Hey there, future early retiree! You’ve stumbled upon the world of Money Mustache, and you’re probably wondering what all the buzz is about. If you’re new here, let me introduce myself. I’m Mr. Money Mustache, a regular guy who, along with my amazing wife, decided to ditch the conventional 9-to-5 grind and retire at the ripe old age of 30. No inheritances, no lottery wins, and definitely no tech startup riches – just two normal salaries and a different way of looking at life.
We achieved financial independence by living what we genuinely believed was a fantastic and fulfilling life. It wasn’t until we stepped off the hamster wheel of consumerism that we realized why we had reached financial freedom so quickly, while so many others, even those earning more, find themselves working until their 60s and beyond.
This post serves as your official “Welcome!” to the Money Mustache philosophy. With over 500 articles on this site, it can feel like diving into the deep end. Most newcomers arrive with the same burning question:
“I keep hearing about Money Mustache and how his advice is helping people build truly wealthy and joyful lives. But I’m busy! Can someone just tell me how to get rich right now?”
Excellent question. Let’s get started, and I promise, it’s simpler than you think.
For over a decade, I’ve been advocating a different approach to personal finance, one that starkly contrasts with the doom-and-gloom narrative often peddled by mainstream media. The typical advice? Life’s expensive and tough. Work hard, clip coupons, slave away to fund your kids’ college educations, and maybe, just maybe, squirrel away a tiny portion of your paycheck into a retirement account. Then, cross your fingers and hope you survive 40+ years of work to enjoy a fleeting retirement.
The Money Mustache perspective? That’s mostly bunk. The average middle-class lifestyle in affluent countries is, to put it bluntly, an Exploding Volcano of Wastefulness. Once you grasp this fundamental truth, you’ll realize that cutting your expenses in half – or even more – is not only possible but surprisingly easy. This isn’t some pipe dream; it’s the reality experienced by countless readers of this blog.
And what happens when you drastically increase your savings rate? This is where the magic of Money Mustache truly begins. Consistently spending significantly less than you earn is the only path to real wealth.
The impact is transformative. If you start saving 50% of your after-tax income at age 20, you could be financially independent and ready to retire by age 37. If you’ve already accumulated some assets, you’re even closer. Ramp up your savings to 75%, and your working career could be condensed to a mere seven years.
Remember my “freaky financial magician” claim from the beginning? There’s no magic involved. My wife and I simply saved around 66% of our income without feeling deprived. In less than a decade, we looked up and realized work was optional. Our son arrived shortly after, and he’s now practically a teenager. And we’re still living this vibrant, unconventional life.
So, How Do You Achieve Mustache-Level Savings?
The secret sauce of the Money Mustache method isn’t deprivation; it’s about prioritizing genuine happiness. It’s about crafting a far richer life than those chasing fleeting pleasures of convenience and luxury, blindly following the financially clueless masses influenced by TV commercials and societal pressures. True happiness stems from meaningful experiences, strong relationships, and purpose – none of which come in a fancy car or designer handbag.
Despite what mainstream culture dictates, this is the unvarnished truth. Embracing the Money Mustache philosophy isn’t about becoming a hermit; it’s about becoming a hero to your friends. This isn’t a niche movement anymore. Millions are waking up and redesigning their lives. The sooner you embrace this, the sooner you’ll unlock your own path to financial freedom.
Too philosophical? Okay, let’s get practical. Here’s how to potentially halve your living expenses, the Money Mustache way:
First, tackle any Debt Emergency. Then, live close to your workplace (or better yet, work remotely!). Consider a move to a more affordable city if you’re adventurous. Never borrow money for cars, and definitely avoid overpriced, status-symbol vehicles. Embrace the bike for transportation whenever possible. Cancel your costly cable TV. Re-evaluate your grocery spending and eliminate waste. Empower your kids to thrive without excessive pampering. Ditch the ridiculously expensive cell phone plans. Rediscover the joy of using your own body for tasks. Learn to question and mock convenience. And finally, cultivate outrageous optimism.
That’s just scratching the surface, but implementing even a few of these Money Mustache principles can easily cut your expenses significantly. Many readers go further, saving 75% or more of their income, especially those with higher salaries.
What To Do With Your Mustache-Sized Savings?
Invest it wisely! The Money Mustache approach favors simple, effective investments like stock market index funds. Consider paying off your mortgage, investing in rental properties if you’re interested in real estate, or exploring other income-generating assets as you learn more. My own retirement income, as of 2016, comes from a straightforward portfolio of index funds at Vanguard and Betterment, generating consistent quarterly dividends.
How Long Will Your Money Mustache Fortune Last?
The Money Mustache rule of thumb: Save 25 times your annual expenses, invest it, and that’s generally enough to live off indefinitely. Don’t get bogged down in the details right now. Focus on building your savings muscle, and witness how your lifestyle transforms and your financial anxieties dissolve. This blog is less about complex financial strategies and more about a journey of lifestyle and mindset transformation. Believe it or not, your attitude is a far greater determinant of your long-term wealth than intricate financial knowledge.
So, welcome to the Money Mustache community! I’m thrilled you’re here. Let’s embark on this journey together. And to my long-time readers, let’s keep pushing forward!
A Money Mustache Recommended Resource (May 2021):
Credible Logo for Mortgage and Student Loan Refinancing If you have a mortgage or student loans, the recent significant drops in US interest rates could be a game-changer. Explore Credible.com (NMLS No. 1681276) for a surprisingly streamlined and free way to compare refinancing rates for both home and student loans.
Refinance Student Loans (Click Here for a $300 Bonus for Money Mustache Readers!)
Refinance Your Mortgage (Click Here)
Note: Credible is now a trusted Money Mustache affiliate. Learn more about my affiliate partnerships here. (You can view their mortgage disclosure here)
