Presidential plunge.
The basic formula set out by our authors is a 50-30-20 balance between our Must-Have expenses, our Wants spending, and our Saving, respectively. Challenging the way we conceptualize need in 21st century America, Elizabeth and Amelia define items in the Must-Have category as things you cannot cut out, the bills you would still pay without fail if you lost your job or faced a major financial downfall. So no, cable TV, an internet connection, and dinners out do not fall into this category. But beyond tightening the circle of need, Warren and Warren Tyagi explain methods to downsize on those Must-Haves that seem fixed in stone. There’s a very thorough beginner’s guide to refinancing your mortgage with a large emphasis on questions to ask a lender when shopping for new loans. There’s advice on how to tackle daunting credit card debt – lots of advice. There’s straightforward methods for lowering your insurance costs, exploring every possible option to get those Must-Haves to 50% of your monthly take home pay or less. And there’s clear and simple explanations as to why 50% is the magic, practical balance.
Then come the Wants. Trips to the movies, a trip to the local pub, subscriptions to HBO, vacations overseas, birthday and Christmas gifts. All those things, big and small, that make life a little more pleasurable or exciting or relaxing after the mortgage and the doctor’s bills are paid. What’s more, the Warren ladies make it super simple to track these types of expenditures. Just use cash. I know, it can be difficult to pay for everything you want with cash due to the proliferation of so many online marketplaces. And true, maybe that credit card company wants to reward you with goodies for a certain level of spending. But the only way to have a fast and hard idea of where you stand with your budget is to use good, old-fashioned cash for the things that aren’t budgeted for, the bright little spots of fun in your spending. I haven’t been one to use cash ever since I received my first debit card. I used to cringe at the thought a pocket full of twenties despite the eye rolls when I told people I only carried plastic. My mother, the kind of woman who is infamous for her ability to render exact change from her wallet, has stopped asking me for money when she’s at the register and needs a spare one-spot. But reading All Your Worth forced me to challenge my assumptions about this longstanding method of financial transaction. When looking at my bank account statements, it’s really a headache to parcel out where my spending diverges from my spending on wants. And of course I won’t stick to a Wants budget if it isn’t easy, or downright effortless, to do. So I’m trying cash for the first time in ages, just a budgeted amount I put in my wallet each week. If there are any leftovers, I’ll put that cash to the side in a little rainy day fund, ensuring I’ll have something to pull on when I want to buy a pricey concert ticket, take a vacation, or shower my mom with a really thoughtful Mother’s Day gift. The more I think about it, the more doable it seems. I may be required to pay with a card every now and then, but it won’t be difficult to remember to detract a certain amount from my weekly cash allowance when plastic purchases are made so sparingly. So far, it seems simple as pie.
Finally, there’s the savings category. I was actually a little surprised by the low budgeting – only 20% – to savings. But All Your Worth really stresses the importance of having a good chunk of Wants spending to enjoy life – and saving smartly to make your 20% grow it something much more than the face value of what you initially put in. The world of investing seems impossibly daunting to me. As often as I see my elderly housing clients barely subsisting on their monthly Social Security checks, I’ve kidded myself into thinking that smart saving will be enough to supplement that inevitable fixed monthly income. But the Warren ladies bring the world of investing out into a more accessible light, with overviews of what type of stock options to seek, defining all those acronyms like IRAs, explaining all the means of growing a retirement plan. They don’t even need to devote that many pages to their savings advice because it’s reduced to the simplest, most user-friendly tidbits that readers need to know before their money is off and running. After 15 minutes of research on my bank’s website (and of course reading All Your Worth), I set up a retirement account that I’m confident is a small step towards a more comfortable life when my working years are over. And once a down payment on a house is out of my pocket, even more of my savings will be invested in the type of investment options that are safe and just plain smart for someone my age. Thanks Warren girls!
If nothing else, All Your Worth gave me more confidence in myself as a financial powerhouse. Maybe that’s strong language, but I feel like I can get there someday. I know what to look for when mortgage shopping, something that was previously so scary as to make me reconsider my dream of home-ownership. I know how much money I should keep in the bank and how much to invest. I know that I’m doing what I can on a daily basis to make managing my money easy and effortless. I know how to still enjoy myself without a wracking sense of guilt every time I spend money on me. I know how to have difficult financial conversations with my husband even. All Your Worth lays out an incredibly easy plan for reducing debt and reducing worry, for building wealth and building financial happiness. The book is really more of a kick in the butt, than anything else, reminding us of our personal responsibility in our own financial security but also highlighting the often obscured ways we can exercise that responsibility. It’s unnerving to hear Warren hearken back to the days when there weren’t foreclosures in every neighborhood because the bank wouldn’t even think to lend you the money on a home you could not afford. While the financial rules and regulations certainly don’t make it easy for people to hold on to their hard-earned money, we as educated consumers can do just fine avoiding the loopholes and debt that banks and credit card companies prey upon. And if there’s one person that can elucidate everything a consumer needs to know about his or her money, I don’t think it could possibly be anyone other than Elizabeth Warren.
Warren’s memoir, A Fighting Chance, left me quite smitten with the Massachusetts senator. It also lead me to an even earlier work of Warren’s entitled All Your Worth that has the potential to transform the way most Americans handle their money for the better. Written with Warren’s daughter Amelia Warren Tyagi, All Your Worth is a financial how-to for the average working American. The two Warren girls set out strict but clearly outlined (and thus, easy to follow) rules for the way we should spend our money in order to maximize the value of both our saving and our spending. I don’t usually write about (or read about for that matter) financial books, but I couldn’t fail to provide some humble promotion to a book as rare, useful and comprehensible as All Your Worth (and much more practical than the lottery or a Mr. Money Mustache lifestyle). Plus I think a book like this, one that is so unfaltering in its commitment to helping everyday people, proves yet again why Mrs. Warren would be a wonderful leader of this country if she ever decides to take the Presidential plunge.
The basic formula set out by our authors is a 50-30-20 balance between our Must-Have expenses, our Wants spending, and our Saving, respectively. Challenging the way we conceptualize need in 21st century America, Elizabeth and Amelia define items in the Must-Have category as things you cannot cut out, the bills you would still pay without fail if you lost your job or faced a major financial downfall. So no, cable TV, an internet connection, and dinners out do not fall into this category. But beyond tightening the circle of need, Warren and Warren Tyagi explain methods to downsize on those Must-Haves that seem fixed in stone. There’s a very thorough beginner’s guide to refinancing your mortgage with a large emphasis on questions to ask a lender when shopping for new loans. There’s advice on how to tackle daunting credit card debt – lots of advice. There’s straightforward methods for lowering your insurance costs, exploring every possible option to get those Must-Haves to 50% of your monthly take home pay or less. And there’s clear and simple explanations as to why 50% is the magic, practical balance.
Then come the Wants. Trips to the movies, a trip to the local pub, subscriptions to HBO, vacations overseas, birthday and Christmas gifts. All those things, big and small, that make life a little more pleasurable or exciting or relaxing after the mortgage and the doctor’s bills are paid. What’s more, the Warren ladies make it super simple to track these types of expenditures. Just use cash. I know, it can be difficult to pay for everything you want with cash due to the proliferation of so many online marketplaces. And true, maybe that credit card company wants to reward you with goodies for a certain level of spending. But the only way to have a fast and hard idea of where you stand with your budget is to use good, old-fashioned cash for the things that aren’t budgeted for, the bright little spots of fun in your spending. I haven’t been one to use cash ever since I received my first debit card. I used to cringe at the thought a pocket full of twenties despite the eye rolls when I told people I only carried plastic. My mother, the kind of woman who is infamous for her ability to render exact change from her wallet, has stopped asking me for money when she’s at the register and needs a spare one-spot. But reading All Your Worth forced me to challenge my assumptions about this longstanding method of financial transaction. When looking at my bank account statements, it’s really a headache to parcel out where my spending diverges from my spending on wants. And of course I won’t stick to a Wants budget if it isn’t easy, or downright effortless, to do. So I’m trying cash for the first time in ages, just a budgeted amount I put in my wallet each week. If there are any leftovers, I’ll put that cash to the side in a little rainy day fund, ensuring I’ll have something to pull on when I want to buy a pricey concert ticket, take a vacation, or shower my mom with a really thoughtful Mother’s Day gift. The more I think about it, the more doable it seems. I may be required to pay with a card every now and then, but it won’t be difficult to remember to detract a certain amount from my weekly cash allowance when plastic purchases are made so sparingly. So far, it seems simple as pie.
Finally, there’s the savings category. I was actually a little surprised by the low budgeting – only 20% – to savings. But All Your Worth really stresses the importance of having a good chunk of Wants spending to enjoy life – and saving smartly to make your 20% grow it something much more than the face value of what you initially put in. The world of investing seems impossibly daunting to me. As often as I see my elderly housing clients barely subsisting on their monthly Social Security checks, I’ve kidded myself into thinking that smart saving will be enough to supplement that inevitable fixed monthly income. But the Warren ladies bring the world of investing out into a more accessible light, with overviews of what type of stock options to seek, defining all those acronyms like IRAs, explaining all the means of growing a retirement plan. They don’t even need to devote that many pages to their savings advice because it’s reduced to the simplest, most user-friendly tidbits that readers need to know before their money is off and running. After 15 minutes of research on my bank’s website (and of course reading All Your Worth), I set up a retirement account that I’m confident is a small step towards a more comfortable life when my working years are over. And once a down payment on a house is out of my pocket, even more of my savings will be invested in the type of investment options that are safe and just plain smart for someone my age. Thanks Warren girls!
If nothing else, All Your Worth gave me more confidence in myself as a financial powerhouse. Maybe that’s strong language, but I feel like I can get there someday. I know what to look for when mortgage shopping, something that was previously so scary as to make me reconsider my dream of home-ownership. I know how much money I should keep in the bank and how much to invest. I know that I’m doing what I can on a daily basis to make managing my money easy and effortless. I know how to still enjoy myself without a wracking sense of guilt every time I spend money on me. I know how to have difficult financial conversations with my husband even. All Your Worth lays out an incredibly easy plan for reducing debt and reducing worry, for building wealth and building financial happiness. The book is really more of a kick in the butt, than anything else, reminding us of our personal responsibility in our own financial security but also highlighting the often obscured ways we can exercise that responsibility. It’s unnerving to hear Warren hearken back to the days when there weren’t foreclosures in every neighborhood because the bank wouldn’t even think to lend you the money on a home you could not afford. While the financial rules and regulations certainly don’t make it easy for people to hold on to their hard-earned money, we as educated consumers can do just fine avoiding the loopholes and debt that banks and credit card companies prey upon. And if there’s one person that can elucidate everything a consumer needs to know about his or her money, I don’t think it could possibly be anyone other than Elizabeth Warren.
November 27, 2023
كتاب ظريف قرأته فى نسخته الانجليزية لانه غير متاح عربي مترجم بعد ...
هو من نوعية كتب الثقافة المالية..النسائية ..من و الى النساء ...المؤلفة ..و كذلك الجمهور المستهدف " فى الاغلب" ...
الكتاب عن كيفية ادارة ميزانيتك الشخصية و المنزلية بشكل آمن و سليم "بما يرضي الله يعني"
الكتاب يتكلم عن كيفية تسيير امورك الحياتية الدورية "الشهرية" المالية و فى الوقت نفسه
سداد ديون الماضي ...
و عمل حساب المستقبل "الادخار" ..
و التحوط للمخاطر "المفاجأت" المستقبلية المالية الطارئة ... لم يتطرق الكتاب للاستثمار و انما فقط الادخار ك خطوة اولى حتى يتراكم لديك "الكتلة الحرجة من راس المال" لتستغلها لاحقا و لكن هذا موضوع آخر خارج عن موضوع الكتاب ..
كتاب لطيف ...يعيبه - ككل الكتب الامريكية فى الموضوع - التطويل و المط و الرغي ...فائدتهاو خلاصته لا تتعدى ربع عدد صفحاته ..
الكتاب من 8 فصول...لو استطيع اختصار كل فصل فى فقرة سيكون كالاتي :
1) الميزانية النموذجية balanced money formula (احتياجات 50% – رغبات 30%- ادخار20%) .. ف اى شهر لو حدث ما يجبرك على زيادة نسبة الاحتياجات يمكنك ان تقتطع ف المقام الاول من نسبة الرغبات و ف الاخير -مضطرا - من نسبة الادخار
2) إن لم تستطع البدء بتلك الميزانية النموجية (50-30-20)فعلى الاقل ابدء بـ "تحسين" ميزانيتك
من 60 الضروريات- الرفاهيات 40-0 الادخار
الى 55 الضروريات- الرفاهيات 30-15 الادخار بالتدريج ...و خاطب نفسك خطاب تحفزي ايجابي
3) يجب عليك العودة و زيارة ميزانيتك (و نسبة الانفاق و نسبة الادخار)مع كل مرة يحدث حدث جذري في حياتك ...
الوظيفة و المرتب (الترقي – الرفد – وظيفة احسن..الخ)
السكن (سكن اكبر – سكن ارخص..الخ)
الأطفال ( طفل يكبر- يدخل مدرسة – مولود جديد - الخ)
عملية شراء كبيرة (سيارة – سكن – الخ
الحالة الاجتماعية ( زواج – طلاق - الخ)
4)ليست هناك اى متعة في الذهاب لأرخص مطعم في المدينة ..
من الممتع من الحين للآخر انفاق بعض الأموال ...بشرط ان تكون مقرر مقدماً ذلك "الكم" الذي يمكنك انفاقه بدون ان تضرر ميزانية اساسياتك ..
حينها يمكنك انفاقه بمنتهى الثقة و الراحة و الاستمتاع
لا تنفق في بند الترفيه ...نقود لا تمتلكها من بطاقة ائتمان ...انفق مقدار محدد سلفا من الكاش لكيلا تخرب ميزانيتك فتفسد استمتاعك ب القلق
5)قبل البدء في حياة مالية جديدة فيها ادخار و استثمار ...انهي أولا الحياة المالية القديمة بشكل سليم لكيلا تطاردك و سدد ديونك او جدولها و راجع مصادر التسريب المالي .. و توقف عن العادات المالية الخاطئة .. و لا تقترض"ديون جديدة" لسداد ديون قديمة ...
مثال :لو قررت من الان ان تدخر للمستقبل شهريا 10 ج من كل 100 ج تكسبها فراجع ماضيك المالي أولا ...لربما تجد انك محتاج ان تدفع من كل 10 ج للمستقبل 3-4 ج أولا تسدد بها ديون الماضي ..اذن للمستقبل ليس 10 و انما 6-7 ج
6)كيف تكون ثروة ؟ وفر مبلغ صغير في كل مرة و استمر على ذلك ..
بعد تسديدك ل ديون الماضي و التي تسرقها من مستقبلك ...
انفق 50% على الاحتياجات و 30% على الرغبات و ادخر بانتظام 20%
و داوم على ذلك حتى تكون راس مال صغير تنتقل به من الادخار ... الى الاستثمار
7)يجب ان تكون علاقتك المالية بشريك حياتك قائمة على المصارحة والشفافية..
مينفعش تاخد فلوس من حصالة مشتركة بدون علم شريكـ /ـة حياتك..
اى قرار مالي مصيري لابد و ان تشرك فيه الشريك بالمعرفة وقبل اتخاذ القرار..
لا تكفي النية الحسنة للانفاق كحجة للانفراد بالقرار او الانفاق في السر..
لا تلقى ب اللوم على الشريك و لكن هذا لا ينفي تحمله لمسؤليته في اصلاح الضرر..
لا مانع من منح الشريكـ /ـة مال مجاني من حين لاخر
لا تستغل أوقات الضيق المالية للشريك لاجباره على قرار ما ..و لا تأخذ كل اختلاف على انه إهانة شخصية
تقاسم صنع القرار و من ثم تقاسم المسؤلية و لا تتقاسمو اللوم المتبادل..
8)لانشاء خطة طواريء مالية
1) خمّن الاخطار و ابدء بالعمل على حلول
(مثال:خائ�� من فقد وظيفة ؟ ابدأ بحث عن وظيفة بديلة و ارسال ال CV و لا تشتري سيارة ف ظل ذلك الخطر المحتمل)
2) جهز قائمة ب رغباتك الاعلى highest wants..التى ستقطعها في حالة حدوث خطر مالي
(مثال: عند نقص دخلي المالي ...ساتحول من السجائر المستوردة للمحلية او سأمتنع تماما عن التدخين)
3) جهزقائمة ب احتياجتك الأقل least needs.. التى ستقطعها في حالة حدوث خطر مالي
(مثال :سأتوقف عن شراء العيش الكايزر و الشامي و سأشتري عيش بلدي ..)
4) اختر يوماً سنوياً لمراجعة خطة الطوارئ السابقة و اكتب خطوات عملية, لا تركن لوضعك المالي وإن كان مطمئن..
ملخص "أطول" للكتاب:
الكتاب القادم : شهوة المال مقالات جمع و ترجمة كنان القرحالي
هو من نوعية كتب الثقافة المالية..النسائية ..من و الى النساء ...المؤلفة ..و كذلك الجمهور المستهدف " فى الاغلب" ...
الكتاب عن كيفية ادارة ميزانيتك الشخصية و المنزلية بشكل آمن و سليم "بما يرضي الله يعني"
الكتاب يتكلم عن كيفية تسيير امورك الحياتية الدورية "الشهرية" المالية و فى الوقت نفسه
سداد ديون الماضي ...
و عمل حساب المستقبل "الادخار" ..
و التحوط للمخاطر "المفاجأت" المستقبلية المالية الطارئة ... لم يتطرق الكتاب للاستثمار و انما فقط الادخار ك خطوة اولى حتى يتراكم لديك "الكتلة الحرجة من راس المال" لتستغلها لاحقا و لكن هذا موضوع آخر خارج عن موضوع الكتاب ..
كتاب لطيف ...يعيبه - ككل الكتب الامريكية فى الموضوع - التطويل و المط و الرغي ...فائدتهاو خلاصته لا تتعدى ربع عدد صفحاته ..
الكتاب من 8 فصول...لو استطيع اختصار كل فصل فى فقرة سيكون كالاتي :
1) الميزانية النموذجية balanced money formula (احتياجات 50% – رغبات 30%- ادخار20%) .. ف اى شهر لو حدث ما يجبرك على زيادة نسبة الاحتياجات يمكنك ان تقتطع ف المقام الاول من نسبة الرغبات و ف الاخير -مضطرا - من نسبة الادخار
2) إن لم تستطع البدء بتلك الميزانية النموجية (50-30-20)فعلى الاقل ابدء بـ "تحسين" ميزانيتك
من 60 الضروريات- الرفاهيات 40-0 الادخار
الى 55 الضروريات- الرفاهيات 30-15 الادخار بالتدريج ...و خاطب نفسك خطاب تحفزي ايجابي
3) يجب عليك العودة و زيارة ميزانيتك (و نسبة الانفاق و نسبة الادخار)مع كل مرة يحدث حدث جذري في حياتك ...
الوظيفة و المرتب (الترقي – الرفد – وظيفة احسن..الخ)
السكن (سكن اكبر – سكن ارخص..الخ)
الأطفال ( طفل يكبر- يدخل مدرسة – مولود جديد - الخ)
عملية شراء كبيرة (سيارة – سكن – الخ
الحالة الاجتماعية ( زواج – طلاق - الخ)
4)ليست هناك اى متعة في الذهاب لأرخص مطعم في المدينة ..
من الممتع من الحين للآخر انفاق بعض الأموال ...بشرط ان تكون مقرر مقدماً ذلك "الكم" الذي يمكنك انفاقه بدون ان تضرر ميزانية اساسياتك ..
حينها يمكنك انفاقه بمنتهى الثقة و الراحة و الاستمتاع
لا تنفق في بند الترفيه ...نقود لا تمتلكها من بطاقة ائتمان ...انفق مقدار محدد سلفا من الكاش لكيلا تخرب ميزانيتك فتفسد استمتاعك ب القلق
5)قبل البدء في حياة مالية جديدة فيها ادخار و استثمار ...انهي أولا الحياة المالية القديمة بشكل سليم لكيلا تطاردك و سدد ديونك او جدولها و راجع مصادر التسريب المالي .. و توقف عن العادات المالية الخاطئة .. و لا تقترض"ديون جديدة" لسداد ديون قديمة ...
مثال :لو قررت من الان ان تدخر للمستقبل شهريا 10 ج من كل 100 ج تكسبها فراجع ماضيك المالي أولا ...لربما تجد انك محتاج ان تدفع من كل 10 ج للمستقبل 3-4 ج أولا تسدد بها ديون الماضي ..اذن للمستقبل ليس 10 و انما 6-7 ج
6)كيف تكون ثروة ؟ وفر مبلغ صغير في كل مرة و استمر على ذلك ..
بعد تسديدك ل ديون الماضي و التي تسرقها من مستقبلك ...
انفق 50% على الاحتياجات و 30% على الرغبات و ادخر بانتظام 20%
و داوم على ذلك حتى تكون راس مال صغير تنتقل به من الادخار ... الى الاستثمار
7)يجب ان تكون علاقتك المالية بشريك حياتك قائمة على المصارحة والشفافية..
مينفعش تاخد فلوس من حصالة مشتركة بدون علم شريكـ /ـة حياتك..
اى قرار مالي مصيري لابد و ان تشرك فيه الشريك بالمعرفة وقبل اتخاذ القرار..
لا تكفي النية الحسنة للانفاق كحجة للانفراد بالقرار او الانفاق في السر..
لا تلقى ب اللوم على الشريك و لكن هذا لا ينفي تحمله لمسؤليته في اصلاح الضرر..
لا مانع من منح الشريكـ /ـة مال مجاني من حين لاخر
لا تستغل أوقات الضيق المالية للشريك لاجباره على قرار ما ..و لا تأخذ كل اختلاف على انه إهانة شخصية
تقاسم صنع القرار و من ثم تقاسم المسؤلية و لا تتقاسمو اللوم المتبادل..
8)لانشاء خطة طواريء مالية
1) خمّن الاخطار و ابدء بالعمل على حلول
(مثال:خائ�� من فقد وظيفة ؟ ابدأ بحث عن وظيفة بديلة و ارسال ال CV و لا تشتري سيارة ف ظل ذلك الخطر المحتمل)
2) جهز قائمة ب رغباتك الاعلى highest wants..التى ستقطعها في حالة حدوث خطر مالي
(مثال: عند نقص دخلي المالي ...ساتحول من السجائر المستوردة للمحلية او سأمتنع تماما عن التدخين)
3) جهزقائمة ب احتياجتك الأقل least needs.. التى ستقطعها في حالة حدوث خطر مالي
(مثال :سأتوقف عن شراء العيش الكايزر و الشامي و سأشتري عيش بلدي ..)
4) اختر يوماً سنوياً لمراجعة خطة الطوارئ السابقة و اكتب خطوات عملية, لا تركن لوضعك المالي وإن كان مطمئن..
ملخص "أطول" للكتاب:
الكتاب القادم : شهوة المال مقالات جمع و ترجمة كنان القرحالي
March 22, 2017
Heaven help me, I really enjoyed this book. I don't know if I'd have enjoyed it 10 years ago, but I thought it was valuable now. I wonder if reading it would've helped me avoid some financial mistakes I made: buying a house at a bad time, buying a car immediately after buying that house, and having a third kid shortly thereafter.
Typing that, you realize "There's the rub." Warren/Tyagi's 50-30-20 rule (spend your income in the following proportions: 50% needs, 30% wants, 20% savings) is a nice idea, but while you're waiting to achieve that lifestyle, you're living in a dilapidated hovel. Life goes on. I wanted to grow my family so no regrets about the kid, however expensive he may be. We needed the car to fit the kid. And we needed more space. I could've bought the house at a better time, but hindsight is 20/20 and I didn't know what the housing market's bottom would look like and when the madness would start again.
I suspect if Americans abided by the 50-30-20 rule, home values and consumption would plummet drastically. I'm reminded of "The War Against Youth: The recession didn't gut the prospects of American young people. The Baby Boomers took care of that."
http://www.esquire.com/features/young...
"People who want to join society will do so through an increasingly lengthy period of humiliation and struggle, and only through the help of their parents. Even before the recession, that was more or less true. It's the dirty little secret of every middle-class person in their mid-thirties: Everybody's parents helped them out. Who do you think is paying for all those summer internships? How many new parents do you think actually have enough money for a Bugaboo stroller, let alone a down payment on a first home? And if you don't have a mom or dad who can help with ballet lessons for the kids or family vacations, God help you."
Or of a New Yorker cartoon I like. Two naked people sitting on boxes in an apartment: "So, this is debt-free living." ( http://imgc-cn.artprintimages.com/ima... )
50-30-20 would be a great rule if there wasn't a "two-income trap" that induces middle class parents to both work full-time in order to duke it out for real estate in a desirable school district ( http://www.pbs.org/now/transcript/tra... ). As is, if the Jones' are debt-financing their house, their cars, and their lifestyle, what choice does one have but to keep up by the same means?
Warren and Tyagi have some good advice on avoiding impulse "Want" spending. They're very critical of credit cards: the changing interest rates, the late fees, how easy they make it to spend money you don't have. They suggest cutting them up. It shows why the banks hate Warren: she wants to make it illegal for them to soak the suckers! I also appreciated Warren's full-throated advocacy for regular people using bankruptcy to overcome life-altering debt.
I think Warren and Tyagi's advice is excellent, but somewhat impractical for young families living in the world as it exists. If everyone followed it, I might feel differently. It reminds me of George Packer's "The Unwinding." Madness took over the Tampa, Florida real estate market. Warren and Tyagi would warn people to sit on the sidelines and not buy more house than they could afford. Meanwhile, an idiot could accidentally flip his house for a fortune. Prudence has a cost. Then, when the bubble bursts, the reasonable people are underwater anyway! Unless, of course, they had the foresight that America's policymakers and business journalists didn't possess.
It's also a pet peeve of mine that budget books make little mention of hard numbers. Raising three kids on $70,000 a year is very different than raising 3 kids on $300,000 a year, 50-30-20 or not. The higher incomes go, it seems that people start looking for things to spend their money on: leasing luxury cars, fine art and furniture, ivory back scratchers. Meanwhile, both families are trying to do their best for their children. "All Your Worth" focuses on what individual families can do, but the divergent inequality of means makes plain its limits. Imagine the life of extreme and absurd opulence Mitt Romney or Warren Buffett could live on 50-30-20!
I consider "All Your Worth" an easy read and a worthwhile reference. I think it's something to aspire to. But I'll always remember this line from Edith Wharton's "House of Mirth," "[Percy Gryce] lives on the interest of his income, and always has a lot left over to invest!" 50-30-20 can't compete with that.
Typing that, you realize "There's the rub." Warren/Tyagi's 50-30-20 rule (spend your income in the following proportions: 50% needs, 30% wants, 20% savings) is a nice idea, but while you're waiting to achieve that lifestyle, you're living in a dilapidated hovel. Life goes on. I wanted to grow my family so no regrets about the kid, however expensive he may be. We needed the car to fit the kid. And we needed more space. I could've bought the house at a better time, but hindsight is 20/20 and I didn't know what the housing market's bottom would look like and when the madness would start again.
I suspect if Americans abided by the 50-30-20 rule, home values and consumption would plummet drastically. I'm reminded of "The War Against Youth: The recession didn't gut the prospects of American young people. The Baby Boomers took care of that."
http://www.esquire.com/features/young...
"People who want to join society will do so through an increasingly lengthy period of humiliation and struggle, and only through the help of their parents. Even before the recession, that was more or less true. It's the dirty little secret of every middle-class person in their mid-thirties: Everybody's parents helped them out. Who do you think is paying for all those summer internships? How many new parents do you think actually have enough money for a Bugaboo stroller, let alone a down payment on a first home? And if you don't have a mom or dad who can help with ballet lessons for the kids or family vacations, God help you."
Or of a New Yorker cartoon I like. Two naked people sitting on boxes in an apartment: "So, this is debt-free living." ( http://imgc-cn.artprintimages.com/ima... )
50-30-20 would be a great rule if there wasn't a "two-income trap" that induces middle class parents to both work full-time in order to duke it out for real estate in a desirable school district ( http://www.pbs.org/now/transcript/tra... ). As is, if the Jones' are debt-financing their house, their cars, and their lifestyle, what choice does one have but to keep up by the same means?
Warren and Tyagi have some good advice on avoiding impulse "Want" spending. They're very critical of credit cards: the changing interest rates, the late fees, how easy they make it to spend money you don't have. They suggest cutting them up. It shows why the banks hate Warren: she wants to make it illegal for them to soak the suckers! I also appreciated Warren's full-throated advocacy for regular people using bankruptcy to overcome life-altering debt.
I think Warren and Tyagi's advice is excellent, but somewhat impractical for young families living in the world as it exists. If everyone followed it, I might feel differently. It reminds me of George Packer's "The Unwinding." Madness took over the Tampa, Florida real estate market. Warren and Tyagi would warn people to sit on the sidelines and not buy more house than they could afford. Meanwhile, an idiot could accidentally flip his house for a fortune. Prudence has a cost. Then, when the bubble bursts, the reasonable people are underwater anyway! Unless, of course, they had the foresight that America's policymakers and business journalists didn't possess.
It's also a pet peeve of mine that budget books make little mention of hard numbers. Raising three kids on $70,000 a year is very different than raising 3 kids on $300,000 a year, 50-30-20 or not. The higher incomes go, it seems that people start looking for things to spend their money on: leasing luxury cars, fine art and furniture, ivory back scratchers. Meanwhile, both families are trying to do their best for their children. "All Your Worth" focuses on what individual families can do, but the divergent inequality of means makes plain its limits. Imagine the life of extreme and absurd opulence Mitt Romney or Warren Buffett could live on 50-30-20!
I consider "All Your Worth" an easy read and a worthwhile reference. I think it's something to aspire to. But I'll always remember this line from Edith Wharton's "House of Mirth," "[Percy Gryce] lives on the interest of his income, and always has a lot left over to invest!" 50-30-20 can't compete with that.
January 22, 2015
This book is intelligent, well-written and formulates the most common-sense plan about financial management I have ever read. It doesn't matter if you're a poor young professional or a millionaire, or what your expenses/investment/lifestyle choices are - everyone has something to learn from these incredibly smart ladies. They start with the history of financial regulation and how it's influenced the psychology that goes into personal money management. Then they dive into teaching you how to balance your wants (30%), needs (50%), and savings (20%). The questions the book answered that were the most valuable to me were:
- How much should I be saving?
- How do I distinguish a want from a need?
- What is a good "rainy day" safety net?
- What should I be saving *for*? How do debts and loans factor in? How much should I save for retirement?
- What should I be investing in?
You can start thinking about how to best prioritize, create a safety net, enjoy your money, and save for the future. The main thing they emphasize is making sure you avoid unexpected financial downfall, get rid of debt, and don't get scammed by insurance or credit card companies.
If you have big changes to make, you may not be able to make them overnight, nor will you be able to create riches or afford everything you ever dreamed of. But you can learn about how to keep yourself afloat in tough times and enjoy your money as well.
- How much should I be saving?
- How do I distinguish a want from a need?
- What is a good "rainy day" safety net?
- What should I be saving *for*? How do debts and loans factor in? How much should I save for retirement?
- What should I be investing in?
You can start thinking about how to best prioritize, create a safety net, enjoy your money, and save for the future. The main thing they emphasize is making sure you avoid unexpected financial downfall, get rid of debt, and don't get scammed by insurance or credit card companies.
If you have big changes to make, you may not be able to make them overnight, nor will you be able to create riches or afford everything you ever dreamed of. But you can learn about how to keep yourself afloat in tough times and enjoy your money as well.
June 1, 2016
I mostly picked this up just to see how the advice compared to the Dave Ramsey plan we're already using. Basically, most of the advice is really similar, although Warren and Taygi structure their plan differently. They are insistent that in order to be financially successful, your money must be well-balanced between needs, wants, and savings. The problem is when any one of these is out of balance with the rest, and the book gives steps on how to get it back in balance. While I agree, this does differ from Dave Ramsey in that Dave would insist most of your wants can probably wait until you get yourself out of debt. I particularly appreciated the opening sections which addressed my grandparents' attitude towards money. Essentially, they say there is a commonly held belief among that generation that as long as you had a decent job, you could afford a house and a few wants and be fine. They insist this is no longer so, their reasoning being that banks once had much more restrictive lending policies that made that true; you wouldn't be allowed to buy more house than your could afford. Whether that's true or not, it does express the attitude of my grandparents, which is basically that if anything is wrong money-wise, you probably spend too much on wants. Ultimately, it was a quick book to skim and I enjoyed the affirmation of several principles Ryan and I have been following.
January 4, 2019
This is basically Dave Ramsey's plan which I think already existed when this book was written. (Dave published Financial Peace in the 1990s.)
Similarities to Dave: This book is mostly about the evils of credit cards and debt in general. While they don't recommend paying the smallest debt first (classic Dave Ramsey), neither do they insist you pay the highest interest rate debt first.
Bad differences from Dave: The authors suggest doing a bunch of worksheets that I have no interest in whatsoever.
Good differences from or additions to Dave: One new idea is dividing your needs (50% of income), savings (20%), and fun (30%). The authors discuss how to make sure your fun spending is actually fun and not guilt or emotional-hole spending. Asking for medical discounts and free samples of drugs. Getting drugs from Canada. Good marriage advice. Good warnings about how everyone in the system is trying to rip you off. Warnings about owning a home may or may not be a good deal (including a discussion of closing costs, fees, shady mortgage practices).
One particularly interesting thing is that the authors' concerns about job loss, shady mortgages, and foreclosure seem prescient given that this book predates the 2007-2008 financial crisis.
Similarities to Dave: This book is mostly about the evils of credit cards and debt in general. While they don't recommend paying the smallest debt first (classic Dave Ramsey), neither do they insist you pay the highest interest rate debt first.
Bad differences from Dave: The authors suggest doing a bunch of worksheets that I have no interest in whatsoever.
Good differences from or additions to Dave: One new idea is dividing your needs (50% of income), savings (20%), and fun (30%). The authors discuss how to make sure your fun spending is actually fun and not guilt or emotional-hole spending. Asking for medical discounts and free samples of drugs. Getting drugs from Canada. Good marriage advice. Good warnings about how everyone in the system is trying to rip you off. Warnings about owning a home may or may not be a good deal (including a discussion of closing costs, fees, shady mortgage practices).
One particularly interesting thing is that the authors' concerns about job loss, shady mortgages, and foreclosure seem prescient given that this book predates the 2007-2008 financial crisis.
Read
August 28, 2008So I usually read fiction to escape from life, but anything by Elizabeth Warren is a must-read, especially in my field of work (consumer law, specifically, working with people with money and credt problems). This book blew me away, becuase here I am thinking I know so much about money management, yet I honestly don't have a long-term plan (or even a day-to-day plan) for saving money or managing my money. This book lays out a simple realistic plan for getting your money house in order. So vital these days. The book walks you through the typical reasons people avoid working out their money problems- like some people believe in "the money bunny"-- Oh, I'll just win the lottery some day. Fascinating. And it gives you the tools to review where your money goes, so you can rein in your spending and get started on the road to actually having money in the bank. Just read a few chapters and you'll get the idea.
August 16, 2010
I learned of this book on one of the many personal finance blogs I read, and I was mainly intrigued by its philosophy of allocating "fun money" as part of your budget. My father always stated that if you never have enough money left over to spend on the things you want, you're doing something wrong. On the heels of my father's advice, I felt this book was right up my alley. One of the authors mention that budgeting should be seen like healthy eating: a lifestyle change where balance is needed and deviances from equilibrium are attentively avoided. I love the simplicity of the strategy: 50/30/20-keep your finances in that balance and you'll be fine.
September 2, 2019
I think just about anyone will find the first chapter in this book helpful. It outlines a balanced spending plan of 50% must haves, 30% on wants, and 20% on your future (which in stages may include paying off debt, paying off your home, and saving for retirement.)
The book is a touch dated (published in 2005), but still full of really helpful advice. What I particularly enjoyed is the point it makes of not being judge-y and helping readers get into the best mindset to take control. Good read. I'd recommend at least the first chapter to absolutely anyone and everyone.
The book is a touch dated (published in 2005), but still full of really helpful advice. What I particularly enjoyed is the point it makes of not being judge-y and helping readers get into the best mindset to take control. Good read. I'd recommend at least the first chapter to absolutely anyone and everyone.
October 31, 2014
This was a great book and useful framework on personal accounting and finances - including info on getting out of debt, saving for short and long term goals, and negotiating money matters with your partner. Highly recommend!
May 29, 2019
I read this book years ago, and I keep coming back to it because the advice and recommendations are still so sound. It’s great for the personal finance newbie - solid information that’s easy to read and understand.
November 3, 2014
Well this is it. This is the one I'll buy and make my budget around. It makes the most sense, seems the most workable, and is also one of the simplest strategies I've read.
June 11, 2016
You can't afford not to read this book!
Read
December 12, 2017Solid, no-nonsense financial advice from Elizabeth Warren and her daughter.
March 11, 2018
This book will help you a lot of you are already in some financial trouble. And the book explains a approach to get things under control.
March 24, 2019
Good, concise, vital information for creating a sustainable budget. It read too much like a self help book, but the information it had was worth overlooking that.
December 14, 2019
Simple and effective advice, will for sure put it to use
March 26, 2020
Basic and solid advice for budgeting and how to best use your money. Still mostly relevant almost 20 years after publishing, I feel like an updated version addressing our new gig economy and increased basic living costs would be useful.
August 1, 2023
Nice, concise book with a helpful framework. Even though this was written 17 years ago, it didn’t feel dated. The only advice I’m unwilling to follow is their insistence on cash only. Credit card points are a huge boon for those that pay off cards monthly and willing to play the game.
April 29, 2022
I had no idea Elizabeth Warren was the one who coined the 50/30/20 rule. A great book for anyone looking for ways to manage their money without having to think so much and stress about it. I didn't have the cd it came with because it's not 2006 anymore but the rest of the advice is still very solid and applies to our current climate. I only wish savings accounts still boasted 3% interest!
*Listened to audiobook on Hoopla.
*Listened to audiobook on Hoopla.
Displaying 1 - 30 of 266 reviews