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Decoupling Your Finances

As I've mentioned before, I'm pretty frugal. I like spending money on things like the island, travel, and good food, but I also like saving money. I spend very little money frivolously, and don't have an overwhelming appetite for luxury.

I don't make much money, either. I'm content to have enough income to fund my inexpensive lifestyle, to save a little bit most months, and to retain control of almost all of my time to invest in big future projects like Sett.

Relatively frequently, though, I'll have a small windfall. Sometimes I'll have a good run in poker where I make a few thousand dollars within a couple days. My new book, Superhuman by Habit has been doing really well, too. Thanks to my readers and friends, it's been in the top 1000 books on Amazon. For a while last year my bitcoins were worth a bunch of money.

In these sorts of situations, it can be tempting to spend more money. People bargain with themselves, allowing themselves to spend some or all of unexpected sums of money they come across.

Reading Your Financial Statement

On The Tasteless Manta ray

The most important financial statement is your own; what you earn and what you spend.

So how much do you earn? And how much do you spend?

Creating and keeping up-to-date your financial statement is your first step to financial freedom because it gives you a baseline for where you are financially as of right now. It tells you where you are now so you know what to do from there.

It gives you insight to the things you’re doing well and the things that need some improving.

Don’t be too harsh :/ Just promise yourself one thing before you create your financial statement, don’t judge yourself. Everyone starts somewhere, but what makes you different between you and your poor friends is that you’ve started. Michael Jordan wasn’t born a basketball legend, so don’t be harsh on yourself if you’re not a financial guru.

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