Monday, August 30, 2004

Where to begin

This Blog is meant to serve as a diary for my personal finance goals. In short, I hope by the middle of 2005 to be able to support myself on a part time income, and have as little debt and as much savings as possible.

To get there, I have some hurdles to overcome. Not as many as some people, but enough that this project is going to need some creativity and serious budgeting.

I'll lay out the details in coming days and how I hope to proceed. Advice and feedback is always welcome.

1 comment:

Anonymous said...

I'm the one who the one guy called an idiot...geez! That guy needs a stronger dose. If I'm an idiot so are the great universities! Havard, Yale, their number one priority is the preservation of capital...can you say ENDOWMENT?

It sounds like you understand that your car loan was a mistake; do not make it worse by throwing good money after bad?


I am also working towards a more balanced life and the right mix, for me, of earning and leisure.

I have a theory about work: Work is a good thing; we all like to feel productive and that we are contributing. But there is such a thing as too much of a good thing! Five days a week, forty, fifty hours a week is too much.

I tried four-day weeks, still too much. I think the right mix for me is three-day workweeks and four day weekends. If you can work ten hour days that is only a twenty-five percent cut in pay (less actually if you consider income and employment taxes; probably a twenty percent cut or less).

And most of us have twenty percent fat in our budget. In your case, it's your car and debt. My net worth is over a million, I'm not bragging (a million ain't what it used to be) but I want you to know that I've been there and done that.

I live in a 4000 square foot house with a diving pool and a two-story glass atrium through the middle of it. But I drive a 96 Dodge PU and my wife drives an economy car.

Read "The Millionaire Next Door" Achieving financial independence is about following a few basic rules. Rule One: Cash is to expensive to part with needlessly. Havard doesn't do, Yale doesn't do it and Millionaires don't do it.