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.
In case you don’t read all the comments (note that it is possible to get all the comments in a single feed), I wanted to highlight an idea from Oasis in a recent comment of having a downsizing party.
You invite your friends to your home, the price of admission being a bottle of wine and in exchange they can bring away your clutter. Practically speaking, you could either mark it, put it in boxes, simply say yes or no when asked, or point out each item and ask if anyone wants it. Actually you don’t need the wine part, I just thought it was a clever idea. You could also organize it as a potluck.
In fact, getting really “primitive”—I may be overly generalizing here, but I understand what we think of as primitive people are very happy to give their stuff away (gift economy and all that)—a group could take turns hosting such parties. That way you would always keep your possessions trimmed and you might have an opportunity to acquire some new stuff. Also, it makes eating out a more worthwhile experience.
The only problem I see with this is if your friends are mostly downsizers themselves. I have run into that problem myself often enough: I got about 100 CDs I’m trying to get rid off. Do you want them? No, thanks, I’m trying to downsize. So best if you can invite some hoarders 😉
Originally posted 2010-03-09 13:55:59.
