Comments on: Review: Easy Money

By: Liz Weston

Liz Weston — Thu, 29 Jan 2009 15:56:36 +0000

Thanks for the thoughtful review!

The 60% solution was actually cooked up by my MSN editor, Richard Jenkins, and you can read more about it at that site.

If you’re in a high-tax state or really struggling with your budget, you might go with the other budget plan I recommend, which is Elizabeth Warren’s 50/30/20 approach based on after-tax income.

By: Sarah

Sarah — Tue, 27 Jan 2009 00:30:55 +0000

Yes–but if you look at the description he linked to, it includes “ALL taxes” as included in the 60%.

By: Dan Massicotte

Dan Massicotte — Mon, 26 Jan 2009 21:05:21 +0000

Is a 529 the same thing as an RESP?

By: CPA Kevin

CPA Kevin — Mon, 26 Jan 2009 16:35:08 +0000

Yeah, it says 60% of take home in the review.

By: spaces

spaces — Mon, 26 Jan 2009 14:50:43 +0000

Sarah — I think he’s talking about 60% of your take home pay (i.e., after tax, net of tax).

By: Chris @ BuildMyBudget

Chris @ BuildMyBudget — Mon, 26 Jan 2009 03:52:29 +0000

I very much agree– A skim at your local bookstore if you have read similar books. I think as far as the 60% rule goes, it’s probably not for someone living in New York or LA. =) The best aspect of the book is her focus on automating as many financial aspects of your life as possible.

By: Sarah

Sarah — Mon, 26 Jan 2009 02:37:26 +0000

Er, 30-35%.

By: Sarah

Sarah — Mon, 26 Jan 2009 01:58:48 +0000

I’m still a little confused by how this 60% solution is supposed to work. If you live in a high-tax state, your federal, state, and local taxes can easily run you 25-30% of your income. I can’t imagine cramming all of my expenses into 10-15% of even my gross income. Are these calculations based on the assumption you live in Wyoming?

By: A. Dawn

A. Dawn — Sun, 25 Jan 2009 22:46:00 +0000

There are too many personal finance books discussing same topics. It can be confusing for someone with little knowledge looking for a good book. Reviews like yours make it easier to pick targeted good books.

By: Wonko Beeblebrox

Wonko Beeblebrox — Sun, 25 Jan 2009 22:32:32 +0000

I’ve found the best option for Frequent Flyers is not to concentrate on one single airline, but to open up an Alaska Airlines account, since they partner with almost everyone*.

Basically, none of the airlines want to try to fly into a place like Fairbanks or Nome in the middle of winter, so they partner up with Alaska instead and allow both earning and redemption of Frequent flyer miles.

So: you can (for example) fly American one way of any trip, then Continental back, credit all those miles to your Alaska account, and then redeem those miles for a ticket on {Delta, Northwest, American, etc}….

*United and Usair notably excluded.

By: Neil O'Rourke

Neil O'Rourke — Sun, 25 Jan 2009 21:57:57 +0000

Problem is, she’s advocating the use of credit cards. She may have a point… but Dave Ramsey’s views on debt and credit cards make more sense. How many people have been bitten when their credit card provider makes a sudden change to the terms & conditions?