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 I talk about not buying new things, living in small place, and not owning a car to retire early, these are the most common objections
- I want a big house because it is a comfortable place to escape to after spending all day working a job [I don't like].
- I like to budget so I can buy things for myself as a reward for dealing with my job and all the hard work I do.
- I got on vacations because I need to get away from it all [presumably job, house, and stuff] from time to time.
Funny, eh? I mean, how do you respond to that without sounding like Captain Obvious?

Originally posted 2009-08-01 14:58:35.