When I came upon this infographic and read the fine print, I realized I’ve been doing it all wrong! I’m supposed to define each category and allocate an amount (usually based on percents) first, then align my spending to fit that budget – or be “Pro-Active and tell my money where to go.”

I’ve finally gotten around to reading Your Money or Your Life by Vicki Robin and Joe Dominquez which I’ve had in my closet for almost 2 years. I had hesitated reading this book because I really thought that the original publish date was so outdated it would have antiquated personal finance information, but what I’ve found is that even though the data is old, the ideas and concepts behind the book still make sense today.

Alan Akina wants to educate people about finances in a way that makes sense to everyone, not just mathematical geniuses that can calculate the compound interest formula without a calculator. So he’s created an e-book about money that anyone can follow, it’s called Super Duper Simple Book on Money. He breaks down personal finance into five basic principles.