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.
I suppose I should have developed an appropriate level of cynicism when it comes the familiar products I use: No, they are not proprietary products based on secret formulas painstakingly developed by bench scientists during many years of research. No, most products are simply comprised of a few simple ingredients to which you add a bunch of preservatives so they store well on store shelves and a bunch of coloring agents that gets added to an impressive marketing campaign.
And so we pay through our ignorance, both in terms of cost and the possible side effects of ingesting all these funny chemicals.
Did you know that to make thousand island dressing, you only need 10 parts ketchup to 10 partsmayo to 1 part vinegar or thereabouts (Vary slightly to taste… Note that some suggest adding relish but this is crazy-talk.)? I did not, but I do now! Awesome—like a hotdog!
Indeed you could make your own ketchup and your own mayo as well.
In fact I am trying to get into the habit of searching the web for “homemade X” or “DIY X” every time I need some X. My last search was for some oven cleaner. No problem.
What you will find is that most products are made from the same basic staples, just like food. All you need to learn is how to put them together instead of relying on companies to supply them to you at a higher cost with additives and profit margins and other undesirables.
Originally posted 2010-01-12 23:07:28.
