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 how I how I enjoy a middle class lifestyle while only spending $7,000/year.
More importantly, here's more than a hundred online journals from other people, who are following the same strategy tailored to their particular situation (age, children, location, education, goals, ...). They have increased their savings from the usual 5-15% of their income to tens of thousands of dollars each year or typically 40-80% of their income. Many accumulate six-figure net worths within a few years.
The wiki page gives a good summary of the principles of the strategy. The key to success is to run your personal finances much like a business, thinking about assets and inventory and focusing on efficiency and value for money. Not just any business but a business that's flexible, agile, and adaptable. Conversely most consumers run their personal finances like an inflexible money-losing anti-business always in danger on losing their jobs to the next wave of downsizing.
Since everybody's situation is different (age, education, location, children, goals, ...) I suggest only spending a brief moment on this blog, which can be thought of as my personal journal, before delving into the forum journals and looking for the crowd's wisdom for your particular situation.
Suppose you were offered a job where the net benefit to society or yourself (other than the pay) was very small. You can pick between either of these two
- Digging holes and filling them up again.
- Writing “I’m working” over and over on a form and then throwing those forms in the wastebasket.
For the purpose of this exercise, the only benefit to society is an increase in GDP.
What is the minimum wage you would be willing to work for? Alternatively, what other incentives, health insurance, resume building, network, …, would make you work these jobs?
My answer: I would be willing to work either one for about $80/hour which is more than twice of what I have ever earned simply because at that rate I would be earning money really fast and that would be kinda fun. I’m not sure I would last that long though. Could it be true that “raises” rather than absolute income are what keeps many people working?
Respond in the comments.
Originally posted 2009-08-14 12:38:06.