by Mark Zaifman
Jan 2010
I’m sure like many of you reading this article, I was more than ready to bid farewell to 2009 and was eager to welcome in 2010. As the dust settles from the tumultuous year we all experienced, time to set our focus on the New Year ahead. That means, more than ever, it’s time to make sure your financial house is in order.
Last year, I connected with many people from around the country and around the world that contacted me through my work on the updated edition of Your Money or Your Life. Many of you signed up for our newsletter, are following me on Twitter, became a fan on Facebook and some of you became new financial planning clients in 2009.
For me, this is a real treat as the profile of an FI’er ( your money or your life lingo for someone that has attained financial independence ) is a person of high integrity that has their financial house in order. It’s someone that has looked hard and long at how they spend, save and earn their money. It’s a person that has aligned their money and their life with their values and feels very comfortable and peaceful around their relationship with money. These are my people and I’m proud to have the opportunity to work with such savvy clients. To all of you new to Spiritus, welcome, merci, grazie, danke, gracias, thank you!
There are also many of you that may never have read Your Money or Your Life. Allow me to please offer you some of what I think are the real juicy bits that hopefully will motivate you to read this seminal book on your money and your life. It will be one of the best investments you make this year.
Your Money or Your Life - 9 Steps to Transforming Your Relationship with Money and Achieving Financial Independence-revised and updated for the 21 st Century-excerpts:
“Financially independent (FI) thinking is the process of examining basic assumptions that you have unconsciously adopted.” “FI thinking is essential for anyone who wants a clear, relaxed relationship with money. Until you can think independently, you can’t be independent. Until you can deliberately and dispassionately question your own inner road map for money, you will be stuck in classic financial dead ends such as:
• Spending more than you earn
• Not liking your job, but not having a way out, Needing two paychecks to make ends meet.
• Just when you get ends to meet, seeing someone (your boss, the government) move the other end.
• Being so confused by money that you leave it to the experts, who in turn feed on your ignorance.
The Results of FI Thinking
FI thinking is about applying consciousness to the flow of money in your life. Just reading this book will initiate FI thinking in your life, but there is more. Actually doing the simple steps outlined here will transform your relationship with money. You will go from FI thinking to FI living. FI thinking will lead naturally to Financial Intelligence, Financial Integrity and Financial Independence.
Financial Intelligence
Financial intelligence is being able to step back from your assumptions and your emotions about money and observe them objectively. Does money really buy happiness? Does everyone really have to make a living? Is money really something to fear or covet, to love or hate? If I sell the majority of my time for money, will I really be secure?
Financial Integrity
Financial integrity is achieved by learning the true impact of your earning and spending, both on your immediate family and on the planet. It is knowing what is enough money and material goods to keep you at the peak of fulfillment-and what is just excess and clutter. It is having all aspects of your financial life in alignment with your values.
Financial Independence
Financial independence is the by-product of diligently following all the steps of the program in this book. It is defined as having an income sufficient for your basic needs and comforts from a source other than paid employment. While Financial Independence may not be one of your current goals, it is, eventually, in everyone’s future.
What is an “FIer”?
“FIer” is our shorthand for a person who embodies FI thinking, who is gaining Financial Intelligence, learning Financial Integrity and moving naturally toward Financial Independence. Anyone who applies FI thinking to his or her life through following the steps of this program we call an FIer.”
Next Steps
In terms of preparing for what’s ahead financially, please put this book on top of your to-do list for 2010. When I first picked it up in 1992, it took me a few times to actually read the whole book, as I had many false starts. But if peace of mind is what you seek, and your money, regardless of your net-worth, has been proving to be a stubborn obstacle on this path - here’s a proven and timeless solution that will help you with this goal.
Mark Zaifman is founder and president of Spiritus Financial Planning, Inc., a financial planning and investment firm based in the North Bay. Spiritus provides values-based comprehensive financial planning services to individuals and small businesses. He recently advised co-author Vicki Robin on "Your Money or Your Life: Revised and Updated for the 21st Century", published by the Penguin Group in December 2008. He can be reached at (707) 534-9478 or via e-mail at info@spiritusfinancial.com.