Mr Money Mustache

MF2015

Has anyone else come across the Mr Money Mustache website?
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I've been reading it for a few weeks now working my way through the posts.

It specifically looks at reach financial independence at an early age. The main point is to spend less and save more, easier said than done for most.

Off the back of it I've upped my pension payments significantly and cut my spending on utility's and other expenses with the aim of been in a position to be FI in 10 years and possibly retire in 15 if I so wish.

https://www.mrmoneymustache.com/

fred246

It was one of my inspirations for early retirement. I was in the 'pay off mortgage and then start spending' group. I then paid off the mortgage and discovered Mr Money Moustache. I decided I was used to overpaying the mortgage so I would invest the money instead and retire early. Basically you have to earn a lot and then live frugally below your 'means'. It doesn't work if you don't earn enough in the first place. It's all about balancing though. Some people seem to go too frugal. Enjoy your life but don't waste money.

MF2015

fred246 wrote: »

It was one of my inspirations for early retirement. I was in the 'pay off mortgage and then start spending' group. I then paid off the mortgage and discovered Mr Money Moustache. I decided I was used to overpaying the mortgage so I would invest the money instead and retire early. Basically you have to earn a lot and then live frugally below your 'means'. It doesn't work if you don't earn enough in the first place. It's all about balancing though. Some people seem to go too frugal. Enjoy your life but don't waste money.

I really like the way of thinking, it’s common sence at the end of the day but it’s good to read other people’s thoughts on it just to see your not an odd ball for checking the pence per gram of rolled oats in the supermarket.

We have done a bunch of the recommended stuff over the years including buying rentals, paying off the student loan and making AVC contributions.

Over the last few years we have been buying and extending our main house. Having finished that we have doubled the value and made a big impact on the FI fund. When we move to a cheaper area in a good few years it should stand us in good stead.

My student loan was finally paid a month or so ago so that’s getting added to the AVC fund along with a bunch of other money from cancellations such as mobile and tv packages, an extra £700 going in.

It’s just the lifetime allowance we need to be careful of now.

fred246

MF2015 wrote: »

It’s just the lifetime allowance we need to be careful of now.

I put money into stocks and shares ISA. That way you can retire earlier than the government imposed minimum (55 now but government thinking of upping it.) Also government may reduce LTA in the future as they did in the past.

MF2015

fred246 wrote: »

I put money into stocks and shares ISA. That way you can retire earlier than the government imposed minimum (55 now but government thinking of upping it.) Also government may reduce LTA in the future as they did in the past.

I’m currently paying enough in to bring me below the 40% tax bracket, around £2000 a month. The next plan is to build the savings back up after the house extensions then start paying into a S&S ISA.

I’m 40 this year and can’t see myself been ready to retire before 55-57 but if I do then downsizing and moving areas will free up cash to see us to the minimum government age.

jamesd

MF2015 wrote: »

Has anyone else come across the Mr Money Mustache website?

Familiar with it. My own journey started when I ran out of savings while doing voluntary work on something everyone online now uses routinely. I started posting here and learning about investing in 2006 and with a savings ratio above 60% got to initial financial independence in about eight years. Reached can retire a few years later and work is now entirely optional and irrelevant to my ability to support myself.

One thing I did later than I should have was learning about and starting to use VCTs.

MF2015

jamesd wrote: »

Familiar with it. My own journey started when I ran out of savings while doing voluntary work on something everyone online now uses routinely. I started posting here and learning about investing in 2006 and with a savings ratio above 60% got to initial financial independence in about eight years. Reached can retire a few years later and work is now entirely optional and irrelevant to my ability to support myself.

One thing I did later than I should have was learning about and starting to use VCTs.

Wow, 60% is a great figure. I’d love to get that high but unfortunately I’ve got quite a high mortgage that I’m paying down. Probably not the best us of cash but I feel better knowing it’s reducing in line with roughly when FI should be reached. We also have a 5 year old and big commutes, both of which were not prapared to give up, well not the 5 year old anyway! I have started walking and using the bike for trips into town and shopping though, unfortunately it’s not safe to do the school run on bike as we are out in the sticks and a few miles from the school on country roads.

I went back to uni as a mature student and wasted a good few years before that so I’m a bit behind but making up for it now.

Drp8713

Ive read about him. By then, I had already begun saving my pay rises. I then more than doubled my salary over a 5 year period which helped.

My take home pay is around £2600 a month, and I only spend £1500 on bills / holidays / going out. That means im investing £1100 a month, topped up to £1200 with LISA bonus and tax relief. In addition, ive got £380 going out of my gross pay to a 1/49th public sector DB scheme and AVC.

I cant predict investment returns and that the DB scheme/job I have will remain.

I am 30, if my income/outgoings remain the same and I get 5%/8% returns:

By 45 - £375k/492k plus DB of £23k from 68
By 50 - £560k/811k plus DB of £32k from 68
By 60 - £1.1m/1.97m plus DB of £55k from 68

ams25

Mr money moustache is a leading proponent of the growing FI (financial independence) movement out there... especially in the US....but still a strictly minority pursuit.. 50% savings rate is not for everyone. But I love this maths..

Save 10% pa and you need to work 9 years for 1 year of financial independence
Save 50% pa and you need to 5 years for 5 years of financial independence. (More if you're investing into reasonable markets over time)

you might like to check out
https://www.madfientist.com
https://www.choosefi.com
http://www.gocurrycracker.com
https://www.1500days.com

To just scratch the surface. A lot of inspiring and informative stuff out there.
Some great podcasts from some of these sites....great way to learn in the gym or on the commute.

I started doing a lot of this stuff 30 years ago before I knew FI was a thing (primarily high savings rate/living below means/ decent job combined with agressively investing throughout) to get me there at 52. It can work.

atush

I've read it a bit, but he and his followers are a little bit fanatical about the whole thing. Down to saving so hard they arent actually enjoying life.

mollycat

As all the posts above, MMM quite skillfully outlines the importance of saving early, saving well and investing to bring FIRE, (financial independence, retire early).

The other main theme of the blog is our attitude to consumerism and ways to help ourselves, from a financial, ethical and health standpoint; eg cycling rather than using our cars, rejecting the latest gadgets and "must haves" etc etc.

Obviously, there needs to be a balance between those of us who "get" the message and those who remain "consumer suckas", as if none us bought stuff we didn't really need the economy, (and therefore our investments) would tank!

I found the blog a few years ago, yep, it makes for a refreshing and positive read.

Edit, as a lot of us know, "The Escape Artist", is a good UK blog in a similar vein.