Smart moves for money and for life

[Wesley]

A friend of mine -- the one with whom I was trying to start a business 8 years ago -- recommended this website to me. I'm glad he did. http://www.mrmoneymustache.com/

If you are afraid to click, I'll tell you a little about it. The gentleman in question wanted to have a family, but wanted to be able to stay at home with them rather than working 8-10 hours a day. How? He decided to retire by the time he was 30, then have the family. WHAT?!?!?! Yeah, he did exactly that. By working hard, being frugal, and other tips and tricks, he managed to do what so many of us only dream of.... and he shows us how in simple terms. Nothing crazy or lucky or super hard or anything. Good, common sense ideas.

[Wesley]

I have sort of been doing some of these things for the past 20 years or so. How else can a grown man survive being unemployed for months at a time, yet appear to be healthy and well adjusted?

[sizz]

Fair play to him, he's done well - I can see why it's so popular. But I don't if I could really relate to his situation. If I picture myself 10 years older, with children, and I could afford to retire young to look after them more, truth is, I probably wouldn't. I'd kinda rather keep earning so I have the security of a regular income and savings for the kids when they grow up (and for when they're young tbh, because children are expensive.)

I dunno if I could read much of it, the way he writes/phrases things annoys me a bit. But then I'm probably not the target audience with my arts degree, possible arts job, and most likely broke forever future unfortunately.

[Wesley]

Not sure why #3 angers you. Well, did you read #4 yet? It swings the other way. It is a fun way of writing, with both the protagonist and antagonist on the same side: getting you to think differently and save money.

[Beany]

Just a forewarning that I've gone off on a rant about this.

How much of this is just common sense? When it's hot inside and cooler outside, opening a window does seem like the obvious thing to do. I'm generally careful how I spend my money anyway (though thanks to fraud and what is hopefully a post office error I'm spending virtually nothing at the moment, but that isn't a recommended way to save money), and one very simple thing to do is check out own-brand goods before the branded ones. Half the time they're just as good, if not better.

"If you're not rich in your 20s, you're doing it wrong" - there is no 'right' way to live your 20s. I'll accept that I'm not in my 20s quite yet, but there's a difference between me comparing the prices of bananas A and bananas B to find out which is cheapest per kilo and my friends who spend their money like water. Guess which one is more fun (and who never gets invited to parties )? The lifestyle you lead in your 20s is usually pretty different from the lifestyle you lead in your 40s, and I think there's only a certain extent to which you can save money while sacrificing luxurious spending.

Also, the jobs lists annoy me. Yes, there are some jobs that pay well without you needing a degree, but quite often you need some form of training which you'll have to pay for, and they completely disregard those who study for a particular job because they want a career that they'll enjoy rather than to just pay the bills. I can't say I love my job, which is why I'm studying for a job I'll care more about. I understand that he wanted to be a stay-at-home dad but unless you're making a six-figure income from writing a blog, there are more sacrifices to make.

Am I mistaken in saying that this man is making money from getting people to read articles on how to make money? Admittedly that is a point in his favour - if you can get money from telling people the secret to making money, why not?

[Wesley]

His stuff is mostly common sense, with a little tongue in cheek thrown in. It is not rocket science, but he is proof that it can be done. He made (past tense) his money by working hard, saving and investing the lion's share rather than have "fun" stuff for the short term. One thing he did was buy a house and rent it out. That way the tenant was paying the mortgage, and once the mortgage was paid, that was "free" money going to him.

As far as being "rich in your 20s" goes, he just barely made it. There is a lifetime of difference between your early 20s and your late 20s. When you are a teenager, have some fun. But don't overdo it. Seems simple, right? How many people do you know who are now in their early 20s and don't know how to have fun? Blowing your paycheck on booze with your mates does indeed sound fun, once or twice. If you can't find a sustainable way to entertain yourself without going broke, then more money won't help, since it will most likely take more and more to reach that level of happiness. I don't mean you, of course, I mean the hypothetical "you."

Anyway, I am just reading it as a fun anecdote and taking some notes from it that I can apply to my own life. Will I do everything Mr Mustache says? Nope. Not even close. But I can learn to be more frugal and wise when it comes to money and investment of resources and time.

[Wesley]

I guess the key points are:

NEVER buy a new car, unless you pay cash, and even then, don't.

Don't pay interest. Car, credit cards, all of it. Learn to live without something until you can afford it, because interest is paying for nothing, and that sucks monkey balls.

If and when you get some spare money, an Index Fund is the most consistent positive return.

Finally, learn the joy of the things that are not as expensive and it will be easier to live within a budget.

[Beany]

The paying interest one - mortgages, student loans, etc. all incur interest. Yes, you can rent, but at some point most people want to own a house. And unless you're secretly a millionaire, tuition fees aren't cheap, but people choose to be plunged into debt because it's the only way they can break into a field they're interested in. By the end of a degree in the UK, most people already have northwards of a £30,000 debt. By working poorly paid jobs, how are you meant to earn enough to save £30,000 after other expenses?

[Wesley]

As a student you can't save money; it is once you finish the degree that you start saving.

And as a wage earner making 30 to 40 grand a year, (I don't even make that much, sheesh! ) you are already cutting it close. But these tips can help you survive more easily. Later on he talks about gardening to supplement your grocery bill. Lettuce and cucumbers for free are always better. Also, he already pointed out that if you are surviving on a shoestring budget, you may have some even better tips than he does!

[Beany]

I'm confused... where has this figure of 30-40 grand come from?

[Wesley]

I was extrapolating from Shay's post earlier where she said she was frustrated because the guy is saying how easy it is to save money when you are making over 60K a year (US$) when most young adults barely make more than half of that. Minimum wage here in the US is just under 10 bucks an hour, which for a full time employee is about 20K a year. Get a few raises, work some overtime, and you are still only making 13 or 14 dollars an hour, thus still making less than 30K a year. At this rate, it is indeed difficult to do anything more than survive. However, it is no reason to give up or get frustrated. Baby steps. Good ideas are good ideas whether you make ten or a hundred dollars an hour.