All Your Worth: The Ultimate Lifetime Money Plan (A Guide to Personal Finances)

I won’t rehash the basic premise of the book because it’s already been covered by a lot of reviewers. Instead I’ll just talk about some rationalizations I came up with while reading the book and trying to “debunk” it. (As a side note, I am lucky that I am in great shape financially, but this book definitely gave me some rules to live by). --“But there’s no way I can cut down my Must-Haves. I already signed contracts to pay $XXXX per month on my house/car/insurance/daycare/college tuition before I found this book.” The book suggests: 50-30-20 is a goal. If you can’t cut it quite down to 50%, how about 54%? 58%? Basically do the best you can. Shop for a better deal on your current arrangements. Think of it as your ideal weight. If you weigh 250 pounds and your goal weight is 180 pounds, nobody’s asking you to drop 70 pounds overnight. Also, the book advises that it is not worth your time to obsess about the pennies because 1) you literally don’t have the time to be constantly vigilant about every single thing you spend money on, and 2) you’ll get more results faster if you focus on the big-ticket items. For example, this book recommends that we shop carefully for a better deal on our mortgage, car payments, health insurance payments—Big-ticket items that account for the biggest portions of our spending. And this book has a lot of specific advice on exactly how to do that and what to look for (How many “points” and extra fees is hidden in the mortgage fine print? Is there a “balloon payment”? Is there a prepayment penalty? Is there/how much is the commission paid to the mortgage broker? Etc.). Yes it takes a lot of work (Get at least 5 quotes from different companies! READ all the fine print again the day of the closing, because a lot of companies try to sneak something in there on the day of, in hopes that you’ll just assume you’re getting the same deal and sign without looking). It sounds like a huge pain in the butt, and I admit my eyes did glaze over a bit during some parts, but one should spend time doing this rather than stressing out over how many times one eats out or goes to Starbucks. Literally, more bang for your buck. Also unlike the penny-pinching way of trying to save money where you have to pay attention to it constantly, once you get a better deal that will save you money, say on your mortgage, you will automatically pay less for your mortgage every month, which means you will AUTOMATICALLY save money every month. --“But I’ll never reach the goals described in this book. It’s just not possible.” Book says: Doing anything is better than nothing. There are 5280 feet in a mile and 2352425312531 drops of water in the ocean and all that. Just get started and each step will make the next a little bit easier. The process is about gradual improvement, not overnight miracle makeovers. --“But *I*’m good with money. It’s my spouse/boyfriend/partner who’s the bum that blows all our money on stuff we don’t need.” Great, you’re a saint. Now what? Does placing blame put more money in your pocket or make creditors go away? No. This book says: Do what YOU can do. Try to get your spouse on board with small specific things – “Let’s put $50 a week in the bank” rather than “hand over 20% of your paycheck now!” --“But the advice in the book doesn’t apply to me, because it’s for people who don’t have a sudden layoff/sick relative who needs round the clock care/spouse who walked out on me/Other sudden life emergencies.” This book has a whole separate chapter on what to do in financial emergencies – “Financial CPR.” The 50-30-20 balance plan is the goal for the rest of the time. This chapter also has very specific advice such as exactly how to deal with creditors (try to work out a plan, threaten bankruptcy if necessary, and GET EVERYTHING IN WRITING). Speaking of which… Don’t feel bad about filing bankruptcy. “If you find yourself considering bankruptcy, reflect on the fact that most of those lenders knew you would have a tough time paying them back. They had your credit reports. They knew how much money you earned, and they knew how much you owed. They took a calculated risk.” --“But the advice in this book is common-sense. I mean, duh. Save money? Live within your means? I can’t believe the authors are making money on advice I’ve already figured out for myself.” If it’s so common-sense, then why has bankruptcy rates soared in just 30 or 40 years? Even a decade ago when this book was written, it is citing some chilling statistics: 1 in 7 families in deep financial trouble. More people file bankruptcy per year than get divorced, graduate from college, or get cancer. Knowing the stuff in this book in theory is one thing, practicing it is something else. ----------------- Misc highlights in the book I found most memorable: “Do not judge how you or your spouse spends Want money.” -- This book is big on no-judgment, guilt-free spending on Wants. Extra savings above 20% is a Want. Gambling in Vegas is also a Want. As long as you have first figured out how much is left over after Must-Haves and Savings are taken care of, spend those leftovers on absolutely whatever you want. Because just like people can't keep up a completely spartan diet with no chocolate, steak, or cupcakes allotment whatsoever, a completely spartan budget is also not sustainable. If you have steely superhuman willpower, then great. But most people myself included need some chocolate every now and then. “Renting is not necessarily bad” - You didn’t get nothing out of paying rent. You got a roof over your head. Are you slowly becoming the owner of the grocery store and power plant when you buy food and pay your electric bill every month? It’s much better to wait until you actually build up enough savings to buy a house and rent in the meantime. If you buy before you can actually afford it, the higher interest rate and fees will make you pay MANY TIMES MORE than if you wait. Way more than any equity that you can build up in the meantime. “Equity loans are NOT a good way to consolidate debt, even though it has lower interest rate than credit cards.” Because if you default on your credit card balance, they can’t take your house. Banks aren't offering lower interest rate on equity loans because they're nice. “Think of a contingency plan BEFORE something bad happens.” People get CPR certification before they become a lifeguard. They don’t stand in front of an unconscious drowning person and flip furiously through a manual for CPR instructions. Think of what you will cut ahead of time and review every year. Bottom line, I think this book has great advice that applies to pretty much everyone. If it doesn't apply to you because you're not in financial trouble, great! Doesn't mean it's wrong. I'm not in trouble but I still found it instructive. I just happened to already be following the advice in the book, albeit inadvertently. I plan to follow it advertently from now on.

I was one of those people in a two-income household that earned a lot of money in one of the most expensive states in the nation. Yet, like some of the examples in "All Your Worth" and the bulk of the middle classes that this book speaks to, we always seemed to be struggling to make ends meet. After reading just the first couple of chapters and doing the worksheets in this book, the reason became clear. Our "necessities" (mainly a poorly-structured home loan) made up an exceedingly disproportionate percentage of our expenses. This book gave us the impetus to sell our house and change our lives. Here I am, seven years later, going through another pivotal life change and restructuring my life on my own. I returned to this book for guidance and again, I have found clarity about where I am financially and how to get to where I want to be. Things have improved dramatically in a few short months, and I am overjoyed and amazed at how quickly I was able to stabilize a dire financial situation and get things back in balance. Again, I find it's not about how much you earn, but how that money is divided between needs, wants and savings. Personal financial management is not really taught in schools, nor do a vast percentage of parents know how to provide that education to their children. Some criticize this book for being too basic, but that is precisely why it works. "All Your Worth" is not written for wall-street wolves or multinational bank managers. This book is written for and accessible to those of us struggling within the middle classes or struggling to enter the middle class. These are the people that need this book. If that describes you, or someone you know, buy it. Gift it. Do the work. This book can get you where you need to be, and it doesn't have to be complicated.

I purchased the audiobook version of this title, and will review that version. Content-wise, it's great. The authors have a simple, no-nonsense approach that gets you on a path to financial well-being without clipping coupons obsessively or bringing a bag lunch to work (if that's not your thing). In short, it's a budgeting program that doesn't have the feel of a punishment (like so many budgeting programs do). I've already recommended this book to three or four people, and I've passed it on to loved ones. It's really that good. If you're not in completely dire straits (i.e. bankruptcy), the latter half of the book probably doesn't apply to you, but the basic stuff (the first half of the book) is worth the price in and of itself. Now as for the actual *recording,* if I have one criticism, it's this. See... this book is read by the authors, and being from the Midwest (I think), they have a folksy, at times corny way of phrasing things. Sometimes, it's endearing, and sometimes, it's annoying... but the content is so good that not even the folksiest of recordings could mess it up. Oh... and one other thing... one of the audio CDs has a big PDF file (set of worksheets) on it that's foolproof and rather helpful. If you're a financial layperson - whether you're in terrible financial shape, or you're really not so bad - give this book a shot. It's dirt cheap, is a quick listen, and even if you don't have the patience to get through the whole thing, the first half will give you some good lessons.

I bought this book because it was referred to me by a co-worker. She said that if she hadn't read it, she would be broke. Her husband lost his job, but this book kept her afloat and is continuing to help her. I read it and I understand why. It's a no-brainer approach with real-world examples and the best part is they give you space and worksheets to encourage you to write in it. I actually am still in the process of reading it (it makes you feel like crap with your spending - in a good way). It's an eye opening experience and it isn't one of those get-rich-quick schemes either. Honest information for general scenarios (if you have a highly atypical financial situation, it won't fit the book entirely but you will still walk away with valuable information). Good book, solid read.

I do not have a 401K, medical insurance, stocks, bonds, or gold buried in a hole the ground. I consider myself lucky to have the clothes on my back and a home to live in. I have read many books about financial planning, but none as good, or as straight forward, as this one. By following the Balanced Money Formula for only one month, I have saved $970.00. For the first time I am not checking my balance daily because I have enough money to cover my bills. It is a very simple formula: must haves: 50%, wants: 30%, savings: 20%. The plan is simple and self-explanatory. Half your income goes to things you have to pay each month, like rent, mortgage, and utilities. Twenty percent is set aside for savings and thirty percent for fun. It is flexible and gives you tips on how to get everything balanced, this might mean eating out less or canceling cable. Because I had zero savings to begin with, I chose to take a lot from my wants and stash it in savings, until I can establish an adequate cushion. For potential home buyers/refinancers, you should read this book before you do anything. All Your Worth nicely explains how you can protect yourself from being taken advantaged of by mortgage lenders. There are no ten dollar words or complex financial terms to puzzle over. I regret not reading this book before I bought my home, however, I can use the information if I decide to refinance. So, if you are in the market to buy or refinance read pages 82-88, then read Chapter 8: The Big Buy. Most of us know how bad debt can be, but this mother/daughter duo writes that debt is just plain dangerous. They explain how yesterday's debt steals from tomorrow's income-a claim against your future-so think long and hard before you charge that latte or charge another pair of shoes you don't need. I usually donate books I have read or pass them on to friends, but not this one, this one is a keeper and I will be sharing it with my children so they, too, can learn how to survive this terrible economy and hopefully have a more secure future.

This is a superb and well written book on personal financial planning and strategy. It is great for young people just starting out, for older people to recoup their losses, and for the middle class to correct their errors, and guarantee a more free and happy life. You may have to sacrifice to achieve your goals, but the advice wherever you find yourself financially is crystal clear and effective. Whether you make $25,000, $50,000, or $150,000, if you understand their formula, you will eventually find yourself in a better financial position over time, and you can even enjoy the journey and have the feeling of a job well done. They are very creative in assisting people in working with their spouse, or significant other. They also give attention to people who have gone through divorce. Couples can negotiate in their relationship accordings to their wants, needs, and future savings. I recommended this book to several young people, including my daughters. It is especially important to learn these principles and apply them in today's world. The authors are astute, understanding, experienced, and well educated,and they are encouraging with the many examples of people who have been helped. They themselves have been single mothers, taught business to Harvard law students, and have conducted financial counseling clinics for people on the edge of poverty as well as for those who are economically more fortunate. If it is too complex for anyone to understand, that person or persons should study to understand finance until the message the book is sending is clear to them, and they will avoid a lot of financial stress and chaos in their life.

I went looking for this book for my 13 year old nephew. The book is an easy read, and it pulls no punches. They describe it as a plan for life, versus a crash diet. The authors make a point of identifying the psychological and emotional traps people spring on themselves that prevent them from getting a handle on their finances. It also makes it easy for people to keep track of their money without writing down every single expense. Their approach is so simple it is a wonder I have never heard of it before. In a nutshell it splits your take home pay into three piles. 50% for Must-Haves, 20% for Savings and 30% for Wants. Since the Must-Haves are recurring large expenses they are easy to track. The Savings is easy to track because people do not have many savings accounts at one time. The remainder is for wants, and if you use cash you know how much you have to spend on wants by simply opening your wallet and counting the money. I know several adults that never got their financial house in order because they could not be bothered to write things down, well here is the solution, and another excuse bites the dust. This book and a subscription to Consumer Reports are a must for anyone that wants to manage their money without spending their life managing their money.

The advice is delivered cleanly and simply. It is delivered in a way that anyone could understand. It is advice that anyone with any income can use to better their life. I could not ask for a better piece of written word regarding finances, and this piece of literature has drastically improved my financial life. Before, I couldn't afford gas for my car some weeks. Now I've realized I can afford almost anything I want. A new car? Used, still, but newer? I can purchase one in six months or so. Before reading this book my thought was that would never happen. At all. If you're unsure or wary about it, I can assure you that if you follow the wisdom and practices laid out within you will come out better than you were going in.

En mi caso solo rescato el método 50-30-20, las diferencias entre necesidades y querer. Lo demás se centra mucho en casos de sus clientes.

I'm amazed that I read this book without a yawn! A lot of real life stories that helped me realise that I'm not alone having to cope with depts...and that whatever is my budget, there's a way to acheive a healthy and balanced financial plan. Decisions are much easier to take when you know how to make your money work out for you....makes me feel confident and much better.

This book is amazing!! I've been struggling with debt for a very long time and this book provides a fantastic way to help you get out of it and stay out of it. It also has a money plan which I have found invaluable, I wish I'd found this book years ago!!

This is a great book that helped me not only realize that I need to start saving now, but how to go about saving properly. I understand how to budget a bit more sensibly now that this book broke it down so simply for me: needs, wants, savings. I now have a life-long game plan thanks to this book. Really worth the purchase, and simply a good read.

The most amazing book i've read on how to get rid of debt and start increasing tour finances. A very simple plan that allows you to allocate a part of your income (30% more or less) to your treats and fun spending. Let's be honest no one is able to live on beans or to spend 2 years without indulging in an ice-cream or a take away, and this book teaches you how to handle your money without depriving you of small treats