Can a book about lowering your financial expectations be any good? We were intrigued by the premise of this book and decided to give it a try. It was a bit surprising in some places, and a little disappointing in others, but overall it was a very interesting read that we found to be thought provoking. While it is certainly not for everyone, if you’re struggling to make ends meet, some of the advice contained herein may be very useful to you.

Chatzky’s main premise is that seeking to be rich may be counterproductive, when you could instead be seeking to be “comfortable.” For most of us, that would be more than sufficient, especially if you don’t have any particular wealth building ambitions. However, given the state of the economy and worldwide uncertainty, we weren’t really convinced that this approach is the best one to take.

You can be comfortable right now and build up just enough income to get by, but what happens when the dollar falls further or gas prices rise? We’ve seen the cost of living skyrocket in the past year alone, thanks in a large part to the housing crisis and the cost of oil. What may have been “comfortable” last year, may be scraping by this year. Since 80% of Americans currently live from paycheck to paycheck, comfortable really doesn’t cut it in today’s society.

That’s not to say that the book has no value, it does, but much of it should be taken with a grain of salt. The book was obviously written before the current economic trouble and like so many that came out in this time period, it almost feels like the authors felt that the “good times” were going to last forever. That’s rarely the case when it comes to economics, and there will always be downturns.

Our main issue is that while not everyone can be a millionaire, is it productive to encourage people to settle for less. If you remove that drive for personal betterment, what is left over? It’s just human nature to want more, to achieve more and to get better things. While being comfortable may be fine for a little while, our natural inclinations may reduce that to rubble in a very short time. In a society where over spending is common, we worry that this book could actually prove to be disastrous for those that have little concept about good money management.

We did however appreciate Chapter Four, which discusses how to set financial goals that are meaningful to your life. This chapter alone makes the book worth reading, even if we didn’t agree with a lot of the author’s ideas. Overall, it was a good read and one that may challenge the way you think about money. We don’t really recommend it for those just getting into managing their finances, but for those that have experience in this area, it is certainly a good book to add to your reading list.

Originally posted 2008-11-07 05:33:52. Republished by Old Post Promoter

Related Posts

• Organize Your Personal Finances in No Time by Debbie Stanley If nothing else, the state of the economy has shown that millions of people don’t have a good grasp of how to manage their personal finances. There are hundreds of books written every year on the subject and yet, this concept still seems to elude many. Some books are either......
• What You May Not Know About Personal Finance Unless you’ve taken some courses on handling finances, there is a chance that you may not be aware of a few of the key points about budgeting, managing your money and planning for the future. While a lot rests on common sense, there are a few techniques that everyone can......
• Review: The Teen's Guide to Personal Finance: Basic concepts in personal finance that every teen should know. Time is a resource that many teenagers don't realize is their greatest resource for finacial independence. "The Teen's Guide to Personal Finance" is a tome that will provide teenagers with important financial lessons, in a manner which will pull their interest and convey itself effectively in its intended task. The......
• Resisting Panic: A Quick Guide to Surviving The Credit Crunch A few years ago if you referenced the term "credit crunch", most people would be puzzled. Today barely a single day can pass without the phrase seeing consistent if not constant use in the newspapers and on television. The credit crunch is a crisis that is affecting numerous financial institutions......
• 3 Ways to Weather Economic Cycles The economy is in a state of constant flux. If one industry is doing well, you can bet another is suffering. While it can be difficult to weather any cycle, there are techniques that you can use to ensure that you stay on top no matter what happens. Here are......

Related Websites

• What is "Tough Money Love" in Personal Finance? There are hundreds if not thousands of websites covering personal finance issues.  Most are hosted by vendors trying to sell you something.  Others dish out conventional advice that can be found in any personal finance book or regurgitated by financial planners.  Still others offer a steady stream of fluffy  affirmations, feel......
• Book recomendation from a reader Feel the Fear and Do it Anyway Several years ago, I read Feel the Fear and Do It Anyway. Still a good book I think. Even though we practice dealing with overcoming fear - it's like a new experience every time - actually it is! I'm working on becoming the adventurous gal I was in my younger......
• The Negotiable Golf Swing: How to Improve Your Game Without Picture-Perfect Form by Joseph Laurentino Golfers can spend their entire lives trying to perfect their swing, or their stance and for many this pursuit always falls just short of their goals. Enter Joseph Laurentino, the author of The Negotiable Swing and his assertion that it is possible to play a great round of golf, even......
• New to the Workforce? Contribute to Your Retirement If you are a recent college graduate that has just entered the workforce, you have an excellent chance for a comfortable retirement if you begin contributing to your retirement as soon as possible. If you are 24 years of age or younger, you have at least 35 years until you......
• Book Review: The Tennis Drill Book By Tina Hoskins One of the most important steps of becoming a good tennis player is practicing your drills, over and over again, until it becomes second nature. There are numerous methods that are promoted for different drills, and dozens of books on the subject. We were ready for more of the same......

If you liked this article, vote for it on del.icio.us and stumbleupon.


Categories:

Book Review, Personal Finance, Wealth

Tags:

ambitions, betterment, economic trouble, economics, economy, financial expectations, gas prices, good times, grain of salt, human nature, millionaire, paycheck to paycheck, premise, skyrocket, time period, uncertainty, wealth building