If you're new here, this blog will give you the tools to become financially independent in 5 years. 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 on losing their jobs to the next wave of downsizing.
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 delving into the forum journals and looking for the crowd's wisdom for your particular situation.
If you enjoy the blog, also consider the book which is much better organized and more complete. You can read the first chapter for free, listen to the preamble, or see the reviews (1,2,3,4,5,6,7,8,9, A,B,C,D,E,F,G,H,I,J,K,L,M,N,O,P,Q,R,S,T,U,V,W,Z). Subscribe to the blog via email or RSS. Get updates on the facebook page, join the forums, and look for tactics on the ERE wiki. Here's a list of all the ERE blog posts.
Suppose someone initiated a real estate development project in a fairly central location close (no need for cars) to markets and jobs with housing sizes ranging from 100–500 sqft, optional lawns (likely no lawns), but plenty of plots for gardening, likely arranged in a permaculture fashion. These could either be part of the rent or they could be rented separately or even set up as a CSA. There would be a central laundromat. There would be wifi with area antennas.There would likely be a central tool library which could work with a deposit to become a member or alternatively, it could work as a rental. There would also be a central workshop.
The cost of living there would be 3–6 times lower than regular housing in the city. This would be an ideal set up for people seeking financial independence by cutting away all the fluff of consumer life.
The question is, would anyone move there? I know that possibly right after giving up their precious, relocating is the furthest down the list of steps most are willing to take even though those account for about 50% of the average expenses or $20000 a year for the average “consumer unit” which could otherwise go towards financial independence—that’s $100,000 in five years alone!
So, seeing as if you read this, you are probably interested in financial freedom, the question is, would you actually move for it? Possibly to the other end of the country? How about to the next city thus increasing commute time? How about to another neighborhood of your current city?
On a smaller scale, this could be set up if someone bought a quadplex or similar.
Originally posted 2010-03-30 10:49:38.
