One of my blog goals for 2017 was to write 12 book reviews. So, with a delayed start, here’s my first completed book review of 2017. I’m excited to be sharing some of the key takeaways I had from Your Money or Your Life by Joe Dominguez.
Before I dive in, I want to emphasize this won’t be a recap of the book itself.
The point of these book reviews is to share with you the lessons I learned and show how I’ve applied these lessons in my life.
The emphasis is on the application of the material rather than the material itself.
I wouldn’t want to bore you with a recap of a book you could pick up and read yourself.
So, let’s get right to it:
Your Money or Your Life Book Review
This book opened up my eyes beyond the simple phrase of, “Time is money.”
My first big takeaway was understanding we exchange time (not money) for goods and services. But, how much of our time depends on how much is left AFTER our expenses.
Depending on how much of our income goes to rent, transportation, insurance or taxes, our real per hour wage turns out to be much less than we first expected.
Personally, I reviewed what my actual $ per hour calculation was. This understanding led us to curb more of our useless spending. We have a clear view on just how much we’re giving up in exchange and so our purchases are now only for items that we truly want and need.
Which brings me to my 2nd big takeaway: We don’t need to work our entire lives.
Instead of consuming excess goods and services, we can instead focus on investing the surplus earlier. The benefit here is we let compound interest do the heavy lifting as we set ourselves to reap the benefits of financial security.
My previous view was that of a 40-year-career as a prerequisite. We needed that much time to accumulate the resources necessary to live out another 20-30 years in retirement.
Compare this with our current lifestyle: We enjoy investing a large portion of our income towards our goal of reaching financial independence at an early age.
Another great point I took away was understanding how much time we devote to work.
Technically, I work about 8-6 each day. If I factor in the time it takes me to get ready for work and the time it takes me to decompress, then my work day might look closer to 7-7. Those ten extra hours a week also see a little more activity when I tackle in work-related tasks at home. (e.g. ironing my shirts, networking events, industry related reading, and etc.)
We spend much more time “working” than the standard “9-5,” so the need to be efficient with our resources should be an even higher priority.
The same principles apply to our income as we spend more money AT our jobs than we might realize. For me, that means a nice pair of leather shoes and a wardrobe of corporate dress shirts.
Luckily, I don’t need to wear a tie! 🙂
Many of the personal finance books I’ve read over the years dive into many aspects of frugality and investing. The often overlooked piece relates to maximizing value and our income.
Needless to say, the book made me much more efficient in how I spend my time and money. The newfound surplus means we live happier, richer lifestyles.
I definitely recommend the book, especially for someone who isn’t particularly passionate about “retirement,” in the traditional sense.
What were the big takeaways you had from this book and what did you do differently with that information? Any other personal finance books you want highlighted in the next book reviews?