I can’t really address your larger question about “what happened?”—but one thing I’ve understood the last few years is that getting rid of a car can save you a lot of money. I was recently calculating how much it would cost for me to buy a $700 car, maintain it, gas it, pay for tabs and insure it for one year. I came up with somewhere between $2,500 – $3,000 depending on maintenance. And that’s a cheap car.

So, if you’ve got a car … get rid of it for a year and budget $80/mo for cab fare.

It’s called “Your Money or Your Life”. I recommended it to Erik and he made fun of it. I actually think it is really good. The other thing I do when I feel money vertigo is write down everything that I buy for a week or two. Nothing stops your spending like writing it down – I think because you don’t want to have to write it down, but maybe because you don’t want to be reminded of it. I carry a little notecard and a little pen and keep notes. Takes my coffee consumption way down too.

I second Josh’s recommendation. I’ve read it a few times, and each time I make important changes that take me closer to my goals. It’s got some touchy-feely spiritual type stuff in it, so if that isn’t your thing, you are forewarned. But the steps are rock solid.