Seriously...this kind of content is the reason why I have an internet connection. It's really a joy to hear ideas that one has started to develop independently (frugal lifestyle) articulated so clearly and pushed so much further. I first read about MMM in Cal Newport's Digital Minimalism, I would recommend it!
Every time I listen to MMM I feel like I’m listening to the voice of reason... it’s an experience that acts as a balance to what is in front of me in my daily life...
Yep. I still have a long way to go. But I see it every day, more and more, with the environmental destruction we continue to enact. And he's completely right about most financial people basically just being sales people, while largely just buying vanguard stocks.
a reporter ask Bob Marley Are you a rich man? Bob: What you mean rich, what ya mean? Reporter: Do you have a lot of possessions? Lot of money in the bank? Bob: Possession make you rich? I don’t have that type of richness. My richness is life, forever.
Agree 100% on voluntary hardship. I don't run the heat in winter...OK, I live in Phoenix so I'm not going to freeze. Turn the hot water heater way down so showers are at least a bit cold...or just cold water. Most people would consider these things insane, literary insane. This retiring early thing really has much less to do with assets. People start with "how do I get a pile of money" and when that pile is large they can flip a switch and "retire". But that's now how early retirement works. That's how gold watch retirement works. You can start the lifestyle long before not having to work 40 hours a week. Asset pile is related to 40 hour work week. Lifestyle is separate. And voluntary hardship is always the first step. You are not going to save any money without biting a bullet at first. As you progress you may notice you're happier even during the saving phase. That's where the happiness comes from, not the pile of assets.And the degree to which a person enjoys voluntary hardship will determine how big a pile of assets they need.The more you understand you like living with less the less you'll need.
I'll definitely have to check-out more of Mr. Money Mustache- his thoughts on early retirement and prioritization of quality of life resonates with thoughts I've been having as of late. -Nerdarchist Ryan
1:34:00 What would you do with money... Again very similar to Mr MM I was thinking of buying a commercial building in some middle America town on its last legs and opening a coffee shop. A place for people to gather. Really cheap prices even if I lost a little. No set hours. And I'd live above. Also similar I got stuck with 2 houses in the 2008 crash, had to be a landlord for a few years, deal with bad tenants. It is so strange to have such parallel experiences. This makes me wonder if there is a specific type of wiring that causes people go down this same path in the same way. Unlike Mr MM I've never shared my experience with others because I thought it would do harm, that they weren't wired the same. Most of my life most people would consider horrible. I also worried people would think I was bragging. When a kid I was told to never talk about money with others.
I like Mr Money Mustache’s or Pete’s FRUGALITY. It’s not just how to invest, pay yourself first, pay down debts and the usual advice. FIRST - spend as little as possible. Now - those are my parents’ values there. Gets called cheap and KANJUSS , yet it makes so much sense when you see every expense as extra time I have to work to pay for that junk.
How do you live off $25k a year?? I guess it depends where you live. That does not fly at all in NY or Miami. I do get it though removing a car or finding a more rural place to live and having just a car one could save a lot. I would love to see an analysis by desirable cities.
Note that $25k from 7 years ago is $32k in today's dollars, and his house is paid off. Car ownership, travel, and regularly dining out are three of the most obvious expenses to cut. People especially severely underestimate the expenses of car ownership. You can always check out MMM's blog for more of the specifics.
Uhg, I ride bikes for freedom and fun as well as transportation. I'd loathe the day I feel like each mile I ride is for more income. Still a fan of MMM though!
What assumptions does Mr. Mustache make about health/healthcare? For example, if his annual expenses are $27k, how much of that is private health insurance for 3? Isn't it common for private health-care to run $10k+/year.. leaving $17k/yr for food/rent/utilities? Regarding how one could retire once they've reached 30x the amount they spend in one year.. does that include any 401k? Aren't you penalized if you use it under the normal retirement age?
He has a paid off house. So no rent included in the 27k annual spend. Typically people in the FIRE community save up 25x annual spending (4% safe withdrawal) before retiring. This stuff is FIRE 101, relatively basic stuff that I don't have the patience to type out in a TH-cam comment. The answers to all these questions can be found in a short and easy to read book by JL Collins called "The Simple Path to Wealth". It's not expensive and it's very enjoyable to read. Good luck in your personal finance journey.
Flaws in the bike example: > How long did it take you to buy a new bike > How much time did it cost getting to where you were going next on the bike? > How much did it help an opportunist criminal?
So where do these people live??? In California a 1/1 apt is nearly $2800/mo. in a meh neighborhood. I guess if you want to live in the deep deep south maybe...
He conveniently excluded that cults are always led by an extremely narcissistic leader😂😂. This guy’s ego kills me🤮. I do agree with much of his advice, but I’d rather read his stuff than see or hear him. The humble, “I’m so authentic”, but I call myself a guru is extremely cringy to watch and listen to.
Simply not true. If you had a $70k income with a 50% savings rate, how long would you need to work and invest to live off the 4% rule? FI is all about savings rate and the fact that most people think saving 5-10% of their income is a lot. Get weird, drastically increase your savings %, and early retirement is an option with virtually any income
It’s not about making x amount... it’s about saving most of your money like 65 percent and building it until you don’t have to work for money. Live on less than you earn.. is the basic idea.
Raver Magik love your reply man! You just changed how I look at it...these guys did it fast cause there income is high...so I understand mine situation will be very very slow...30,000 yearly won’t cover it
superplan89 if you make 30k and can live on half... your literally saving 1 years salary every 2 years of saving.. let’s say you got a part time job at 12k flipping burgers just to save the money.. every 3 year of saving that income you have saved more than 1 years income of your main job. He tells you his annual expenses are about 25k a year.. so because he spends so little his money will last and every year it compounds.
i totally support MMM's values and lessons..the problem is his financial history and also his spending habits are misleading and he's absolutely the top quintile of USA. one example: he bought a brand new 1st gen NISSAN leaf. a car that is notorious for depreciating harder and faster than any other EV, thanks to its battery range dropping quickly because of lack of active thermal management. and yet he bought it. not leased it. not tested it. BOUGHT IT. Camaaaaaannn
But he bought the leaf well after he was making boat loads of money from his site. He makes it clear that you can do that after you are a millionaire. Buying a $30k car when you are a millionaire is still pretty damn frugal. And for someone who drives as little as him and keeps his car much longer, depreciation is a non factor. When the majority of his articles were written, he was driving a beat up Scion Xa...
I love MMM. I'm reading his blog, all the posts since 2011. He has inspired me to plan for my early retirement, hopefully by 50 instead of 67!
And there's people doing it even sooner...th-cam.com/video/-Axns7MZMV8/w-d-xo.html
Awesome! Any update on this?!
A lot of people found Mr. Money Mustache from Tim Ferriss…but I found Tim Ferriss from Mr. Money Mustache!
Lol, same.
Seriously...this kind of content is the reason why I have an internet connection. It's really a joy to hear ideas that one has started to develop independently (frugal lifestyle) articulated so clearly and pushed so much further. I first read about MMM in Cal Newport's Digital Minimalism, I would recommend it!
Every time I listen to MMM I feel like I’m listening to the voice of reason... it’s an experience that acts as a balance to what is in front of me in my daily life...
Yep. I still have a long way to go. But I see it every day, more and more, with the environmental destruction we continue to enact. And he's completely right about most financial people basically just being sales people, while largely just buying vanguard stocks.
starts at 5:45
a reporter ask Bob Marley
Are you a rich man?
Bob: What you mean rich, what ya mean?
Reporter: Do you have a lot of possessions? Lot of money in the bank?
Bob: Possession make you rich? I don’t have that type of richness. My richness is life, forever.
Agree 100% on voluntary hardship. I don't run the heat in winter...OK, I live in Phoenix so I'm not going to freeze. Turn the hot water heater way down so showers are at least a bit cold...or just cold water. Most people would consider these things insane, literary insane. This retiring early thing really has much less to do with assets. People start with "how do I get a pile of money" and when that pile is large they can flip a switch and "retire". But that's now how early retirement works. That's how gold watch retirement works. You can start the lifestyle long before not having to work 40 hours a week. Asset pile is related to 40 hour work week. Lifestyle is separate.
And voluntary hardship is always the first step. You are not going to save any money without biting a bullet at first. As you progress you may notice you're happier even during the saving phase. That's where the happiness comes from, not the pile of assets.And the degree to which a person enjoys voluntary hardship will determine how big a pile of assets they need.The more you understand you like living with less the less you'll need.
Nailed it!
Your car is a giant gas powered wheelchair. I love that
Glad to see these two combined, must listen!
I'll definitely have to check-out more of Mr. Money Mustache- his thoughts on early retirement and prioritization of quality of life resonates with thoughts I've been having as of late. -Nerdarchist Ryan
More time to DM!
I felt less alone and more inspired listening to this. Thanks!
This interview changed my life.
What have you done since then?
@@anthonyschilling7132 he may be highly successful, the opposite of that, or the same. But, one thing is very probable: he has busted many nuts.
1:11:09
"you're not supposed to optimize for money, you're supposed to optimize for happiness."
I'm pretty sure Pete did buy that building mentioned at the end. Based on his blogs now.
Tim you're such an excellent interviewer! 👏
best interview
Tim Ferris thank you for the wonderfully crafted art you produce and give out for free, im blessed
most of this talk lined up perfectly with my life. good pick thanks guys! wouldnt mind helping build a studio in the future either! 🎶 🎸
1:34:00 What would you do with money... Again very similar to Mr MM I was thinking of buying a commercial building in some middle America town on its last legs and opening a coffee shop. A place for people to gather. Really cheap prices even if I lost a little. No set hours. And I'd live above.
Also similar I got stuck with 2 houses in the 2008 crash, had to be a landlord for a few years, deal with bad tenants.
It is so strange to have such parallel experiences. This makes me wonder if there is a specific type of wiring that causes people go down this same path in the same way. Unlike Mr MM I've never shared my experience with others because I thought it would do harm, that they weren't wired the same. Most of my life most people would consider horrible. I also worried people would think I was bragging. When a kid I was told to never talk about money with others.
Starts at 5:45
I appreciate the content!
Mmm is needed now more then ever
crazy how i can think so similarly to someone, yet soooo differently at the same time.
I like Mr Money Mustache’s or Pete’s FRUGALITY.
It’s not just how to invest, pay yourself first, pay down debts and the usual advice.
FIRST - spend as little as possible. Now - those are my parents’ values there. Gets called cheap and KANJUSS , yet it makes so much sense when you see every expense as extra time I have to work to pay for that junk.
How do you live off $25k a year?? I guess it depends where you live. That does not fly at all in NY or Miami. I do get it though removing a car or finding a more rural place to live and having just a car one could save a lot. I would love to see an analysis by desirable cities.
Note that $25k from 7 years ago is $32k in today's dollars, and his house is paid off. Car ownership, travel, and regularly dining out are three of the most obvious expenses to cut. People especially severely underestimate the expenses of car ownership. You can always check out MMM's blog for more of the specifics.
His billboard should say “I retired at 30 and I didn’t join a cult and so can you”
I have a varidesk and I LOVE IT!! I feel like a walking talking advertisement for it. I want all my friends and family to get one!
Hi, what do you mean?
Would you be kind to tell me?
Ok, now I’m going to go spend $27K this year on Pique Tea and Athletic Greens...
Done ✔ 👍
Uhg, I ride bikes for freedom and fun as well as transportation. I'd loathe the day I feel like each mile I ride is for more income. Still a fan of MMM though!
Most excellent dudes. Smoke a bowl.
What assumptions does Mr. Mustache make about health/healthcare? For example, if his annual expenses are $27k, how much of that is private health insurance for 3? Isn't it common for private health-care to run $10k+/year.. leaving $17k/yr for food/rent/utilities?
Regarding how one could retire once they've reached 30x the amount they spend in one year.. does that include any 401k? Aren't you penalized if you use it under the normal retirement age?
He is very risky in this regard and does not get insurance. Most others in FIRE do not think this is responsible, read Tanja Hester
I think you can use a Roth conversion and after 5 years you won't have to pay taxes. Not 100% sure, but look into it.
He has a paid off house. So no rent included in the 27k annual spend. Typically people in the FIRE community save up 25x annual spending (4% safe withdrawal) before retiring. This stuff is FIRE 101, relatively basic stuff that I don't have the patience to type out in a TH-cam comment. The answers to all these questions can be found in a short and easy to read book by JL Collins called "The Simple Path to Wealth". It's not expensive and it's very enjoyable to read. Good luck in your personal finance journey.
Awesome!
2 advertisements to start the show.
Cool podcast.
Is 5 bullet Friday still being sent out??
GJack Yes, check your spam folder make sure u make it as safe so it no longer goes to your spam folder.
Flaws in the bike example:
> How long did it take you to buy a new bike
> How much time did it cost getting to where you were going next on the bike?
> How much did it help an opportunist criminal?
12:50 Mustache-ianism explained
So where do these people live??? In California a 1/1 apt is nearly $2800/mo. in a meh neighborhood. I guess if you want to live in the deep deep south maybe...
48:04
He conveniently excluded that cults are always led by an extremely narcissistic leader😂😂. This guy’s ego kills me🤮. I do agree with much of his advice, but I’d rather read his stuff than see or hear him. The humble, “I’m so authentic”, but I call myself a guru is extremely cringy to watch and listen to.
China consumes, but they also know how to save.
great recommendation in stock market genius book. Anyone interested in investing should check it out
WTF are these questions about beaver tails?
You would need to make 100k(single). Or. 200k(married) for this to work.
Simply not true. If you had a $70k income with a 50% savings rate, how long would you need to work and invest to live off the 4% rule? FI is all about savings rate and the fact that most people think saving 5-10% of their income is a lot. Get weird, drastically increase your savings %, and early retirement is an option with virtually any income
Will they get government assistance when the boy starts eating them out of house and home ?
Pretty sure he can afford it with a multimillion dollar net worth.
How come he doesn’t say....this is for people that make a combined or solo income of at least 100,000 so we can scroll away from this
superplan89 Because it isn’t, everybody can spend less and save more
It’s not about making x amount... it’s about saving most of your money like 65 percent and building it until you don’t have to work for money. Live on less than you earn.. is the basic idea.
Raver Magik love your reply man! You just changed how I look at it...these guys did it fast cause there income is high...so I understand mine situation will be very very slow...30,000 yearly won’t cover it
superplan89 if you make 30k and can live on half... your literally saving 1 years salary every 2 years of saving.. let’s say you got a part time job at 12k flipping burgers just to save the money.. every 3 year of saving that income you have saved more than 1 years income of your main job. He tells you his annual expenses are about 25k a year.. so because he spends so little his money will last and every year it compounds.
i totally support MMM's values and lessons..the problem is his financial history and also his spending habits are misleading and he's absolutely the top quintile of USA.
one example: he bought a brand new 1st gen NISSAN leaf. a car that is notorious for depreciating harder and faster than any other EV, thanks to its battery range dropping quickly because of lack of active thermal management. and yet he bought it. not leased it. not tested it. BOUGHT IT.
Camaaaaaannn
But he bought the leaf well after he was making boat loads of money from his site. He makes it clear that you can do that after you are a millionaire. Buying a $30k car when you are a millionaire is still pretty damn frugal. And for someone who drives as little as him and keeps his car much longer, depreciation is a non factor.
When the majority of his articles were written, he was driving a beat up Scion Xa...
he bought the car because he has tons of money and wanted to write an article on it for his blog. The money wasnt even a factor to him.
@@Notseanevans
He also only paid $14k for the car because of tax subsidies and incentives for EVs.