Personal Finance Challenge #45: The ERE (Early Retirement Extreme) Way by Jacob Fisker

On the last post I talked about the Dave Ramsey Way and his seven steps to financial freedom called The Total Money Makeover. I talked about how many personal finance experts have their own way of describing the path to financial freedom and how they all fit on various parts of the spectrum.

Dave Ramsey is a personal finance expert for the masses. Jacob is a personal finance expert that developed the 21 Day Makeover for those that want to go deeper. As I described it on the last post…

“Dave’s work is for the masses, people just getting into personal finance, and for those where even taking a few basic steps will vastly improve their financial situation.

Jacob’s work is for people who want to go deeper. Who truly want to maximize every dollar they have, and stretch it as far as it can go. People who would be interested in Jacob’s work are more likely to be closer to accomplishing all of Dave’s seven steps instead of simply just starting them.” Of course, you might be wiser just starting with this way of doing things in the first place.

With that being said, here is the Jacob Fisker Way…

Day 1: Finding a place to live – Find an inexpensive place to live that is close to work and within walking or biking distance to grocery stores, social activities, etc.

Day 2: Decluttering and managing stuff – Rule your stuff, don’t let it rule you.

Day 3: Grocery shopping – This is probably one of the hardest things for people to change, but it’s a case of little purchases that add up quickly.

Day 4: Drop the cell phone plan – Do you really need the expense of a portable phone?

Day 5: Find a free hobby – A free hobby or one that could potentially make or save you money is even better.

Day 6: Clothes – Don’t stay up with fashion. Buy for functionality and buy quality.

Day 7: Going car free – Save the environment, be healthier, and save money all in one.

Day 8: Get engaged! – Jacob’s take on finding your calling in life. (Hint: It might not be your job.)

Day 9: Budgeting – Jacob’s take on budgeting.

Day 10: Calculating net worth – How to truly look at your net worth.

Day 11: Connecting your stuff with your neighbors – Do you have to own everything, or can you learn to share? 😉

Day 12: Establishing a savings account – Jacob’s take on savings.

Day 13: Insurance – Jacob’s take on insurance

Day 14: Investing for early retirement – Part 1 – This is where Jacob really sets himself apart from common thinking. Using your investments to actually retirement early. Think about retiring in your 30s or 40s.

Day 15: The first two weeks of the make over – A check in to see how you are progressing.

Day 16: The stuff you actually keep and use – Maximize the quality of things you use a lot, minimize the quantity of things you rarely use.

Day 17: Maintaining and repairing things – Practice getting better at maintaining, repairing, and building things to save money and gain satisfaction in using your abilities.

Day 18: Join a challenge – Constantly challenge yourself. May I suggest one of the 52 challenges I am handing out? 😉

Day 19: Getting rid of your TV (addiction) – Jacob argues that a TV keeps you where you are now, the status quo. But you want to improve your situation right? Get rid of the tv then.

Day 20: Own classics – Buy things that stand the test of time.

Day 21: Investing for early retirement – Part 2 – The story goes on… Keep on learning investing till you become an expert at it.

So start off with Finding a Place to Live then click on all the links that are currently on the left side of Jacob’s website at Early Retirement Extreme dot com. You can read each step in greater detail there!

This is our 45rd challenge in The Personal Finance Challenge Series…

Originally posted 2011-12-02 12:23:05. Republished by Blog Post Promoter

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