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Today I’m sharing The 9 Step Program to Financial Independence from Your Money or Your Life by Joe Dominguez and Vicki Robin.
Want to reach financial independence and no longer work for money, but instead work for love (that’s right, you get to choose exactly what you dedicate your life to)?
Well then let’s dive into The 9 Step Program to Financial Independence from Your Money or Your Life by Joe Dominguez and Vicki Robin.
I’m going to actually do the 9 steps with new 2021 Finance Freedom Mastermind clients – Find out how you can do the 9 steps with us by clicking here
Step #1 Making Peace With the Past
There are 2 parts to this step:
A) Calculate all the money you’ve every earned in your entire life to this point – I actually calculated over $1.1 Million dollars so far.
B) Calculate how much you have to show for it by doing your Net Worth calculation – My Net Worth is currently $201,120.
The key is to do your calculation without judging yourself.
Though if feelings come up, it’s good to examine them and learn more about yourself.
Step #2 Being in the Present-Tracking Your Life Energy
In this step you calculate how much you really make per hour working.
You might think you make $20/hour but how much of that is spent on work related expenses?
You’d be surprised but you might actually be making $5/hour with all the work lunches, office parties, commute and car expenses, cost of baby sitting, etc.
Step #3 Where Is It All Going? (The Monthly Tabulation)
Every month you make a chart of your spending into categories that are unique to you.
This helps you see where your money is going.
Step #4 Three Questions That Will Transform Your Life
- 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?
The key action here is to put a minus sign, plus sign or 0 by each expense category every month.
Minus means it takes away from your life energy, and is not in alignment with your values and purpose.
Plus means the opposite.
0 means the expense is fine, neither increases or decreases life energy.
Step #5 Making Life Energy Visible
You put your monthly income and expenses on a big graph chart that you hang on the wall for you to see everyday.
Sounds like fun to me, can’t wait to do it!
Step #6 Valuing Your Life Energy – Minimizing Spending
Here you learn how to value your life energy by ceasing to spend on items that are not in alignment with your values and your purpose.
The nice thing about this step is that it’s easy, and doesn’t feel restrictive at all.
They have a great process behind it that I’m super excited to do with you all!
Step #7 Valuing Your Life Energy – Maximizing Income
I actually did yesterday’s blog about this, CLICK HERE for the replay.
Step #8 Capital and the Crossover Point
This is fun.
So as your expenses naturally and easily go down and income naturally and easily go up because of the program steps, you will gradually save money.
This money is capital.
You use this money to calculate when you will have enough investment income to cross over into Financial Independence.
Step #9 Managing Your Finances
This step is a little outdated, since it teaches you to invest in Long Term US Treasuries only.
At the time this book was written Long Term US Treasuries paid out about 6%!
However, the logic of it is sound and we have other ways to invest that are also sound, such as the All Seasons Portfolio.
Conclusion
I read this book over this last month and it is SO GOOD!
It lays out clear steps on how to create financial independence, where your investment income pays all of your expenses and then some.
I love how clear and conservative it is.
I love how practical it is.
So, I’m going to do it with our Finance Freedom Mastermind Program starting on January 1, 2021!
You probably know that just reading about the steps is not going to change your life.
Actually doing the steps is the only way to really become financially independent!
So, let’s go!
I already have 2 of our 10 spots filled so click here, get all the information you need and join us!