If you're new here, this blog will give you the tools to become financially independent in 5 years on a median salary. The wiki page gives a good summary of the principles of the strategy. The key to success is to run your personal finances much like a business, thinking about assets and inventory and focusing on efficiency and value for money. Not just any business but a business that's flexible, agile, and adaptable. Conversely most consumers run their personal finances like an inflexible money-losing anti-business always in danger of losing their jobs.
Here's almost a thousand online journals from people, who are following the ERE strategy tailored to their particular situation (age, children, location, education, goals, ...). Increasing their savings from the usual 5-15% of their income to tens of thousands of dollars each year or typically 40-80% of their income, many accumulate six-figure net-worths within a few years. Since everybody's situation is different (age, education, location, children, goals, ...) I suggest only spending a brief moment on this blog, which can be thought of as my personal journal, before looking for the crowd's wisdom for your particular situation in the forum journals.

One of the things that wasn’t very satisfying to me when I was a salaried employee—I tend to think of it as a retainer—was the tremendous amounts of inefficiency resulting from the difference between manufacturing a creative work and doing assembly line work. Assembly line has a reasonable good correlation between time spent working and actual output. 1 hour is 1 unit, 2 hours are 2 units, etc.
Conversely, creative work happens in brief spurts of 1-2 hours followed by a lull that can last days or weeks depending on the intensity of the productive period. The correlation between time and output is very poor. Therefore, it makes no sense at all to pay creatives using the salary model.

I am wondering whether this is a well-known white collar secret and everybody is just pretending that it is not the case by doing busy-work, that is, pretending to work while doing nothing useful for the rest of the time such as writing reports and summaries, going to seminars and meetings, and preparing talks for conferences that are reruns of last year’s conferences, and otherwise putting tremendous amounts of efforts into communications that could be cleared with a simple email. I suspect an entire system has been created to make creatives look productive while in reality they’re really only productive a few hours a day.

(Someone who can be creatively productive 8+ hours a day is called a “force of nature” and those are rare indeed. Da Vinci was a force of nature.)

I also wonder whether those that do well as creative employees are the ones that actually enjoy this kind of “low impact” busy-work and water cooler talk.

I didn’t.

As I am no longer retained, I can apply my effort to where it is most efficient. However, I will not be able to make as much as a salaried person since I am not a force of nature. I am okay with that.

Which would you rather do?

Work only 1 hour a day at $40/hr—you can only have one hour. Or work 8 hours at $10/hr?

Originally posted 2009-09-23 00:32:08.