(Lifehacker commenterAntifazoriginally brought this book to my attention, so thank you for that!)

Thats a little like planning a diet by saying cut out cookies and no sugar in your coffee.

We start by approaching money in a whole new way.

Instead, we will help you analyze your spending by dividing it into three simple categories.

You

get a car lease that chews up half your income.

You

wind up with a student loan bigger than some home mortgages.

But striking 50 percent for Must Haves is likely where most people roll their eyes and check out.

Only 50 percent of your paycheck on rent, transportation, food, insurance, etc.?

But as Warren and Tyagi write, it is possible to hit that number.

Must Haves are your hardcore commitments, things you have to pay no matter what.

Suppose you get laid off.

Thats no fun to think about, but we all know it could happen.

If your Must-Haves take only 50 percent of your income, then how would you fare?

A lot better than you might think.

With Must-Haves at 50 percent, your unemployment check could cover your needs for several months.

That includes things like cable, Netflix, haircuts, dinners out, concerts, birthday/Christmas presents, etc.

A spending cap can sound so dreary, full of denial and no-no-no, they write.

But this cap is all about liberation, not deprivation.

it’s possible for you to enjoy your money more when you know all of your bases are covered.

And, like getting your Must-Haves under control, it gives youmorefreedom and flexibility.

Thats whats really dreary.

One trap I wanted to highlight, which I see a lot in my own interviews/talks with friends/etc.

is the all-or-nothing approach to money and investing.

They write,

Ill never stick to a budget.

My credit is ruined, so why bother?

I always carry a balance on my credit card.

These are the hallmarks of all-or-nothing thinking.

One little mistake, one little stumble, and its all over but the weeping.

Quit at the first misstep.

Ill never cover my Must-Haves on half my income!

I cant save $2, let alone 20%!

Maybe you feel the same way.

…[But] think of it this way: If you might change even a .

60-40-0 budget to a 55-30-15 plan, you will be much better off.

Granted, you wont be perfect.

But you will start getting ahead, each and every month.

And that will be something to be proud of.

Thats why I emphasize the need tostart smallandbuild.

Yes, if youre not saving or investing already, youre not likely to hit your goal over night.

Cant wait to see what other nerdy financial proposals Warren brings to the table this election season.