Right now I’m reading, for the umpteenth time, Your Mo*ney or Your Life by Joe Dominguez and Vicki Robin, just for inspiration. This is about the best book anyone could ever read, and I’m a die-hard fiction fan who loathes books on finance and business.
Its title is based on the saying that, if someone pulls a gun on you and asks which you’ll give up, your money or your life, you’re going to hand over your wallet because your life is far more important. And yet, every day most of us are giving up our lives in the pursuit of money. As the book says, “We are sacrificing our lives for money - but it's happening so slowly that we barely notice.”
What separates this book from others is that is has a “whole life” approach to your relationship with money, rather than just the ho-hum practical steps to build wealth that are offered by gurus like Dave R*am/sey. (Which isn’t to knock DR—probably I would agree with 90% of what he says if I read his books in total.) Meaning, it offers hope and a different way of thinking for anyone who questions society’s obsession with the 8 to 5 till you’re 65. It’s called “FI thinking”; FI stands for Financial Integrity, Financial Intelligence, and Financial Independence. Most books just talk about achieving the last of these three.
When I was 25, I bought a house by myself with 20% down, so already I was in step with FI thinking, but in 2001 is when I actually started putting it into practice. Before that, I made some dumb purchases (a car with leather seats and a sunroof is one example) and realized that what is truly important is time, not material things. I always knew that, of course, but really putting it into practice in my life did not happen until then.
Fortunately I had this epiphany before the age of 30. The book put into words what I already believed, but it only convinced me further that I was on the right track and I was also inspired by the “whole life” approach to money, which is that the way we handle money should be in line with our values and life purpose.
If you’re read this far, you’ll definitely want to read this brief but poignant article. It’s piss-your-pants hilarious, I promise you!
Its title is based on the saying that, if someone pulls a gun on you and asks which you’ll give up, your money or your life, you’re going to hand over your wallet because your life is far more important. And yet, every day most of us are giving up our lives in the pursuit of money. As the book says, “We are sacrificing our lives for money - but it's happening so slowly that we barely notice.”
What separates this book from others is that is has a “whole life” approach to your relationship with money, rather than just the ho-hum practical steps to build wealth that are offered by gurus like Dave R*am/sey. (Which isn’t to knock DR—probably I would agree with 90% of what he says if I read his books in total.) Meaning, it offers hope and a different way of thinking for anyone who questions society’s obsession with the 8 to 5 till you’re 65. It’s called “FI thinking”; FI stands for Financial Integrity, Financial Intelligence, and Financial Independence. Most books just talk about achieving the last of these three.
When I was 25, I bought a house by myself with 20% down, so already I was in step with FI thinking, but in 2001 is when I actually started putting it into practice. Before that, I made some dumb purchases (a car with leather seats and a sunroof is one example) and realized that what is truly important is time, not material things. I always knew that, of course, but really putting it into practice in my life did not happen until then.
Fortunately I had this epiphany before the age of 30. The book put into words what I already believed, but it only convinced me further that I was on the right track and I was also inspired by the “whole life” approach to money, which is that the way we handle money should be in line with our values and life purpose.
If you’re read this far, you’ll definitely want to read this brief but poignant article. It’s piss-your-pants hilarious, I promise you!
5 comments:
Great write up. Yeah, it's a toss up between checking groceries at Food 4 Less, being a sandwich artist at Subway, and picking strawberries in the orchard. If I could find a way to make money on the blog it would be the best job for me right now. I am kind of addicted to the internet and writing down my thoughts.
There are several things I agree with in YMOYL, some I don't or am borderline on, like his thoughts on inflation. I think if one follows the book's guidelines too closely they could misjudge their money situation and run out of money later in life when they are too old or sickly to make money.
But, It's a crapshoot. You could run out of money later in life if you work your whole life too.
But consider the other side of the coin. My coworker's dad was retiring at age 63. He waited his whole life for it, she said. Counted down the days. He retired at last, and a month later, died unexpectedly. So he got ONE MONTH what he'd wanted his whole life. Fear is what keeps people working--however it does not keep them from spending! With YMOYL, you don't "run out of money" since you never touch the principle. If there is something "extra" that I want that does not fit into my income stream, then I would make up for it by doing a couple of contract business trips through one of the companies I've worked for, or I would temp somewhere part time for a bit to make up that difference if need be. And there's nothing saying you can't go back to work in 5 years if you want/need to.
Additionally, after hitting FI, it does not mean I will not continue to earn money, but it would be a choice, not an absolute necessity. I can still sell on ebay, work a couple of mornings at a bookstore, write, contract buy. In fact I plan not only not to touch the principle, but also to continue building on what I have.
I think it's a great goal and agree with you wholeheartedly on the concept of achieving FI and living life to its fullest. was just reading about that guy who recently died with pancreatic cancer - the last lecturer guy - and know life is too short not to live it to its fullest. My concern is that I haven't exactly found out yet what living my life to its fullest consists of.
Good for you! I agree and WISH that I could make that happen for me. My mom was dogged for retiring so young. Now, I am SO HAPPY that she did as she was only retired 5 years when she died. At least she had a few years work-free....
I will be working till 80 with 5 kids and having them 10 years apart...No matter. My kids are WORTH it, and my job is not TOO miserable as are some
!
Reet-Being a SAHM, you're right, is not necessarily living life to its fullest, however it could be. (wouldn't be for me but we all have different things that will help fulfill us). With being in a decent marriage and being FI already, you're on a good track.
The thing I try to remind myself is that being totally fulfilled is probably not possible, whether I reach FI or not. Who knows, I could be completely miserable after I become FI, for any number of reasons. However, I KNOW I am miserable working in cubeville, and escaping it, regardless of what lies around the corner, is a good thing.
Jenn-I would be MUCH closer to FI if I did not have my kids, but I agree, they are worth it, and I would be miserable without them, regardless of how much moula I had.
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