Do This: A Simple Exercise in Priorities

What can you spend your money on? ANYTHING. And that’s the problem. The modern Western industrial complex is designed to sell you stuff. That’s how it works and how large amounts of wealth have been created over the past few decades. But for many people this system has resulted in physical and psychological bankruptcy. FIRE people know there is a difference between what you can spend your money on and what you should spend your money on. Use this simple exercise in priorities to get clear.

STEP 1: Grab a piece of paper and a pencil (and maybe your spouse or FIRE partner in crime) and write down a list of fifteen things you do (or could do) that make you happy on a weekly basis. These could be habits, activities, experiences, possessions, etc.

As you look at that list, there’s a good chance that all the things on the list cost you something in either money or time or both. They may not be “expensive” but they do require some investment from you.

STEP 2: Now go back to that list and rank yourself from 1-4 on how you’re doing at prioritizing that thing with your money or your time.

1: I’m failing

2: Definite room for improvement

3: Pretty good

4: I’m very proud of how I prioritize this thing

STEP 3: Brainstorm (on paper or in dialogue) how you can move the 1s to 2s, the 2s to 3s, and the 3s to 4s.

THE PRINCIPLE HERE

Every human being on this planet has two primary resources to spend: their time and their money. How you spend your time and your money should paint an accurate picture of what you value most. And the reverse is also true, what you say you value most should determine how you spend your money. This is the first step toward Financial Independence because (spoiler alert) decreasing your expenses and saving more of your income than your peers will require that you say NO to a lot of “normal” expenses. No one. Has ever. Wandered. Into Financial Independence. Not you. Not me.

People who achieve Financial Independence are, without exception, always crystal clear on what they value most. And they spend their money (and time) on those things. And the things they don’t value? They don’t buy.