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.
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.