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.
To prepare for downsizing we had a garage sale today. We got rid of a bunch of stuff. The median price was about $1 and the average price was not much higher, and overall we sold for about $60, so all in all we did manage to shed a bunch of stuff. It still looks “crowded” in our cupboards, as most of the suff came out of boxes that were hidden away in the closets and the outdoor shed. This saddens me and I do think we’re still quite far from fitting everything into an RV (if that is the ultimate choice).
Some garage sale tips:
- It was clear that most people came between 9 and 12. After that it was pretty much dead, so next time we’ll probably hold it from 8a to 1p instead.
- We did not buy signs or advertise in the newspaper. Instead we cut up a cardboard box nad made signsout of that which we duct taped to sign posts around the neighborhood.
- We did not rent tables. Instead we put boards (which we had) across the totes and boxes that the stuff was stored in – that worked well.
Since we “only” made $60, I would have been disappointed if we had paid money to sell the stuff.
This week in the carnivals:
