How Are You Trading Your Time and Energy? – A look at The Book, Your money or your life.
I read an article this weekend about Millennial millionaires and noticed that several of them mentioned a book that changed their views on money. I had to find out more about this book, “Your Money or Your Life,” by Vicki Robin and Joe Dominguez.
The premise of the book is that you exchange your time for money. Your most precious resource is your time and your life energy, and when you start thinking about how many hours of your life it took to save up the money to buy something, your decisions will change in a new direction.
The book has you figure out the bottom line of what you are making per hour and will have you really thinking about your future purchase decisions. Once people have “enough”, happiness actually comes from giving, not getting. The book helps you discover your purpose and teaches to serve in love and realizing the power of community. I would like to share this interview with Vicki, hosted by Choose Financial Independence. Please listen with an open mind.
The book and interview mentioned 9 steps
Step 1. How much money has come into your life and what do you have to show for it?
This step is about taking a clear, honest look at your current financial situation and how you got there. This is important in orienting yourself toward positive change.
Step 2. Being in the present: Tracking your life energy
With Step 2 you’ll start to take a closer look at the way money moves in and out of your life, day in and day out.
Step 3. Where is it all going: Monthly tabulation
With Step 3 you use the information gathered in tracking to see what patterns are emerging. You establish your own spending categories and create a monthly summary or “tabulation” of your expenses and income, including how these activities affect your bottom line at the end of each month
Step 4. Three questions that will transform your life
In Step 4 you’ll evaluate how you earn and spend money and if it aligns with what you want to do and be in your life. You’ll achieve this by reviewing each category of your monthly tabulation in the context of three life-changing questions:
- Did I receive fulfillment in proportion to life energy spent?
- Was this in alignment with my values, goals and purpose?
- How would this change if I didn’t have to work for a living?
These questions will help you adjust your current behavior to achieve maximum fulfillment in relation to money.
Step 5. Making life energy visible: Your wall chart
Step 5 is to create a visual tool to show how money flows in and out of your life over time – a wall chart of your monthly financial progress. By plotting your monthly income and expenses in a graph you can see a visual picture of your life energy in action, over time.
Step 6. Respecting your life energy: Minimizing spending
With Step 6 you look at ways to lower those expenses – because you respect your life energy and want to conserve it.
Stop spending life energy on stuff that is not bringing you maximum fulfillment in proportion to the life energy you spent on it. Think about how much space and time that might give you to focus on living your life in alignment with your goals and values!
Step 7. Respecting your life energy: Maximizing income
Step 7 is increasing your earnings, exchanging the life energy you put into your job for the highest possible income, without compromising your values or your health, for a self-defined period of time.
Step 8. Capital and the crossover point
With Step 8 you look at how your savings — your conserved life energy — can be used as capital to earn investment income.
Step 9. Securing your financial independence
In this step, you will establish your own long-term investment program to guarantee sufficient income from a source other than paid employment for the foreseeable future. The purpose of this step is to enable you to live freely, without worrying about your finances — neither your employment nor your portfolio. If only I had discovered and read this book when I was younger. I have a gift of knowing how to earn money but have not made wise decisions on how I have spent money that I have earned. It is never too late to make changes! I think that this book should be required reading by all students. Any thoughts?
Here is a link to the book found on Amazon.