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.
GE just set a new intraday low at 14.61 after which the stock went up and closed at 16.86 (I may be off on the last decimal). Apparently, I’m in good company today. Jeff Immelt (the CEO) bought 50,000 shares (apparently he has more money than I do, eh?) at 16.41 and the VP of GE Capital also bought 50,000 at 14.99. I came in in between at 15.22. That’s a dividend yield over 8% or $124 bucks for me in 2009.
Was this the bottom? I don’t know. At these prices I’m still buying. Will GE cancel their dividend? They “said” they would not (words words words) and their cash flow from their non-finance operations would be enough to support it.
I also note that the CEO of WFC went in and bought close to the bottom after which the stock went up significantly. There’s something to be said for eating your own cooking.
Permaculture articles!
