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.

The forum is turning out to be quite popular. It now has 70+ posts per day and 119 users with plenty of introductions. Participating in the forums, I hardly have time for blogging anymore. Actually, when I say I don’t have time, that’s not entirely true. I have plenty of time. What I don’t have is creative energy. Creative energy is much different from the kind of energy that is required for screwing nuts on bolts (or is that bolts on nuts); it is not something that can be willed forth. Yes, admittedly, I can write without creativity; I can be professional in my writing, but I bet that wouldn’t be very interesting to read. I used to write “professionally” in school [unpaid of course], where the output requirement was so many pages in so many days. That was a grind. But enough about my favorite subject (me) and onto the forums.

We have three people who have started their own journal:

We also have two meet-ups scheduled:

For investing, you should check out the Permanent Portfolio,which may just replace the Dogs of the Dow as the “officially” endorsed ERE portfolio. Also read the discussion on dividend investing. I was also looking for alternative ways to own assets that did not involve real estate or Wall Street, namely, owning a small business. Incidentally, those who have a lot of savings in their retirement accounts may want to look into the 72(t) rule [US only].

There has also been a lot of discussion on off-grid arrangements. There’s a lot of animosity towards the fixed fees of utility companies which often surpasses low impact usage. One way is the trailer/RV. One question is how much a priority this should be; also when considering peak oil.

I leave you with a long list of reasons to retire extremely early.

Originally posted 2010-07-31 10:08:14.