Hi there, and welcome! You might be new to the world of Mr. Money Mustache, but you’ve come to the right place to discover a freaky financial philosophy that can change your life. I’m Mr. Money Mustache myself, and I achieved financial independence and retired at the age of 30 with my equally awesome wife. We didn’t win the lottery or strike it rich in Silicon Valley. We simply lived a life we genuinely loved, on two ordinary salaries. It was only after leaving the conventional 9-to-5 grind that we realized our “normal” lifestyle had led us to financial freedom, while so many others, even those earning more, were stuck in the rat race until their 60s or beyond.
Consider this post your permanent welcome to the world of Mr. Money Mustache. With over 500 articles on this site, I know it can be overwhelming for newcomers. Many of you arrive with the same burning question:
“I’ve heard amazing things about Mr. Money Mustache and how his advice helps people build happy, wealthy lives. But I’m busy! How can Mr. Money Mustache make me rich, like, yesterday?”
Excellent question. Let’s dive in.
Let’s start with a bit of a rant – but don’t worry, it’s a rant packed with links to even more life-changing information. Feel free to right-click and open those links in new tabs to explore later. Seriously, if you explore each of these links, you’ll be armed with the knowledge to transform your financial life.
For nearly a decade, I’ve been sharing a different kind of financial wisdom, a stark contrast to the usual advice peddled in mainstream media. The typical narrative is that life is expensive and difficult. You’re told to work tirelessly, clip coupons, diligently save for your kids’ college funds, and stash away a tiny portion of your paycheck into a 401(k). Then, you’re expected to pray that nothing goes wrong during your 40-year career journey, hoping you’ll have enough saved for a brief retirement.
But Mr. Money Mustache says: Nonsense! The average middle-class lifestyle in developed countries is an “Exploding Volcano of Wastefulness.” Once you see this truth, you’ll realize how easily you can slash your expenses in half – and start saving 50% or more of your income. Sounds like a pipe dream? Talk to the readers of this blog; for them, it’s reality.
Saving a significant portion of your income isn’t just a good idea; it’s the only path to true wealth.
The math is astonishingly simple: Save 50% of your after-tax income starting at age 20, and you could be financially independent and ready to retire by age 37. If you’ve already accumulated some assets, you’re even closer. If you can bump your savings rate to 75%, your working career could be as short as 7 years.
Remember that “freaky magician” story I mentioned? No magic involved. My wife and I simply saved around 66% of our income without deprivation. In less than ten years, we woke up financially free. Our son arrived soon after, and he’s now heading towards his teenage years. And we’re still living this amazing, financially independent life.
But how do you achieve such high savings rates?
The secret isn’t deprivation; it’s a shift in focus. By prioritizing genuine happiness, you can create a far richer life than those chasing fleeting pleasures like luxury cars or designer handbags. True happiness comes from experiences, relationships, and purpose – none of which are found in expensive consumer goods.
Despite what advertising and societal norms dictate, this is the truth. Embracing frugality isn’t about being a social outcast; it’s about becoming a hero to your friends and family. This isn’t a niche movement anymore. Millions are reclaiming their lives through financial independence. The sooner you embrace this mindset, the sooner you’ll achieve wealth and freedom.
Is that too philosophical? Okay, let’s get practical. Here’s how to cut your living costs dramatically, the Mr. Money Mustache way: First, tackle any high-interest debt like it’s a Debt Emergency. Choose to Live Close to Work to eliminate commuting costs and time waste. Consider a bolder move and Relocate to a More Affordable City if you’re open to adventure. Never Borrow Money for Cars, and when you do buy, Choose Smart, Reliable, and Inexpensive Vehicles. Embrace the power of two wheels and Ride a Bike for transportation and fitness. Ditch the Cable TV Subscription and reclaim your leisure time and money. Stop Overspending on Groceries by planning meals and cooking at home. Give Your Kids the Gift of Independence by resisting the urge to over-pamper them. Opt for Affordable Cell Phone Plans and avoid overpriced devices. Rediscover the Joy of Using Your Body for physical tasks and errands. Learn to Question Convenience and whether it truly adds value to your life. Cultivate Outrageous Optimism; a positive mindset can unlock unexpected financial benefits.
Implement these changes, and you’ll likely eliminate about half of your current expenses in one fell swoop. Many Mr. Money Mustache followers go further, saving 75% or more, especially those with higher incomes.
So, what do you do with all that saved cash?
You invest it wisely. Consider low-cost Stock Index Funds for broad market exposure. Paying off your Mortgage can provide a guaranteed return and peace of mind. If you’re interested in real estate, explore Rental Houses as a potential income stream. As you learn more, you can diversify into other investments. As of 2016, my own retirement income is generated from a simple portfolio of index funds at Vanguard and Betterment, providing steady quarterly dividends.
How long will your money last in early retirement?
The rule of thumb is to save 25 times your annual expenses. Once you reach that milestone and invest those savings, it should be sufficient to live off indefinitely. Don’t get bogged down in the details right now. Focus on saving aggressively, and you’ll witness a remarkable transformation in your lifestyle and a significant reduction in financial stress. This blog, Mr. Money Mustache, is less about complex financial strategies and more about a Lifestyle and Attitude Transformation. Believe it or not, your mindset is a far greater determinant of your long-term wealth than intricate financial knowledge.
Welcome aboard! I’m thrilled you’re here. Let’s get started on your path to financial freedom, the Mr. Money Mustache way. And for my long-time readers, let’s keep pushing forward together!
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