{"id":39956,"date":"2021-07-04T08:58:04","date_gmt":"2021-07-04T12:58:04","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=39956"},"modified":"2025-09-15T10:08:39","modified_gmt":"2025-09-15T14:08:39","slug":"transforming-your-relationship-with-money","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/transforming-your-relationship-with-money\/","title":{"rendered":"Transforming Your Relationship With Money"},"content":{"rendered":"\n

Does your to-do list<\/a> include transforming your relationship with money<\/a>? Would you know where to start?<\/p>\n\n\n\n

In Your Money or Your Life<\/a><\/em>, Vicki Robin and Joe Dominguez discuss how transforming your relationship with money can lead to financial independence. They outline four aspects of financial independence thinking, two speeds of application, and three styles of finance management.<\/p>\n\n\n\n

Read more to learn about transforming your relationship with money.<\/p>\n\n\n\n\n\n\n\n

Editor\u2019s note: This article is part of\u00a0Shortform\u2019s guide to saving money<\/a>. If you like what you read here, there\u2019s plenty more to check out in the guide!<\/em><\/p>\n\n\n\n

Keys to Transforming Your Relationship With Money <\/h2>\n\n\n\n

Most of us feel forced to choose between \u201cmoney\u201d and \u201clife,\u201d and we inevitably choose money, sacrificing our relationships, health, and joy in the process. Instead of living our lives, we spend all our time at jobs we don\u2019t really like to make money we have little time or energy to enjoy. <\/p>\n\n\n\n

But we don\u2019t have to choose between our lives and our money. We can have both. Your Money or Your Life<\/em> offers 9 steps toward transforming your relationship with money and becoming financially independent<\/a> (FI), the state of not having to work for money. It\u2019s the key to having both the life you want and the money to achieve and maintain it.<\/strong><\/p>\n\n\n\n

The 9 steps, in brief, are:<\/p>\n\n\n\n

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  1. Visualize earnings and calculate net worth.<\/li>\n\n\n\n
  2. Calculate your real hourly wage<\/a> and track money.<\/li>\n\n\n\n
  3. Categorize monthly spending.<\/li>\n\n\n\n
  4. Evaluate monthly spending.<\/li>\n\n\n\n
  5. Graph your income and expenses.<\/li>\n\n\n\n
  6. Reduce spending.<\/li>\n\n\n\n
  7. Increase income.<\/li>\n\n\n\n
  8. Graph investment income.<\/li>\n\n\n\n
  9. Choose investment options.<\/li>\n<\/ol>\n\n\n\n

    FI-Thinking<\/h3>\n\n\n\n

    To reach financial independence, you need to practice FI-thinking: cultivating a sense of curiosity toward money. This is a critical ingredient of transforming your relationship with money. There are 4 aspects to FI-thinking:<\/p>\n\n\n\n

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    1. Financial Intelligence:<\/strong> Looking objectively at your money. This includes the money you\u2019ve earned and what you\u2019ve bought with it. Plus, you need to know what money is, examine the money that comes into and out of your life, and evaluate whether the type of work you do and the time you spend doing it are in line with your values, purpose, and dreams.<\/li>\n\n\n\n
    2. Financial Integrity:<\/strong> Understanding the effects of earning and spending money on yourself and the earth. You have to find the sweet spot\u2014enough material goods to fulfill and enrich your life, but not so many that they become excessive or create clutter.<\/li>\n\n\n\n
    3. Financial Independence:<\/strong> Escaping your dependence<\/a> on money. This includes paying down debt and changing harmful assumptions you have about finances.\u00a0<\/li>\n\n\n\n
    4. Financial Interdependence:<\/strong> Recognizing the ways that you dedicate your time to the world and how that enriches your life.<\/li>\n<\/ol>\n\n\n\n

      You\u2019ll practice each of these components as you work through the program\u2019s 9 steps.<\/p>\n\n\n\n

      Your Speed and Your Style<\/h3>\n\n\n\n

      Your speed of application and your style of financial management can impact how you go about transforming your relationship with money in your quest for financial freedom.<\/p>\n\n\n\n

      When<\/em> you\u2019ll reach financial independence depends on the speed and consistency with which you apply the book\u2019s steps. People generally fall into two categories:<\/p>\n\n\n\n