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.
Previously, I have a advocated having about 12 items of socks, underwear and shirts based on the laundry cycle of the typical toploading laundry mat.
This works well, because it allows you do a cold and a warm (60C) wash at the same time every two weeks or so. This works well for a single person. If you’re a couple, you can divide by 2.
However, realize that the size of the wardrobe is strictly limited by how often laundry needs to be done. In the past couple of weeks I have verified the obvious. When I was packaging my luggage for my trip back to my folks, I asked them how often they did laundry. All the time, they replied (smaller washing machine and three adults in the household). Since I would be number 4, I just divided the magic number 12 with 4 and so I brought 3 pairs of underwear, 3 t-shirts, 2 pairs of pants, and 1.5 sweaters (a thin and a thick one) including the ones I am wearing.
The desire to use a washing machine efficiently generates a need to own more clothes. If you handwash or otherwise is able to wash really small loads, it is possible to make do with just one set.
Simply wash your clothes every day before you go to bed and let it dry overnight. This is possible for quick drying fabrics which sadly are rarely natural fibers.
Originally posted 2009-10-31 02:38:30.