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 $7,000/year (Please read it, especially the part about the lentils!). There is a "21 day" step-by-step plan for how to get beyond 75% in the left side bar. Also, check out my answers to Frequently Asked Questions which also covers common misconceptions regarding my personal budget, blog income, retirement, marriage, children, health care, etc. I also suggest reading About ERE in the top menu bar.
While I continue banging my head against the wall while trying to write a particular book section about “Working for money” (go figure
), you can head over to Monevator and read a guest post I wrote called “Early retirement: The extreme method” (part 1). Part 2 will appear next week, and part 3 will appear the week after.
Also see: Three of the best blog posts you’ll ever read at Planting Dollar$.
Daily Yakezie short carnival:
Can’t Do It Alone! Finance for Couples @ Eliminate the Muda!,
Best Small Business Ideas 2010 And Beyond @ Wealth Pilgrim,
Shopping for Mattresses: How Much Would You Spend? @ Well-Heeled Blog, &
Life Insurance Secret #7: Permanent Life Insurance isn’t Always Permanent @ Clarifinancial
