Today, I spent a quite a bit of time reevaluating my relationship with money. I’ve been reading “Your Money or Your Life” by Joe Dominguez and Vicki Robin, that was featured on The Simple Dollar blog. Up until I picked up this book I thought I had a pretty firm grasp on money, money management and making it work for me. As it turns out, I had only begun to understand it and my ego was prematurely inflated. The key is to understanding yourself and determining when you have reached a comfortable point. It is much more than boosting the savings account, investing and putting it to work for you. The relationship is more about understanding yourself and reaching a point where you are comfortable without frivolous spending. It supports something a friend of mine who is quite frugal but wealthy, told me. When you decide to buy something, give yourself five reasons why you need it, practical reasons. If you can’t come up with anything beyond “I want it” or “it’ll make me cooler”, you DON’T NEED IT. I am thinking about making “buying” a hobby. After all, tons of research can save you a lot of money in the long-term. I want to get the best value for my hard earned dollar.
Today, I calculated my life earnings: ~ $217,000.00. It is not much, but at least I know how much money has passed through my hands in the hundreds of years I have been alive. 😉 Too bad there is nothing in the bank! This is the first milestone in my new, healthy relationship with money.