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.
Carpooling has been suggested as a solution to alleviate increasing gas prices. The problem is that finding someone to carpool with is a difficult task requiring much research into whether the driver is dependable, etc. Except for major cities it is even to time-consuming/costly to get a cab. Thus today it is highly convenient to own your own car.
A much better system would be if all car owners had an easy way of turning into part time cabbies. If people could expect a large fraction of drivers to be willing to take one for a ride at a price, this would significantly reduce the individual need for private cars. In general this would be a more efficient economic system as [unemployed] car owners would derive an income and car-non owners would save on car ownership.
It might surprise you to learn that such a system once existed. The semi-cabs were called jitneys (jitney=slang for nickel) where the expectation was that a ride cost a nickel. They were killed off by government subsidizing streetcars. Later the streetcars were bought out by the big automakers and the need for private car ownership was created.

Originally posted 2008-06-09 18:47:46.