There are a ton of different financial websites and blogs on the web. Each with their own strategy or mix of ideas. Reading through these blogs makes you realize that some ideas mix as well as oil and water. Enter financial extremism.
The vast majority of personal finance blogs are middle of the road. Pay off your credit card debt, invest in your 401k, wait 40 years, retire, die. It seems to be the pattern of the majority. Personally I’m not a fan of the idea of retirement or working somewhere for 40 years that I don’t enjoy… I suppose I’m not really a big fan of dying either…
Don’t get me wrong, I think a solid financial base with the personal finance 101 stuff is important, but it’s a bit like common sense and there isn’t much upside. Like J.D. so eloquently put it, you’re going to Get Rich Slowly. Is this a bad thing? One thing’s for sure, it’s fool proof and not too risky.
Of course like any group there are outliers. In the world of finance this means the rich, or the poor. Everything is relative of course as most anyone living in the US is richer than many of their global counterparts. Even so, the woman who can’t afford her Coach purse feels like she’s poor (life is rough, tear).
There are two blogs in the personal finance arena that are obviously outliers.
Adrian at 7 Million 7 Years… How many people do you know that are worth 7 million? Adrian did it in 7 years and writes about his strategies that are, of course, not common sense and not mainstream. He advocates starting businesses and investing in commercial real estate.
Jacob at Early Retirement Extreme… He retired in 5 years via traditional work, lots of traditional work, and cutting his living expenses to the bare minimum. This allowed him to retire with a nest egg much smaller than what your average financial planner would recommend. He currently resides in his RV and only works a few hours a month.
So are these guys financial extremists? A standard definition of extremism is:
“One who advocates or resorts to measures beyond the norm”
Yup, they’re financial extremists. Heck Jacob even put the word in his blog name! I see completely where both of these guys are coming from and both strategies (or a mix) seem tempting. The question though, that I ask you is, is it worth it to be a financial extremist?
Am I an extremist?
I would say that I am more so than the average American. I live considerably below my means, don’t believe in the traditional career path (personal choice), ride a bike around town, and have fairly lofty financial goals which will require businesses and real estate to accomplish.
So to wrap this up I’m curious about your opinion and if you find value in the idea of being an extremist. Is it worth it and is the idea attractive to you?
What do you think? Are you a financial extremist?
Where do you think financial extremism starts?
What strategy do you like best? Get Rich Slowly, 7 Million 7 Years, or Early Retirement Extreme?
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I’m not a fan of any kind of extremism, financial or otherwise. The idea of financial exteremism? No thank you. I like saving, but not to the point where I can’t splurge a bit every few months. I have my nice tv, my games, a nice apartment, and I save on the side.
I wouldn’t be happy living in an RV. I’d rather have my own business and live life on my own terms. I want to travel, but not at the expense of selling my car or my house.
With that said, I’m going to check out your recommended blogs!
Moon Hussain´s last blog ..Check-Off Friday: Where I Am With My Goals (And Where The Hell Are You With Yours?!)
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Ryan Reply:
February 12th, 2010 at 9:16 am
Everything in moderation, agreed… I think some people actually the creation of a business and being competitive such as Adrian so I think it works for him, but not for most people probably not since they aren’t passionate about the same thing.
Ryan´s last blog ..Hiking Diamond Head and Snorkeling In Waikiki
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Wow! Moon took the words right out of my mouth.
When I started blogging, I didn’t plan on joining the PF niche. After reading my fair share of blogs, I can’t say that I agree with a lot of the goals they have. I’ve always believed, you can only make as much as you envision.
I personally don’t want to set a goal, reach it, and then stop. I want to work forever. I want to live comfortably. I want nice things. These are situational/lifestyle goals that won’t necessarily ever be reached. I mean, how much does it take to live comfortably? I’m not sure. But right now, like you, I’m living below my means, but also saving a good amount of income for retirement as well as a house, while not depriving myself of treat once in a while.
To think I wouldn’t be able to buy shoes?!! The horror!
Investing Newbie´s last blog ..2010 Goals…so far
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Ryan Reply:
February 12th, 2010 at 9:19 am
Haha, priorities… just don’t go to France anytime soon or you’ll blow all your savings!
I believe in setting short term goals because they’re measurable. Personally I need a number or something I can chart or track to succeed. That’s why I love having the Alexa toolbar on this site because I work hard trying to make it grow… in my head its like a game.
Living simple = living with a lot less stress
Ryan´s last blog ..Hiking Diamond Head and Snorkeling In Waikiki
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What do you think? Are you a financial extremist?
There is NO chance that I am an extremist. Really, how many attorneys are?
I don’t think AJC (who is a GREAT guy by the way) is an extremist. He is an entrupenuer through and through, but I don’t think that makes him an extremist. He is an amazingly savy investor and business owner/broker/seller
Where do you think financial extremism starts?
It is inside of you just like those crazy nuts swimming with sharks (oooo good dig! )
What strategy do you like best? Get Rich Slowly, 7 Million 7 Years, or Early Retirement Extreme?
7m7y is the best - basically MAKE AS MUCH AS YOU CAN and don’t spend it all. I would follow that any day before I start worrying about how much I spend on toothpaste
Evan´s last blog ..Party of “No”? That is Just Garbage Populist Rhetoric
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Ryan Reply:
February 12th, 2010 at 9:24 am
I can’t say I know too many extremist attorneys… maybe that could be your new niche?
I think you’re right about AJC. He seems to love the process so he gets the added benefit of doing what he loves and making money from it.
Haha, but sharks are just like big underwater puppy dogs!
I like your last comment. Lots of blogs talk about saving money to the extreme (pun intended), but in the end the benefit of the upside is much greater than saving a few bucks by worrying about your toothpaste. I’ll discuss frugality a little on here, but increasing revenue more so.
Ryan´s last blog ..Hiking Diamond Head and Snorkeling In Waikiki
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I definitely would be an extremist, but my husband is not. Tend to bump heads with it. I would kill the cable, the cell phone, etc… just to kick the debt quickly. Where as, my husband choses to live a normal life while paying it off. I don’t blame him, but sometimes it drives me bonkers!
Since, I can’t do that I am in the midst of finding multiple income streams (or one if it works) to get me out of the traditional job core and live my life!
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Ryan Reply:
February 12th, 2010 at 9:55 am
I haven’t heard the word bonkers for about 10 years! Love it.
Hope your income stream works out… it’s fun to always have a couple pokers in the fire trying to make new things happen.
Ryan´s last blog ..Hiking Diamond Head and Snorkeling In Waikiki
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Monevator Reply:
February 14th, 2010 at 4:18 am
@Money Funk - I thought bonkers was a British word. Have you been mainlining Four Weddings and a Funeral? On the debt matter, you’re are 100% right and your husband is wrong.
He’s not paying for cable while you’re in debt, he’s paying for it twice. He’s not paying for a cell phone, he’s stopping you guys prepping properly for the future. KILL ALL DEBT. Tell him I said so!
@Ryan - In answer to your question, I was an extremist but I’ve moderated. There was a time I was saving about 50% of my income, maybe more, but I’ve realised it’s not sustainable. Not particularly because I want to buy stuff (except maybe a house so I can set up a killer huge fishtank - my secret vice) but because I’ve realised more than ever before you can’t get the time back, so you have to enjoy the journey - it’s not sustainable to have an off/on sort of day when you’re ‘done’.
I’m more going for financial freedom and blending towards work I love than super early retirement nowadays. (i.e. To reach a position where I could retire and no starve if I had to/chose to, but I don’t).
Monevator´s last blog ..Weekend reading: Real estate realities
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I’m definitely an extremist, but in hiding. Nobody knows what my net worth is, and that’s the way I like it.
The best is to have that large net worth, pretend you are poor, and work for fun. I’m telling ya, it is awesome. It’s like going to business school part-time and learning for the sake of learning, not worrying about getting straight A’s.
Financial Samurai´s last blog ..Getting Busy This Valentine’s Weekend! (Singles Especially)
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Monevator Reply:
February 14th, 2010 at 4:18 am
Totally agree Sam. My favourite houses like like crack dens from outside, and have walled fern gardens within.
Monevator´s last blog ..Weekend reading: Real estate realities
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Couldn’t have said it better myself.
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I’m all for semi-extremism just like I’m for semi-retirement.
I’ve had some good months this last year of saving 84% of my income, and some not so great months of 30% savings. There’s a strange situation that occurs in that the more you save, the more you want to save. It’s like some kind of personal challenge that’s highly motivating.
I took the 5 year route to go from a savings of $0 to semi-retirement but there wasn’t the level of deprivation that Jacob at ERE went through to get there. I focused more on the income side of the equation, which I realize may not be possible for most people. But maybe it is?
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Despite having the word Extreme in my blog name, I think one can go too far. For instance, hunter gatherers spend about 15 hours a week to supply their needs and they are not a technologically advanced as we are, so spending 40 hours a week or more which is about 36 or 37 hours more than modern people need simply to buy extra things or quick experiences does sound a bit extreme to me
I mean, what is the point of that. It’s like heating a swimming pool in the backyard and never taking a swim in it. (Next time you fly over LA or any city for that matter, try counting pools and see if you can find even one person out enjoying the pool he paid for.)
Early Retirement Extreme´s last blog ..Promotion versus production
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Ryan Reply:
February 19th, 2010 at 5:49 pm
They probably do it simply because they can… and because naturally we want to impress others to gain their approval. Everyone just keeps one uping everyone else with stuff since that’s the status symbol.
Ryan´s last blog ..Hiking Diamond Head and Snorkeling In Waikiki
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I am waht you call stealth wealth. Nice income/cash but have a low middle class mentality
Moneymonk´s last blog ..Friday Quote
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Ryan Reply:
February 19th, 2010 at 5:47 pm
That’s an awesome place to be… Millionaire next door style!
Ryan´s last blog ..Hiking Diamond Head and Snorkeling In Waikiki
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