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Best practices in cost-accounting from the FIRE movement
The appeal of the 4% annual expense strategy
Life hacks in extreme frugality
The Peak Prosperity community shares its collective wisdom
If you have not yet read Part 1: Extreme Frugality, available free to all readers, please click here to read it first.
Our readers and subscribers come from all over the world and of every possible political orientation and financial means. Rich, poor, young, old, liberal, conservative all are drawn curiously to the data which says, “none of this is sustainable.”
The challenge, as always is figuring out how to live and comport oneself given the circumstances.
The truth is, that it’s never been easier to survive than it is today. Compared to any agricultural society of the past 10,000 years, these are truly abundant, amazing times.
What if it were possible to uncouple from ‘the rat race’ and thereby regain a big portion of one’s time for oneself to use as you please? I assume everyone would find that desirable. Time would open up for one to volunteer, travel, get in shape, meditate, sleep or do whatever you desire.
The purpose of this report is to open up the Peak Prosperity experience chest and gather your stories and tips and tricks for living frugally. Maybe you haven’t explored that yet in your life and wish to listen in and observe. Maybe you live this way more completely than most and have a lot to share.
My role is to set the stage, and I’ve spent a huge amount of time reading blogs, finding resources, and condensing that to save you time.
There’s a well-established movement underway the goes by the acronym FIRE, which stands for Financial Independence Retire Early. It’s not for everybody, and has a ton of pros and cons, and I’m not advocating that anybody now adopt FIRE as their framework, although some of you may well do that.
I am saying that the movement has put a lot of thoughtful time into managing the income and expense parts of life and it has a lot of very practical advice to follow if one wishes.
One excellent blog, well-written and thoughtful, is http://earlyretirementextreme.com. This captures some of the thinking nicely:
I posit that most people can attain financial independence in less than 10 years and in less than 5 if they are truly determined. I also…