Your Money or Your Life

Your Money or Your Life

by Joe Dominguez, Vicki Robin

Your Money or Your Life takes you on a journey to financial independence. It will help you examine your financial situation, redefine your business and job, so they’re aligned with your values and purpose, and incorporate strategies to grow your money. By incorporating the principles in this book, you’ll no longer need to choose between sacrificing your life for money - you’ll be able to choose and balance both.

Summary Notes

The Money Trap: The Old Road Map for Money

“If you live for having it all, what you have is never enough,”

If asked to choose between your money and your life, you would choose life, right? Most people say they would. Yet, people hand their lives over to money every single day.

Our jobs and money can run our lives. For example, you need a job to make money so that you have a place to live, food to eat, and clothes to wear. You also need it to have a few luxury items.

Since we generate money through our job, it means we must work more to get more. Before we know it, we are working 70-hour work weeks, taking out loans to purchase more, and leaving little time to enjoy what we have. We are missing out on life as a result.

To avoid this, you need to redefine your relationship with money, discover your values, and find fulfillment in your life while still enjoying everyday comforts.

Actions to take

Money Ain’t What It Used To Be–And Never Was

“Financial Independence is an experience of freedom at a psychological level.”

You earn money by giving up your time and energy to your job. This time and energy are your life’s energy. In essence, we exchange our life energy for money.

Since life energy is finite, it’s our most valuable resource. How you use your life energy, whether on the job, at home, or on hobbies, defines your meaning and purpose. Fortunately, you can always hit the reset button and re-prioritize how you spend it.

Actions to take

Where Is it All Going?

“All you have to do is be conscious.”

If you have tried budgeting in the past but found it difficult to maintain after a month or two, it’s probably because your budget wasn’t tailored to your specific circumstances!

Perhaps you receive an irregular income, or your spending doesn’t conform to the standard categories on a typical budget sheet. Whatever the reason, you can create an income and spending recording strategy that suits your needs and helps you calculate how much life energy you are spending on any given expenditure.

Actions to take

How Much Is Enough? The Nature of Fulfillment

“To find fulfillment, though, you need to know what you are looking for.”

Finding fulfillment in our everyday life is important as our happiness counts on it. However, standard budgeting systems fail to take this area into account.

By designing your finances around everyday fulfillment, you take a deep dive into your priorities, values, and life purpose. In other words, re-balancing your account can help you re-insert your dreams back into your life!

Actions to take

Seeing Progress

“Insight can happen in a minute, but growth happens over time.”

To become financially independent, you need to create a clear picture of your current relationship with money. The best way to do this is by using a graph.

By graphing your finances, you will be able to bring your financial trends out of the dark and into a light of positive transformation.

Actions to take

The American Dream–On a Shoestring

“Frugality is being efficient in harvesting happiness from the world you live in.”

Contrary to popular belief, being frugal is not a bad thing, nor does it mean you’ll be giving up your daily comforts!

Minimizing your spending, or being frugal, can positively impact your wallet and your life. You’ll not only become more intelligent about how your manage your money but also about how you use your life energy.

Actions to take

For Love or Money: Valuing Your Life Energy–Work and Income

“Sometimes you have to question the obvious in order to get at the truth.”

It’s time to break free from believing that what we do defines who we are. After all, we are not our jobs! Instead, we must really take a good look at who we are, our values, and our life purpose.

Changing the way we think about who we are and the jobs we do to earn money allows us to step outside the box and begin enjoying life again. The good news is that this is easier than you might think!

Actions to take

The Crossover Point: The Pot of Gold at the End of the Wall Chart

“You are free to invent your life.”

Financial integrity is when all aspects of your finances align with your values. This will lead you closer to financial independence. You’ll notice your expenses going down and your income increasing!

To gain financial freedom, you need to pay attention to your capital. Capital will become your best friend as it is money that earns more money through the work of savings and investments. And eventually, you will arrive at a crossover point, which leads you down the road to financial independence.

Actions to take

Now That You’ve Got It, What Are You Going To Do With It?

“Watch out for those ‘Yes, but…’ conversations in your head. They are barriers to the consciousness that will let you achieve your dreams, whatever they are.”

Now that you have your finances managed in a way that aligns with your values, the next step is to grow it!

To do this, you need to position yourself, so your money will make more money over the long term through investing in treasury bonds, mutual funds, and index funds. There are more ways to invest, but these are some of the most common ways.

You’ll also want to create a cushion of money that will cover six months' worth of living expenses for the “what-if” times. This money will help ease your mind in times of inflation or job loss.

Finally, you’ll want to have a cache of money stored up. A cache is good to have on hand in case you need to replace worn-out items like cars, tools, or large appliances.

Actions to take

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