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.
The difference by definition:
- A closed-ended problem is a problem that only has one solution leading to one answer. Typical closed ended problems are text book questions leading you to the answers that are given in the preceding chapter, what kind of a shampoo to buy (cleverly disguised as an open-ended problem), which president to choose, …
- An open-ended problem has several solutions to leading to several different answers. What should we play? What should I do? How should I invest?
Children are naturally good at open-ended questions. Adults less so. Many adults prefer closed-ended problems out of habit. They want to know how high to jump but do not want to consider the possibility of not jumping.
Also note that:
- For closed ended problems, whoever controls the questions controls the answers.
- For open ended problems, whoever controls the answers controls the question.
Neither of these are good. You have probably experienced the first from people who don’t know anything and so they like to ask lots of questions. If they can keep you on the defensive, where you don’t have the chance to ask a question, they don’t have to answer any questions. The second is the problem when we only look for problems for which we already know the answer.
An educated person should be able to ask questions and answer them.
A trained person should only be able to answer them (or seek answers).
Which one are you?
Daily Yakeize:
Spending Money Wisely @ Canadian Finance Blog,
Ignore Social Norms and Save More @ Engineer Your Finances, &
Why it’s Frugal to live in Arizona @ Ultimate Money Blog
Originally posted 2010-03-21 08:15:08.