Customer Reviews

Early Retirement Extreme: A philosophical and practical guide to financial independence

5 star:		(26)
4 star:		(7)
3 star:		(1)
2 star:		(4)
1 star:		(0)

 

 

This gem of a book will be helpful for anyone trying to rid themselves of the consumer mentality. I will keep it on hand to refer to whenever I feel the "need" to buy something. The author gives many alternative solutions to everyday needs that can be had for little or no money. Although, it is most definately not the typical thrift manual that tells you what to buy and what to eat and what to do. It is more of a philosophy of living where the author shares what has worked for him and also offers a complete realm of other ideas as well a how to think about and analyze the many choices for each situation.

Similar topics are covered as in the blog [...] but they are covered much more thoroughly. The book is NOT a simple copy of the blog.

Topics discussed are philosophy of lifestyles and consumer mentality, different philosophies of working, and then onto more practical matters such as transportation, housing, food, exercise, investments. The author also touches on dealing with a spouse that isn't "on board" with the lifestyle and dealing children while trying to live thoughtfully which I found to be very accurate.

This would be an excellent addition to the library of anyone interested in decreasing consumption, retiring early, saving money, and developing wortwhile activities.

This book is for anyone who aspires to create a different reality for themselves. If you are comfortable slaving away at your "career" for the next 40 years, saving 5 to 10 percent of your income with the hopes of one day retiring, then this book is NOT for you. If you work so you can buy things, then work to service the debt required to buy even more things, then this book is NOT for you.

However, if you think that the American Dream is alive and well, yet albeit not in the traditional sense, then you need to read this book. If you can be focused, patient and disciplined to attain a goal that is within reach of anyone who wants it, then you need to read this book. If you dare to be different, if you enjoy finding an alternative to the mundane same ol', same ol', then you need to read this book.

More specifically, this book is for anyone who is looking for the philosophy of living a different lifestyle, one that frees them from the chains of the typical corporate life.

First, let me explain what you will not learn in this book. You will not learn the next great investment strategy. You will not learn how to flip real estate, how to make millions on the Internet or how to turn a small investment in a penny stock into millions. This book is about so much more than getting rich. In fact, it is not even about getting rich, rather it is about becoming wealthy.

What you will learn is a philosophy for living detached from the economy. You will learn how to provide for yourself by being efficient and sustainable. You will learn how to change your perspective so that you can see how it is possible to live on less while living more.

Really, one of the strongest points of this book can be found in the old adage "Give a man a fish, he eats for a day. Teach a man to fish, he eats for life". And that is what the author has done here. You will not find a step by step guide to saving money to retire extremely early. What you will find are the principles required to change your life in order to make the changes required for early retirement extreme (ERE).

If anyone is looking for "21 simple ways to save money" then just do a search in Google and be on your way. This book is not for you...yet. But when attacking a problem such as ERE, which is unconventional to the majority, then unconventional means are necessary. Therefore, the author presents the principles that one can apply themselves in order to live on less and save more.

For me, some of the most positives came with the diverse contents of the book. For instance, the author talks about systems and models and learning common systems so that one can solve their own problems. This reminds me of what Charlie Munger says for investing...that is building mental models of businesses to see how they fit into the larger picture. This didn't make much sense to me until I read this book and it made much more sense.

Another major positive is just how thorough the book is. Just the sheer amount of information covered is impressive. For example, this book covered everything from eating, exercise, housing, transportation, clothing and a myriad of other things. The author had a knack for anticipating what I might question and provided an answer before I could finish my question. For example, when talking about walking in the rain, I had questions about getting wet, which of course was addressed in the subsequent discussion.

The only section that left me wanting more was the section on investing. The author alluded to the fact that he was a stock investor...of which I am one as well. Ironically, had the author said he was a real estate investor I would probably not have the same complaint, since I have no interest in real estate!

Anyways, since the assumption is that one will live in part or in full off their investment income, I was hoping for a bit more discussion on the mechanics of this, particularly from the authors point of view. However, this would have been seen as an "endorsement" so to speak for stock investing, which the author pointed out and we are all aware, there are multiple ways to invest (real estate, commodities, etc.). That said, I am not sure exactly how the author could have satisfied my need for more information on the investing aspect so perhaps this is something that would be better addressed in another book (a sort of sequel...after ERE is attained, perhaps?)

Overall, this book is certainly the most different and most complete book I have read that I can categorize as a personal finance book. The only weak point was a lack, or rather a perceived lack of detail around investing. Of course, this is EASILY overshadowed by the thorough content elsewhere in the book. As the author states, it is simple to learn about investing, one must only be willing to put in the time.

This book will provide the reader with the framework that is necessary to do something extraordinary with their life. This book doesn't give you the answers...it teaches you how to find the answers and in my opinion is much better than just a random collection of tips. I recommend that the novice read something a little simpler before tackling this work, perhaps Your Money or Your Life. Once a small base is built, I wholeheartedly recommend this book to anyone with the wherewithal to make a major change in their life.

As Morpheus said "You take the red pill and you stay in Wonderland and I show you how deep the rabbit-hole goes." Take the red pill....come down the rabbit-hole.

This book is an analysis of the modern consumer mindset, our culture of debtors, an economy of specialists all dependent upon one another for their expertise, and it presents an alternative option for the lucky few who have the drive, mindset and courage to go about life a little differently. The author presents an alternative to devoting your life to a career, financing an appropriately luxurious vehicle depending upon your income, mortgaging an over-sized house, filling it with 'stuff' and then working 40 years to pay it all off.

The book analyzes where the consumer culture came from and picks apart the details of what it means to live in a consumer culture. The book has great moments. The author compares a working man, who makes his living by selling his time, to a farmer. And he compares a man who lives off managing his assets to a hunter. A farmer always has something that can be done, and so hard work and busy-ness are his virtues. "The more he does, the greater his reward." But a hunter must wait quietly for his opportunity to strike; patience is his virtue. And so it can be hard for a farmer, who has accumulated enough wealth to live off his assets, to suddenly become, or to even understand, the patient inaction of the hunter. A life sitting around patiently collecting interest on investments might look like no life at all to the habitually "busy".

The author makes a compelling argument around savings rates and compounding interest to show the tremendous worth of quickly saving up your assets rather than putting away 10% for 40 years. I also appreciate that the book is written without particular investing or career advice. As the author notes, any investment advice he could offer would be quickly outdated, and how one invests one's assets isn't nearly as important as developing the mindset that one ought to be an asset holder at all.

So many people live unexamined lives that lead to risky financial decisions, the wasting of thousands of dollars of resources, and ultimately pointless toil. For the few who have the curiosity to even read a book like this, they will be empowered with the knowledge that there are viable alternatives.

The book includes a detailed table of contents, index and extensive recommended reading list. It is all well laid-out.

I will say this book could turn off people who are new to the idea of early financial independence simply to due to its depth and complexity. If you're looking for an overview of what the early retirement life is about or are just beginning to flirt with the idea yourself, well, this ought to be the 2nd or 3rd book you read on the topic. If it's the first I'm afraid you might get intimidated, even though it is all spot-on, by the hyper-logical and analytical narrative style.

Why would a 69 year old retired engineer review an "Early Retirement Extreme" book, well there are several reasons. This is a unusual book, a little hard to do a standard review, like in High School or College. It is a live book, which to me means that sections will be reread several times or scanned for highlighted text. It will go into my books to grow old with library.

I believe that most useful ideals in life boil down to what is often called "bumper stickers." These are usually simple saying that reflect cultural beliefs. Two of my bumper stickers are; "There is no predicting how long it takes for the obvious to become apparent." Also "Gold is where you find it."

ERE is an attempt to make the obvious apparent for those who read it. I think ERE is Gold.

What if an artist, magician, or Harry Houdini wrote a book on how they did what was thought to be impossible for an ordinary person to achieve. ERE is a guide book on how to put together your own life navigation plan, regardless of your age or retirement status. A bit of a Rosetta Stone that translates ones' education, work, training, etc. into a real world plan for living life more efficiently. It is not a list to copy, but a "how to manual" for "how to manuals."

I have been reading the ERE blog for over 2 years. The posts flow in a reasoned, logical manner, with complex theories explained, with examples from everyday life. Math avoiding readers would be comfortable reading this blog and this style of writing was extended to the ERE book. I believe ERE will become a classic over the next several years. In light of the current economic down turn, many people will discover the magic of changing their way of living as they become independent thinkers, following their personal path to a more secure life.

There are a number of detailed reviews of ERE on the web. I want to list several quotes that caused me to reflect on my own thoughts on these subjects;

"One must learn the general systemic rules that allow one to improvise and really live life the way it was intended - in your own way, rather than following checklists devised by some random guy, like me."

"We are all different and it is up to each of us to develop, grow, and walk our unique path. This is what it means to be human."

"To get somewhere you must have a deliberate purpose in mind and a vision of the destination that drive your actions."

"We have come to a point where spending is one of the few recognizable signs of success."

"On the other hand, people in our "advanced" civilization know practically nothing about our world."

"The connection between lifestyle and health has been lost."

"In other words, top-tier institutions do not add value to create talent as much as they select or discover it. Thus, if you were smart and ambitious enough to actually get into an expensive top-tier university, you do not actually need to go to a top-tier university to succeed in life."

"Thanks to advertising, nobody know when enough is enough is enough, even though running out of space in the garage should serve as an indicator."

I have between 100 to 200 lines of text highlighted for future study and reflection. Some of these lines will be translated into "New Year Resolutions". For those readers looking for a unique, well written book, that is an artist's reflection on the modern consumer society and its traps that snare so many, this is it.

I just finished the book and I can honestly say it has changed my outlook in life and my frame of reference and has already changed my habits and behaviors. Even as a PhD in economics, I learned some really important insights about economics and human behavior. Specifically, I enjoyed the author's take on the role of consumption and production in our lives. In a modern economy, we use specialization and comparative advantage as a method to organize production but also, unfortunately, as a way of organizing our own lives. However, the author's key point is that an individual's level of happiness/satisfaction is a function of more than just consumption--it is also very much based on producing things--and not just one type of output related to work (e.g., writing memos). So, how does this relate to retiring early? It turns out a lot. Rather than focusing solely on increasing one's income via greater specialization (which typically just leads to a proportional increase in one's consumption levels or even greater debt), the author suggests focusing on reducing consumption--radically. However, this is not a book about denying consumption per se, it is about redefining the role that consumption has in our lives.

This is simply one of the best books I have ever read. It is a life changer. The book has more than paid for itself. As a society, we tend to spend hundreds or thousands to make ourselves feel better (e.g., shopping sprees, "experience" vacations, expensive hobbies with lots of gadgets and gear) all the while returning back to a steady state of "getting by" after a few weeks. Instead, why not find a better steady state.

I first learned of Fisker's work from browsing through the recommendations on Google Reader. They had put up one of his posts on education. I found his views intriguing. Having read this book (and a good number of his blog posts), I can say that most of Fisker's views are intriguing. The intrigue isn't "wow, that's a great idea, I need to try that," but it is the "wow, I never thought of it that way before" variety.

This book is too often described as a personal finance book. It's not. This is a book about how we view and live our lives. Money, how we get it, and what we do with it once it's in our account is certainly central to the discussion, but the time we spent going to school to get a well-paying job, the time we spend keeping that job, and the activities that we neglect while pursuing our paycheck are also used to explore the assumptions that underlie the standard contemporary view of a conventionally successful life.

The first two-thirds of the book is careful analysis of those assumptions on consumption and the mechanisms that have evolved to support them. Regardless of whether or not financial independence is a high priority for you, these pages are worth reading just to get a different perspective on what many of us readily accept as normal. You may think he's crazy, but you can't deny that he makes some excellent points about the value we put on things and the process of getting them.

Amid the making of these points, the book provides excellent food for thought. I found myself really starting to question my relationship with my job. Am I doing what I really want? What am I not doing that I would really like to be working on? Is the stuff that I've acquired with the money I've earned from my job worth it? What's the point of coming to work each day? Where am I trying to go? Do I need this job to get there? My job (and career) give me opportunities to pursue activities that would be impossible to pursue if I was not employed by a certain type of company. Seeing how somebody else came to very different conclusions has refined and sharpened my focus. It will be very difficult for me to take a job just for the paycheck. On a more practical level, it's also changed the way I think about spending my money (I don't know if I'll ever buy a new book again).

There were a few aspects of the book that bothered me. I would like to have seen some documentation backing up his assertions on the emotional malaise of the standard cubicle dweller. There were also far too many internal citations. References to similar topics are useful in a blog, but I found the constant references to other sections of the book distracting. I also failed to see the relevance of several of them. The theme of different lifestyles seemed to have been a major organizing principle of the book in earlier drafts that was slowly edited away. It would have been better to mention it once as a way to differentiate between the lifestyle discussed in the book and other ways to spend our money (and time).

These are just minor quibbles. Early Retirement Extreme is well worth your valuable time and money. You'll have a much different view of each after reading this book.

Like others have already said, this is not a 'get rich quick' or a '21 ways to save/invest/spend' book. However, if you are serious about retiring early and/or securely, this book is worth reading because it offers a different perspective than most retirement books, and I have read dozens and dozens of them. And I believe this approach will become more and more common in the decades ahead. Most people refuse to see it, but the 'golden years retirement' of our parents is going the way of the dinosaur for most - and ironically we'll be better for it.

What sets it apart to me is it speaks to how life choices and personal finance must be considered together. Most retirement books focus on 'the number' - ignoring the fact that excessive consumption can keep financial security just out of reach much longer than necessary. And there is so much more to a fulfilling life or retirement than 'the number.'

If you liked Your Money or Your Life, this book provides more depth on the why's of that seminal book on our relationships with money. The intent is indeed to 'teach you to fish.' If you're unsure about buying it, read the authors blog and archives. After I read through current and past blog posts, I ordered the book...and read it within days. Excellent book!

The Early Retirement Extreme book could have many different names, as it covers many topics and ideas. The book covers a detailed understanding of society's status quo and asks the readers to decide if it fits into their life goals or if a lifestyle change is desired. The book provides and encourages a strategy for one to reduce consumption, with one of the results being early retirement by way of financial independence.

Other than an early retirement seeker, this writing could also call to people trying to live a more engaged life in modern day by creating more of their needs and wants. There are many that fit this category: the lifestyle designer, the perpetual student of life, the sustainable environmentalist, the person about to transition -- careers, into a family, into the golden years -- that seek financial relief.

The author comments that this lifestyle, in modern times, lives a more interesting life which is more resilient to economic troubles. He calls this person the Renaissance man and details a strategy to become one. The book is in depth at scrutinizing consumerism and at times it is abstract which requires deeper thinking than many other personal finance quick read books. However, the hardest part of this book is not understanding the topics but in implementing the ideas, much like a diet is easier to understand than to implement as the author writes. Though, both a diet and a extreme lifestyle have obvious advantages.

This book is the ultimate summary of all other personal finance books. The author has a keen analytical mind, which promotes knowledge from various discoveries about the subjects of money management and use. The money we earn can be used in a much more efficient manner, and we can keep and invest most of it. The book is full of methods and formulas to assist in learning the best way to utilize the income that finds it's way into your life. Following the strategies, it would be possible to retire from working for a living in a very short time. The book covers such items as housing, transportation, education, possessions of all kinds, and how these areas weigh us down and rob our resources. The author discusses how these expenses can be managed, and how to go about reducing your cost for them. The author takes you through the work, spend, and consume cycles that most people are caught up in, which only promotes continuing work, spend, and consume cycles. Once you learn how to avoid these traps, your income becomes yours, and can be put to work for you, instead of the other way around.
I found the book to be an exciting concept of personal financial management. With the economic realities of the current times, many people are looking for ways out of complex, excessive spending lifestyles. This book is valuable to people of any age group or income level. The strategies are aimed at anyone who wish to "opt out" of handing all their earnings over to the standard consumer way of living, and use that income for the good of themselves, instead. I was especially pleased with the size of the book, the author's writing style, and the chapter numerical divisions. The book will become an excellent reference for those trying to sort out their financial goals and achieve them. Following the guidelines will save you money, improve your ability to manage your money, and help you understand the fundamentals of investing.

I discovered Jacob Fund Lisker by way of his website earlyretirementextreme.com. The website features a great archive section that includes several years of Jacob's blogs about personal finance, financial independence, and lifestyle design. I found the content on the website compelling, interesting, fun, and very well-written. As someone with a high degree of interest in achieving financial freedom, I found myself tearing through the blog archives and visiting the website frequently to check in on the growing forum community. I was excited to learn that Jacob was presenting his strategy and philosophy in book form, and I was one of the early buyers of the "ERE" book in late 2010.

I found the book to be very read-able and helpful but also quirky. The idea that one could "retire" in his early 30s seemed a little far-fetched at first, but Jacob lays out his experiences and suggestions in a very simple and straightforward way. While he does not share much in the way of specific investment advice, he goes out of his way to explain his philosophy and outlines an approach to achieving financial freedom that anyone could adapt to their own circumstances.

It has been over six months since I read the "ERE" book. I find myself thinking about it a lot and I have re-visited several sections since my original reading. One of the chapters that has stuck with me the most is the first one "A different frame of mind". The story of Plato's Cave, where slaves toil away in the shadows without having the perspective to understand that there is a broader world full of alternative lifestyle choices, is a perfect allegory for the corporate careerism that many people choose. I found the idea of looking at life as more of an adventure to be very compelling.

The next two chapters, "The lock-in" and "Economic degrees of freedom" lay out, first, the costs and risks of pursuing the typical modern lifestyle approaches (college, career, status, possessions, etc), and, second, the degrees of freedom inherent in that system. The author outlines four economic classifications (salary man, businessman, working man, Renassaince man) which are easily relatable. He presents a model showing an alternative way of looking at lifestyle behaviors which should be taught to every high school student.

The chapter on "Renaissance lifestyle" is a fun read. I never equated getting rid of my old junk, house cleaning, etc with the likes of da Vinci and Michelangelo, but after reading that chapter I clearly saw the link between becoming more financially self-reliant and having the time necessary to pursue a broader range of personal goals which could lead to a greater sense of self-fulfillment. I got a little lost in the latter part of that chapter when the author got caught up in specific approaches to wardrobe selection, eating, transportation, etc., but even that perspective is helpful as an example of one person's pursuit of the broader goals of independence and self-guidance.

The author comes off as an extremely intelligent and unique-thinking person. At one point he goes into great detail about the merits of his trusty rain jacket. A little later, he devotes an entire section to complex financial ratios that are likely to confuse all but the most quantitative thinkers. That said, I think anyone who seeks financial independence as a goal - and is open to some fresh approaches that will help achieve that goal at a relative early age - would benefit from reading this book. The book does not take long to read, but it is packed with interesting information and perspectives, and you will find yourself coming back to it often as you begin to build your own plan to financial independence.