Title Your Money or Your Life

Author Joe Dominguez & Vicki Robin

Year Published 1992

Kind of Book Finance/How-To

How strongly I recommend it 10/10 

My Impressions This book helped transform the way I think about money. It helped me think of every dollar I spend in terms of how much time on the job it will take me to earn that money back. It also helped me calculate my true hourly rate and see which sources of income were actually making me the most money. A great book to help align your spending with your values.

Date Read circa 2020

Practical Takeaways

  • Have at least 6 months of Emergency money in the bank at all times

  • Aim to have enough

  • Never purchase anything that isn't wanted or needed

  • Don't buy a hot tub. Take hot baths instead

Add up all the money you've made in your life

-Dig up old tax returns

-Gifts you've received

-Money you've received under the table

  • Don't equate net worth with self worth

  • Keep track of EVERY CENT that comes in or goes out of your life (don't round to the nearest dollar)

  • Keep a notepad on you at all times to track every cent you spend. Do it immediately after you spend the money

Add up your TRUE hourly wage after accounting for

-Commute time

-Job attire

-How much more you pay for meals

-Stress/time it takes to decompress from job

-Therapist you need because of job stress

-Entertainment and vacations you buy to escape the job

-Job-related illnesses and injuries

  • When considering whether or not to buy something, ask yourself how much it costs in terms of life energy (eg. This burrito costs 10$ and I make 10$ an hour after accounting for my true hourly rate. Is this burrito worth an hour of my life energy?)

  • Eat only when you're hungry

  • Eat each bite consciously

  • Stop eating when your body has had enough food

  • Recognize your impulsive shopping as an addiction or a way of escaping negative emotions

  • On your monthly budget: break sections down into categories (eg. Food category. Split into snacks, delivery, tea, eating out etc.)

  • (Marriage) have separate accounts from your partner

  • When you are doing your monthly budget ask yourself of each purchase

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

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

*If the answer was "yes" to both questions put a "+" next to the purchase. If the answer was "no" put a "-" next to the purchase

  • Instead of directly criticizing someone's purchase (like a spouse), ask them if they got fulfillment, satisfaction, and value in proportion to the amount of life energy spent.

  • Do work that helps people whose pain touches your heart

  • Every month ask yourself "is my expenditure of life energy in alignment with my values?"

  • When your actions are not in alignment with your values either a) change your values b) change your actions

  • Learn how to fix things around the house when they break (it will save money and make you feel more empowered since you will not be as dependent on others)

  • Buy one quality thing that will last for years vs. buying several cheap things that will need to be replaced often

  • Get a large piece of graph paper (large enough to accommodate 5 years of data) use the graph to show how you have spent your money aka. Life energy over the course of 5 years. Hang it where you will see it everyday

  • Think of ways to borrow things rather than buy and own them

  • Don't buy things to impress people

  • Take care of the possessions you have

  • Clean the tools/tech you own to extend their lives

  • Wait until you have the money before you buy something ie. Don't buy things on credit

  • Decide to use things 20% longer before buying a new one

  • Before you buy something ask yourself "Do I already have one of these that is in perfectly usable condition?"

  • Do your own taxes

  • Make your own gifts

  • Before hiring someone, ask yourself "Can I do this myself?" "How long would it take to learn?" "Would it be a useful skill to learn?"

  • Be on the lookout for things you might need to buy in the future (eg. Car, laptop etc.)

  • Use consumer reports to research items you're thinking of buying

  • Ask for a discount before you buy something (even if it is at a large chain store)

  • Buy things used

  • Pay cash for all purchases, even large ones (like a car)

  • Pay off your mortgage as quickly as possible

  • Don't draw your checking account below the minimum

  • Stick with a push-mower instead of riding mower for exercise

  • Stick with a rake instead of a leaf-blower for exercise

  • Do the math to figure out how much money you will save in the long run by quitting your bad habit (eg. Quitting cigarettes $1,851,313 over 45 years time)

  • Rent out unused space in your home

  • Move to a less expensive area

  • Do your own home repairs

  • Buy a piece of land and put a mobile home on it

  • Share big tools with your neighbors rather than each person buying their own

  • Swap services with people (eg. Haircuts for drum lessons)

  • Borrow books from the library instead of buying them

  • When you go grocery shopping, make a list and stick to it

  • Clip coupons

  • Do one big shopping trip once a week instead of going to the store every day

  • Educate yourself on what foods are in season

  • Cut out one (or more) meat meals per week

  • Buy from farmer's markets

  • Avoid convenience foods

  • Buy your plane ticket at least one month before the date

  • Fly mid-week (not weekends)

  • Invite a couple over for dessert, watch a documentary, and then have a discussion about it afterwards

  • Write letters instead of making long-distance phone calls

  • When starting a new hobby, only buy what you need for the level you're at. When you improve, but new equipment (eg. Don't buy the best drum set as a beginner. Buy a beginner set and once you're an expert THEN upgrade)

  • Don't spend money on a high cost college education

  • When your child asks for you to buy them something, tell them to ask you again in a few days or weeks (chances are they will not want it anymore or forget about it)

  • Get your kids 3 toys maximum for Christmas (after 3 toys kids appreciation goes down for each gift)

  • Make agreements with friends and family not to exchange gifts at Christmas or Birthdays

  • Don't think that what you do is who you are

  • Manage your own money. Trust no one to manage your money for you -Andrew Tobias

Big Ideas

  • In today's society we are working more than past generations

  • In today's society we are enjoying life less than past generations

  • The government encourages people to spend money

Because

  • Spending money boosts the economy

Therefore

  • Some people believe that spending money is patriotic (ie. Their duty to their country)

  • Unfinished and unused things sap us of our vitality

  • Unfinished projects sap us of our vitality

  • Material possessions barely used and discarded leaves us feeling dissatisfied

  • Most people underestimate how much money they've earned in their live time

  • Money is something we choose to trade our life energy for

  • Men do not desire to be rich, only to be richer than other men-John Stuart Mill

 

Buying things can drain your energy in three ways

1)the energy spent busting your butt working to pay for it

2)the energy spent using it

3)the energy spent feeling guilty and unfulfilled for not using it

 

  • When our actions are out of alignment with our values we experience fear, guilt, frustration, and emotional imbalance.

  • If you only care about yourself, you will never feel that you have "enough"

  • Waste has to do with having something and not using it, not in having a lot of something

  • We now try to make our jobs fill a religious hole

  • Religion was once were we looked to for meaning and identity

  • Our jobs are now where we look for meaning and identity

  • Most people believe there is a perfect job out there for us (a soul-job like a soul mate)

  • The idea that there is a perfect job out there for you (ie. A soul-job) and that if we could only find it everything would be perfect, is a myth

  • No one can serve two masters

  • No one can serve God and Money

  • We can only have one God ie. One thing at the top of our hierarchy of values

 

Work has two functions

  1. the material function (getting paid)

  2. The personal function (emotional, intellectual, psychological, and spiritual.

 

Surprising Facts

  • When surveying people about how much money it would take to make them happy, people of all different income levels said about 50-100% more than what they make now

  • The work week feel from 60hrs at the turn of the century to 35 during the depression, then became locked in at 40 and has slowly crept back to 50 or 60 in the last 2 decades

  • For the Greeks leisure was the highest good, the essence of freedom

  • 1 in every 10 houses in the US is vacant (as of 1992)

  • The very notion that everyone should have a job only began with the Industrial Revolution."-Dr. Frithjof Bergmann pg.22

 

Unknown Terms

Jobism: a term joined by Joe Dominguez & Vicki Robin. This is a term for the discrimination people face based on their job title (or lack of job title) eg. Housewife or McDonalds worker

Clutter: anything that is excess for you. Whatever you have that doesn't serve you, yet takes up space in your world.

Retail Therapy: Using shopping as a way to feel better or escape negative emotions instead of addressing your pain.

Life energy: The amount of time and energy it takes you to earn $1 (eg. If you make $60 an hour then $1 is worth 1 minute of ____ for you.)