The latest book review here at Richer by the Day is Your Money or Your Life by by Joe Dominguez and Vicki Robin.

Your Money or Your Life is one of those classic personal finance books that everyone seems to have read. After finally getting around to reading it myself, I can see why it is so popular. While there are certainly some portions of the book which are outdated, the majority of the content is as relevant today as when the book was written in the early 90s.

One of the main concepts introduced in the book is how to define “enough.” I found this information particularly useful because I’ve been feeling guilty, or at least in the minority, that I don’t want any more than I already have. I’ve been living on the “enough” peak for a while now. Understanding that after a certain point having additional possessions actually reduces happiness was insightful. This psychological aspect of Your Money or Your Life is in many ways more important than the financial advice provided.

More than anything, YMOYL helped me to realize that I don’t need to be “rich” to be financially independent, I already am. I stopped worrying about money a long time ago and am content with what I have. Rich is relative and even Warren Buffet could have more. I think he gets it, since he drives a 2001 Lincoln Signature Series Town Car, rather than owning a fleet of super luxury vehicles. His “THRIFY” license plate is also a clue. I wonder what he gives his grandkids for their birthday? When you no longer worry about money, it’s hard to deal with those who do. If you were rich would you be looked down on for not giving extravagant gifts, even if you gave thoughtful ones? Giving someone a new house would be extravagent, but probably isn’t thoughtful. There’s an education in obtaining something of value for yourself.

Reading Your Money or Your Life also forced me to question why both my wife and I work. We are living so below my means (while still having enough) that doesn’t seem to make sense to be giving away so many hours of our lives. That realization has prompted us to make a major change in our work load.

I also liked the way YMOYL translated stuff you buy into hours of your life. We’ve all heard the statistics that each cigarete you smokes takes something like 11 minutes off your life. In a similar way, each dollar you spend on shoes (or anything else) takes X minutes of your life working to pay for that purchase. That can make spending decisions easier and help you to really focus spending on those things that bring you the most joy.

As long as you can forgive the portions of the book that are somewhat dated (originally published in 1991, the book laments, for example, that those new-fangled doohickeys called personal computers are inefficient and expensive for tracking your finances) there is still a lot of valuable information presented. Revised additions did not correct the dated material, which is my only real criticism. Otherwise, the book is a hit.

I’ll be parting with my copy of Your Money or Your Life on September 15th. For details on being considered, see my free book giveaway post.