Key Takeaways:
- Mr. Money Mustache, real name Pete Adney, is a pioneer of the FIRE movement.
- He preaches saving at least 50% of your income, the 4% investment rule, and finding the amount you need to retire by annual expenses * 25.
- The tools he recommends are Personal Capital for Budgeting, Betterment for Investments, Credible for mortgage loans, Google FI for phone service, and some others.
Ever wonder who Mr. Money Mustache is?
If so, we’ll give you a detailed breakdown of who Mr. Money Mustache is.
His tips have motivated me to become financially independent by age 41.
So check out this easy read to find out who he is, his advice on saving and investing, and recommended tools.
Let’s dive right in.
Who Is Mr. Money Mustache
Mr. Money Mustache is a pioneer of the FIRE movement. His tips on saving and investing have motivated many people to change their financial futures.
His real name is Pete Adeney, a Canadian -American software engineer and financial blogger.
After working in the tech industry for a decade, he retired at 30 years old to start a family by living a more frugal lifestyle and investing his extra earnings into a rental house and “very boring conservative Vanguard index funds.”
He lives with his family in Colorado and writes blog posts to help people achieve financial freedom.
Mr. Money Mustache Advice
Find Your FIRE Number
Pete breaks this down nicely and simply. First, take your annual expenses and time by either 20, 30, or some number between. So, for example, if you make $50,000 annually and think you could live off of $40,000 a year in retirement (factoring in Social Security, a pension, or other sources of income), then you would need 20 years * $40,000, or $800,000 to retire.
Of course, this is a very simplified way of looking at things and doesn’t factor in inflation or other critical financial factors, but it’s a quick and easy way to get a ballpark number for how much you’ll need to retire.
Try To Save At Least 50%
Pete states that with at least 50% savings, you can retire in 17 years. And if you could achieve a 75% savings rate, you could retire in just 7!
Just imagine financial independence in your 20s or 30s!
How does one go about saving 50% (or more)? Well, it starts with making a budget and sticking to it. First, decide what your must-haves are and what your wants are. Then, track your spending for a month or two to get an idea of where your money goes. Once you understand your financial situation, you can start making changes, leave your office job, and work from your own house for the rest of your life, if you choose.
Start by automating your bank account savings. You can use Acorns or Digit to help you automatically stash away enough money into savings. Once you have a solid savings plan, you can start looking for ways to cut back on your spending.
Think about ways to save on your biggest expenses, like housing, transportation, and food. If you can reduce your spending in these areas, you’ll be well on your way to saving 50% or more of your income.
Invest In Low-Cost Index Funds
Another staple of Mr. Mustaches’ early retirement game plan, the low-cost index fund is often lauded as the best way to get rich slowly and achieve your investor’s goal.
While many financial products out there claim to offer quick and easy riches, the truth is that most of them are nothing more than elaborate scams. On the other hand, index funds are a tried and true way to build wealth over time.
Not only are they straightforward to invest in, but they also offer a low-cost way to diversify your portfolio.
Investing in a low-cost index fund such as Vanguard’s VTI is a great place to start if you want financial independence.
Follow The 4% Rule
Ah, yes, the magical 4% rule. This is the rule that financial independence is built on.
The 4% rule says that if you want a good chance of never running out of money in retirement, you should only withdraw 4% of your portfolio value each year.
Why? Because over a long period, the stock market has always gone up. So if you only withdraw 4% each year, your portfolio will likely continue to grow, even after you retire.
The 4% rule is a good starting point for determining how much you can withdraw from your portfolio each year. But it’s not set in stone. For example, if you have an extensive portfolio and want to be extra safe, you can withdraw less than 4%. Or, if you’re okay with a little more risk, you can withdraw more.
Either way, the 4% rule is helpful for financial independence.
Live A Simple, Frugal, Meaningful Lifestyle
Last but not least but one of the biggest tips, live simple, frugal, and meaningful lives. This is the advice from financial independence retiree Mr. Money Mustache.
You must curb spending and live below your means to achieve financial independence. This doesn’t mean you have to deprive yourself of all life’s pleasures. Instead, it means being mindful of your spending and making choices that align with your financial goals.
One way to do this is to focus on experiences rather than things. Spend less time purchasing items and more free time enjoying the world. Experiences are a lot more memorable and enriching than material things. They also tend to cost less money in the long run.
So, if you’re looking to retire early, take Mr. Money Mustache’s advice and live simply, be frugal, and do meaningful work. It just might be the key to financial independence.
Mr. Money Mustache Recommended Tools
Investing
Vanguard
A FIRE community classic. Mr. Money Mustache loves Vanguard for its low fees, and we tend to agree! Their customer service has consistently been excellent, and the fees are also very low.
Take VTSAX, for example. This is their flagship product, with an expense ratio of just 0.04%. That means that for every $10,000 you have invested, you’re only paying $4 per year in fees! And because Vanguard is a mutual company owned by its investors, there are no shareholders to pay.
Vanguard is an excellent choice if you’re looking for a great company to help you on your financial independence journey!
Betterment
Another good one is Betterment. This app provides everything you need to start investing, including access to tools, advice, and support, all from the convenience of your phone. We all aspire to financial independence, and this app can help get you there. It’s recommended by Mr. Money Mustache, one of the leading voices in financial planning. So if you’re looking for an excellent place to start, this is it!
Loans
Credible
Credible is simply amazing. If you need just about ANY type of loan, you come to Credible. They are a lot of folks’ go-to spot for finding the best rates on student loans, personal loans, and mortgages. And because they are a marketplace, you can compare rates from multiple lenders without affecting your credit score. That’s why Credible is Mr. Money Mustache recommended!
So next time you need an essential home repair, new cars, or you’re ready to buy a house, visit Credible first. You’ll be glad you did!
Budgeting
Personal Capital
A favorite of Pete’s and just about the entire FIRE movement. Personal Capital is a free financial tracking and analysis tool. It’s very simple to use and gives you an overview of all your financial accounts in one place. You can see your net worth, asset allocation, and investment performance. You can also use the Retirement Planner to see how you’re progressing towards financial independence.
YNAB
And then we have YNAB. It aims to help you achieve financial success by following four steps: organizing your finances, eliminating debt, saving money, and reaching your financial goals faster.
YNAB is an excellent tool for “Adeneying” your life. Its simple design makes it easy to use, and the reports and graphs provide valuable insights into your spending habits. Plus, the support team is fantastic! They are always quick to respond to questions and help you troubleshoot any issues you may have.
If you manage multiple accounts, YNAB can help by consolidating them into one budget. This way, you don’t need to stress about where your money is coming from or going–you can see it all in one place. Creating a budget with YNAB provides fast relief and peace of mind. You can easily adjust your budget without any feelings of guilt or anxiety.
If you’re looking for a budgeting tool to help you achieve financial success, we highly recommend YNAB.
Mint
Another budgeting powerhouse, Mint, is a budgeting tool that gives you a complete view of your finances. Not only does it give you the ability to track your spending and income, but it also allows you to set goals and create a budget. Like many other budgeting apps, Mint allows you to see all of your financial accounts in one place. This makes tracking your progress easy and seeing where you can improve your spending.
While Mint is an excellent budgeting tool, it has some other nifty features. For example, Mint allows you to negotiate your bills. This is a great way to save and get your finances in order. Additionally, Mint gives you insights into your spending habits to see where you can cut back.
If you’re looking for a comprehensive budgeting tool, Mint is a great choice. It’s easy to use and provides many features to help you manage your finances.
Cell Phone Service
Google FI
Google FI is an awesome service that many do not know about. You can make and receive calls from anywhere with great cell phone service. Not only that, but you can also send texts and use data. The best part is that no contracts exist, so you can cancel anytime.
There are several reasons to choose Google FI as your cell phone service. For one, it is very affordable. The base plan is only $20 per month and comes with unlimited data. Additionally, if you travel internationally, you can use your phone like at home. There are no roaming fees, so you can save money on your phone bill.
Another great reason to choose Google FI is that it is safe and secure. All your data is encrypted, so you can ensure your information is safe. Additionally, you can set up a PIN to prevent unauthorized access to your account.
Google FI is a great choice if you’re looking for excellent cell phone service. It’s affordable, safe, and easy to use.
Groceries
Costco
And last but not least, Costco! Come on, who doesn’t love Costco? They have amazing prices on groceries – especially if you buy in bulk. And they always have the latest and greatest products. I always find new things that I need when I go there.
I have saved thousands over the years by shopping at Costco. If you are not a member, you are really missing out!
FAQ
Where is Mr. Money Mustache now?
Now that you mention it, we’re not really sure! The last we heard, he was living the good life in the United States in Longmont, Colorado, enjoying all the freedom and happiness that comes with being financially independent. So we imagine he’s still out there, spreading the gospel of financial independence and helping people live more prosperous lives.
What does Mr. Money Mustache do?
Mr. Money Mustache is financial independence and early retirement blogger. He writes about investment advice and how to live a frugal yet rich life in his paid-off house.
How much does Mr. Money Mustache make from his blog?
In 2016 it was reported he made $400,000 annually. However, it’s safe to say that his blog has likely increased in value since then.
Did Mr. Money Mustache get divorced?
Yes, Mr. Money Mustache got divorced around 2018.
What is Mr. Money Mustache’s net worth?
In 2016 he was documented to make $400,000 annually, so his net worth is likely several million dollars higher.
Did Mr. Money Mustache sell the website?
No, Mr. Money Mustache has not sold the website. However, he is still the primary author and owner of the blog.
How is FIRE retirement calculated?
The FIRE retirement calculation is based on the 4% rule and multiplying your annual spending from a number between 20 and 30. So, for example, if your lifestyle choices made your annual spending $50,000, you would need to have saved a nest egg of 25x that or $1.25 million.
Summary
If you want to retire early, like Mr. Money Mustache recommends, start by finding your FIRE number and saving at least 50% of your income. You can use Personal Capital to track your net worth and help you stay on top of your savings goals. We hope these tips will help you achieve financial independence sooner than later! Are you inspired to save more money after reading this post? Let us know in the comments below.
Related Articles:
- JL Collins: The Godfather of FI (Bio, Books & Advice)
- THE Financial Independence Guide (Read Now To Master Money)
- How To Become A Military Millionaire (3 Simple Steps)
Has Mr. Money Mustache helped you reach financial freedom? We’d love to hear from you in the comments below.
Hello! I'm Charles. 1st gen millionaire, real estate investor, health enthusiast, and military veteran. In the last 17 years, I have managed billions of dollars of resources for the Department of Defense. Created financial management plans that enabled fellow service members to get out of thousands of dollars in debt and tailored wellness plans that helped people reverse and eliminate high-blood pressure, pre-diabetes, and obesity. Learn more about me here.