4 ms·
This concept is different but similar to Mr. Money Mustache's ideas. Minimize expenses, because why wouldn't you if you're not less happy for it, and invest all
by rthomas6 13y ago
This concept is different but similar to Mr. Money Mustache's ideas. Minimize expenses, because why wouldn't you if you're not less happy for it, and invest all the money you don't spend with your minimal lifestyle. In 10 years, you could retire if you've made a high salary for the past 10 years. The guy publishes his spending every year, and he spends around $25k-$30k per year for him, his wife, and his son. This is with smartphones, cars, and a large house. Because he lived like this, and because he and his wife both made good white collar incomes, he retired in his early 30s and just does whatever he wants now.
http://www.mrmoneymustache.com http://www.mrmoneymustache.com
- rhc2104 13y agoTo be fair, his house is completely paid for, so the $25k-$30k does not include rent/mortgage for his house.
- bloaf 13y agoHe didn't get a paid-off house for free though, he paid it off himself. http://www.mrmoneymustache.com/2011/05/11/the-elephant-in-the-room-housing/ http://www.mrmoneymustache.com/2011/05/11/the-elephant-in-th...
- skorgu 13y agoWhich basically eliminates the big metro areas unfortunately.
- akgerber 13y agoIt doesn't eliminate Chicago or several other smaller rust belt cities. Even right in the heart of downtown Chicago, modest apartments are under $200k.
- gibybo 13y agoIt doesn't get rid of the substantial opportunity cost of the money used to pay for that house. It's not at all fair to ignore that when stating his yearly expenses. They are more like $40-50k when you include it.
- breischl 13y agoOpportunity cost is important to consider, but it's not the same as cash out of pocket. And if you're going to include the opportunity cost of the house, then you also have to look at the cost of other options. Having a mortgage house costs money, and rent costs money. A paid-off house that you can maintain yourself may be the cheapest option - though that's not true for everyone all the time. There are unconventional options that are much cheaper (camper, RV, tent) but that's a whole different lifestyle.
- ChuckMcM 13y agoSadly a completely paid for house in California can still cost you $15K/year in taxes and insurance, not to mention maintenance like the occasional roof or paint job. But it helps clearly. But I wonder a bit if this catches on if you will start seeing "retirement communities" in places like Las Vegas which have a number of houses available for 100 - 150K where taxes and insurance are less than $3K/year. If you work on the utility angle (massive insulation to avoid large heating/cooling bills) can you make that work?
- cylinder 13y agoIf retired, why live in an undesirable place like Las Vegas solely to save money? I'd go overseas to find a more enjoyable environment with cheaper COL.
- ChuckMcM 13y agoFair point. Although my inlaws did that (living in Brasil) and it has its pluses and minuses. My father-in-law wants me to smuggle in paper towels when we visit, which I find funny.