If you're new here, this blog will give you the tools to become financially independent in 5 years. Here is how I did it and here is how I currently do it. The method is robust and replicable (no need to win the lottery, start a blogging 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). There is a "21 day" step-by-step plan for how to get to 75% in the left side bar. I try not to be too trite, so if I cover a topic, you will probably not see it again for a very long time, thus you may want to read the older posts here and here. Also, check out my answers to frequently asked questions and while you're at it, don't forget to subscribe to the blog via google or RSS.

Sometimes it can be hard to stay motivated on the road to high savings. After all, what are they other than a number in the bank. I remember when I was saving for new computers and $700 might be classified as half a computer, but when I reached $4000 I was beginning to have problems putting it in perspective given that my original motivation was to buy a house and $4000 might be classified as 1% of a house. 1% how exciting, huh? What about the other 99%?

Luckily my work used to be right next to a car dealership and I would pass it every time I went to the supermarket to pick up some fruit for lunch.

I started counting my net worth in cars!

First, I noticed that if I kept saving, I would be able to buy an ugly green beater in cash next month. I would walk by that car every day and think “Ha, I can buy this one in cash”, or “Dude, I pwn you!” (obviously cars are dudes too). After about half a year, I was up to a couple of cars. I used to fantasize about walking into the dealership with a suitcase full of small bills and present it when they asked me about financing choices.

My girl friend was not as psyched about savings as I was, but one day we walked past a car dealership and I was talking about my saving plans and pointing out how I could buy that, that and that car, but not quite that car (it was a big Mercedes) IN CASH. After that she was hooked too and immediately cut down her expenses and starting saving a lot of money.

So thank you car dealerships for putting nice big stickers on all your cars to compare my net worth too. It has been very motivating for me! Thank you!