The Plan for Financial Peace: A Synopsis of "Your Money or Your Life"

Updated on February 6, 2018
patchofearth profile image

The author is in the process of building a tiny house and looking for a sustainable way to live.

Source

One of the definitive books to hit the simplicity and self-sufficiency movements is Your Money or Your Life. In it Joe Dominguez, a retired Wall Street broker, along with his partner Vicki Robin, attempt to help readers redefine their relationship with money by taking an intense look at their current relationship to money. It is an in-depth process, but one that ensures that the reader comes out better for for the time they've taken. Thanks to taking a hard look at his own relationship to money, Joe was able to make a few strategic investments-- which did not make him a millionaire-- simplify his lifestyle, and he never worked for money again. He was able to live on about $5000 - $6000 a year. In this book, he shows you how you can, too.

How Much Money Have You Made? Making Peace with the Past

One of the first steps readers are invited to take is to calculate just how much money they have made in their lives. While you could estimate, you are strongly encouraged to dig out old pay stubs and tax records. The it is important during the whole process to be as honest with yourself as possible.

The next step is to evaluate your assets and liabilities. This means counting everything that you own and all of your debt and subtract. This is your current net worth. After assessing just how much you have earned in your lifetime, you take stock of exactly what you have to show for it. Sounds painful, doesn't it?

Source

How Much of Your Life are You Surrendering to Your Job?

Each of us has only a finite amount of time on this planet. Dominguez and Robin ask, “What are you doing with yours?”

Take a close look at how much you are earning weekly. From that deduct all of the expenses that are related directly to having your job, such as business clothing, gasoline, lunches, supplies. Also consider the activities or items you use to wind down from your job. Work related illnesses also take away from your earnings.

After that, you are encouraged to calculate just how much time you are spending on your job. This doesn't just mean the hours you are scheduled to work. Consider, also, the time you spend preparing for work, any work you might bring home with you and travel to and from work everyday. Also count any time that you need to wind down from work or just relax. Add it all together.

Count up your income minus the money you spend on having your job, then divide that figure by the number of hours you spend on your job. This is how much you really earn for every hour of your life that you surrender to your job.

Where is it All Going?

Once you know just how much every hour of your time is actually worth, you are ready to track every cent that comes into or goes out of your life. In this step you keep track of every cent you spend. You are encouraged to carry around a small notebook with you so that you can mark down every transaction in real time. In this way, you are not able to fudge or give yourself any leeway. What you have is an honest and accurate account of every cent that leaves your life and exactly where it is going.

Changing Your Relationship With Money

Changing your relationship with money begins with a clear-eyed awareness of just what your life energy is worth and what you think is valuable enough to spend that life energy to obtain. Once you really know the value of each dollar you spend, you will be able to make more informed decisions about how you spend your time, your money and your life energy. The program that Dominguez and Robin have created to help you develop that awareness is painstaking and at times painful, but it will help you to really understand just where you are putting your energies.

Your Money or Your Life?

Where to Spend Your Life Energy

Too many people surrender dreams, do not spend the time they want with loved ones, fore go enjoyable activities in the name of earning a living. But many people, once they take a cold, hard look at what they are actually surrendering, reconsider. Most people, regardless of income, feel that they simply do not have enough. They believe that they must work harder in order to get more. But more is a destination that is rarely ever reached.

This is the point in the book when the authors encourage you to consider the following questions:

  • Did I receive value, fulfillment and satisfaction in proportion to life energy spent?

  • Is this expenditure of life energy in alignment with my values and life purpose?

  • How might this expenditure change if I didn't have to work for a living?

In this book you are asked to consider not “More” but “Enough.” People's lives have been transformed by following the program set forth by the authors. It is not easy to take such an appraisal of one's self or one's circumstances, but once you do, you run the risk of having peace.

Source

What is Success?

If Money Were No Object

If you no longer had to worry about money, what would you do with your time?

See results

Questions & Answers

    Comments

      0 of 8192 characters used
      Post Comment

      No comments yet.

      working

      This website uses cookies

      As a user in the EEA, your approval is needed on a few things. To provide a better website experience, toughnickel.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

      For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://toughnickel.com/privacy-policy#gdpr

      Show Details
      Necessary
      HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
      LoginThis is necessary to sign in to the HubPages Service.
      Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
      AkismetThis is used to detect comment spam. (Privacy Policy)
      HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
      HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
      Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
      CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
      Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
      Features
      Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
      Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
      Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
      Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
      Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
      VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
      PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
      Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
      MavenThis supports the Maven widget and search functionality. (Privacy Policy)
      Marketing
      Google AdSenseThis is an ad network. (Privacy Policy)
      Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
      Index ExchangeThis is an ad network. (Privacy Policy)
      SovrnThis is an ad network. (Privacy Policy)
      Facebook AdsThis is an ad network. (Privacy Policy)
      Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
      AppNexusThis is an ad network. (Privacy Policy)
      OpenxThis is an ad network. (Privacy Policy)
      Rubicon ProjectThis is an ad network. (Privacy Policy)
      TripleLiftThis is an ad network. (Privacy Policy)
      Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
      Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
      Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
      Statistics
      Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
      ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
      Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)