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Your Money or Your Life

Your Money or Your Life by Joe Dominguez and Vicki Robin is, as I mentioned, the cream of the crop of these financial books. It's advice is sound. This is an especially great book for those seeking simplicity. It lends itself less to bullet points than some of the others, but I've made an attempt to enumerate the steps it advocates for financial independence:

Step #1: Determine how much money you've earned in your life. Next, determine your net worth. Compare and contrast the two.

Step #2: Establish the actual cost — in time and money — required to maintain your job. From this derive your actual hourly wage.

Step #3: Keep track of every cent that enters or leaves your possession.

Step #4: Determine which items are actually worth the money you spend on them.

Step #5: Graph your total monthly income and your total monthly expenses.

Step #6: Minimize spending through conscious decisions.

Step #7: Maximize income by doing something you love.

Step #8: Accumulate capital. Track its growth.

Step #9: Invest this capital so that it provides long-term income.

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