This Book Is Why I'm Extremely Frugal

Chapters

00:00 Start Here
00:52 Take Money Seriously
01:32 Money = Life’s Energy
02:02 Money Isn’t What You’re After, Freedom Is What You’re After
02:35 Money Is How You Get Freedom
02:59 Debt Is How You Lose Freedom
04:31 Freedom Is Having ‘Enough’
05:08 You Have to Define Enough
05:39 Spending Beyond Enough Doesn’t Improve Your Life
06:13 Clutter Is Beyond Enough
06:41 Work Isn’t Free
07:23 Know Your True Hourly Wage
08:29 See How You’re Using Your Life Energy
08:58 Ask Yourself If Every Purchase You Make Is Worth The Life Energy
09:41 Frugality Means Enjoying Things Wisely
10:22 Waste Is Not In The Number of Possessions, But The Failure to Enjoy Them
11:00 Surest Way to Save Money Is to Stop Impressing People
11:28 Invest
12:00 Winning The Game

The book, "Your Money or Your Life," was the book that put into words why I choose to live a frugal life. In this video, I share 18 lessons from this book that shaped my view on money.

1. Take Money Seriously

Most people have to choose between making money or living your life because they do not take money seriously; however, if you take money seriously you can have both money and enjoy your life.

2. Money = Life’s Energy

The majority of people in this world trade their time and energy for money, which means that money represents life's energy.

3. Money Isn’t What You’re After, Freedom Is What You’re After

Given the fact that money is life's energy, it is important to understand that money is not the goal of money. The goal of money is what money allows you to do: buy your freedom.

4. Money Is How You Get Freedom

As simple as it sounds, money is how you get freedom in life...which is why it's so important.

5. Debt Is How You Lose Freedom

You lose your freedom when you start taking on debt because that it when you are obligated to pay someone back.

6. Freedom Is Having ‘Enough’

When trying to use money as a tool to get freedom in your life, it is important to understand that freedom is having enough. Enough money to cover your survival needs, comforts, and luxuries.

7. You Have to Define Enough

Having 'enough' is a completely subjective thing and so it's important to define what enough looks like in your own life.

8. Spending Beyond Enough Doesn’t Improve Your Life

In addition to defining enough, it is important to stop spending at that point because beyond enough doesn't improve your life as drastically and the fulfillment from the money you spend declines.

9. Clutter Is Beyond Enough

The reason it's important to not go beyond enough is because that's when you bring clutter in your life and clutter comes with stress and anxiety.

10. Work Isn’t Free

Although we go to work to make money, work costs us a lot of money through commuting, lunches out, professional clothes, and other things.

11. Know Your True Hourly Wage

Since work costs you money, it is important to know how much it is costing your, or your true hourly wage, which is your net income, minus expenses, times the hours you are working.

12. See How You’re Using Your Life Energy

Since money is life's energy, it is important to track all of your expenses down to the penny to see how you're spending your life energy.

13. Ask Yourself If Every Purchase You Make Is Worth The Life Energy

Once you know how you are spending your money, it is important to ask yourself if every purchase you make is worth the energy it took to make the money.

14. Frugality Means Enjoying Things Wisely

This practice of being conscious of your spending is called, "Frugality," which means enjoying things wisely and maximizing value.

15. Waste Is Not In The Number of Possessions, But The Failure to Enjoy Them

Frugality is about maximizing value and minimizing waste. And waste is when you spend money on something that doesn't bring you value.

16. Surest Way to Save Money Is to Stop Impressing People

Frugality is also about saving money and the easiest way to save money is to stop impressing people.

17.Invest

As you have more money, it is important to get that money to work for you by investing.

18. Winning isn’t who has the most toys but who has precisely enough, no excess, and is able to stop playing the game at will

Once you reach a point where you are able to stop playing the game at will, that is when you are financially independent.

**Links above are affiliate links where if you click and order, I will receive a commission at no cost to you. **

[Luncheon]

The point that most resonates with me in this video is "Freedom is having enough." Sadly when surrounded by materialistic people you sometimes get questioned for being contented with cheaper things and a smaller income than they consider normal. But I'm happy with what I have and that's enough for me.

[danawood]

I read your money or your life in my early twenties and it changed my life. It is 100% the reason my husband and I retired at 56.

[TylerG]

I love Your Money Or Your Life! I read it about 6 years ago and it is the book that opened my eyes and started us on the road to financial independence. We carried a lot of debt. Now, our net worth is multiple 7 figures. We have almost 2 years of living expenses in the bank. This is the very first book that started me down the rabbit hole of loving personal finance. Also consider:
1) The Wealthy Gardener
2) The Richest Man in Babylon
3)The Latte Factor
4) Quit Like a Millionaire
5) The Millionaire Next Door
6) The Simple Path to Wealth
7) Stop Acting Rich and Start Living Like A Real Millionaire
8) Goodbye Things

I’ve read all of them, and some of them twice! Read and find financial independence! Set yourself free!

[MNSkolGirl]

Yes! Money=Freedom is exactly how I view money.

[TheStrategos]

Wealthy people are frugal. That’s how they acquire and keep their money.

[Sobermama]

I have also become insanely frugal and it’s saving me from stressing during this awful economy.

[pensacola]

My wife and I read the
book 25 years ago. Mindset and life changing.
Comfortably retired now, and I still live by the book's lessons.

[TheFatesLieutenant]

Books (used) are my "gazingus pins" - worth every penny! I first read Your Money or Your Life in the early 90s and it really opened my eyes - Been frugal without pain for 30+ years and am now retired with easily "enough" and with mental, physical, and financial peace!

[plappin]

"Your Money or Your Life" had a huge impact on me when I first read it years ago and its great to be reminded of it here. The whole clutter issue really spoke to me as I'm in the "diminishing returns" part of my life when it comes to things: I have too much stuff but have the collector's gene and have a number of hobbies that involve a lot of stuff. I'm now figuring out how much energy I want to devote to streamlining my possessions: Sell them (which requires the investment of time and energy) or just put on the curb and be done with it -- the money I'd earn might not warrant the effort. Excellent video and what a surprise to see you in a print tee shirt! LOL

[the_steezlord]

I've thought about buying this book lately after seeing you mention stuff from it before and put it in the descriptions of your videos. Video was uploaded just in time for my payday, here's to another half a paycheck stashed in savings.

[eduardor]

OMG now I understand why I felt so much better without credit cards 😮

[e.c.]

I really enjoyed this video. You should make more videos like this with other books you’ve read. Even though I’ve already read “Your money or your life”, I feel that your video impacted me more than the actual book.

[beaglemit]

Defining my enough is a good one. Makes things clearer and also have a reason now. Good stuff!

[Kyla]

This book is incredible. I just got it from my library

[juliem.]

We still have to pay Uncle Sam whether we have debt or not. Gotta get Social Security some day!

[fafa]

I think you can even expand further on the "true hourly wage, " and include monthly bills and expenses (rent/electricity/phone/car) and the number becomes even more depressing. Most people, once they factor all this in, are earning a fraction of what they believe they earn.

[flohough]

If you haven't watched "Affluenza", I highly recommend it as well. Vicki and Joe both speak in various parts of it and while it's kind of dated (it was made in the 1990s or early 2000's) there is still a lot of good information in it. Same with any of the Tightwad Gazette books. I was so inspired by this video that I decided I needed to re-read the new and updated version so I just checked it out from the library to download to my Kindle! Thanks Austin!

[tubadurantdoda]

The quote is very impressive. Actually, it is possible to lead a comfortable life even with 1k a month if you stop impressing people and live life for yourself.

[MissNewsky]

This is the best, most clear and enjoyful presentation of that book, I have seen to date. Great content, Mr❤🎉

[KiraLou]

I have been having the hardest time quitting smoking weed everyday. So much up in smoke. I am going to be frugal and quit!