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.
One of my informal theories is that a great deal of human performance metrics span about an order of magnitude. A very strong person is about 10 times stronger than a very weak person. A very fast person is about 10 times faster than a very slow person. In particular
- There are some for whom a marathon is just a training run.
- There are some for whom a 5k is just a training run.
- There are some for whom 500m is just a training run.
- There are some for whom walking is just a training … walk.
- …
It is very interesting how wide the range can be. I use it as a reminder: Whenever I think I have accomplished something which I think of as impressive there are probably someone out there for whom what I just did was routine.

Originally posted 2010-05-04 16:48:52.