UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                             ----------------------

                                    FORM 10-Q

(Mark One)

[X]    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
       EXCHANGE ACT OF 1934

                For the Quarterly Period Ended September 28, 1996

                                       OR

[ ]    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES 
       EXCHANGE ACT OF 1934


                          Commission file number 0-6633

                             FOR BETTER LIVING, INC.
             (Exact name of Registrant as specified in its charter)

           Delaware                                        95-2598411
(State or other jurisdiction of                         (I.R.S. employer
  incorporation or organization)                        identification no.)

    13620 Lincoln Way, #380                                95603-3236
       Auburn, California                                  (Zip code)
(Address of principal executive offices)


                                 (916) 823-9600
              (Registrant's telephone number, including area code)


Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding  twelve months (or for such shorter period that the Registrant was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days. Yes  X  No
                                       ---    ---

Indicate the number of shares outstanding of each of the Registrant's classes of
common stock as of November 12, 1996:

                 Common Stock, $.05 par value - 877,816 shares.


                                     1 of 9
<PAGE>

                    FOR BETTER LIVING, INC. AND SUBSIDIARIES
                                      INDEX





Part I.  Financial Information                                          Page No.
                                                                        --------
  Item 1.  Financial Statements

              Condensed Consolidated Balance Sheets,                       3
              September 28, 1996, and  December 30, 1995                   

              Condensed Consolidated Statements of Income for              4
              the Three Months Ended September 28, 1996 and 
              September 30, 1995 and the Nine Months Ended
              September 28, 1996 and September 30, 1995                    

              Condensed Consolidated Statements of Cash Flows              5
              for the Nine Months Ended September 28, 1996 and
              September 30, 1995                                           

              Notes to Condensed Consolidated Financial Statements         6


  Item 2.  Management's Discussion and Analysis of Financial               7
           Condition and Results of Operations                             


Part II.  Other Information

  Item 6.  Exhibits and Reports on Form 8-K                                8



                                     2 of 9
<PAGE>
<TABLE>

                                            PART I. FINANCIAL INFORMATION
                                             Item 1. Financial Statements

                                       FOR BETTER LIVING, INC. AND SUBSIDIARIES
                                        CONDENSED CONSOLIDATED BALANCE SHEETS

<CAPTION>
                                                                                       September 28,    December 30,
                                                                                            1996           1995
                                                                                       ------------    ------------
<S>                                                                                    <C>             <C>
ASSETS
CURRENT ASSETS:
  Cash and cash equivalents                                                            $  1,302,000    $  1,528,000
  Accounts receivable - trade (less allowance for doubtful accounts of
    $870,000 and $747,000 at September 28, 1996 and December 30, 1995 , respectfully)    14,585,000      13,177,000
  Inventories                                                                            10,039,000       8,401,000
  Deferred income taxes                                                                   2,065,000       2,065,000
  Other                                                                                   5,052,000       3,881,000
                                                                                       ------------    ------------
    Total current assets                                                               $ 33,043,000    $ 29,052,000
                                                                                       ------------    ------------
PROPERTY:
 Property at cost                                                                        39,652,000      39,967,000
  Less accumulated depreciation and amortization                                        (29,277,000)    (28,614,000)
                                                                                       ------------    ------------
    Property - net                                                                       10,375,000      11,353,000
                                                                                       ------------    ------------
AVAILABLE-FOR-SALE SECURITIES                                                               144,000       1,700,000
                                                                                       ------------    ------------
OTHER ASSETS                                                                                541,000         477,000
                                                                                       ------------    ------------
    TOTAL                                                                              $ 44,103,000    $ 42,582,000
                                                                                       ============    ============

LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
  Current portion of long-term debt and capital lease obligations                      $  1,150,000    $  1,217,000
  Accounts payable - trade                                                                4,287,000       4,139,000
  Accrued salaries and wages                                                              2,248,000       1,941,000
  Deferred income                                                                         2,186,000       1,860,000
  Other                                                                                   2,710,000       4,025,000
                                                                                       ------------    ------------
    Total  current  liabilities                                                          12,581,000      13,182,000
                                                                                       ------------    ------------
 LONG-TERM  DEBT  AND  CAPITAL  LEASE  OBLIGATIONS                                       13,664,000      11,718,000
                                                                                       ------------    ------------
OTHER LIABILITIES (primarily deferred compensation)                                       1,024,000       1,039,000
                                                                                       ------------    ------------
STOCKHOLDERS' EQUITY:
  Preferred stock - par value $1.00 per share (authorized, 150,000 shares;
    outstanding, none)
  Common stock - par value $.05 per share (authorized, 2,500,000
    shares; outstanding, 877,816 shares)                                                     44,000          44,000
  Additional paid-in capital                                                              1,083,000       1,083,000
  Unrealized net gains and losses on available-for-sale securities                           20,000         214,000
  Retained earnings                                                                      15,687,000      15,302,000
                                                                                       ------------    ------------
    Total stockholders' equity                                                           16,834,000      16,643,000
                                                                                       ------------    ------------
    TOTAL                                                                              $ 44,103,000    $ 42,582,000
                                                                                       ============    ============
<FN>
                                                                          
                      See the accompanying notes to condensed consolidated financial statements.
</FN>
</TABLE>
                                                       3 of 9
<PAGE>
<TABLE>

                                   FOR BETTER LIVING, INC. AND SUBSIDIARIES

                                 CONDENSED CONSOLIDATED STATEMENTS OF INCOME

<CAPTION>
                                                        Three Months Ended             Nine Months Ended
                                                ------------------------------  -----------------------------
                                                September 28,    September 30,  September 28,   September 30,
                                                     1996            1995           1996            1995
                                                 -----------     -----------     -----------     -----------
<S>                                              <C>             <C>             <C>             <C>        
NET REVENUES                                     $24,126,000     $21,841,000     $71,437,000     $59,060,000
                                                 -----------     -----------     -----------     -----------
COST AND EXPENSES:                                                                              
  Cost of sales                                   15,646,000      13,849,000      46,627,000      36,821,000
  Selling, general and administrative expenses     7,927,000       7,545,000      22,859,000      20,624,000
  Interest expense                                   396,000         336,000       1,161,000         884,000
                                                 -----------     -----------     -----------     -----------
Total cost and expenses                           23,969,000      21,730,000      70,647,000      58,329,000
                                                                                                
INCOME BEFORE PROVISION FOR TAXES                    157,000         111,000         790,000         731,000
                                                                                                
PROVISION FOR TAXES                                   63,000          63,000         317,000         342,000
                                                 -----------     -----------     -----------     -----------
NET INCOME                                       $    94,000     $    48,000     $   473,000     $   389,000
                                                 ===========     ===========     ===========     ===========
                                                                                                
NET INCOME  PER COMMON SHARE:                    $      0.11     $      0.05     $      0.54     $      0.44
                                                 -----------     -----------     -----------     -----------
                                                                                                
WEIGHTED AVERAGE NUMBER OF                                                                      
 COMMON SHARES OUTSTANDING                           877,816         877,816         877,816         877,816
                                                 -----------     -----------     -----------     -----------
CASH DIVIDENDS PER COMMON SHARE                  $      0.00     $      0.00     $      0.10     $      0.10
                                                 ===========     ===========     ===========     ===========
                                                                                                
                                                                                              
<FN>

                  See the accompanying notes to condensed consolidated financial statements.
</FN>
</TABLE>

                                                    4 of 9

<PAGE>

<TABLE>
                          FOR BETTER LIVING, INC. AND SUBSIDIARIES

                      CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

<CAPTION>
                                                                   Nine Months Ended
                                                              ----------------------------
                                                              September 28,  September 30,
                                                                  1996           1995
                                                              -----------    -------------
<S>                                                           <C>            <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income                                                  $   473,000    $   389,000
  Depreciation, depletion and amortization                      1,223,000      1,499,000
  Other                                                        (5,110,000)    (5,595,000)
                                                              -----------    -----------

NET CASH USED IN OPERATING ACTIVITIES                         $(3,414,000)   $(3,707,000)
                                                              -----------    -----------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchases of property                                        (1,917,000)    (1,309,000)
  Purchases of available-for-sale securities                     (373,000)          --
  Proceeds from the sale of property and available-for-sale     3,714,000      1,884,000
                                                              -----------    -----------

NET CASH PROVIDED BY INVESTING ACTIVITIES                       1,424,000        575,000
                                                              -----------    -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Proceeds from long-term borrowings                            3,071,000      5,179,000
  Payment of short-term debt                                         --       (1,225,000)
  Payment of long-term debt and capital lease obligations      (1,219,000)    (1,258,000)
  Dividends Paid                                                  (88,000)       (88,000)
                                                              -----------    -----------

NET CASH PROVIDED BY FINANCING ACTIVITIES                       1,764,000      2,608,000
                                                              -----------    -----------

NET DECREASE IN CASH AND CASH EQUIVALENTS                        (226,000)      (524,000)
                                                              -----------    -----------

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                1,528,000      1,828,000
                                                              -----------    -----------

CASH AND CASH EQUIVALENTS AT END OF PERIOD                    $ 1,302,000    $ 1,304,000
                                                              ===========    ===========

CASH PAID DURING THE PERIOD FOR THE FOLLOWING:
  Interest                                                    $ 1,028,000    $   615,000
                                                              ===========    ===========

  Income taxes paid (refunded)                                $    46,000    ($  568,000)
                                                              ===========    =========== 
<FN>

         See the accompanying notes to condensed consolidated financial statements.
</FN>
</TABLE>

                                          5 of 9
<PAGE>
                    FOR BETTER LIVING, INC. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


1.       The accompanying  unaudited condensed consolidated financial statements
     have been prepared in accordance with the instructions to Form 10-Q and, in
     the opinion of the Company,  include all  adjustments  (consisting  only of
     normal  recurring  accruals)  necessary  to present  fairly  the  financial
     position, results of operations and changes in cash flows of the Company as
     of the dates and for the periods  indicated.  All significant  intercompany
     transactions have been eliminated.  Certain amounts as previously  reported
     have been reclassified to conform to the current period presentation.


2.       The  results of  operations  for interim  periods  are not  necessarily
     indicative of the results to be expected for the full fiscal year.


3.       Inventories consist of the following:

                                           September 28,         December 30,
                                                1996                 1995

         Finished products                   $7,170,000           $5,455,000
         Work-in-process                        449,000              337,000
         Raw materials and supplies           2,420,000            2,609,000
                                              ---------            ---------
             
         Total inventories                  $10,039,000           $8,401,000
                                            ===========           ==========
         
4.       The Company received, in prior periods, notices of proposed assessments
     from the California  Franchise Tax Board ("CFTB") relating to its 1978-1981
     tax years.  The  principal  issue  raised in these  notices was whether the
     Company's oil and gas operations  were part of a unitary  business with the
     other  operations of the Company.  The CFTB has taken the position that the
     oil and gas operations  were not unitary with these other  operations  and,
     therefore, has disallowed for California income tax purposes losses arising
     from  oil and gas  operations.  The  Company  paid  the  assessed  taxes of
     $379,000 and associated interest of $946,000 in 1992. It filed suit in 1994
     and  received a  favorable  decision  and  judgment  in  February  1995 for
     recovery  of these  amounts,  plus  interest.  The CFTB has  appealed  that
     decision however, and the matter is now pending before the California Court
     of Appeal. The Company expects a decision before the end of 1996.

         Deductions  similar to those  disallowed  by the CFTB for the 1978-1981
     tax years were also taken by the Company in its subsequent  tax years.  The
     CFTB has recently examined those subsequent periods and, as a result of its
     examination, has issued a notice of proposed assessment of additional taxes
     for tax  years  1982-1987.  The  proposed  assessment  is for  $272,000  in
     additional  taxes  which would  result in  associated  interest  expense of
     approximately  $514,000  through the third  quarter of 1996.  The Company's
     management  believes that the ultimate outcome of this matter will not have
     a  material  adverse  effect  on  the  Company's   consolidated   financial
     statements.


                                     6 of 9
<PAGE>

                    FOR BETTER LIVING, INC. AND SUBSIDIARIES
        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)


5.       During  the  second  quarter  of  1996  the  Company  renegotiated  its
     revolving  line of credit with its lender to provide  for:  and increase in
     the credit  availability  from $10 million to $20 million,  a reduction the
     the  interest  rate from prime plus 1.25% to prime plus  1.00%,  a two year
     extension  of the  agreement  from  June 27,  1997 to June  27,  1999 and a
     reduction  in early  termination  fees in the event the Company  chooses to
     terminate the  relationship  before the end of the term. All other terms of
     the credit agreement remain the same.


ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
         RESULTS OF OPERATIONS



Liquidity and Capital Requirements

         Over the  first  nine  months  of 1996  $3,414,000  of cash was used by
operations,  primarily due to a $1,744,000 increase in Accounts Receivable and a
$1,638,000  increase in Inventory.  Cash  generated from investing and financing
activities included $3,714,000 from the sale of property and  available-for-sale
securities and $3,071,000 borrowed on the Company's line of credit.  These funds
were  used  to  support  cash  used  by   operations,   $1,917,000   of  capital
expenditures,  $1,219,000  of  debt  payments,  $373,000  for  the  purchase  of
available-for-sale securities and $88,000 of dividend payments.

         The  Company's  management  believes  that its  liquidity  position  at
September 28, 1996,  together with funds  anticipated  to be generated  from its
operations  and  available  under its  Revolver  will  provide  sufficient  cash
resources to finance its operating activities.


Results of Operations

         For Better  Living's third quarter  earnings  before taxes increased by
$46,000,  or 41 percent,  compared to the same period last year.  This  resulted
primarily  from an increase in other  operating  profit of  $301,000,  partially
offset by decreases in operating profit of $103,000 at the Communications  Group
and $116,000 at The Quikset Organization. The increase in other operating profit
was  primarily  due to an  increase  in gains on the sale of  available-for-sale
securities.  The decrease in operating  profit at the  Communications  Group was
primarily  due to the launch of its new magazine,  Inside Golf.  The decrease in
operating profit at the Quikset Organization was primarily due to a write-off of
inventory.

         During  the  three  months  ended  September  28,  1996,  net  revenues
increased  $2,285,000,  or 10 percent,  from the comparable  period of the prior
year.  This  primarily  resulted from increases in revenues of $1,916,000 at The
Quikset   Organization,   $329,000  in  other   revenues   and  $41,000  at  the
Communications Group. The increase at The Quikset Organization was primarily due
to  increases  in sales at its Texas  concrete  operations.  The increase at the
Communications  Group resulted primarily from increases in advertising  revenues
at the majority of its  magazines.  The increase in other revenues was primarily
due to an increase in sales of available-for-sale securities.

         Net  gains   recognized  on  the   disposition  of   available-for-sale
investments for the three months ended September 28, 1996 and September 30, 1995
were $318,000 and $0, respectively.

         For the nine months  ended  September  28,  1996,  income  before taxes
increased  $59,000 or 8 percent,  compared to the same  period  last year.  This
increase in pre-tax  income was primarily the result of an increase in operating
profit of $1,710,000 at the Quikset Organization, partially offset by a $397,000
decrease in operating profit at the Communications Group and a decrease in other
operating  profit of $876,000.  The increase in operating  profit at The Quikset
Organization  was primarily a result of the increased in revenues from its Texas
concrete  operations.  The  decrease in operating  profit at the  Communications
Group was primarily due to increased  production  and paper costs and the launch
of its new magazine,  Inside Golf.  The decrease in other  operating  profit was
primarily due to a decrease in gains from dispositions of securities.

         During the nine months ended September 28, 1996, net revenues increased
$12,377,000  from the  comparable  period  of the  prior  year.  This  primarily
resulted from increases in revenues of  $12,354,000 at The Quikset  Organization
and  $836,000 at the  Communications  Group,  partially  offset by a decrease in
other  revenues  of  $813,000.  The  increase at The  Quikset  Organization  was
primarily  due to an  increase  in sales at its Texas  concrete  operation.  The
increase at the  Communications  Group  resulted  primarily  from  increases  in
advertising  revenues at the  majority of its  magazines.  The decrease in other
revenues  was  primarily  due  to a  decrease  in  sales  of  available-for-sale
securities.
 
         Net  gains   recognized  on  the   disposition  of   available-for-sale
investments  for the six months ended  September 28, 1996 and September 30, 1995
were $330,000 and $1,255,000, respectively.

         The  increase  in  interest  expense  in 1996 was  primarily  due to an
increase in borrowings  under the Company's line of credit  arrangement from the
comparable periods of the prior year.



                                     7 of 9
<PAGE>

                           PART II. OTHER INFORMATION



Item 6.  Exhibits and Reports on Form 8-K

  (a)  Exhibits

         27 - Financial Data Schedule

  (b)  There  were no  reports  on Form 8-K filed  for the  three  months  ended
September 28, 1996.





                                     8 of 9
<PAGE>

                                   SIGNATURES


Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.



                                                 FOR BETTER LIVING, INC.



DATE:      November 12, 1996                     BY: Karl M.Stockbridge
      ---------------------------                    -------------------------
                                                     Karl M. Stockbridge
                                                     Executive Vice President



                                     9 of 9