Guest Post: Five Key Takeaways From the ERE-Book

by Vinaya HS on April 13, 2012

in Finance

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I followed-up with reader Ashutosh, the winner of the Early Retirement Extreme book that also happened to be the first ever book giveaway on Capital Advisor, what his key takeaways from the book were. Here’s Ashutosh’s response in an easy to read Q & A format –

First of all let me apologize for the delay in response. I can give a million excuses, but the bottom-line is, it was plain laziness period. I have read the ERE-book almost full, the last few chapters still remain, however I think I am in a position now to answer your questions.

[Once you win a book giveaway on Capital Advisor, I make it a point to keep prodding you until you actually read the book!]

Q: What are your top-5 key takeaways from the ERE-book?

  • Start Early – Most of us only begin to realize the importance of investing when we cross thirty.

  • Forget Timing, Think Compounding – Don’t set a mental block like “I will start investing the day I can save Rs 20,000 per month.” The amount doesn’t matter, it’s all about timing and compounding.

  • Salary & Saving are Not Linked – Very few of us really are able to differentiate between the two. Common misnomer is higher the salary the better it is. Seldom do people realize that if you are earning more and spending even more, you are surely headed towards a debt trap.

  • Control Your Lifestyle Expenses – It’s very important to keep such expenses under control. Most of us automatically assume that bigger designation implies that we ought to be eating at certain star rated hotels / hanging out at certain “hep” places.

  • Do Your Goal Setting – Goal setting quantifies the amount of money, the time frame required and also the method to reach there.

Q: What is your overall assessment of the ERE-book?

ERE gives a very different perspective on retirement planning. A book written by a non-finance person, based on his first hand experience on the journey towards financial freedom. The feeling of “been there-done that” comes out very clearly throughout the book. This is something that lacks in most other books, even the ones written by financial planning experts.

Thanks, Ashutosh.

I now request you to pass the book on to someone you know who can benefit from it.

Thanks for reading this article. I'd love to hear your opinion. Please use the comments section below to share your thoughts. I frequently write new articles that also cover several other aspects of personal finance including credit cards, financial goals, health insurance, income tax, life insurance, mutual funds, retirement planning, and much more. You can Subscribe through Email and receive new articles directly in your Inbox or you can Subscribe through the RSS Feed and receive new articles in your feed reader.

{ 6 comments… read them below or add one }

Nikhil Shah April 16, 2012 at 8:01 PM

Hi Vinaya ,

As per my understanding , 6th Key should be Asset Allocation..


Nikhil Shah

Vinaya H S April 16, 2012 at 8:14 PM

@Nikhil Shah –

Have you read the book too? Any other feedback/learning from the book?

Nikhil Shah April 17, 2012 at 12:36 AM

Hi Vinaya ,

Another learning Point is Stay Debt Free …

Nikhil Shah

Nikhil Shah April 17, 2012 at 12:40 AM

Hi Vinaya,

Pl visit below following web site , you will Find your answer..

Nikhil Shah

Vinaya H S April 17, 2012 at 9:21 AM

@Nikhil Shah –


Well, I was looking for takeaways specifically from the Early Retirement Extreme book.

Rakesh April 17, 2012 at 10:41 PM

Good feedback. I think most of the above points are also covered in Subra’s Retire Rich and Manish’ s JagoInvestor book.

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