erejacob

As does working for $40k a year and investing 30k annually which is what I did. There's no stock market magic required.

Exactly!

It isn't hard to do. It's only "hard to imagine" for those who aren't doing it. It's like being a runner and having a hard time convincing couch potatoes that running isn't primarily dominated by sweating, side stitches, gasping for air, and near heart attacks.

It's been my experience too that the majority don't give a second thought to what money represents. To most people money is something that comes out of a slit in the wall when they insert their plastic card. Some realize that this only keeps working as long as they maintain their job and don't get fired, but some don't consider that possibility either. Money really is life. Most people are born without things to sell, so they can really only procure money by renting out their mind or labor for others to use. One can always make more money but nobody can make more life. Hence, it's somewhat of an optimization problem: How much life to give up to procure enough money in order to make money with money instead of selling one's labor or thoughts.

PS: I'm jealous of your liveaboard experience. That's what I originally wanted to do but wifey wasn't prepared for the possibility of having our home sinking for whatever reason and to be honest neither was I (I hadn't taken up sailing at that time so I was clueless). Thus we settled on the RV.

Well, not to worry, most people won't make "the sacrifice".

Maybe if we transitioned to a production based economy but producing only quality items we needed. That way we wouldn't have to work so much. Unemployment would go down because people weren't scrambling for the the ability to consume. Concepts like planned obsolescence would go away.

A lot of what we refer to as "growth" is just an indicator that the volume of economic transactions is going up. However, just because the economy is getting bigger doesn't necessarily mean it's getting better. Breaking windows and replacing them creates economic growth, but it doesn't make the house better.

Yeah, it's not rocket science. The biggest money losers are too much house and too much car and all the interest payments that go towards it. Even by eliminating the interest by paying in cash you're already cut your expenses on those items by 50%. The rest is just details, but most importantly. Don't buy ANYTHING on credit.

I am aware of inflation. I did not intentionally imply anything about CPI. I was referring to the old generations attitude of "make it do or do without" compared to the current attitude of "just charge it on the card".

I like living in the US.

We bought our home in cash. Our home is currently an RV---bear with me here. The cost of it was $16k. We pay a combined $6000/year in rent (half of which is my half). You need $200k in investments to support such a cash flow (which I have). So the total cost or asset base or our current living situation is about $216,000 (not counting repairs which I can mostly do myself). We're seriously thinking of moving to Oregon (away from California) buying a house in cash for around $125,000. If real estate taxes are $1,500, this requires 50,000 in investments. Thus the cost of living of switching over to a house would be $175,000. Again, a lot of the maintenance I can do myself. It would be cheaper to not live in an RV, but it was a fun experiment.

Rent is included. See Frequently Asked Questions for a budget.

I just borrowed the title from the previous article. There's a budget here http://earlyretirementextreme.com/frequently-asked-questions and tons of other information on the rest of the site.