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When I was a teenager my Mom gave me "The Only Investment Guide You'll Ever Need." It has good info about budgeting, spending wisely, saving, etc. Of course it also has info about investing, but the basics are there, and easy to follow.

http://www.amazon.com/Only-Investment-Gu...

My all-time favorite:

"Downsize Your Debt" - by Andrew Feinberg
I read this in college and the light bulb turned on.

Also, for general, basic understanding:
"Straight Talk on Money Ken and Daria Dolan's Guide to Family Money Management"
Ken and Daria Dolan.

My favorite is this oft-posted budgetary infomercial.

For me, spending money on a book about saving money is like, well...

You'll find tons of free, online info to help you budget.

Better yet, spend the money on a nice piece of home budget software. Then use it!

Instead of spending money on this that will tell you how to save, wouldn't it be even better just to spend less? Maybe, if you just write down every month what you spend $ on and see where you can cut back, that might be enough for basic budgeting. Only you know your spending habits, weaknesses, etc.

For me, spending money on a book about saving money is like, well...

Good point.

But the $10 or $20 I spent on these books reduced my ignorance to the point where it probably saved me 10's of thousands or more over the years.

Yes, spending money for a book to help you save money seems a little crazy, but...if I just lecture to this friend "don't spend more than you make", she won't listen. And honestly I don't want to lecture to her. That's why I had the idea of giving her a book rather than giving my advice. I like the software idea, but her husband works for a computer company and can be very arrogant about software and she's not to computer literate, so and old fashioned book might be best for her.

Thanks for all the titles, I'll look into them.

Dave Ramsey's Total Money Makeover.

Is this the book you are looking for?

http://consumerist.com/consumer/clips/sn...

Nostra, oft posted or not, that is the epic post of the day.

Seattle, there's no book for this but it's a somewhat popular short term method to allow people to realize where their money goes. You only have to do it for a couple of months, it will wake you up and it can be fun.

Step one, lock all credit cards and the checkbook in the safe, no exceptions. (If you dont have a safe buy one with your credit card, just kidding). You must also suspend all auto pay things. Everything must be paid with cash, money order or cashiers check.

Step two, on payday, cash your paycheck or withdraw the amount of money that was direct deposited.

Step three, sit at the table, with the money and the bills, use piles, envelopes, a file folder, whatever and divide up the money to cover the various bills, giving each bill a little more than it needs or will need since they may not be determined. Allocate cash for food each week, gas each week, entertainment, clothing, and set aside a portion for annual bills like car insurance or registration.

Step four- agree to a set amount of savings for different things, one that is an account at the bank and one for vacations or large expeditures like furniture or home improvements.

Step five- agree ahead of time what to do with overages, for example, if there is a $50 savings on that months electric bill, each person gets $25 extra in pocket money or lunch money. If the food bill has savings, that goes to eating out budget for the following week, if the fuel bill is lower, it goes to vacations, and so on.

At the end of a few months, you get to see what things cost in nominal terms, you get to eat for lunch what you saved by turning off the lights, you decide what to forgo in order to get what you really want and going to hawaii or buying new couches suddenly seems stupid and will ruin your ability to eat out for lunch for the next six months. It gives you perspective because it is all real money, checks and credit cards dont feel real, they are like casino chips.

I'm sure there is abook that will tell you what to do but the concept is the same, i like to consider it "financial tent camping." Every time I go tent camping I come home with a new appreciation for my dishwasher.

Excellent advice, TG.

If they don't feel comfortable having all the cash at home, they can do it on a weekly basis.

I second the advice from TG. My parents were in debt for years due to overspending, and this envelope method was the only one that got them on track. Having an easy to follow rule such as "if the money isn't in the envelope, you can't spend it" made it easy on them. They always said "We need to spend less money" but it's harder than it sounds for many people. In fact, it's actually their long-term solution now because it worked so well and they are nervous about falling back into bad habits if they change.

TG's plan sounds great. I might try it! I have so many auto-pay things set up though... the only checks I write are to the IRS (really!).

I like TG's plan, I used it alot in college and it helped alot. The problem is it wont work for everyone. Roommate came home with a purchase for the back yard yesterday. I have no idea why, we are really rarely home anyways. But as he said, "I just couldnt help myself."
Spending money sometimes is used to fill other holes in peoples lives. You can't cure alcholism without treating the underlying causes that drive people to drink, and you cant solve bad financial planning without treating those causes either. My point is to be careful that you dont get dragged into helping solve marriage or emotional problems that are the underlying reason for overspending.

I like TG's plan too. It gives you a real visual for how much money you have (or don't have). We did something like that when my first child was born when we went from 2 incomes to 1.It was really helpful. I'm not sure that my friend would buy into it though, I think she would think it's too much work...but it would probably be a great exercise for her because she just doesn't have a clue that she overspends until she sees that her cc have a huge balance at the end of the month.

DWCAP - I think you hit the nail on the head regarding spending to fill emotional issues - I am sure that's what this is about for this family. I have tried to encourage her (gently) to look at why she feels she "needs" all these status items, the problem is I am a therapist so with friends I have to be very careful not to get to "psychotherapyish" with them or it will just get messy. So when she keeps complaining to me and wanting my help, I figured if I just gave her a book on budgeting I've "helped" her while still maintaining boundaries.

On the other hand her complaining may be her way of reaching out and a book about finances will be a slap in the face. Some people can't ask for help if they were drowning, but they would grab the life preserver if it was randomly thrown their way. Maybe in some round about way offer the services of a trusted collegue. It is always easier to open up to someone you trust, problem is if that someone is a friend, it could ruin the friendship. Just a thought.

I second Dave Ramsey's Total Money Makeover.

I have zero debt and still like listening to the guy.

He also has a radio show.

Suzi Orman's cable show is pretty good as well.

I really think someone has to hit bottom before they get anywhere.

You can lead a horse to water...

DWCAP - I can see that just giving her a budgeting book would seem like a slap in the face, but she has actually asked for some budgeting advice from me noting that we live within our means and have no revolving cc debt, that's the only reason I would even consider doing that. I like your idea of recommending a colleague. I might still give her the Ramsey book but also try to open the conversation that overspending might also be a result of some other issues (I think she would agree, she's kinda hinted about it in the past) and then give her a couple names she could contact to explore those issues if she feels ready.

You guys have great advice! Thanks

I just wanted to give you guys an update:
I bought the Dave Ramsey Total Money Makeover Workbook for my friend. I gave it to under the impression that it was my book and thought she might like to read it. (I actually skimmed through it and thought it was very good for people who are just out of control with spending and debt) So a couple of days later she told me her husband read it and thought it was awesome and that they should start the program and she agreed. Well guess what, I was talking to her last night and she is already fixating on buying more useless crap because now they'll be out of debt with the help of the book I gave her. Huh?? AHHHHHHH!!!!!! Well as the saying goes "You can lead a horse to water...

Well guess what, I was talking to her last night and she is already fixating on buying more useless crap because now they'll be out of debt with the help of the book I gave her. Huh?? AHHHHHHH!!!!!! Well as the saying goes "You can lead a horse to water...

Well, if that's the motivation she needs to get started, then so be it ...
Anyway, if she does it right and does the things it takes it will take months or a couple years to clear away any significant debt. Hopefully, the urge to spend frivolously will be replaced by these habits.

What kind of crap is she buying?

Uneeded home decor items, uneeded lanscaping items, and toys gallore for her kids. She said she just wanted to keep up the "Joneses", I told her she was the "Joneses". She just doesn't get it...kinda sad

At some point, she doesn't want to get it. Try working the husband route, everytime she talks about it all, ask if he is ok with it. Help him grow a spine (ask about how he liked the book), and let the person who should be fighting these fights do it. She most likey uses you against him anyways, so help him fight back. ("seattle" is ok with it, and she is so good at saving money, so it isnt a big deal!)

BTW, does this woman work? You mentioned Hubby's income, but what about hers? If not, and the kids are in school, this woman needs a job.

No, she's a stay at home mom. Her kids are in school and she just likes her "lady of leisure" life. She has talked about getting a job at times, but I think enjoys sitting by the pool and taking her kids to all their scheduled activities. She went to college in her mid 20's and once she graduted had a baby and never really used her bachelors degree. In all fairness I will say for a woman who has been home over 8 years re-entering the workforce can be overwhelming, but I don't think she has really been very serious about it to even explore her options.