“All Your Worth” by Elizabeth Warren and Amelia Warren Tyagi (her daughter) is my favorite book outside of Robert Kiyosaki’s offerings. If I had read this book in 2006, I would be much further ahead financially today.
But there is no point crying over spilled milk. In the future, I will recommend this book to anyone seeking to learn the basics of financial management.
This book is so powerful because you can tell traditional married women wrote it. If you run a household, you will be able to relate to their words. It’s common sense topics and recommendations.
Also, some of the things they recommend are amazing. They suggest renting rooms, moving in with family, downsizing your car, moving to a less expensive neighborhood, and investing in index funds.
These are all the ideas I talk about daily. Of the 100+ books I have read, this is the first book that recommends the same things I do to help people get ahead financially. With that, let’s look at my five takeaways.
1) The ladies split their financial plan into three groups: must-haves (50%), wants (30%), and savings (20%). Hitting these numbers may require some significant adjustments depending on how you spend your money.
2) The “must-haves” are your major bills and mandatory regular payments. Many things we have on recurring payments we can avoid, such as gym memberships and cellphone contracts.
3) Directly after must-haves, you funnel your money into savings. Once you save $1,000, you need to pay off debt with your 20% savings. Finally, you can save for retirement and special events once you finish paying the debt.
4) For many people, their “wants” spending is holding them back. Learn how to say “no” to friends and family who want to go out to restaurants and theme parks.
5) It may be easier to hold your “wants” money in cash—this ensures you know how much money you have to spend exactly. The idea is to truly enjoy your “wants” money with no remorse.
You shouldn’t ask your partner how they spend their “wants” money. It is their money to spend as they wish.
Their plan is truly this simple. I like this because it forces you to evaluate each portion of your life in detail. The plan is not about micromanaging coupons or avoiding Starbucks; it’s about ensuring you stay within your budgeting blocks.
If your “must-haves” are too high, you’ll need to get a roommate, exchange your car, or move to a different neighborhood. If your “wants” are too high, you’ll need to budget your frivolous spending.
They even recommend getting a second job or writing a book. Indeed, this is the only book that takes a holistic approach to build wealth.
Getting rich is about changing your mindset and your life. I highly recommend this book to anyone looking to start a financial journey that will change their lives.
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