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.
I can make this really simple.
- Wealthy is what you can do.
- Rich is what you do do.
- Broke is what you can’t do.
- Poor is what you don’t do.
Rich and poor are demonstrated visibly.
Whether someone is wealthy or broke is hidden or a latent, but it may become visible. Conversely, what is visible eventually becomes hidden(*).
It is really quite obvious isn’t it?
(*) For nonproductive behaviors, poor leads to wealthy and rich leads to broke. For productive behaviors, rich leads wealthy and poor leads to broke.
