Early Retirement Extreme: A Philosophical and Practical Guide to Financial Independence [Paperback]

This was one of the first books I bought for the Kindle that really began to use the additional features that the machine offers. Specifically, the ability to cut and clip paragraphs that you find notable and the ability to make your own notes as you read were very useful as I worked my way through the text. For me, the most enjoyable thing about this book was that it offered quite a different take on the world of money. Instead of giving advice on how to amass a fortune that might allow you retire early in comfort or luxury, it challenges the whole notion about what exactly you need that money for? Coming to think of it, why are you working every hour God sends to spend the small amount of free time you actually get lying exhausted on the couch, surrounded by gadgets you have no notion of using and people that you have little energy to really interact with? Yes, of course you can retire early, but before you do it, think long and hard about what you will do with the time and how much money you will really need to enjoy that time in a way that you will find personally fulfilling.
I really enjoyed the section of the book entitled "The Lock In" that examines the almost insane cycle most people have got themselves into in Western society - working and working to buy largely meaningless stuff in exchange for losing the time that they could use to enjoy the stuff that they've bought! In this way, the book is more a philosophical examination of our society and values than a text book that will help you save and invest for a life of retirement luxury.
For those of us who actually largely enjoy our job and the world of work, there is still much to take away from the book. It helped me qualify some half-baked notions about retiring at 55 for example, and gave some tips on how to calculate what I'd need to do so, while also pushing me to think about what I wanted to do with the time once I'd reached that goal. As the title suggests, you can take an extreme view of retiring early - live rent free in a tent at the bottom of a friend's garden, live on porridge and boiled water and write that book you keep fantasising about. You don't need much money for that, and you'll have all the free time in the world. Unfortunately, it will also feel like it.
The reality of life is that you do need a bit of money for the life of milk and honey. The fact that Mr Fisker seems quite keen to sell more copies of this book (as evidenced in his blog) recognises this. Maybe he is quite keen on having that Mercedes after all. Nevertheless, if you want a stimulating, amusing and different take on our world of finance and early retirement from the rat race, investing some of your hard earned time and money on this book is definitely worth it.

Whilst some of the ideas in this book are an extreme alternative to the way most of us live (hence the title), the book certainly causes a fundamental rethink of the way a lot of us live our lives. Whether or not you wish to enact some of any of the ideas contained in this book, it certainly causes you to think, and to re-evaluate many aspects of the way we live.
I only gave it four stars because I am not a mathematician, and parts of this book (involving formulas/equations) went over my head. Be warned - it is very heavy-going in places, for the average reader.

Where does this book miss for me?

Overall, the author takes a systems theory approach to working out what is worthwhile in life, and has come to interesting conclusions that are plausible, and seems to work for him. This is a superior approach to the eclectic "life hacks" offered by some competing books. (My worst example was a book suggesting using cans of beans instead of dumbells to save money on exercise equipment!) However, the book had weaknesses, and overall, I probably prefer the author's blog to this book.

He presents the results of his systemic thinking rather than the process he followed to come to his conclusions. He gives a lifestyle that works well for him, but probably would not suit many of his potential audience. Taken as examples of thinking outside the box, this is interesting (live in a caravan - or RV - anyone?) but less useful than guidance on how to explore these issues for yourself, with a view to reaching your own conclusions.

I got a strong sense that his philosophy of lean living was not universally scalable, as in a great part it depends on the remaining 99% of us to live wastefully so he can grase on our surplus. (The author is a physicist. This does have a reductionist approach to modelling the world as opposed to - e.g. - engineering, which embraces the world in all its complexity, and might lead to a more holistic philosophy if the same process was followed.

The author does not have any kids, so for those of us with families, his message is less convincing. (He hypothesises about this, but has not had to meet pester power in person.)

I personally did not find the authors writing style made for enjoyable reading. Another review has pointed at his use of calculus terminology to explain his concepts. Confusing for most readers, and probably unnecessary.

A minor quibble - there is a lot of discussion about health insurance, which is fortunately not an essential for UK readers. Some other points are more US centric (ROTH IRAs anyone?), but can be translated into UK pension funding.

I do not regret reading the book. Read the authors blog if you wish to know more before buying. Also read Mr Money Mustache blog for a less extreme way of life with similar ends. Mr Money Moustache has a child, so is perhaps closer to many readers experience.