As someone relatively new to the FIRE (Financial Independence, Retire Early) movement, I’ve been soaking up all the advice I can get from those further along on the journey. One person’s perspective that has really resonated with me is that of the “Mr. Money Mustache” blogger.
In one of his posts, he laid out his personal story of going from a frugal upbringing to building a sizable nest egg that allowed him to retire in his 30s. (!)
Yeah, okay maybe his level of discipline and savings rate seems intimidating at first, but I think there are some valuable lessons we can all apply, even if we’re just starting out. Comparison is the thief of joy right? Instead let’s use his story to inspire.
The first thing that struck me was his emphasis on “real savings” – not just putting away a few bucks here and there, but aggressively saving thousands per month. As he points out, even a middle-class family making a total of $120,000 should be able to sock away $5,000 per month if they are disciplined about their spending
Yeah, saving half their income – that sounds like an impossible target, but Mr. Money Mustache makes a good point – when you’re young and don’t have major expenses like a mortgage or car payment, you really can save the vast majority of your income. He did it as a teenager working minimum wage jobs. When I was a teenager I was spending my money on anything I wanted, not saving anything. Talk about different money habits?
The key is to avoid the lifestyle creep that so many people get caught up on as their incomes grows.
While you’re broke, it’s working on good money habits, and when you start to roll in the dough… instead of upgrading to fancier cars, apartments, and nights out, the money should be redirected into investments. Live below your means, and let compound interest do the heavy lifting. Don’t complicate the last past either, you don’t have to be a wizard to make money in investments, just have the right plan and stick with it for the long haul.
Of course, that’s easier said than done. Mr. Money Mustache acknowledges that it requires discipline and sacrifice in the short-term. But he paints a compelling picture of the long-term payoff – the freedom to quit the 9-to-5 and live life on your own terms. Who wouldn’t want that? It doesn’t come without effort though and it may take time, but the journey of a thousand miles begins with a single step.
What I find most inspiring is his rejection of the consumerist mindset that traps so many people in the “rat race.” He didn’t feel the need to buy the latest gadgets or eat out constantly. Instead, he found joy in frugal living, whether that meant sharing a house with roommates, biking to work, making food at home and spending quality time with his *at the time* wife.
As I navigate the early stages of my own FIRE journey, I’m trying to internalize that mentality. A balance. I don’t know if I want to deprive myself of certain things, but being intentional with my spending putting a healthy amount money towards building long-term wealth. These little short-term sacrifices will be worth it when I have the choice to retire decades earlier than my peers. The average retirement age is around that 62 / 65 year mark. I’d love to hit this FIRE goal before the age of 45.
Of course, everyone’s path to FIRE will look different. But the core lessons from the Money Mustache – more savings, contentment with less, and an unwavering focus on the long-term – are ones I’m determined to apply. With discipline and persistence, I know I can achieve the financial independence I’m striving for.
Trusting the process
#MMMSeries
Joe DiAndrea 