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.
Lately my mind has been completely elsewhere [than on the blog](*). With the recent run-up I am now wealthier than ever (that’s a lot more fun than bleeding money on a daily basis like 2008-March 2009). I have also tracked my investment income from dividends and covered calls and noticed that with $7700 so far, I have readily passed this years expenses in cash flow (again). So that is nice. Of course, although if Monte Carlo is to be taken religiously, the new highs would mean I could increase my withdrawal rate by quite a bit, I am not doing so. The preferable strategy would be to shift the increased amount of money into safer (often means lower paying) assets.
(*) Have I run out of things to say or is it just a phase?
As for the bike repair, I can now fix a grip shifter as well—used to be a mystery, but they’re really quite simple. The other day I was reading Zinn & the Art of Road Bike Maintenance and was amused to note that I now have ALL the tools for “Intermediate” level repairs (except the bike stand). This only leaves out presses, taps, and various hammers. There is a certain empowering feeling in being able to fix even minor things. Before, I’d live with a “funny sound” because I would not take it in to the shop to pay $50 for a two minute job. Now I just do it myself. I want to be able to do the same with the car and RV engines.
This post was sponsored by www.cycle-parts.com. For more info, see Oem and Aftermarket Motorcycle Parts.
Originally posted 2009-09-19 08:19:52.
