Becoming Financially Independent: A How To

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Yesterday I wrote My Life’s Purpose: A Revelation.

Part two of this is the how I am going to do it inspiration I received from “Your Money or Your Life” by Joe Dominguez and Vicki Robin.

Here is a summary of their steps that I am
following and am getting great benefit and goal-setting in place for my husband and I to acquire financial independence in the near future. You may want to check out the book (I got my copy from the local library) to get more details on the steps.

Step 1
Summary of lifetime earnings
Current list of assets, liabilities and net worth

Step 2
Calculate real hourly wage
Track the money coming in or going out of your life

Step 3
Monthly tabulation ~ convert money spent in each category to hours of life energy using real hourly wage (see Step 2)

Step 4
Three questions that will transform your life to evaluate where and how you spend your money

  • Did I receive fulfillment, satisfaction and value 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?

Step 5
Create Wall Chart plotting total monthly income and expenses where you can see it daily

Step 6
Minimize Spending

Step 7
Maximize Income

Step 8
Capital and the Crossover

Step 9
Manage Finances

Elizabeth Ruth

Elizabeth Ruth

Elizabeth is a children's book author and designer of knit and crochet character hats under the brand The Ruthless Crafter. In her spare time she loves to read, watch movies, spend time with her family, and swim. She lives a full, happy life in Kitchener, Ontario with her husband and their two children.

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About Elizabeth

Hi! I'm Elizabeth

Welcome to More Than A Mom, a space for daydreamers and creative thinkers who are obsessed with improving yourself, your home, and loving your family.

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