I don’t find it depressing to calculate how much something will cost me in life energy. It is simply a way to quantify how much enjoyment something will bring me and help me make a decision as to whether it is worth the expense.

I think that this is really important because in today’s society, people don’t seem to know what they can and can’t afford. They look at their neighbors and see them driving a new car and think that it must be okay for them too. Or they think that if they can pay their minimum credit card balances each month then they are okay. I really think that people today have a very difficult time deciding on what they can afford.

Figuring out what something will cost you in life energy is a good way to decide if you really want to make that expense, even if you have the money.

Thanks for recommending the book Trent. I think it is a must read.

I’ve read many of the books recommended on this site, based on Trent’s recommendations, and after reading this book in full I’ve found it to be the _least_ helpful of the personal finance books Trent has recommended. Perhaps my situation or outlook on life is different than most, but I agree with kman that thinking about money in the way this book espouses, money as life energy instead of money, can destroy the joy one has in living. Money is a tool, a means to an end, not the end in and of itself and I completely disagree with the premise that everyone is working for a dying.

Yes, you are trading your time to make money now, but how else will you become financially independent and thus able to do the things that make you happy? Most, if not all, of the examples in the book are of people who are unhappy with their careers and/or life and perhaps this book is helpful for them. But what about the people who actually enjoy what they’re doing now, whether or not they are making good money? How does calculating their “true hourly wage” actually help them?

Later in the book they “redefine” work as “any productive or purposeful activity.” This sounds well and good on the surface, but In this sense, going to the bathroom would be defined as work, as would eating, talking, driving, sleeping, making love, reading, walking, shopping and even taking a shower. Come to think of it, that would mean that you would need to include any of those activities that take place on a workday in your “true hourly wage” calculations, which would remove any usefulness of that number.

I’m not saying people should ever spend more than they earn, going into debt is pure folly. What I AM saying though, is that my thoughts are that this book twists things in such a way as to make the reader feel that no matter what they do for their career, they’re wasting their money and time unless they are living their dream job and never waste a second doing something they don’t love, love, LOVE doing.

Where in this Straw Man example of the “true hourly wage” is the compound interest of someone’s savings money calculated? Where is their job’s 401K match calculation, or health insurance? What about the close friendships they’ve made with their coworkers? Conversely, where’s the calculation of the joy a guy might have when taking a non-paid day off of work and spending $400 on baseball tickets, some mementos and dinner for himself and his son? If we extrapolate the type of money = life energy thinking of the book further, then what is really being said is that those who earn a high “true hourly wage” can partake of all the experiences life has to offer, whereas someone like your Straw Man would be best off staying at home in bed unless they’re going to, coming from or actually at, work. And honestly, where is the value in that?

I like kman’s comment though. I wonder if there is a heuristic for the gaining of a life experience compared to saving money for that life experience. trb said he wouldn’t go to a ball game cause it is too expensive for what he does. However if the game provides you with a great life experience then why not? Guess it is a really personal choice and pends on your goals.

Goes back to budgeting and how to figure in your entertainment budget compared to your purchase items budget I guess.

It seems to me that ‘your money or your life’ makes the assumption that work is always a negative thing.

Helen

Think of it this way. Every thing you buy costs a certain amount of your time. Let’s change the context slightly. A computer will cost me say 50 hrs of my life. Now would you shorten your life by 50hrs to have that computer? Put in those terms makes it bit more clear where this idea leads. I’d say most people would not shorten their lives for a computer.

Thinking about what you buy is an excellent idea. But money is to serve us, not the other way round. Money is for us to use for our needs, for others, and for enjoying. Summing up my life in units of money just doesn’t fit me personally. I think taken to extremes this thinking leads to being a miser.