The third chapter of Your Money or Your Life builds on the topics of life energy and tracking your money that were introduced in the second chapter and asks you to do three things. It asks you to create a table of all your income and expenses organized by categories. The categories you have are dependent on how you spend your money. You also need to balance your monthly income and outgo totals. Also you should compute how many of hours of life energy you are spending on different categories.
I do the first step and sometimes do the second step but I think the last step is the most beneficial to those who are just starting to take control of their finances. This last step might cause you to discover that you are spending lots of life energy on categories you don’t really care about and not much life energy on categories you do care about. This information is very useful in helping you change your spending patterns.
That is a very brief summary of this part of the book. You really should check the book out from your local library or buy it to get the full benefit of this book.
This is the book that changed my life! I am still and probably will always be working on this last step as my life continues to change. I went from being in serious debt to having a pretty good emergency fund and no debt.
Hustler- It definitely is the most influential book in my life too. Haven’t always followed it too well but when I do my finances improve.