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.
GE just set a new intraday low at 14.61 after which the stock went up and closed at 16.86 (I may be off on the last decimal). Apparently, I’m in good company today. Jeff Immelt (the CEO) bought 50,000 shares (apparently he has more money than I do, eh?) at 16.41 and the VP of GE Capital also bought 50,000 at 14.99. I came in in between at 15.22. That’s a dividend yield over 8% or $124 bucks for me in 2009.
Was this the bottom? I don’t know. At these prices I’m still buying. Will GE cancel their dividend? They “said” they would not (words words words) and their cash flow from their non-finance operations would be enough to support it.
I also note that the CEO of WFC went in and bought close to the bottom after which the stock went up significantly. There’s something to be said for eating your own cooking.
