Early Retirement Extreme

Financial independence, frugality, self-sufficiency, ecology, capitalism, and voluntary simplicity

Maximize your 401k early in the year

Published in April 21st, 2008

Posted by Jacob in job, liabilities, personal finance, planning

If you’re new here, you may want to subscribe to my RSS feed. Thanks for visiting!Compared to the IRA with its $5,000 limit, the 401k with its $15,500 limit possesses an unfair advantage. Everybody with a W-2 income can get an IRA, whereas not everybody is lucky enough to have access to a 401k [...]

How I became financially independent in 5 years - Part I

Published in December 26th, 2007

Posted by Jacob in compound interest, cost of living, expenses, financial independence, financial security, frugal, inflation, job, liabilities, motivation, personal finance, standard of living, voluntary simplicity

8 Comments

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I posit that most people can attain financial independence in less [...]

Forget about net worth, consider the bottom line

Published in December 25th, 2007

Posted by Jacob in assets, cost of living, financial independence, financial security, inflation, investments, liabilities, net worth, personal finance, saving

1 Comment

I think the income or p&l statement which catalogues earnings and expenses is more telling about a person’s financial situation on a day to day basis than the balance sheet which is where you calculate your net worth. The balance sheet is more useful when you are considering buying or selling assets. So for example, [...]

Wear a wide brimmed hat and retire extremely early

Published in December 22nd, 2007

Posted by Jacob in anticonsumerism, assets, budgeting, cost of living, expenses, investments, liabilities, net worth, personal finance, recipe, spending, standard of living, voluntary simplicity

4 Comments

And here’s the extreme version of Wear sunscreen and retire early. I promise this will be the last blog on sunscreen for a while
Spoken to the tune of “Wear Sunscreen”.
If I could give you a single piece of advice. This would be it: Be wealthy. The long term effect of accumulating wealth has [...]

On liabilities

Published in December 7th, 2007

Posted by Jacob in assets, investments, liabilities, net worth, personal finance

2 Comments

Anything that requires regular expenditures is a liability. Think cars, housing, cigarettes, eating and staying alive (for that matter)…
To get on a fast track to financial independency, it is helpful to route expenditures through capital assets. The idea is that you work to pay for assets such as savings, CDs, stocks, and bonds, and then [...]