This book takes you on an introspective journey with your finances and your values. The authors, Joe Dominquez and Vicki Robin, made the decision years ago to step back and to become financially independent so that they could do the things that they felt were the most important. This book leads you on your own journey. It challenges the way you think about money and things, and the way that you choose to handle your money.
- Changes the way you think about money
- Step by step guide to follow the program
- Real life experiences and examples throughout the book
- Not for the faint of heart
- Money amounts (sample budgets) are dated and do not reflect current costs
This book begins by challenging you to look at money differently. The authors introduce three concepts: financial independence, financial integrity and financial intelligence. Financial intelligence means being aware of your money choices and understanding what is happening with your money. You need to make choices that reflect your values, which will lead to financial integrity. Financial independence means that you will no longer need to work to support yourself. It talks about how much time you spend working for the money, and then it talks about how much you spend to get the things that you want. The authors introduce a figure called life energy, which is the amount of time you spend working in order to pay for your expenses. This really puts into perspective how much you value things or time.
The next section of the book takes you through the system of tracking your expenses. The authors do not advocate a budgeting system, but rather a value system. Each month you track what you spent and determine if the life energy was worth the expenses. The tracking can also help you to find areas where you consistently overspend, and make the changes that you need to in order to succeed financially.
The book then takes you through a section that gives tips on how to save money. Additionally the authors point out that saving money also helps to save the environment, since you are using less of the earth’s resources. It then takes you through a brief guide on how to invest your surplus income so you can build enough wealth to quit your job and become financially independent.This section can help you embrace a frugal lifestyle.
The final section of the book talks about what you should do when you have reached financial independence. The authors speak about the importance of helping others and doing the things that you love the most with your independence. They encourage you to pursue the things that are the most important to you.
This book is worth your time. It will help you to look at the things that are the most important to you, and to help you bring your life into order. Even if you do not adopt all of the practices that the authors suggest you can benefit from taking the time to evaluate how your spending falls in line with your values.
Here are some other books you may want to read:
- A Total Money Makeover by Dave Ramsey
- The Millionaire Next Door
- Rich on Any Income
- Get a Financial Life: Personal Finance in Your Twenties and Thirties
- The Everything Personal Finance in your 20s& 30s Book
- The Complete Idiot's Guide to Personal Finance in Your 20s & 30s