Comments on: How I became financially independent in 5 years – Part I http://earlyretirementextreme.com/how-i-became-financially-independent-in-5-years-part-i.html --- a combination of simple living, anticonsumerism, DIY ethics, self-reliance, and applied capitalism Fri, 25 May 2012 19:02:53 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Now That You've Taken The Red Pill http://earlyretirementextreme.com/how-i-became-financially-independent-in-5-years-part-i.html/comment-page-1#comment-35204 Now That You've Taken The Red Pill Tue, 20 Dec 2011 11:45:59 +0000 http://earlyretirementextreme.com/2007/12/how-i-became-financially-independent-in-5-years-part-i.html#comment-35204 [...] have been reading the book and blog by Jacob, over at Early Retirement Extreme, and so much of what he says resonates deeply with me. As a numbers person myself, I enjoy his [...] [...] have been reading the book and blog by Jacob, over at Early Retirement Extreme, and so much of what he says resonates deeply with me. As a numbers person myself, I enjoy his [...]

]]> By: Für neue Leser: | genug haben http://earlyretirementextreme.com/how-i-became-financially-independent-in-5-years-part-i.html/comment-page-1#comment-33543 Für neue Leser: | genug haben Sat, 10 Dec 2011 14:24:02 +0000 http://earlyretirementextreme.com/2007/12/how-i-became-financially-independent-in-5-years-part-i.html#comment-33543 [...] auch dazu verwendet werden, um nach wenigen Jahren finanzielle Unabhängigkeit zu erreichen. Hier ein Beispiel. Zentrale Methode ist es 60% und mehr des Nettoeinkommens zu sparen.  So können Schulden [...] [...] auch dazu verwendet werden, um nach wenigen Jahren finanzielle Unabhängigkeit zu erreichen. Hier ein Beispiel. Zentrale Methode ist es 60% und mehr des Nettoeinkommens zu sparen.  So können Schulden [...]

]]> By: Copperblade http://earlyretirementextreme.com/how-i-became-financially-independent-in-5-years-part-i.html/comment-page-1#comment-31798 Copperblade Sun, 04 Dec 2011 06:36:18 +0000 http://earlyretirementextreme.com/2007/12/how-i-became-financially-independent-in-5-years-part-i.html#comment-31798 Just found your blog recently, and have been looking over it. I a lot of your opinions although my priorities are slightly different. I've been going down the same path as yourself, with the whole mortgage "scam" (as I think of it) being my goal to get out of. I'm guessing I'm about 5 years behind yourself since I had gone without a real job until I was 25. This kind of lifestyle isn't for everyone, but I think sometimes people don't understand that the first "savings" years are really the sacrifice part. I also think it takes a certain kind of personality that really appreciates simplicity in life. Just found your blog recently, and have been looking over it. I a lot of your opinions although my priorities are slightly different. I’ve been going down the same path as yourself, with the whole mortgage “scam” (as I think of it) being my goal to get out of. I’m guessing I’m about 5 years behind yourself since I had gone without a real job until I was 25. This kind of lifestyle isn’t for everyone, but I think sometimes people don’t understand that the first “savings” years are really the sacrifice part. I also think it takes a certain kind of personality that really appreciates simplicity in life.

]]> By: Early Retirement is all about Spending Less, Not Earning More « Simple Living in Suffolk http://earlyretirementextreme.com/how-i-became-financially-independent-in-5-years-part-i.html/comment-page-1#comment-29262 Early Retirement is all about Spending Less, Not Earning More « Simple Living in Suffolk Thu, 17 Nov 2011 22:52:43 +0000 http://earlyretirementextreme.com/2007/12/how-i-became-financially-independent-in-5-years-part-i.html#comment-29262 [...] need to make their investments pay a decent income quickly, there is the same pattern in MMM and ERE. Mine are operating in the traditional form  of being in accumulation mode right up until they are [...] [...] need to make their investments pay a decent income quickly, there is the same pattern in MMM and ERE. Mine are operating in the traditional form  of being in accumulation mode right up until they are [...]

]]> By: Mike http://earlyretirementextreme.com/how-i-became-financially-independent-in-5-years-part-i.html/comment-page-1#comment-27239 Mike Sat, 15 Oct 2011 22:51:59 +0000 http://earlyretirementextreme.com/2007/12/how-i-became-financially-independent-in-5-years-part-i.html#comment-27239 " For instance, the hourly real wage of a commuting grad student (e.g. a highly skilled and competent person who would fetch $40-60k in the private sector) is certainly below the minimum wage. " Nonsense! You'd have to do the same calculations for the minimum wage first, otherwise you're comparing apples and oranges! ” For instance, the hourly real wage of a commuting grad student (e.g. a highly skilled and competent person who would fetch $40-60k in the private sector) is certainly below the minimum wage. ”

Nonsense! You’d have to do the same calculations for the minimum wage first, otherwise you’re comparing apples and oranges!

]]> By: sixfigsaver http://earlyretirementextreme.com/how-i-became-financially-independent-in-5-years-part-i.html/comment-page-1#comment-24753 sixfigsaver Thu, 11 Aug 2011 23:19:47 +0000 http://earlyretirementextreme.com/2007/12/how-i-became-financially-independent-in-5-years-part-i.html#comment-24753 You say you could have retired in 2-3 years with a six figure income. How? I'm 35 and make 104K/year and save about 5K per month. I make 6K per month after taxes and fully fund my Roth IRA and 401k. 36 months x 5k = 180K. How do I retire/become a millionaire on 180K at age 38? Thanks for your time and help Jacob! You say you could have retired in 2-3 years with a six figure income. How? I’m 35 and make 104K/year and save about 5K per month. I make 6K per month after taxes and fully fund my Roth IRA and 401k. 36 months x 5k = 180K. How do I retire/become a millionaire on 180K at age 38?

Thanks for your time and help Jacob!

]]> By: Für neue Leser: | Genug haben. http://earlyretirementextreme.com/how-i-became-financially-independent-in-5-years-part-i.html/comment-page-1#comment-22062 Für neue Leser: | Genug haben. Tue, 03 May 2011 19:21:38 +0000 http://earlyretirementextreme.com/2007/12/how-i-became-financially-independent-in-5-years-part-i.html#comment-22062 [...] auch dazu verwendet werden, um nach wenigen Jahren finanzielle Unabhängigkeit zu erreichen. Hier ein Beispiel. Zentrale Methode ist es 60% und mehr des Nettoeinkommens zu sparen.  So können Schulden [...] [...] auch dazu verwendet werden, um nach wenigen Jahren finanzielle Unabhängigkeit zu erreichen. Hier ein Beispiel. Zentrale Methode ist es 60% und mehr des Nettoeinkommens zu sparen.  So können Schulden [...]

]]> By: What is your number? How much do you need to live on? « Simple Living in Suffolk http://earlyretirementextreme.com/how-i-became-financially-independent-in-5-years-part-i.html/comment-page-1#comment-21806 What is your number? How much do you need to live on? « Simple Living in Suffolk Tue, 12 Apr 2011 10:46:07 +0000 http://earlyretirementextreme.com/2007/12/how-i-became-financially-independent-in-5-years-part-i.html#comment-21806 [...] you can overcook focusing on how much you need to retire. His alternative, which is closer to the ERE approach is do drive your running costs to below your income, which is broadly how I do it. I then save the [...] [...] you can overcook focusing on how much you need to retire. His alternative, which is closer to the ERE approach is do drive your running costs to below your income, which is broadly how I do it. I then save the [...]

]]> By: Your Personal Finance To Do List for 2011 http://earlyretirementextreme.com/how-i-became-financially-independent-in-5-years-part-i.html/comment-page-1#comment-20304 Your Personal Finance To Do List for 2011 Thu, 06 Jan 2011 03:51:19 +0000 http://earlyretirementextreme.com/2007/12/how-i-became-financially-independent-in-5-years-part-i.html#comment-20304 [...] You could be extreme like Jacob over Early Retirement Extreme  and save 60%- 75% of your pay and become financially independent in 5 years or less. But in my opinion, you need to save at least 10% to get any serious momentum [...] [...] You could be extreme like Jacob over Early Retirement Extreme  and save 60%- 75% of your pay and become financially independent in 5 years or less. But in my opinion, you need to save at least 10% to get any serious momentum [...]

]]> By: Early Retirement Extreme Review – Personal Finance Book http://earlyretirementextreme.com/how-i-became-financially-independent-in-5-years-part-i.html/comment-page-1#comment-17975 Early Retirement Extreme Review – Personal Finance Book Tue, 09 Nov 2010 23:17:48 +0000 http://earlyretirementextreme.com/2007/12/how-i-became-financially-independent-in-5-years-part-i.html#comment-17975 [...] If you’d like to purchase Early Retirement Extreme, I did notice that the price on Amazon is now down $5 from when I purchased it, so you can rest assured knowing you paid less for it than I did. If you’d like to read more about Jacob Fisker before buying the book, start with How Jacob Became Financially Independent in Five Years. [...] [...] If you’d like to purchase Early Retirement Extreme, I did notice that the price on Amazon is now down $5 from when I purchased it, so you can rest assured knowing you paid less for it than I did. If you’d like to read more about Jacob Fisker before buying the book, start with How Jacob Became Financially Independent in Five Years. [...]

]]> By: 3 Steps to Getting Rich - Christian Common Cents http://earlyretirementextreme.com/how-i-became-financially-independent-in-5-years-part-i.html/comment-page-1#comment-17716 3 Steps to Getting Rich - Christian Common Cents Fri, 29 Oct 2010 04:53:00 +0000 http://earlyretirementextreme.com/2007/12/how-i-became-financially-independent-in-5-years-part-i.html#comment-17716 [...] to quit your job. If you work really hard and cut back you can do it in as little as 5 years like Jacob did. If you are in a lot of debt or already have a family 5 years may not be that feasible. It can be [...] [...] to quit your job. If you work really hard and cut back you can do it in as little as 5 years like Jacob did. If you are in a lot of debt or already have a family 5 years may not be that feasible. It can be [...]

]]> By: How much money is enough for a person to not need to work for the rest of his or her life? - Quora http://earlyretirementextreme.com/how-i-became-financially-independent-in-5-years-part-i.html/comment-page-1#comment-17374 How much money is enough for a person to not need to work for the rest of his or her life? - Quora Tue, 19 Oct 2010 15:32:41 +0000 http://earlyretirementextreme.com/2007/12/how-i-became-financially-independent-in-5-years-part-i.html#comment-17374 [...] lower bounds on this number, see Jacob Lund Fisker's Early Retirement Extreme blog and bookhttp://earlyretirementextreme.co...Insert a dynamic date here BIU     @   @ ReferenceEdit [...] [...] lower bounds on this number, see Jacob Lund Fisker's Early Retirement Extreme blog and bookhttp://earlyretirementextreme.co…Insert a dynamic date here BIU     @   @ ReferenceEdit [...]

]]> By: Rich Dad Poor Dad’s Increase your Financial IQ « Simple Living in Suffolk http://earlyretirementextreme.com/how-i-became-financially-independent-in-5-years-part-i.html/comment-page-1#comment-17018 Rich Dad Poor Dad’s Increase your Financial IQ « Simple Living in Suffolk Thu, 07 Oct 2010 19:48:39 +0000 http://earlyretirementextreme.com/2007/12/how-i-became-financially-independent-in-5-years-part-i.html#comment-17018 [...] Money or Your Life but it isn’t in the library. RDPD polarises opinion – some people find the book inspirational, some find it dire, and some people aren’t quite [...] [...] Money or Your Life but it isn’t in the library. RDPD polarises opinion – some people find the book inspirational, some find it dire, and some people aren’t quite [...]

]]> By: What Do You Need to Get out of the Rat Race and Achieve Financial Freedom? | Invest It Wisely http://earlyretirementextreme.com/how-i-became-financially-independent-in-5-years-part-i.html/comment-page-1#comment-16951 What Do You Need to Get out of the Rat Race and Achieve Financial Freedom? | Invest It Wisely Tue, 05 Oct 2010 16:38:23 +0000 http://earlyretirementextreme.com/2007/12/how-i-became-financially-independent-in-5-years-part-i.html#comment-16951 [...] How I became financially independent in 5 years – Part I (Early Retirement Extreme) [...] [...] How I became financially independent in 5 years – Part I (Early Retirement Extreme) [...]

]]> By: Roger, the Amateur Financier http://earlyretirementextreme.com/how-i-became-financially-independent-in-5-years-part-i.html/comment-page-1#comment-16912 Roger, the Amateur Financier Mon, 04 Oct 2010 17:27:57 +0000 http://earlyretirementextreme.com/2007/12/how-i-became-financially-independent-in-5-years-part-i.html#comment-16912 Ah, Rich Dad, Poor Dad. I, like many personal finance writers, have a bit of a love-hate relationship with that book. On one hand, I'm a member of the 'Kiyosaki shook up my view on money, and got me to think about saving, investing, and building wealth in ways other than working my tail off' club, and for that I do appreciate the book. On the other hand, the actual advice in the book tends to be largely generic at best and counterproductive to building wealth at worst. (Plus, as Monevator notes, there's a decided sense of diminishing returns with his later books; Rich Dad, Poor Dad isn't bad, Cashflow Quadrants has some interesting perspectives, but after that, it seems to be all downhill.) I haven't yet read Your Money or Your Life (yes, I realize that seems nearly impossible, coming from a personal finance blogger, but I just haven't gotten to it yet), but it does sound like a very good book. Ah, Rich Dad, Poor Dad. I, like many personal finance writers, have a bit of a love-hate relationship with that book. On one hand, I’m a member of the ‘Kiyosaki shook up my view on money, and got me to think about saving, investing, and building wealth in ways other than working my tail off’ club, and for that I do appreciate the book. On the other hand, the actual advice in the book tends to be largely generic at best and counterproductive to building wealth at worst. (Plus, as Monevator notes, there’s a decided sense of diminishing returns with his later books; Rich Dad, Poor Dad isn’t bad, Cashflow Quadrants has some interesting perspectives, but after that, it seems to be all downhill.)

I haven’t yet read Your Money or Your Life (yes, I realize that seems nearly impossible, coming from a personal finance blogger, but I just haven’t gotten to it yet), but it does sound like a very good book.

]]> By: Steve in W MA http://earlyretirementextreme.com/how-i-became-financially-independent-in-5-years-part-i.html/comment-page-1#comment-16611 Steve in W MA Sat, 25 Sep 2010 07:26:24 +0000 http://earlyretirementextreme.com/2007/12/how-i-became-financially-independent-in-5-years-part-i.html#comment-16611 Whether Kiyosaki is a snake oil salesman or not, the fundamental idea behind his book is correct. if you are not already rich, cut your spending way down and use as much money as you can to Invest to invest to create income-producing assets. Figuring out what is a valid income producing asset is an art to itself, and I think that is where the criticism of Kiyosaki as a promoter comes in. However, the fundamental idea is correct. I have a friend who owns a quarry. For years he had an employee who was extremely frugal. Always brought his own lunch. Never ate out. Saved most of his money--even though he never made more than $10 an hour at his job at the quarry. Within a few years he bought a condominium at a foreclosure auction in cash. This is the idea. Save your money and wait to purchase an assset. (Now, the condo was not strictly speaking an income producing asset. What it was was an expense reducing asset. But I am pretty sure that this guy soon bought another condo or a rental property, although at the time my friend told me the story he hadn't yet done so.) Contrast this to the other employee who also earned $10 an hour and frequently came to my friend looking for an advance on his pay because he had spent all his money. Eventually my friend refused him. This story is not apocryphal, by the way. If you ever want to hire an amazing backhoe operator for something and live in my area, the quarry is 10 miles up the road and my friend can probably give you a referral to this guy. Whether Kiyosaki is a snake oil salesman or not, the fundamental idea behind his book is correct.

if you are not already rich, cut your spending way down and use as much money as you can to Invest to invest to create income-producing assets.

Figuring out what is a valid income producing asset is an art to itself, and I think that is where the criticism of Kiyosaki as a promoter comes in.

However, the fundamental idea is correct.

I have a friend who owns a quarry. For years he had an employee who was extremely frugal. Always brought his own lunch. Never ate out. Saved most of his money–even though he never made more than $10 an hour at his job at the quarry.

Within a few years he bought a condominium at a foreclosure auction in cash.

This is the idea. Save your money and wait to purchase an assset. (Now, the condo was not strictly speaking an income producing asset. What it was was an expense reducing asset. But I am pretty sure that this guy soon bought another condo or a rental property, although at the time my friend told me the story he hadn’t yet done so.)

Contrast this to the other employee who also earned $10 an hour and frequently came to my friend looking for an advance on his pay because he had spent all his money. Eventually my friend refused him.

This story is not apocryphal, by the way. If you ever want to hire an amazing backhoe operator for something and live in my area, the quarry is 10 miles up the road and my friend can probably give you a referral to this guy.

]]> By: the Autumnal Equinox, when the light surrenders to the darkness « Simple Living in Suffolk http://earlyretirementextreme.com/how-i-became-financially-independent-in-5-years-part-i.html/comment-page-1#comment-16567 the Autumnal Equinox, when the light surrenders to the darkness « Simple Living in Suffolk Thu, 23 Sep 2010 16:09:38 +0000 http://earlyretirementextreme.com/2007/12/how-i-became-financially-independent-in-5-years-part-i.html#comment-16567 [...] for five years without working. I have assets equivalent to about three years running costs which I saved the ERE way in two years. Some of that is in shares ISAs which the oncoming Kondratieff Winter * could write [...] [...] for five years without working. I have assets equivalent to about three years running costs which I saved the ERE way in two years. Some of that is in shares ISAs which the oncoming Kondratieff Winter * could write [...]

]]> By: money babe http://earlyretirementextreme.com/how-i-became-financially-independent-in-5-years-part-i.html/comment-page-1#comment-15280 money babe Tue, 24 Aug 2010 00:46:26 +0000 http://earlyretirementextreme.com/2007/12/how-i-became-financially-independent-in-5-years-part-i.html#comment-15280 I first heard of Rich Dad Poor Dad when I was in college. My friend’s father pushed it to him after he flunked his entire first semester subject due to his excessive online gaming. He was so inspired after reading but I never bothered asking him about the content. Hey, I have good grades and I have a stable allowance. I really wished I borrowed the book after he was finished. I’m in a financial turmoil but he’s now pretty accomplished and earning money fast. A part maybe attributed to his parents’ good financial background. But, nevertheless I still have my regrets. Nice post! I first heard of Rich Dad Poor Dad when I was in college. My friend’s father pushed it to him after he flunked his entire first semester subject due to his excessive online gaming. He was so inspired after reading but I never bothered asking him about the content. Hey, I have good grades and I have a stable allowance. I really wished I borrowed the book after he was finished. I’m in a financial turmoil but he’s now pretty accomplished and earning money fast. A part maybe attributed to his parents’ good financial background. But, nevertheless I still have my regrets. Nice post!

]]> By: Investing It Wisely: What is It All About? | Invest It Wisely http://earlyretirementextreme.com/how-i-became-financially-independent-in-5-years-part-i.html/comment-page-1#comment-14598 Investing It Wisely: What is It All About? | Invest It Wisely Wed, 11 Aug 2010 14:19:12 +0000 http://earlyretirementextreme.com/2007/12/how-i-became-financially-independent-in-5-years-part-i.html#comment-14598 [...] Early Retirement Extreme: How I became financially independent in 5 years – Part I [...] [...] Early Retirement Extreme: How I became financially independent in 5 years – Part I [...]

]]> By: My Escape Plan « Simple Living in Suffolk http://earlyretirementextreme.com/how-i-became-financially-independent-in-5-years-part-i.html/comment-page-1#comment-14377 My Escape Plan « Simple Living in Suffolk Wed, 04 Aug 2010 22:47:14 +0000 http://earlyretirementextreme.com/2007/12/how-i-became-financially-independent-in-5-years-part-i.html#comment-14377 [...] lifestyle. So if I want to retire early, then I have to hit the financial goal hard. Jacob from ERE tells us that it is possible to achieve early retirement in five years. With similar determination, therefore, in theory it would be possible for me to achieve it in less [...] [...] lifestyle. So if I want to retire early, then I have to hit the financial goal hard. Jacob from ERE tells us that it is possible to achieve early retirement in five years. With similar determination, therefore, in theory it would be possible for me to achieve it in less [...]

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