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.

I found a New York Times article on to measure your relative position in prestige, education, income and wealth. Sounds fun so here are my numbers.

  • Occupation: 82th percentile. This is based on a survey of what random people in America thinks is the most prestigious. For someone that frequently get blank stares when I tell them what I do I find this hard to believe. Someone driving a Saturn gets more accolade than I do.
  • Education: 99th percentile. It’s true. I needed more schooling than 99% of everybody else before I could enter society as a productive member. However, this is counting degrees only which I think is the wrong way to measure skills and knowledge. Some people pump and dump their brains while others learn things without getting a degree. I would say class-wise that people who went through the grad school experience are in a class of their own e.g. the “How many PhDs does it take to screw in a light bulb”-class(*) :-)
  • Income: 84th percentile. I got a big bump up the scale from my most recent position. I’m not including investment income or side income which would bump this to 88%. Four years ago I was below 40%. Of course this depends on where you live. Sitting at 88 is not that impressive around here.
  • Wealth: 85th percentile. I do think I too a large extend identify with other wealthy people even though I have far less than what the middle class considers wealthy. I think we do share an attitude of where money comes from e.g. savings and investing and not a paycheck. I am quite surprised that I am at this level though. I think this says more about the 85% than it does about me. People should save more. Of course being “up there” does not bring any prestige. Driving luxury cars and living in big houses does.
  • Average: 88th percentile – it’s the arithmetic average of apples and oranges.

(*) Just in case you were wondering. It takes only one PhD to screw in a light bulb, but it may take 3 or 4 tries to get it right.

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