If you're new here, this blog will give you the tools to become financially independent in 5 years. Here's how I did it and here's a few dozen online journals from other people who are currently doing it. This is not some stupid get rich quick scheme. The method is robust and replicable (no need to win the lottery, sell your business, or win at real estate), but not easy; much in the same way that a diet results in weight loss but is hard to follow persistently unless you set your mind to it.
The key is to save 75%+ of your net income and invest it in income producing assets (bonds and dividend stocks). This is done by running your personal finances much like a business, thinking about assets and inventory and focusing on efficiency and value for money. See this post on how to enjoy a middle class lifestyle on $7,000/year (Please read it, especially the part about the lentils!). There is a "21 day" step-by-step plan for how to get beyond 75% in the left side bar. Also, check out my answers to Frequently Asked Questions which also covers common misconceptions regarding my personal budget, blog income, retirement, marriage, children, health care, etc. I also suggest reading About ERE in the top menu bar.
When was the last time you actually wore something out? I’m not talking about socks or underwear or things you use for work. I’m also not talking about things that could be repaired like a TV with a failed component that costs too much to replace. I’m talking about the things that usually gets “upgraded” or replaced before they have been used up. I’m talking about the things you own, where all components exhibit enough wear that it either breaks completely in an irrepairable fashion or where the parts are so worn down that they do not function anymore.
So what have you worn out recently?
Did you decide to replace it or did you already have a “backup”?
Bonus question: What is the oldest thing you own that you use daily?

Originally posted 2008-09-07 08:27:24.