Easy Money is Liz Pulliam Weston's new book, and I recommend it to people who need checklists or informed guidance on getting their financial ducks in a row.

Readers of this blog know I tend to obsess, and reallocate, and oscillate between panic and relief. They know that my most pressing schizoid problem is attempting to save for "the basics" and saving for "hard times."

The "hard times" crowd I run around with are big believers in gold, commodities, foreign currency, and selling the house.
That's fine when one's house is in tip-top condition. My house needs some love, and yet, threatened with an uncertain economy, I do not have the cojones to face down the stigma of borrowing against my house to improve it.

Anyhow, on page 126, Chapter 7: Buying Homes and Cars, Ms. Weston outlines her idea of how people should prioritize their financial goals:

1. Retirement needs to be a top priority.
That means contributing as much as possible to a Roth IRA and contributing 10 to 15 percent of the gross income.

2. Sufficient insurance coverage: health, life, disability, home, and auto insurance.

3. University education for children.

4. Paying off the mortgage.

Before reading that, my goals look more like this:
1. Home Improvement.
2. Sustainability. (Who's gonna buy my house when utilities are freaking high? How'm I gonna afford my other goals when my energy costs spiral upwards?)
3. Emergency fund.
4. Retirement.
5. Osaka.
6. Paying down the mortgage.
7. Replacement car.
8. University education.
9. Insurance (outside of what work covers).

Aside from Osaka and sustainability, I believe most items on that list are what ordinary (the bottom 80% of income earners) Americans have on their financial wish lists. I'm supposed to be saving 45% of our gross income meeting these goals -- eep! Time for me to learn to love the humble bean and shivering at night.

I looked at the Consumer Expenditure Survey for 2005-2006 and was surprised to see that every region suffered an increase of liabilities to assets in 2005-2006. Not so surprised to see the West's liabilities jumping up by $36K (quick! in what region can you find Stockton, Riverside, Henderson, Las Vegas, and Phoenix?)

I also saw some sort of map (believe me, I'm trying to look for the URL) today and noted that most northern counties in my fair state, plus Detroit's county, plus the northern tip of New Hampshire are the only border areas that have suffered moderately heavy foreclosures. Now, if you look at counties close to the other border, you see something akin to a crisis. Nobody wants to be near Canadians in their senior years, unless you count the snowbirds in Florida. I smell retirement home investment opportunity as climate change accelerates.