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.
If words are corrupt, thinking is corrupted too. Hence, if you can change the meaning of an original word, you can change the way men think. I find this double-plus interesting.
Recently, a new term has entered the field of personal finance: Sacrifice.
Originally sacrifice means
- Giving something up to gain a better position. For instance, a chess piece can be sacrificed for a better position that leads to later material gain.
However, lately sacrifice has come to mean
- Giving something up. Period.
This has cut the original point of sacrificing out of the equation and thus the average man is now giving things up with no particular plan of gains. This is excusable during shock events like job loss when spending is cut. Yet, if this new meaning of sacrifice becomes adopted, the thought that a better position is obtainable by sacrificing consumption is eliminated.
Originally posted 2009-06-29 00:08:56.