If you're new here, this blog will give you the tools to become financially independent in 5 years. 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 on losing their jobs to the next wave of downsizing.
Here's more than a hundred 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 delving into the forum journals and looking for the crowd's wisdom for your particular situation.
When I was a kid, Legos where my favorite toy. When I got a new box, I would first follow the instructions, and then take it apart and add the Legos to my general collection (sorted in colors). I would then build different things. This seemed to somewhat of a special talent. Not everybody did so.
The world is like a box of Lego. This too comes with instructions. Instructions on how to be successful in school, how interview for a job, how to get promoted and have a career, how to get a mortage, how to buy a house, and so on.
However, the Legos can be picked apart and combined in different and more interesting ways. This seems to be somewhat of a special talent?!
For instance, the tax system can be picked apart so that one takes advantage of the breaks given to the wealthy and the poor by having a low or no wage income but being wealthy and deriving one’s income from capital gains.
The institutionalized work-system can be used to provide a source of passive income as a capitalist instead of a career path as an employee.
The same system can be used to provide cheap consumer goods while at the same time one learns to maintain expensive luxury items so as to avoid needing a large income to pay the same system to repair them.
I bet if the world did not come with instructions from the age of 3, then maybe more would build the life they wanted rather than the life the instructions wanted. If you are a provider of instructions, consider,… are you really doing people a favor? Are you really helping them? Are you writing the instructions or are you just passing them along? If you are a consumer of instructions, how did you come to be that way? Have you always been like that?
If you got a box of Legos, what would you do with it?
Originally posted 2009-10-26 13:50:25.