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 started commuting I put in 3800 miles on my bicycle. For those fitness nuts out there that is 171,000 kcal (figure 20mph corresponding to 900 kcal/hour) or the equivalent of 40 pounds of fat or about half a pound a week. How is that for weight loss? (*) No wonder I eat like a horse to stay at a constant weight. Horses eat oatmeal, right?
(*) Yes, you can get in shape, lose fat, and save on gas while not paying a dime all at the same time. Why not try it?
However, those miles are starting to take a toll on the equipment. First it was the pants! Then I noticed that my rear tire was starting to look frazzled. Rear tires tend to wear out three times as fast as front tires. Besides, I have not been keeping my tires fully inflated lately (stupid me). Now my old (very old) self would have considered this an excellent excuse to go and buy some new tires and discard the worn ones. However, this goes against the maximum use philosophy. There is still plenty of life in the front tire and the rear tire still hangs together, so I simply switched them around. At the same time I cleaned the bike and the drive train. It is almost like getting a new bike.

Originally posted 2008-08-28 17:40:16.