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.
Heavily inspired by the Molson beer commercials several years back.
Hey,
I’m not a trust fund baby
Or a dot com millionaire
And I didn’t get famous on TV
Or win the lottery
Or a game show
And I don’t earn a six figure income
Although I’m sure that would be really really nice
I live within my means, not beyond them
I have a diversified portfolio, not a mortgage
So people pay me interest, not the other way around
I work hard, but I no longer need to work for a paycheck
I believe in savings, not in buying stuff I can’t afford
Cash not credit
And that frugality is not deprivation but a worthy goal
A penny saved is a penny earned!
And it is buy and hold, not buy and sell, hold!
Savings are the first requirement to invest!
The primary source of compound interest!
And the most direct path to early retirement!
My name is <insert your name>, and I am financially independent!
Originally posted 2008-01-03 07:33:51.
