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.
Today we’re going to one of the tax companies to get our state taxes done. Hopefully they will give us a discount since I already did the federal return myself. In 2007 we were apart time resident of two states. The tax consequences of that can be described in one word: PAIN! Mostly the problem is not in filling in forms, but in figuring out which forms to fill. Another reason is the law of comparative advantages. This law is frequently used to justify paying for services like, uh, tax preparation, lawn care, child care, pet care, and all the other forms of care people work for to pursue a “carefree” existence. However, this doesn’t fly logically for salaried positions. Presumably, if I wasn’t working, I would be sitting on my butt earning $0. This is not the case anymore and I think I’m better at cropping figures and coding typesetting that figuring out the tax law jungle.
Moving on.
This week I had a guest post at Canadian Dream: Free at 45. If you think I’m crazy and too far out, Tim has a more moderate approach by essentially adding 10 years to the plan. Go and subscribe!
I know this isn’t the point of the video, but I find the bear’s dance moves hilarious. (Especially the “wave” thing he does in the middle of the court. 😀 )
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