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.
Frugal guys are hot, attractive, handsome, … and always willing to walk that extra mile with you to save 50 cents on the bus fare, so what’s not to like? Today DW is on the keyboard talking about how it was for a normal girl to marry an, as she puts it, unusual guy [me] in a guest post over at Dollar Frugal. Living together often means compromise. For instance, while I just learned that I achieved MSN Moneyblog fame for blowing my nose in a handkerchief(*), DW still uses kleenex, thus compromising our snot disposal budget. So I understand compromise, alright 😉
Jokes aside, from my perspective it has also taken some getting used to. I have to sell (not my strong side) a position that looks bad in the present but which usually turns out to be good choice in retrospect. Unless frugality and savings is in your blood, frugal and financially prudent choices rarely makes you feel good in the present. Rather, it takes some time to realize the compound effect of all the little decisions, where one small decision makes you free to make a bigger decision and so on. For instance paying $200 off on a $10k debt might seem futile now, but after a couple of years that debt will be gone. Similarly, not getting a piece of furniture now means not having to get rid of it if we move into something smaller, whence less choice in the present eventually gives us more choice in the future. There is always a strategic component to everything that needs to be argued e.g. no latte now means a more comfortable retirement, etc.
(*) – Surely this one goes on my resume! 🙂
Originally posted 2008-01-15 07:31:56.
