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.
Well, in a hundred years, I’ll probably be death (“Lost off the coast of … in a hurricane”), so this question is mainly relevant for our descendants [for those of you who have such].
In a recent post on the future, frugal bachelor commented:
I doubt the IPOD will be repaired in any conventional sense, yes the raw materials are valuable, it will make more sense to melt the whole thing down and recreate it from scratch. If in 100 years people will take apart an IPOD have a soldering iron and hook an oscilloscope, then we are truly screwed.
Now, it is quite possible that we are truly screwed. I will consider the peak oil predictions well known. Usually, economists, politicians, computer scientists, and other people with no grasp of reality will comment that the economy can grow regardless of falling energy output, this is referred to as increasing the energy intensity. True, if you outsource the energy costs to other countries.
The fact is that running electronics is quite cheap. However, building said electronics, that is, microchips in particular (let’s have a moment of silence for PV panels), is enormously expensive in terms of energy. Depending on exactly how high the price of energy goes, we may very well see a salvage operation and a repair of consumer electronics that goes beyond today’s efforts. And once those chips die, you might not see another one.
Originally posted 2009-08-01 00:01:59.