Hi there, future Mustachian! If we haven’t crossed paths yet, I’m Mr. Money Mustache. Consider me your unconventional guide to the world of finance. I famously hung up my work boots, alongside my equally awesome wife, at the ripe old age of 30. Our mission? To raise a family and, more importantly, to truly live. We achieved this early retirement feat on two ordinary salaries, not through lottery wins or tech startup riches. Our secret wasn’t deprivation; it was embracing a fulfilling life that just happened to be financially efficient. It wasn’t until we stepped off the hamster wheel of the rat race that we understood why we’d become financially independent while so many others, even those earning more, are stuck working until their 60s or beyond.
I’m creating this post as a permanent “Welcome!” mat for the Mr. Money Mustache blog. At any given moment, a large portion of readers are newcomers, navigating this site with its treasure trove of over 500 articles. Many of you arrive with the same burning question:
“I’ve heard whispers that Mr. Money Mustache offers some game-changing advice, and people are actually building happy, wealthy lives following it,” you’re thinking. “But I’m a busy person! Can he make me rich, like, yesterday?”
Excellent question. Let’s dive in.
Consider this your starting rant – a gateway to a wealth of resources. Feel free to right-click and open any of these links in a new tab; they’re your keys to unlocking a life overhaul. If you explore each link, you’ll be well on your way to transforming your financial life – it’s that potent.
For nearly a decade, I’ve been championing a different financial philosophy, a stark contrast to the mainstream advice peddled by newspapers and magazines. The conventional narrative paints life as a relentless uphill battle of expenses, urging you to grind away, clip coupons, and diligently save for your kids’ college funds, then funnel any remaining sliver of your paycheck into a 401(k). The grand finale? Pray that nothing derails your 40-year career journey to accumulate enough savings for a fleeting retirement.
Mr. Money Mustache’s counter-advice? That’s mostly bunk. Your typical middle-class lifestyle is, in reality, a “Volcano of Wastefulness.” Once you grasp this fundamental truth, you’ll realize how effortlessly you can slash your expenses in half – freeing up half (or even two-thirds or more!) of your income for savings. Sound too good to be true? Ask the legions of readers of the Mr Money Mustache blog – it’s their reality.
What happens when you supercharge your savings rate? Turns out, spending significantly less than you earn is the golden ticket to wealth. The only ticket, in fact.
And the results are astonishing. If you start saving 50% of your take-home pay at age 20, you could be financially independent and ready to retire by 37. Already have some assets? You’re even closer. Cracking the 75% savings rate? Your working career could be as short as 7 years.
Remember my “freaky magician” analogy at the beginning? No magic tricks were involved. My wife and I simply saved around 66% of our income without drastic measures. In less than ten years, we woke up to the realization that work was optional. Our son arrived soon after, and he’s about to celebrate his eleventh birthday. And we’re still thriving.
But how do you achieve such high savings?
The core principle is this: by prioritizing genuine happiness, you unlock a far superior life compared to those chasing fleeting pleasures of convenience, luxury, and blindly following the financially clueless crowd swayed by TV ads – the modern Middle Class in the US and other affluent nations. True happiness stems from diverse sources, none of which involve car upgrades or designer handbags.
Regardless of what popular culture or advertising dictates, this is the unvarnished truth. Far from making you a social pariah, this mindset positions you as a hero among your peers. This isn’t some niche, fringe movement anymore. Millions are reclaiming their lives through financial independence. The sooner you embrace this, the faster you’ll attain wealth and freedom.
Too philosophical? Alright, let’s get practical. Here’s your action plan to potentially halve your living costs. First, tackle any Debt Emergency head-on. Choose to Live Close to Work to eliminate commuting costs. Embrace adventure and Move to a Better City if your current location is financially draining. Never Borrow Money for Cars, and definitely Steer Clear of Stupid Car Purchases. Make cycling your primary mode of transport – Ride a Bike whenever possible. Liberate yourself by Canceling Cable TV. Stop the Grocery Spending Spree. Equip your Children for Greatness Without Pampering. Ditch Overpriced Cell Phones. Rediscover the Joy of Using Your Own Body for tasks. Challenge the allure of Convenience. Cultivate Practical Optimism.
That single paragraph outlines how to potentially cut your expenses by half. Many readers of Mr Money Mustache blog go further, saving closer to 75% of their income, particularly those with higher earnings.
What to do with all that saved cash?
Invest it wisely. Consider Stock Index Funds, paying off your mortgage, investing in rental properties if you’re drawn to real estate, and explore other avenues to make your money work for you. As of 2016, my own retirement income flows from a straightforward asset allocation: a portfolio of index funds at Vanguard and Betterment, generating quarterly dividends.
How long will your savings last in retirement?
Accumulating 25 times your annual expenses in savings is generally considered sufficient for lifelong financial independence. Don’t get bogged down in the details right now. Focus on saving diligently, and witness your lifestyle transform as your financial worries dissolve. This blog, Mr Money Mustache blog, is less about intricate financial strategies and more about a profound lifestyle and attitude shift. Believe it or not, your mindset is a far greater determinant of your long-term wealth than your technical financial knowledge.
So, a warm welcome aboard! I’m thrilled you’re here. Let’s embark on this journey together. And to our long-time readers – let’s keep the momentum going!
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