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We are now in part 6 of this nine parter series on the financial intelligence, integrity and independence track of “Your Money or Your Life”.

Step 6: Valuing Your Life Energy — Minimizing Spending

Learn and practice intelligent use of your life energy (money) which will result in lowering your expenses and increasing your savings. This will create greater fulfillment, integrity and alignment in your life.

Sounds intuitive?

Having followed this series, you would have realised by now that money = life energy. You give up bits of your life and time to work for a salary or business income. This money that flows into your life is in exchange of your time i.e. your life. To maximise your life energy, you should use it wisely by choosing those expenditures that are aligned to your values and goals.  The book establishes that we are all subject to the law of diminishing returns or the fulfilment curve. The more we consume, the happier we get up to a point where additional consumption does nothing for us.

The trick in spending less is to derive more value out of what we are already spending and to realise that spending more per se does not make you happy.

Key Takewaways by Panzer

The main lesson in step 6 is to be frugal. Frugal does not mean to stinge and live like a pauper. It is to ask yourself the questions on whether you are deriving fulfilment, satisfaction and alignment to your life’s goals for the life energy (money) you are spending. The daily, monthly and yearly tracking of your income and expenses and the monthly review of whether each category of expenditure gives you a +1, 0 or -1 to fulfilment, satisfaction and alignment to your values makes a lot of sense.

I used to be a stingy person when young. I would not buy drinks outside and walk all the way home to quench my thirst. I saved much of my allowance during my schooldays and emerged with a  positive bank balance saving my National Service allowance as a conscript in the Lion City. This stinginess basically also made me yearn after the lifestyle of others, lamenting why am I depriving myself.

As I started working and earning my own income, I realised the true benefits of frugality when I get home every day because it is a reminder that my hard work of being relatively thrify, living way below my means and investing some of my monies allowed me to pay off my home by the time I was 36 years old. My spouse also contributed to paying of my home but the bulk of the financing came from me. Thus, instead of being an employee of the bank, I am now working towards my own financial freedom as every dollar saved and invested goes into my investible savings for financial independence.

Now that I have started tracking my daily expenses again, I realise that the $0.80 of coffee in the morning is more expensive than the 3-in-1 I can bring from home but I derive so much more pleasure now for the freshness and value compared to if I were to buy a cup of Starbucks coffee for $3-$4.]

In your own life, think about how you can derive more satisfaction, fulfilment and alignment to your values from what you consume rather than think about what next to buy or acquire. It’s really about the quality rather than the quantity in your consumption that one derives joy. Some things in life, truly don’t have to cost a lot.

Be well and prosper.

Related Articles:

1. Your Money or Your Life - Panzer’s Book Review - Part 1
2. Your Money or Your Life - Panzer’s Book Review - Part 2
3. Your Money or Your Life - Panzer’s Book Review - Part 3
4. Your Money or Your Life - Panzer’s Book Review - Part 4
5. Your Money or Your Life - Panzer’s Book Review - Part 5