Back to Basics

April 8, 2009

So far I’ve made it through the first 3 chapters of Your Money or Your Life and it felt like those classic scenes in All in the Family when Edith was rambling on and on and Archie would be pretending to kill himself while Edith just kept on talking.  Despite the often overwhelming liberal ramblings in the book, I am going to go through the tasks outlined to caculate my “Life Energy” and then finish the book. However, I also needed a mental break from the book so I decided to dumb it down a bit and read The Richest Man in Babylon and The Wealthy Barber in an attempt to clear my head and get back basics.

Between setting up a budget with You Need A Budget, stressing over debt and listening to Dave Ramsey tell me to get “Gazelle Intense” about only debt reduction, listening to Rob Black and Ric Edelman tell me to never pay off a 30-year low fixed-rate mortgage and instead invest in the market, and all the craziness going on with the economy and the market right now…I feel like my head is going to explode!!!

So for now, I am going to the basic 10% Savings off the top, 20% to Debt, and 70% for Expenses and will consider how to incorporate the myriad of advice/opinions into a plan that works for me.  My priorities still remain paying off our credit card debt and building up our emergency fund but I am not willing to stop contributing to retirement and education savings nor can I focus on just one aspect of my finances at a time while ignoring the others. There are so many important and complicated pieces to the personal finance puzzle, but sometimes the simplest and most basic plan is the best strategy for those times when it all seems to get to be too much.


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