We all know that our nation is in financial turmoil. Yet it’s also sadly true that many individuals and families are in financial peril, as well.

Just glance at these sobering statistics:

- The credit card debt of the average American consumer is over $3,000 and of the average household is over $8,000.
- In 2005, the personal savings rate fell below zero for the first time in almost 90 years. Since then, the rate has hovered between zero and 1%.
- In 1978, the number of employee defined-benefit plans was 128,041. Today it stands at around 26,000, covering only about 21% of workers in the private sector.
(All stats taken from pages within Robin’s book.)

Vicki Robin, Joe Dominguez, and Monique Tilford have come up with a simple-to-follow, makes-sense way to manage your money in their book Your Money or Your Life. They have a website dedicated to this plan, as well.

This book teaches you how to become an “FIer,” or one that has gained Financial Intelligence, Integrity, and Independence. FIers can remain constant, confident, and unshaken despite the uncertain economy and its jagged price increases over the years.

I was happy to review Your Money or Your Life since money is on the forefront of my mind these days, as it probably is for most of you, as well. In our finances, there is always room for improvement. And a book that teaches independence and smart thinking in regards to what to do with money is always a welcome resource.

What I liked about this book:

- I’m a statistics gal, and this book is chock full of them. Stats spur me to awareness and action faster than anything else.

- I’m also a give-it-to-me-straight kind of person, and this book doses out a hearty portion of the cold hard truth, as well. For instance, it talks about how we have become “consumers” instead of mere “citizens” in this country. This is a self-fulfilling prophecy of sorts. To quote page 14, “We buy everything from hope to happiness. We no longer live life. We consume it.” To quote page 17, “Part of why our ‘consumers’ have less money to spend is that saving has clearly become un-American.”

- It shows the importance of thinking hard about money and your school of thought regarding money and what it is/does. It forces you to look at your values and beliefs rather than just giving you a simple so-many-step program to mindlessly follow. It pleads for us (via page 114) to “‘just say no’ to unconscious spending.”

- It branches out your linear thinking, asking how you might buy something for less, or not buy it at all (separating true needs from wants).

- It stresses the importance of modeling financial wisdom to your children.

- They quote Dave Ramsey.

What I wasn’t crazy about:
- The authors refer to money as “life energy,” which is a bit too lofty/new age sounding to me, though I do get why they termed it this.

- They dethrone the idea of a budget (which really does work for our family) and replaced it with a “balance sheet,” something similar but not so harsh sounding.

- It left me feeling as if they were suggesting that everyone that reads and follows verbatim this book can achieve FI enough to do what they’re truly driven to do, not just “work for a living.” Though I do agree that we need to seek out what God’s will is for our life (including our work/jobs), I think that, in reality, this ideal may not be achievable for every individual. I’d hate to think that an individual’s or family’s security might be put in jeopardy in the name of a more ideal, personalized, fulfilled lifestyle.

Overall, Your Money or Your Life was an eye-opening, interesting, and helpful read that helped me glean a few more ideas and attainable goal-setting objectives regarding my own finances. You can purchase this book for $16.00 directly from Penguin Group or find it wherever your favorite books are sold.

Win it! Penguin Group has offered one of you a chance to win a copy of Your Money or Your Life! You have two ways to enter: Head over to Penguin Group and find another book that you wouldn’t mind reading, then come back and tell me about it in a comment below. OR, head over to the Your Money or Your Life website, read around a bit, then come back and tell me in one comment something that you learned. I’ll close the contest next Tuesday, March 24th, 2009 at 11pm EST. US entries only; duplicate commenters will be disqualified. Good luck!