It is a really good exercise. I had to do it for different reasons, I had to go from 48-56 hours week to 24 hours a week at work due to my son dx with autism last year...and I was out of control with my spending. It was all cash I have no credit cards, all I had was my BMW payment and the usual household stuff. My income dropped by almost 65%...and I was living 25% above my means before that.

Talk about financially unconcious, I never even looked at my checking account, my paycheck went in..I spent it. It didn't take long for me to piddle through my savings(from the sale of my home in 2003) at the rate I was spending. Fast forward...RE Taipan had me do what Russ is having people do...it woke me up. I cut my bills and spending until they were less than my income..I got rid of my BMW, pulled my kiddo out of private school, no more tanning, no more nails being done, no more starbucks, no more fast food, dumped the cable TV, and on and on.

I realize now if I could work full-time again..and if I kept living like I am...just off my earned income I'd have 30-40k a year to invest or more depending on how much I worked. I was working 40 hours a month just to make my BMW payment...great SUV, loved it... but I might as well have flushed that money down the bowl. My life isn't any different without that truck..well except I have an extra grand a month in my pocket. I was spending $12,000 a year on a car payment(plus insurance & gas)..a car that took me from point A to point B. I had that truck 3 years..imagine if I had invested that money in an asset and not a liability? Hindsight is 20/20 but this exercise really highlights where your money goes and gives you the opportunity to ask yourself if it really goes where you want it too. I'm committed to keeping my spending in check even as my income is slowly going back up.

I'm glad all of this happened to me, it gave me a perspective on money and spending that I don't think I would have understood otherwise.

I'm looking forward to the next part of this very much.

Sue