For the millions of Americans now facing the possibility of home foreclosures and unemployment, frugal living isn't just an option. It's an imperative. That sad reality doesn't make it any easier to actually do it, however, especially for the many individuals who've literally bought into the notion of buying now and paying later.
How, exactly, does a person go from living large to living within his or her means? The answer lies in "unhooking your thinking from consumer culture," say the authors of the classic personal finance tome "Your Money or Your Life," which has been revised and updated since its original publication in 1992.
The timing couldn't be better. According to the book's introduction, the typical U.S. consumer is carrying a credit card balance of $3,000 and has saved little if any in more than three years. Health insurance costs are exploding, jobs are scarce and the environment is in peril. Clearly, something's got to give.
Or, if the tenets of "Your Money or Your Life" are followed, some things have got to be given up. That doesn't mean living like a pauper, its authors contend. It means living better and doing it with less -- less money and all that stuff Americans have been putting on their credit cards. It's about embracing the idea of "enough" rather than constantly yearning for "more."
Such an outrageously common-sense concept is, of course, a lot easier said than done. After years of thoughtless spending, living with less requires a monumental shift in consciousness to force a fundamental and increasingly necessary shift in habits. In other words, it requires a complete reversal of how we, as Americans, have defined ourselves for decades, which is typically through our possessions and comparisons with others.
What would happen if the Joneses we kept keeping up with moved away? What if we were able to get so in touch with ourselves that what we bought was aligned with what we believe rather than what we believe others are thinking about us? That's the underlying concept of "Your Money or Your Life" -- a former New York Times bestseller that, like many self-help books, buttresses its nod-in-agreement concepts with exercises requiring action.
As the book's subtitle indicates, there are steps given to transform your relationship with money and achieve financial independence. But they are exhausting just to read about, let alone put into practice. Sure, a journey of 1,000 miles begins with one step, but No. 1 seems especially daunting. It asks readers to tally up every cent they've earned so far in life, whether it was through an official employer and tracked through the IRS or paid in cash and earned off the books.
