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.
When I started commuting I put in 3800 miles on my bicycle. For those fitness nuts out there that is 171,000 kcal (figure 20mph corresponding to 900 kcal/hour) or the equivalent of 40 pounds of fat or about half a pound a week. How is that for weight loss? (*) No wonder I eat like a horse to stay at a constant weight. Horses eat oatmeal, right?
(*) Yes, you can get in shape, lose fat, and save on gas while not paying a dime all at the same time. Why not try it?
However, those miles are starting to take a toll on the equipment. First it was the pants! Then I noticed that my rear tire was starting to look frazzled. Rear tires tend to wear out three times as fast as front tires. Besides, I have not been keeping my tires fully inflated lately (stupid me). Now my old (very old) self would have considered this an excellent excuse to go and buy some new tires and discard the worn ones. However, this goes against the maximum use philosophy. There is still plenty of life in the front tire and the rear tire still hangs together, so I simply switched them around. At the same time I cleaned the bike and the drive train. It is almost like getting a new bike.
Originally posted 2008-08-28 17:40:16.