My rating: 4 of 5 stars
This is book is not like any of the other “retire early in 10 easy steps” books…it is a full-blown life plan for making it happen, and not for those who aren’t willing or able to take massive action to change their current consumerist habits.
I’ve read a ton of blogs and books on financial management and investment, but this one has a very counter-intuitive and yes – EXTREME – approach to retirement that can be achieved relatively quickly. The overall thesis is that by saving a majority of one’s net income (50, 60, 70 or even 80%!) on an annual basis, it is possible to “retire” in five years or so. This is the case not just due to the high amount of savings, but the low annual expenses needed to sustain a lifestyle where you live on 20% of what is earned. The author was a theoretical physicist and the attention to detail comes through (and at times the math equations get a bit extreme!).
What I liked:
1. A significant amount of the book is devoted to the MINDSET needed (philosophy /psychology) around the early retirement approach. It really goes deep and Jacob provides examples (from his own life), frameworks to help the reader understand character types and plenty of hardcore data.
2. There are specific strategies and tactics that can be applied on day 1 by the reader to boost savings and cut expenses. Some may not apply to you, but many will.
3. There is a very detailed blog Early Retirement Extreme that provides more examples, Q&A topics and links to an active online forum to go deeper into various topics.
What I didn’t like:
1. Many times the books dives too deep into a topic (e.g. in taking about character archetypes, detailing math equations) or seem to be going off on tangents and rambling. I am good at skimming/skipping this stuff so didn’t mind it too much. Overall, there is much more good about this book to love so I was willing to put up with these parts.