
I’m currently reading Your Money or Your Life
. It’s one of those books which seems to have been raved about on many of the blogs I frequent. Based on the title, I figured it was just another book about how to make or save more money. I just finished the preface last night and I’m pleased to see that it’s so much more. It looks to be about balancing our thoughts on money with how we live our lives. It’s just what I need right now.
I’ll admit that I have some financial hangups. I grew up in a family which only just made ends meet, so as a child I always felt stressed about money. I started working at the age of 12 and by 15 I was working three jobs in addition to going to school. I was a diligent saver and started investing in the share market at 16. At 23 I decided I was going to be a millionaire by 40, and for the last 8 years that was the financial goal I was focused on. I bought a lot of property before the boom in 2000, my net worth was growing steadily and I was on track to reach my goal quite easily.
The financial crisis of 2008 brought this dream crashing to the ground. I lost a lot in the stock market crash. It’s almost too painful to think about how much, but on paper it’s a loss of somewhere between $150,000 – $250,000 (Yes I’ve been sticking my head in the sand). That wouldn’t be so bad, but I was highly leveraged into those shares and I still have a huge loan costing me a lot of interest for assets which are devaluing daily.
So, being the type of person who is willing to learn a lesson and move on, I’m choosing to see this whole mess as an opportunity to re-evaluate my goals and thoughts on money. Some points I’ve read in this book really resonate with me, in particular the definitions outlined below.
- Financial Intelligence: Being able to step back from your assumptions and your emotions about money and observe them objectively.
- Financial Integrity: Learning the true impact of your earning and spending, both on your immediate family and on the planet. It is knowing what is enough money and material goods to keep you at the peak of fulfillment – and what is just excess and clutter.
- Financial Independence: Having enough income sufficient for your basic needs and comforts from a source other than paid employment.
All this time I think I’ve been focused on being Financially Independent without really giving it any deeper thought about what it meant for the rest of my life. I was driving myself into the ground, making myself stressed, working in a job that at times made me want to slit my wrists. Why? I guess that’s what I need to work out.
I’m excited to think that over the next year I’m going to re-evaluate my relationship with money and re-design my life to incorporate more elements which align with my values.
Photo by: Cati Kaoe
Read Full Post »