I've been ill this week, so I've had some knitting done, but haven't taken many photos. I'll show you some WIPs and FOs next week! In the mean time I hope you'll enjoy the following book review - for a change not about knitting or politics, but personal finance.
I've always been rather good in saving money and being kind of frugal and have never had problems with debt. That's all really good news and I'm really proud to be this far financially at the age of 26. Somewhere along the line I've been starting to think about owning a home, or accumulating so much wealth that I could quit my job (or keep sabbaticals now and then) and just sell stitch markers and volunteer for animals and people in need all day. With my current salary and lifestyle this won't be the case any time soon.
Which is why I've started reading up on personal finances. I started with blogs like Simple Mom, and quickly saw the book they all recommend is Your Money or Your Life by Vicki Robin and Joe Dominguez.
This is a nine step program to financial independence, but not like the ones I've seen before. It first makes you think about your personal relationship with money in a deep level. It makes you dig deep into your personal financial history and really forces you to see how much money has come in (and left) your life - but all this without making you feel guilty. It forces you to think about your values. It doesn't even recommend making a budget!
Now I'm really excited about this system. I've completed the first steps and am now keeping track of my expenses (and income). I can't wait to get to the next steps! Who thought managing personal finances could be so much fun! That might be just me though, but the system is great anyway.
I would very much recommend this book to anyone wanting to reclaim their financial life. It's not super easy and it does take a few minutes every day to manage, but I feel it's worth it. There are many bits that don't apply directly outside US (like the investment tips), but even these were a good starting point to start looking for (similar) investment / savings opportunities in Germany. All in all I think this is a great book and frankly, I can't wait to get more and more financially independent with it!
"Your Money or Your Life" would have to be my favourite personal finance book ever!
Like you, I really love the whole keeping track of things bit. Watching the graphs on my wall moving in the right directions is so satisfying!!
The idea of managing your finances based on how much is 'enough' and what is truly important to you is quite revolutionary - even now. And I believe it makes more sense than always striving to earn MORE so you can buy more STUFF ...