Chapter 1 from this book is titled The Money Trap: The Old Road Map for Money. Step 1 of the program is contained in this section and consists of two questions: "A. How Much Have You Earned in Your Life? B. What Have You Got to Show for It?" It is asking that we examine our past so that we can work on our future. It is not meant to make you feel bad about yourself. It is a tool to show you where you have been.
It starts out discussing how people associate self worth with the jobs that they hold. i.e. A person may consider themself someone of importance if they are a doctor, and not as important if they are a janitor.* When talking with friends and/or family members are you asked how your job is, what you do for a living, discuss new "toys"/status symbols? If you do not have a job, do people have a hard time holding up a conversation with you? Instead of being labeled by the job you perform, what if you could be known for living by your values, or being able to fulfill personal goals?
The book then asks how fulfilling your life is; how happy you are. Do all the extra hours that you put in at work, the stress of the job, the paycheck, lead to fulfillment within your life? After all of your basic necessities are met, are you truly happier the more you upgrade your toys? If not, then why are you working where you work, and spending your money as you do? You obviously have received something from the jobs that you have held otherwise you would not be doing them, and there was something that lead you to buy that expensive shiny new car. At what point would you consider that you have reached your level of fulfillment, where you are truly happy? Happy with the work that you do, the company you keep, the money you earn, the items you buy. The point at which you have everything that you need, have items that bring you enjoyment, are living in alignment with your values, and are truly happy is known as "Enough". If you add one more thing to the list it will not bring you higher returns. The book calls the excess "clutter". Having "Enough" is different for everyone.
Now to the two questions:
"A. Find out how much money you have earned in your lifetime-the sum total of your gross income, from the first penny you ever earned to your most recent paycheck."The book suggests that you look at your Social Security statements and/or income-tax returns to see how much money you have earned since the beginning of time. Also include cash flow from any investments such as home rentals and royalties; and include miscellaneous things such as lottery winnings, garage sale money, bottle return deposits, etc.
I did not dig too deeply into this. I did look at my Social Security statement, and was amazed that I had earned quite a bit considering my age. So where did all the money that I earned go, I asked myself?
Question two.........
"B. What Have You Got To Show For It?"I have to admit that I did not complete this section. The idea of categorizing all of my things, and trying to figure out how much I could get for it if I sold it in a garage sale, was a little overwhelming. However, I can see the benefit of completing it. Basically, they are asking you to determine your net worth. i.e. assets minus liabilities.
The book asks you to list all of your liquid assets such as cash, stocks, bonds, life insurance cash value, etc.; and the value of all of your fixed assets such as your car, home, t.v., boats, antique furniture, books, etc. (This is the money that you could get for your items if you were to sell them today, not how much you paid for them.)
You are then asked to compile a list of all of your liabilities, also known as debt.
Once you have the amounts for your assets and liabilities, what is your net worth? ( Assets minus Liabilities) This can be an upsetting calculation for some, and exciting for others. Just realize this is allowing you to establish a foundation, giving you some perspective, as you complete the remaining steps. From here great things happen. You have just been shown how you have related to money in the past. The next steps help you direct your relationship with money to align it with your values.
Even though I did not complete all of step 1, I did not let this stop me from working on the remaining steps.
Next: Step 2 - What is your "real" hourly wage and tracking every penny into and out of your life.
* I make this comparison as an example only. Janitors play an important role in keeping things working, and by no means did I make this example with the intention to demean them.
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