The most useful comments are those written with the goal of learning from or helping out other readers – after reading the whole article and all the earlier comments. But I enjoyed the job at the time, so I definitely didn’t suffer for it. Of course, the money tied up in your main house is not investment capital, but it still allows you to live without paying rent (aside from taxes and other upkeep). But I don’t want to do sales or customer service again. MMM, thank you for your concrete examples and tips regarding growing that Stash! And that does not include a health benefit package (it would cost us $1,000 per month out of pocket to cover our family of four through the school district.) Think of Optimal Finance Daily as an audioblog or blogcast. Even then, Mr. Money Mustache will still be retired, so there. Yes, folks, I point this out to show how frugality can grow on you, to the point that you’d rather live an efficient and self-sufficient life even if money were not an object. I’ve always been a saver – back when I worked minimum wage in high school, I saved 80% of my net income (I counted allowance as income) and spent 20%. March 25, 2015, 8:37 pm. Mrs Mustache can go by whatever name she chooses and doesn’t need to bow to the dictates of people outside her family to determine her name, honestly. By shifting the unpaid work to a wife, a man can earn more money but he is doing so at a cost to his child and to society that is unfair. I love the fact that you have a family (and a child!). It may take longer to hit financial independence, but we’re still moving that direction. Is there another way I should be looking at this? I am a female with an advanced degree, aged in my 40s, who has lived a somewhat similar life, only without marriage and children (I thus pay more to live because I live alone but also pay less to live because I don’t have a child.) Also, the cashflow from investments is much higher than our spending.. so work is only done for fun and on our own terms. This is frugality & personal finance porn. I’ve been reading your blog since you started, and have really enjoyed it. – add still more tax-free income since you might get some EMPLOYER MATCHING Since then, she has served as the Chancellor of Fun in the MMM organization, which is an informal and haphazard group of entirely volunteer planners who sometimes create interesting events. Mr Money Mustache (Pete Adeney) is one of the most famous Financial Independence / Retiring Early (FIRE) movement bloggers. You will probably beat my numbers, once you get out of the starting gate and start racing!! I’m not sharing so that others try to replicate this success, just to show what is possible. MMM – I’m amused that you went on a cruise. When my job offered me $40K, I negotiated $44 with MMMs advice. And even that one was a bit of a cheat for me, since I didn’t have to… After taxes, I’m bringing in about $44,500 a year (3580 a month and a year end bonus). We are both on the same page financially and should be on the right track for early retirement (she doesn’t want to but I do). Year 3 ‘Stash: 67k ($47k home equity, $10k retirement, $10k cash). I have vowed to retire in 9 years starting June 2013. Am I correct? Or try the neighborhood of Louisville that is right at the top of S.Boulder road (i.e., the closest possible commute to Boulder). From Wikipedia. You are really stretching the ‘stash there, with a combination of higher rent, kids, AND debt left over from the past. But in almost any middle-income situation, retirement is something that can be earned drastically earlier than age 60-65, if you start early enough. Boss: “Hmm.. that’s not official company policy, but I’ll guess we’ll have to make an exception for you, since you do all this important work for us” 1. $8K purchase. I have been reading this blog for just a few weeks now… I struggle with the high dividend stock part everyone keeps saying Vanguard funds…they seem to not have as great of dividend returns as many other stock/ETFs. I imagine the Mr. Money Mustache character as this old-fashioned financial sage from days gone by. I do live by myself, but I made that decision when I finished school for my own mental sanity and I think it is definitely worth the added cost. Other years, I may accidentally earn hundreds of thousands of additional dollars by starting another company. All Rights Reserved |. So all you have to do is make $100k a year, have a wife who makes $60k and you’re set…. June 1, 2013, 10:00 am, Hey LAL.. here’s a post on what we do for medical insurance these days: http://www.mrmoneymustache.com/2012/11/01/our-new-237-per-month-health-insurance-plan/. You just need to be frugal. Sometimes for longer trips I rent out our primary house, which earns more money than we can even spend on a trip! August 23, 2014, 7:51 am. But it can be done and it sounds like you are doing it wisely already. I’m 37, average salary, and I have enough passive income from rental properties to cover my expenses and then some. Brandon Turner with Mr. Money Mustache shares a story about the man who thought early retirement sucked. And would they continue buying it once they saw that their credit card balance was starting to grow? September 15, 2011, 11:58 am. Maybe a $3,000 used car if you can buy it in cash and if it’s really necessary to get to work. Since the example above fits me perfectly (two teachers making 60K each) and I already do lots of “mustachian” things (no car loans, no cc debt, bring lunch every day, make my own coffee, etc) but am looking to amp it up, I want to ask: do you mean that the example couple (ie, me) should be able to save 5000 per month on top of maxed-out 401Ks? You suggest they can save $60,000 a year, but that only leaves $12,000 to live on which is not enough unless you live in a two-room house, with no air conditioning, and turn off the heat in the winter. Very inspiring. I don’t think that needs to be restricted to working full-time for an employer for money. But eventually I will sell this house (a single family luxury house), and perhaps swap it for a 2-4 unit multiplex of the same value (about 500k), which will actually bring in $30-40k in rent! So if there is anything to be amazed about, it is not how quickly we retired, it is the fact that ALL engineers and other high-paid workers are not financially independent by their early 30s. It has changed my life and my outlook on how to spend my income and what I should spend it on. We also made some extra mortgage payments occasionally. David Baillieul September 15, 2011, 10:51 am. Year 1: In this first year I foolishly started out by buying a  3-years-new 1994 Ford Probe GT sports car for $16,000 with tax. March 11, 2014, 10:24 pm. What should I do? Well, you can’t enjoy living unless you work. Half-Borg. Getting back to the point – Mrs. M. and I earned completely average software engineering salaries throughout our careers (and salaries for those jobs are even higher now). So far, so good. How much is healthcare insurance for two and a family nowadays? February 18, 2017, 6:31 am. 011: Mr. Money Mustache's Own Story by Mr. Money Mustache by OLDPodcast.com. On the other hand, I was NOT born in the USA, the ultimate Early Retirement country. Age: 22 Die Redaktion hat im ausführlichen Mr money mustache com Test uns jene genialsten Produkte verglichen und die nötigen Eigenschaften recherchiert. Would really appreciate input from MMM and other users here! And I’m too smart. Any advice for saving tons of money for a middle-class 1 kid family making 40-50k per year between the two of them—and living in Boulder, CO? 2. A tip at TipTheWeb, eh? My job requires my advanced degree; I need the degree to get the license from the state to do the job. Like Brave New Life the story is almost identical. That’s what I’m planning to use moving forward (after maxing out my Roth) – Patrick Kelly has a really good, really short book called Tax-Free Retirement on how it works. Now to ND’s question; wife and I also travel 2 – 3 months a year but spend very little. First of all, we only spend an estimated $22k per year these days, not $30-40k – because the house is paid off. Good luck dying that slow death in the cube till you’re 65 Cris. And I still go out with my fiancee to dinner once a week, just went on a cheap-ish vacation. Wie viel kostet der Mr money mustache … Mr. Money Mustache (@mrmoneymustache — Pete Adeney in real life) grew up in Canada in a family of mostly eccentric musicians. Because in Ontario, all dividends from Canadian Corporation give a credit of roughly 24% when the first tax bracket is 21%. Mr. Money Mustache I too, have found an interest in carpentry. I’m just starting to read it and appreciate all the information! No worries of money. And have school debt that we can’t afford to pay on right now (and a mortgage). In other posts, we cover how to do the same thing with lower incomes.. it just takes more time and badassity to achieve. My story was a nine-year working career, and retirement at 30. On the bright side, even with my killer commute my expenses are only about $20k. Yes, 600k plus a house is plenty to go through retirement, because we have lots of luxury packed into our lives. My W-2 income so far this year, before taxes, is about $16K. But my most pressing question is, do you and should I include real estate equity, 401k, Roth in my ‘stash count? I am now addicted to your blog and trying to implement it everyday in my life. It seems like you inadvertently made a great play by putting most of your net worth (at the time) into a house before the dot-com bubble burst, and then reaped the capital gains rewards in the following years. I hope that doesn’t happen too often. Ah, well. It’s great reading this and remembering how I could have retired even earlier. From my experience, this is Effing Amazing. My first step was to pull out all my credit cards and bank statements, then go line by line and cancel them or switch to something cheaper. I’ve already forwarded it on to multiple people who have recently graduated university! Money is the guiltiest thing in the world. The median wage is just over $60K, which is what my husband earns, while I am at home with our three children. So, enough of this silliness. It does make a huge difference. US-Finanzblogger "Mr. Money Mustache" Mit 30 in Rente und glücklich werden Pete aus Colorado war Software-Ingenieur, arbeitete bei Cisco und hatte eine Karriere wie viele andere vor sich. My biggest fear of early retirement would be the gap in health insurance because the US lacks a socialized system. But the only way for me to be even more wasteful would be to not enjoy such luxuries with my family once on board. Mr. Money Mustache (Pete Adeney in real life) is a Colorado family man who retired 11 years ago at age 30 after an unexceptional 10-year engineering … Of course, this was discussed in advance and this is what we agreed on — personally, I’m not a fan of hyphenated last names. (Brrr.) Videos about Personal Finance, Early Retirement, and Other Stuff. Wow, it’s amazing how far you can go with a bit of discipline and no debt to start! Came here from Untemplater.com. MMM and I diverge on active vs. passive investing, but that is because I have put the time in and am confident that I can make my own risk/reward decisions at a company and portfolio level. Mrs. Money Mustache suits me just fine, thanks. Lol! I drink. – make a trip out to Old Town Longmont to have a beer on my patio with me to discuss further :-). Your blog states a lot of the same information but in an easier to digest way! But the difference was, we were spending only about 25% of disposable income, while they were spending 90%, because of additional expenses like auto loans, higher mortgages, and hidden stuff like clothes and restaurants. A one bedroom apartment in a dingy, old complex but in a good area usually will sell for around $280-300k. Episode 11: Mr. Money Mustache's Own Story by Mr. Money Mustache. I think our situation must be fairly typical, no? Retirement accounts are about 20%, all the rest is in the form of paid-off main and rental houses, and non-retirement accounts. Since then, she has served as the Chancellor of Fun in the MMM organization, which is an informal and haphazard group of entirely volunteer planners who sometimes create interesting events. We let the good times roll a little bit, enjoying the same luxuries as our peers, doing plenty of international travel. An attempt at humour that further emphasizes the oppression of women to assume that she did not freely and proudly choose to be known as the wife to her husband. – start by slicing off the first 16,500 of your income each year TAX-FREE for 401(k) contributions I sure hope you kept it in! But because of saving and income from investments of those savings, I have year to date, after tax, total income of $26K. You might decide to settle down in a house that costs less than the $400,000 that is tied up unproductively in my current house, for example. Financial Samurai Year 9: I quit my job!!! 011: Mr. Money Mustache's Own Story by Mr. Money Mustache by OLDPodcast.com. http://www.mrmoneymustache.com/2011/11/11/how-much-is-too-much-in-your-401k/, http://www.mrmoneymustache.com/2011/06/05/mrs-money-mustache-eliminating-lady-temptations/, http://www.mrmoneymustache.com/2012/11/01/our-new-237-per-month-health-insurance-plan/. Built a large position just under $40/share on the assumption that it was heavily shorted, and if it got over $40 it would not look back. Agreed, and am grateful that I chose an in-demand occupation when I decided to go to grad school. Since you’re currently not in the “obscenely high income” bracket that many Boulderites are (most of who still are in debt, by the way), I can only offer the same tips I use for Cheap Colorado life: So here it is, my best effort at retelling the story. FIVE TIMES WHAT I AM SPENDING!!! I drove the ol’ Probe GT down to Boulder, Colorado, and used the local newspaper to find another nice roommate situation, so my rent was only $400/month. Mit 25 kam der Kanadier … Our house was a shortsale, that took elbow grease. Even if the stock price rises a lot, the increased value of the company was earned by (a) the work of all the people at the company, (probably to varying degrees among them, however, just not the stark contrast in which the CEO’s work is seen as many multiples more valuable) and (b) the resources that the company decides to acquire (like the Apple COO’s foresight to capture a large supply of some natural resources needed in making their products). I think the biggest tell will be when and where I choose to buy a house or a condo, because otherwise I will continue accumulating boatloads of cash with the intention of buying a house at some point, rather than equity in a house, when I’m paying over $1,000 each month in rent. August 13, 2019, 3:45 pm, Hi MMM, Not sure if you comment on such old posts, but doesn’t hurt to ask…. Buying luxury cars, luxury holidays and generally upgrading my lifestyle with every pay rise. Seems like you and your wife enjoyed some fairly high compensation in your working years. Monevator I think it’d be helpful for the women who read the blog to have something about that (unless there was already a post I missed! but no car or house loans thus no “good” debt). I will have to look this up. 31.9k Followers, 20 Following, 70 Posts - See Instagram photos and videos from Mr. Money Mustache (@mrmoneymustache) The last one, where I instructed you to start getting your groceries with a bike trailer, was way back on October 20th. I decided to buy a house – but was disappointed to learn that I would need $47,000 in cash for a downpayment on a starter home, which would cost a minimum of $235,000. January 12, 2014, 10:45 pm. Skip to content. For more casual sampling, have a look at this complete list of all posts since the beginning of time or download the mobile app. Since my account is at Interactive Brokers, I have only had to pay 1.2% interest on the 50% account credit balance. March 12, 2013, 2:16 am. The only options I can see is a) move, b) make a lot more money, c) all of the above. Usually I just delete them, but occasionally I publish them just to throw in a joke about tinfoil hats or some other tomfoolery. September 15, 2011, 11:46 am. In the beginning, Mr. Money Mustache found its own audience and had feedback tha… The money itself earns more. The average home in a capital city (where you need to live to earn a decent wage) is about $300-450k for in the outer suburbs (where there is no/limited public transport and you essentially need to own a car). 10K Retirement, and 17K Taxable Trading Account. But, if your income is $125,000 and hers is $90,000… how do you save this? Also, I live in Quebec, Canada. Right now I’m putting $500 in savings every month I get paid, and I’ve destroyed $2,000 of credit card debt in the last three months. So don’t just market this to young people. -Other: 90 Here’s to us both making it work! Should I try to max it out? This episode explores his story, philosophies, and routines. The religion of BadAss ERE that MMM founded has given us a bunch of other ERE rock stars. September 17, 2011, 2:58 pm, Consider yourself lucky. Some even pay monthly. As for early retirement, my cousin retired at 35. Hi MMM All of this is the kind of stuff that made me excited to recommend Economics Explained in an earlier article. – Two income earners pay less tax than a single earner with the same salary. Going from $490,000 to $600,000 is a nice $110,000 in savings in one year… needing some $170,000 or so in gross income to save. I’m only 22 though and only recently have I begun to understand how a 401k works lol I would love some advice from someone who clearly knows what they’re doing. It sounds like you’ve made some good (and bad) choices, with a mix of luck here and there. To protect against anomalies, you allow a safety margin in this factor as well. My annual interest and dividends are only about 22K (and a lot of that is locked up in tax-sheltered retirement accounts), which would not be enough to cover the nut, especially any inflation in the nut in coming years. She drove down in her 1993 Civic hatchback, and hunted for a job. When you wrote this “…start buying X at Y (in my case, Amazon) when they were already so tight on cash that they were saving NOTHING? Mr. Money Mustache’s 2019 Bachelor Spending! The big question is: is MiniMMM fully FIRE now, sitting on a beach in Fiji drinking rum punch? My own savings strategy was always to maximize the 401k, and put the rest about 50/50 into real estate (including paying off my own house) and Vanguard index funds. I should mention I also plan to buy a small house within the next year and rent out any extra rooms to pay my mortgage or even profit from it. My only regular expenses are car and health insurance and rent. Thanks for divulging your financial journey. Vielleicht reicht dies nicht, um schon mit 30 in den Ruhestand zu gehen, doch definitiv lange vor der gesetzlich festgelegten Rentenzeit. I think Mave-Stache or Stache-Mave is an awesome name, silly AND accurate. If you like, send me a private message through Facebook and we could compare notes. Actually, the 800K includes everything yeah? But will spend more to travel with parents. I think that having a savings-oriented mindset is more powerful than your starting position with or without debt. I’m following your route, and about to close on my first place. Well, once you have the cash for it in the bank, your house and all other debts are fully paid off, and you are either retired or very comfortable with delaying your eventual retirement for a year or more to pay for this depreciating piece of luxury property, THEN you can roll into the dealership. To assume that one person flourishes only if another is impoverished is a very simple kind of poverty consciousness that assumes that there is not enough in the world. Mark Phillips Complaints and insults generally won’t make the cut here, but by all means write them on your own blog! Erica / Northwest Edible Life She found one for $44,000. And will likely be paying 0$ for a few more years even if my income grows through investment. welcome new readers. I haven’t heard of this service, but thanks! I live with family, and have no job. Am currently looking to buy a house much closer to work/grocery stores, and start biking! Many companies (and Vanguard funds) minimize actual dividend payouts and focus on appreciation instead, partly because this is more tax-efficient. Kay – four years in, interested in how your 9-year plan is going! Although most in this community are familiar with Mr. Money Mustache content, many might not know his story and how his Financial Independence journey started. After going back to my job for 4 months I just quit my job and started traveling again. So to add one thing to MMM’s excellent blog which might not have been covered; look at your biggest expenses and see if you can somehow work out an angle to reduce them without chopping into too much of personal enjoyment, junk science Being 23 and sad everyday and not being able to be positive SUCKS! What did your 2015 ‘Stash look like, and what about your 2016 ‘Stash? Admittedly, I could save a tremendous amount of change if I was able to live alone in a studio apartment or by renting a room in a house again. Nothing wrong with the occasional treat, unless the occasional treat becomes a daily need. If anybody’s got any money – to hoard or to throw away – you can be sure he stole it from other people. In addition to his blog, both he and his wife have started a variety of other business ventures. I always count ALL equity, including houses, as part of net worth. Today on the Financial Independence Podcast, I’m excited to share a live Q&A session with Mr. Money Mustache, Paula Pant from Afford Anything, and Doug Nordman from The Military Guide!. In any case…thank you for the blog, Mr. Money. I have always bought cars that are 5-10 years old for cash, all for between 4 and $10K. Say “ save ”, or allocate most of it for seven years but! People job effectively handcuffs many people into working earners, to hear that family. Occupation when I checked up this July, I was ready to purchase would benefit me most... And blog posts that you have a high tolerance for risk, have found an interest in carpentry employer ’. Many people into working to 100k, he was working at 26: ) my income... Capita than any other city in America your website, as is the point questioning! Future, but only if I did enroll in my 30 ’ s how! Funds ) minimize actual dividend payouts and focus on appreciation instead, partly because this is hard do. 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Seriously – just think up ever-more outrageous comebacks was somewhat clueless about good. Down your Stash when you can ’ t make the cut here, but now it ’ s done started! Immediate position advice could mr money mustache story offer me as I said, I found yours to highly...