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This book will help you analyze the real reason your living your life. Which is not to monetize your precious time to spend on gadgets and cheap thrills, but to use your precious life energy to accomplish goals and be with friends and family. Using a simple to follow analytical approach you'll master your spending habits without giving up material satisfaction. In fact you'll have more satisfaction as you will eventually free your life up to satisfy social and spiritual goals while maintaining your material needs.
You can buy this book at half.com and I recommend saving money on any number of other books you can get from the same booksellers, to lower the shipping rate which will be about $4.75.
As an example of the exercises in the book I will share with you shortened versions of two lists that I generated using the books advice. One for things to not spend money on, one to spend money on.
Things I will try not to spend money on (Fails all tests)
Auto Fees - The government gets a big chunk each year from your paycheck. Then they take a big chunk out of your car budget. Anyway that you can reduce insurance and government fees is going to get more money flowing in the right directions.
Vehicle loan interest - I bought my car new, with mixed results. I took a big hit just driving off the lot, but I can't say I would buy used, the only problem is I had to take out a loan. Any type of loan is not an investment, at most it is a necessity, but never an investment. The ones making the money are the banks so don't give them a penny more then you need to.
Gas - Where I live the highway system is the only way to get around. I drive everyday through endless sprawl, but there are ways to cut down. You can take on a coworker for a carpool, and always suggest that your friends take one car when going out with them, or otherwise cut down on gas consumption.
Work - You go to work to transform your limited time resources and turn them into money which can be spent on other important things. You don't go there to eat expensive food, buy equipment that isn't really necessary for your job, or otherwise compromise your earning potential. Chapter one is determining your real wage. Your wage minus gas, travel time, work clothing, etc. You'll find you don't get paid much more than minimum wage in most cases.
Killing Self a.k.a. Cigarettes - I used to smoke, it's a habit that I take up once every few years then quit cold turkey. I am pretty committed to not smoking anymore, but I am not about to promise anything I can't deliver. When I used the reflective portion of the book to analyze my habit I quickly realized it failed all of the criteria. I didn't enjoy it, It wasn't helping me achieve my goals, and it was becoming obvious I didn't want to do it anymore especially after I stop working.
Business Webpage - At one point I was going to start an Online store with a buddy, however poor business planning meant that I was losing $27 every three months or so for webhosting, but I wasn't getting the benefit of a website! This shows the importance of keeping track of the automatic billing leading into your accounts. Have some way to keep track and cancel immediately when your not using it.
Money Hole - This is what I call my wallet which seems to have a perpetual hole in it. I know there are a lot of reasons to spend cash, but it's hard to keep track of. I learned that it's worth swiping to get the benefit of the electronic accounting. I always use my debit card, because it makes accounting errors non-existent.
Bank Service charges - Yes I have lots of money coming in, but I wanted to earn interest on that cash and screwed up my checking account a few times a year. Now I try to avoid this by always keeping a cushion of cash. $1.62 per month in interest isn't worth $70 in fees a year!
What I do want to spend my money on! (passes all tests.)
Repaying loans - I only have one loan but for the life of that loan it will be robbing my savings of investment growth.
Brewing - I am an amateur brewer not only is it a fun craft to perfect, but it also saves me money on beer. This hobby saves money, is cheap, and fits in with my goals. It's also probably something I will continue to do when I stop working.
Books - Reading is cheap and increases knowledge and processing power. When I am not with friends I am reading.
Fitness - This category goes without saying, fulfilling, helps satisfy goals, and is something that I will be doing after I stop working.
Gifts - Small thoughtful gifts can make friendships last, and prosper for years to come. They help the people you love remember you while your not there.
Charity - Yes being selfish can help others, the fulfillment and status you get from volunteering and donating a little cash can be some of the best. Once you reach financial independence it might even become your job.
