Which is More Important – Your Money or Your Life ?

Written by Avid Traveller

Topics: Finance

Your Money or Your Life: 9 Steps to Transforming Your Relationship with Money and Achieving Financial Independence
by Vicki Robin and Joe Dominguez

This is the book that changed everything for me. It changed the way I see my finances, how I spend my time, and how they relate to each other. Life Energy is priceless, so if you are going to exchange it for something else (i.e. it’s value in money) then you better make sure it is worth it to you.

Here is an example:

If you add up all of the time you spend on working at a job or career — this includes getting ready for work, commuting, going to dry cleaners for your suits, preparing lunch for the next day, etc. you will have a certain number of hours per month.

Also, consider all the expenses you have going to and from work: gas, car maintenance/repairs, clothing, lunches, coffee, supplies, tolls, parking, etc.

You know your net monthly take-home pay, right? If you divide that by the number of hours you spend working, that is how much money you receive for each hour of life. So if you spend 10 hours a day (1 getting ready for work, 1 commuting, 8 working) on work, then that is 200 hours a month. If you take home $4000 a month then you are getting $20 for every hour you spend doing something related to work.

So next time before you go out to a fancy dinner and drop $100 you need to ask yourself, ‘Am I willing to work 5 hours tomorrow for this meal today?‘ Sometimes the answer will be ‘Yes’. But, many times you may opt to eat at home or find a more reasonably priced establishment.

If you read only one finance book, then make it this one.

I am giving my copy to my teenage son and hope he learns the lesson a lot sooner than I did.

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