Let’s be honest. When I launched into this book I expected to be bored. Nothing against the authors, but face it, budgets are not exactly a topic renowned for inducing excitement.

I surprised myself and was absorbed in the book straight away. When Chapter 2 began with “Now it’s time to have some fun” I thought I must have teleported into another reality.

Budgeting generally is viewed as a chore. Washing the dishes and brushing your teeth are chores but we still do them everyday. Budgeting is equally important but most of us manage to avoid this chore.

Here’s a statistic from the book that made me sit up.

59 out of 100 people aged 20 now will be virtually penniless at age 60.

Do you want yourself or your children to be included in that statistic? I’d rather let the dishes build up till tomorrow and devote 2 hours to reading this book.

Wait a few days to catch up on the dishes then devote another 2 hours to completing the financial spreadsheets. Then follow up every two months to review performance.

As the book says: Budgeting is easy- it’s true!

The book speculates on all the excuses people might make for not having a financial plan and consequently having a poor financial situation. Then the home truth: often for these people if circumstances change their finances actually worsen. It is bad money habits and a lack of self-discipline that are the problem. Doing the same things and expecting a different result – well, the authors don’t mince words!

Determine your financial goals and write them down. They say goals MUST be written down. One study showed a key difference between millionaires and billionaires – the latter read their goals several times a day, the former only once a day!!

A study asked graduates if they had written down their plans for the future. Only 3% had. A follow-up twenty years later showed the assets of those 3% exceeded the combined assets of the 97% who had not had a written plan.

We don’t plan to fail. We fail to plan.

By this stage of the book I am converted.

Short term, medium term and long term goals all need to be determined. I came up with a long list of each but then was asked to prioritise them, which put me on the spot. I would like to pay for my children’s university education and I would like to retire to the beach by the time I’m 65. If I have to choose one over the other then I need to be sure I have thought through and accepted the consequences.

Many people believe that being on a budget means not being able to have the things you want. In fact the opposite is true. A budget allows you to get what you want. It allows you to preserve your lifestyle while paying off debt or saving for the future.

A budget shows you how money flows in and out of your household. You identify fixed, variable and discretionary spending. You can then analyse and make decisions about how the money is being spent and make changes as necessary. A budget is a set of instructions to guide you to your goal.

Keeping track needn’t be hard either. These days anyone with a little spreadsheet knowledge can easily download their transactions from their bank account online; add a column to code the different income and expense types; sort and subtotal. If you don’t have the skills ask someone to teach you. And avoid too many cash transactions that won’t get itemised!

As well as the mechanics of budgeting there are chapters covering student loans, types of debt and how to manage them, insurance and estate and trust planning.

The list of money saving tips is practical and may be the catalyst for reviewing some of your spending and if you are getting the best value for your hard earned dollars.

The chapter on student loans will be helpful for those starting tertiary study to understand what they are getting themselves into if they take out a loan.

No budget book would be complete without flashing warning lights around credit card debt. Don’t go there, or if you have gone there plan to pay it off asap (possibly as your number one short term goal?).

Now I’ve read the book it’s time to take action. Chapter 18 entitled “Your Action Plan” guides you through the process. Pop the financial worksheets DVD into your computer and get started transforming your dreams for the future into reality.

About the authors: Anton Nadilo & Andrew Lendnal are both highly respected financial coaches.