If you're new here, this blog will give you the tools to become financially independent in 5 years on a median salary. 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 of losing their jobs.
Here's almost a thousand online journals from people, who are following the ERE strategy tailored to their particular situation (age, children, location, education, goals, ...). Increasing 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.
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 looking for the crowd's wisdom for your particular situation in the forum journals.
If you enjoy the blog, also consider the book which is much better organized and more complete. You can read the first chapter for free, listen to the preamble, or see the reviews (1,2,3,4,5,6,7,8,9, A,B,C,D,E,F,G,H,I,J,K,L,M,N,O,P,Q,R,S,T,U,V,W,Z). Subscribe to the blog via email or RSS. Get updates on the facebook page, join the forums, and look for tactics on the ERE wiki. Here's a list of all the ERE blog posts.
There is an abundant swath of personal finance tools, 10 step programs, weight loss programs, etc. that are all intended to fix our problems. This country is HUGE on methods but poor on fundamentals.
To beat obesity, you’ve got to consume less and burn more. There is no alternative. And to do that, you’ve got to change the culture.
— Bill Clinton
This is a culture that buys its solutions. In technology we trust! Take a pill. Buy our software package. Follow this easy program. However, the problem is not with the number of solutions that are available for purchase. The problem is that the prevailing attitude that solutions are bought from someone else rather than created by oneself. Therefore to stop being poor people need to give up their consumerism.
The problem is that it is really hard to explain the fundamental problem as it can’t be sold in shrink-wrapped packaging by definition. It seems to require some kind of epiphany just like some people almost need a heart attack to finally take their physical health seriously.
Much thanks to LB for the donation.
Originally posted 2008-03-24 07:37:34.
