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    Your Money or Your Life

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    Jothi
    The document summarizes the key ideas from the book "Your Money or Your Life" by Vicki Robin. It outlines a 9-step process for achieving financial independence. The steps include calculating your net worth, determining the monetary value of your life energy or time, tracking spending, figuring out how much is "enough," creating a wall chart to track income vs. expenses, redefining work, and reaching the crossover point where investment returns equal expenses. The overall message is that financial independence allows one to focus on more fulfilling non-monetary aspects of life and work.

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    Your Money or Your Life

    Uploaded by

    Jothi
    6K views20 pages
    The document summarizes the key ideas from the book "Your Money or Your Life" by Vicki Robin. It outlines a 9-step process for achieving financial independence. The steps include calculating your net worth, determining the monetary value of your life energy or time, tracking spending, figuring out how much is "enough," creating a wall chart to track income vs. expenses, redefining work, and reaching the crossover point where investment returns equal expenses. The overall message is that financial independence allows one to focus on more fulfilling non-monetary aspects of life and work.

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    The document summarizes the key ideas from the book "Your Money or Your Life" by Vicki Robin. It outlines a 9-step process for achieving financial independence. The steps include calculating your net worth, determining the monetary value of your life energy or time, tracking spending, figuring out how much is "enough," creating a wall chart to track income vs. expenses, redefining work, and reaching the crossover point where investment returns equal expenses. The overall message is that financial independence allows one to focus on more fulfilling non-monetary aspects of life and work.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    6K views20 pages

    Your Money or Your Life

    Uploaded by

    Jothi
    The document summarizes the key ideas from the book "Your Money or Your Life" by Vicki Robin. It outlines a 9-step process for achieving financial independence. The steps include calculating your net worth, determining the monetary value of your life energy or time, tracking spending, figuring out how much is "enough," creating a wall chart to track income vs. expenses, redefining work, and reaching the crossover point where investment returns equal expenses. The overall message is that financial independence allows one to focus on more fulfilling non-monetary aspects of life and work.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 20

    Notesbook

    Your Money or Your Life


    by
    Vicki Robin

    My notes from the Book


    Compiled by Mukundhan C.S.
    Intro
    If you had to read one book on Money and only one ,”Your Money or
    Your Life” is THE book. It is not just another “become rich” book
    …that waxes eloquence about budgeting, earning more , or other
    hacks….but this book more importantly defines the ideal
    relationship that you can have with Money.
    YMYL defines the summit point - ENOUGH -numerically – according to
    your lifestyle…yes..and how that ENOUGH point can make you
    infinitely fulfilled as if you are on the Mount Everest!
    The single point of this no-nonsense book is : Any fool can be
    ambitious ,but it takes all the guts and skills and attitude to be
    content , behave grateful and possess gratitude.
    This book is as much practical as its philosophical. No assumptions. No
    luck needed. No Rich Dad required. Only routines – a 9-step
    process that will make you financially independent – a point where
    you are at liberty to pursue your purpose without downgrading
    your lifestyle!
    Contents
    Nine Steps towards Financial Independence
    • Step 1: What is your Net Worth
    • Step 2: Computing Life Energy
    • Step 3 : Keeping track of every cent
    • Step 4 : How much is Enough?
    • Step 5 : Wall chart
    • Step 6 : Less is More
    • Step 7 : Redefining Work
    • Step 8 : Cross-over Point
    • Step 9 : Manage your Finance
    Summit point : Enough
    Enough Point:
    Appreciating what Money
    brings into your life , yet
    never purchasing what is
    not needed/wanted.
    Enough is an honest and self-
    observant place

    I wish you enough:


    • Sun to keep your attitude bright
    • Rain to appreciate the sun
    • Happiness to keep your spirit alive
    • Pain so that smallest joys in life appear much bigger
    • Gain to satisfy your wanting
    • Loss to appreciate all that you possess
    I wish you Enough!
    4 – perspectives of Money
    Street view :
    Money is transactional
    Investments, Loans, Spending,
    Income, Taxes, Donations

    Skyscraper view :
    Money is Psychological
    What is your money personality ?
    Impulsive ? Cautious? Competitive?
    Generous? Miser?
    4 – perspectives of Money
    City view :
    Money is Growth
    Growth is good. If have one car , two
    is better. If you have two , three is
    better.
    This view ignores intellectual,
    emotional and spiritual growth.
    Growth is physical only

    Helicopter view :
    Money is something we trade our Life Energy
    for.
    What is Life Energy ? - Our allotment of time
    here on Earth!
    And what is unit measure of life energy?
    Hours of Life Energy to earn 1 Dollar or (Rupee)
    Step 1: Find your net worth
    Net Worth = Assets – Liabilities
    Assets: Liabilities:
    • Gold • House Loan
    • Mutual Funds • Car Loan
    • Shares • Borrowing from

    -
    • House

    =
    Relatives, Friends
    • Fixed Deposits Your
    • Credit card Debts
    • Savings Account
    • Payables Net Worth
    • Provident Fund
    • …
    • ….
    • …
    • ….

    Track Your Net Worth Month on Month


    Step 2 : Compute your Life Energy:
    An Illustration
    Earnings Hours/Week Dollars/Week Dollars/hour
    Salary 40 $680 $17
    Adjustments
    Commute 4 -$100
    Food 1 -$20
    Vacation 4 -$30
    Costumes 2 -$20

    Total 51 $510 $10


    Hours/Dollar =1/$10 = 0.1 Hr
    Time Spent to earn
    6
    Life Energy= Each Dollar = Minutes
    Cost of a Thing is the amount of what I call Life which is required to be exchanged for it
    …Henry David Thoreau

    Time is not Money! Time is Life Energy!


    Step 3: Keep track of every
    Cent/Rupee
    • Use an expense tracker spending tracker
    to keep track daily of
    income and expenses;
    I use spending tracker
    mobile app to track
    income and expenses!
    Fantastic and simple app!
    Step 4: How much is Enough?
    • Ask yourself the following 3 questions:
    Q1: Did I receive fulfillment, satisfaction and value in proportion
    to Life Energy spent?
    Q2: Is this expenditure of Life Energy in alignment with my
    purpose and values?
    Q3: How might this expenditure if I did not have to work for a
    living?
    Step 5: Wall Chart
    • At the end of each month
    , you will plot the income
    vs expenses on a wall
    chart

    • Now ask yourself the


    three questions in Step 4
    to see how to lower your
    expenses
    • Identify Expenses that
    were out of sync with you
    Step 6: Less is More
    Diets Don’t work!!! Budgets don’t work!
    (By Bob Schwartz) (Vicki Robin)
    Then ??? Then ???
    This works : This Works:
    1. Eat when Hungry 1. Spend on your needs
    2. Eat exactly what your 2. Spent not to impress
    body wants others
    3. Eat each bite consciously 3. Be Conscious
    4. Stop exactly when your 4. Be aware of Enough
    body has had enough! point!
    Step 7 : Redefine Work
    • What is Play ? • What is Work?
    – Competition – Competition
    – Cooperation – Cooperation
    – Concentration – Concentration
    – Skill – Skill
    – Contentment – Contentment
    – Feeling of Power – Feeling of Power
    – Ability to Travel – Ability to Travel
    – Recognition – Recognition
    – Self improvement – Self improvement
    – Getting Paid

    Work = Play + Getting Paid


    Step 7 : Redefine Work
    • Physical, Intellectual , Emotional, Attaining Financial independence, will allow
    Spiritual Model of Work (PIES) you to cut-off : Work & Getting paid
    • Physical Linkage – the physical dimensions of the
    – Getting Paid Work!
    – Ability to travel It will allow you to focus on Intellectual,
    • Intellectual Emotional and Spiritual aspects of the
    Work!
    – Skill
    – Concentration Then Work is no longer Work! Work is play!
    – Competition
    • Emotional
    – Self Expression
    – Feeling of Power
    • Spiritual
    – Contentment
    – Cooperation

    You’re not your Job!


    Step 8 : Cross-over point

    Compute your monthly investment income:


    = Capital * Current Long-term investment rate
    12 Months
    And then track it monthly:

    Cross-over Point : Interest from Capital is adequate to meet your monthly


    expenses : Point of Financial Independence!
    Step 8: Cross-over Point

    As you attain Financial Independence, your Fulfillment breaks through the roof!
    Step 9 : Manage your Finances
    Financial
    • Capital : investment that
    Independence produces returns as much
    as Monthly Expenses

    • Cushion : Savings that


    equal at least 6 months of
    Monthly Expenses
    Cushion

    • Cache : Incidental income


    to be used for expenses
    such as insurance,
    maintenance, emergency
    THANK YOU

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