What are your average yearly household living expenses?

[Morgan]

I've been reading the Mr Money Mustache blog archives from the beginning and I think it could interest some people here (those interested in early retirement, or in tips on how to reduce their expenses).

 

http://www.mrmoneymustache.com/2012/01/13/the-shockingly-simple-math-behind-early-retirement/

 

Have you checked out ERE (Early Retirement Extreme) as well?

 

Next on my list (including the book).  What are your thoughts on both MMM and ERE? Are you following the plan (either, both?). Do you prefer one over the other?

 

So far it's mostly stuff I had read years ago in some of the old school versions of this philosophy (Your Money or Your Life, Tightwad Gazette, Simple Dollar, etc), but it's good to refresh the ol' memory and it does provide extra motivation (kind of like reading on value investing, even if the principles don't change).

 

Both MMM and ERE (site and book) are interesting and worthy reads. I have basically taken up the ERE/MMM mindset and it is working nicely. I'm not as extreme, but my expenses dropped nicely. Incidentally, my boosted savings have been put to good use in real estate investments that I probably would not have been able to do had I not been saving as much.

 

Now I just need to find a frugal wife.... much harder than taking up the ERE/MMM lifestyle :/

 

[Liberty]

Are you planning to retire early, or are you just using the tips/philosophy to reduce your expenses?

 

Who here has actually done it (retired early)? Any advice, curveball, etc?

[innerscorecard]

I like both MMM and ERE very much. To me, MMM is more a concrete template that actually will work (not too hard, not too much deprivation) for a typical middle class family if applied exactly, whereas ERE is really an evergreen philosophy and a much more challenging way to look at the world. The ERE book is really good.

 

My spouse and I are fully on-board the plan. We don't make a lot of money, so lifestyle efficiency is a must to have enough money to invest to allow us to be financially independent while we're still young enough to enjoy it.

[Liberty]

Very good, thanks for sharing your perspective.

 

In between reading the MMM archives I've read a few of the about pages and foundation posts at ERE and so far I like it. Interesting that the guy was a nuclear astrophysicist, obviously quite smart and erudite.

[frommi]

I like both MMM and ERE very much. To me, MMM is more a concrete template that actually will work (not too hard, not too much deprivation) for a typical middle class family if applied exactly, whereas ERE is really an evergreen philosophy and a much more challenging way to look at the world. The ERE book is really good.

 

My spouse and I are fully on-board the plan. We don't make a lot of money, so lifestyle efficiency is a must to have enough money to invest to allow us to be financially independent while we're still young enough to enjoy it.

 

Same experience here, MMM has really changed my life for the better. Jacob of ERE is in my view a hardcore optimizer of money usage, i respect him for that but i know that would be too much for my life. (too much stress with my spouse, even though she is already frugal). As a single or with very little income i probably would give it a try for some time to get a headstart.

[Morgan]

Are you planning to retire early, or are you just using the tips/philosophy to reduce your expenses?

 

I'm using the ideas so I have more cash to invest. I am hyper-aware of compounding and understand that a new Porsche or whatever would be lovely and my ego would shine, but investing is far more important for the future. Right now I have way more ideas than cash. I see opportunity everywhere it seems.

 

I'm frugal to begin with but these ideas have refined my approach to saving. At this point I don't know if I'll stop working per se; I enjoy my work tremendously. In the future I may decide that I have enough and slow down or stop, but that is a long way off I think. It's just too much fun.

[innerscorecard]

I think frugality and even more so extreme frugality and efficient living are significant structural advantages as an individual investor.

 

• You are more tax-efficient than someone who earns a lot and spends a lot.
  
• You compound faster due to decreased personal expenses.
  
• You avoid having to sell assets that have temporarily depressed prices, in order to maintain a certain lifestyle.
  

 

I know I need these advantages. I don't really have any others. Perhaps behavior, in the sense that behavior is tied to one's financial position.

[Liberty]

I think frugality and even more so extreme frugality and efficient living are significant structural advantages as an individual investor.

 

• You are more tax-efficient than someone who earns a lot and spends a lot.
  
• You compound faster due to decreased personal expenses.
  
• You avoid having to sell assets that have temporarily depressed prices, in order to maintain a certain lifestyle.
  

 

I know I need these advantages. I don't really have any others. Perhaps behavior, in the sense that behavior is tied to one's financial position.

 

Absolutely. And even more important than that IMO is realizing that happiness and spending money are different things. Sometimes they can go together, but not nearly as often as most people believe. Only once that link is broken in your mind can you hope to one day truly have "enough".

[Liberty]

You write many interesting things on your blog, Innerscorecard. Thanks for sharing your thinking.

 

This is pretty close to my thinking:

 

http://www.innerscorecard.co/blog/2015/1/5/financial-independence-and-value-investing-are-joined-at-the-hip-but-maybe-only-to-me

 

http://www.innerscorecard.co/blog/2015/1/18/aiming-low

 

I also enjoyed the Marry Poppins post. I probably should watch that film at some point (saw parts of it when I was very young, but I don't remember much except flying umbrellas).

[innerscorecard]

You write many interesting things on your blog, Innerscorecard. Thanks for sharing your thinking.

 

This is pretty close to my thinking:

 

http://www.innerscorecard.co/blog/2015/1/5/financial-independence-and-value-investing-are-joined-at-the-hip-but-maybe-only-to-me

 

http://www.innerscorecard.co/blog/2015/1/18/aiming-low

 

I also enjoyed the Marry Poppins post. I probably should watch that film at some point (saw parts of it when I was very young, but I don't remember much except flying umbrellas).

 

Glad you enjoyed it! My blog is from a position of ignorance and inexperience, as someone like Kraven would obliquely and mercilessly mock me for, but maybe that's useful too.

[no_thanks]

I've been reading the Mr Money Mustache blog archives from the beginning and I think it could interest some people here (those interested in early retirement, or in tips on how to reduce their expenses).

 

http://www.mrmoneymustache.com/2012/01/13/the-shockingly-simple-math-behind-early-retirement/

 

Have you checked out ERE (Early Retirement Extreme) as well?

 

Next on my list (including the book).  What are your thoughts on both MMM and ERE? Are you following the plan (either, both?). Do you prefer one over the other?

 

So far it's mostly stuff I had read years ago in some of the old school versions of this philosophy (Your Money or Your Life, Tightwad Gazette, Simple Dollar, etc), but it's good to refresh the ol' memory and it does provide extra motivation (kind of like reading on value investing, even if the principles don't change).

 

Both MMM and ERE (site and book) are interesting and worthy reads. I have basically taken up the ERE/MMM mindset and it is working nicely. I'm not as extreme, but my expenses dropped nicely. Incidentally, my boosted savings have been put to good use in real estate investments that I probably would not have been able to do had I not been saving as much.

 

Now I just need to find a frugal wife.... much harder than taking up the ERE/MMM lifestyle :/

 

I would love to hear about the real estate.  Congrats as well.  Sounds like things are going well for you. 

[Liberty]

Glad you enjoyed it! My blog is from a position of ignorance and inexperience, as someone like Kraven would obliquely and mercilessly mock me for, but maybe that's useful too.

 

That's the best kind of journey to follow along! Sometimes when you hear from someone who seems to have it all figured out, they have a hard time putting on the "veil of ignorance" and actually remembering how it was to not have it all figured out. It's sometimes best to learn in real-time with someone else.

 

I'm still going through the Mr. Money Mustache blog article by article in chronological order. I'm almost done with 2012. It's very motivating. I'm so happy I got on this path almost 10 years ago, then kind of put things on autopilot and didn't think much about early retirement, and now I realize that I'm pretty much there if I want to actually pull the trigger. Going back to the well to make sure I'm covering all the basics and tighten things up in my life feels like a good challenge.

 

I plan to finish reading MMM and then read Jacob's ERE book.

 

I might actually 'retire' within the next year, we'll see. I'm looking at my options and taking my time to make sure I have a good margin of safety (I'm just 32, so there's no big rush).

[Mikenhe]

I've read the MMM blog.. but not ERE - from what I've seen its a little - er, Extreme!! (and too late for me)

 

I've incorporated some of the thing they espouse into my life style but its a gradual procees, not a magic wand to wave.

Technically I could retire now - but the wife not so much... so that isn't gonna work....

The MMM level of budgeting isn;t going to work for us - but we aren;t too far out.

[augustabound]

I'm still going through the Mr. Money Mustache blog article by article in chronological order.

 

Ridiculous question but I'll ask anyway. I've been to MMM a couple of times and don't see an archive. How are you reading the posts in order?

 

I went to "Start here", but that didn't help.

[fareastwarriors]

I'm still going through the Mr. Money Mustache blog article by article in chronological order.

 

Ridiculous question but I'll ask anyway. I've been to MMM a couple of times and don't see an archive. How are you reading the posts in order?

 

I went to "Start here", but that didn't help.

 

On the main page, right on top:

 

 

Take a look around. If you think you are hardcore enough to handle Maximum Mustache, feel free to start at the first article and read your way up to the present using the links at the bottom of each article.

 

For more casual sampling, have a look at this complete list of all posts since the beginning of time. Go ahead and click on any titles that intrigue you, and I hope to see you around here more often.

 

Love, Mr. Money Mustache

[augustabound]

Obviously I completely missed the "Welcome new reader" header.

 

Thank you.

[AzCactus]

As much as I like this thread I think a better question would be what are your average yearly household living expenses as a % of your take home pay?  Someone who has 150K in expenses but brings home 300K a year could logically still be considered frugal based on the fact that they are saving 50%. 

[Liberty]

Slides from a presentation that MMM gave a couple years go in Equator. Good stuff:

 

http://www.mrmoneymustache.com/wp-content/uploads/2013/09/happiness_vs_riches.pdf?6d6156

[Valuebo]

As much as I like this thread I think a better question would be what are your average yearly household living expenses as a % of your take home pay?  Someone who has 150K in expenses but brings home 300K a year could logically still be considered frugal based on the fact that they are saving 50%. 

 

I don't see how you can say that someone who spends 150k would ever be considered frugal. Income should almost irrelevant. Would you call someone who saves $5k/year on $20k income more frugal than someone who saves $150k on $300k income?

 

 

Also, saving 50% or more is only possible for a small set of people and even more unlikely if you live somewhere where taxes on income are above average. Members of the board are largely from the US and Canada and highly educated so I understand we are not talking about the average person here.