5/25/2023 0 Comments Mr money mustacheMy approach is a bit of a combination of the two. Looking at the different types of FIRE, the MMM approach is probably closest to Lean FIRE and the Ramit approach to Fat FIRE or as I prefer to call it, HI FIRE. Obviously if you can combine both approaches then you earn a lot and spend very little and as a result invest a lot and you will get to FIRE a lot earlier than you would otherwise, but that’s not for everyone and not for me. There are elements of the other approach in each of these as well, Ramit is about spending a lot on the stuff that’s important to you but spending as little as possible on the stuff that isn’t, and if I recall correctly MMM got quite a few raises during his time in full time work and has plenty of other side projects going on to earn more so he’s fine with increasing earnings. So the two approaches essentially boil down to earning as much as possible, or spending as little as possible. The fact that he doesn’t have to work if he doesn’t want to is good enough for me. To some extent an argument can be made that he’s not actually retired but I really don’t feel like getting into that and I’m not part of the Internet Retirement Police. Mr Money Mustache (MMM) presumably needs no introduction to anyone in the FIRE community, he’s pretty much about saving as much as you can early on and then not having to do any work that you don’t want to after that. He doesn’t necessarily advocate retiring early, it’s more about being financially independent and living a good life. I haven’t paid for any of his courses but his free stuff is pretty good in my experience so I’m assuming there is even more value in the paid courses. However since then as the article says he has mostly moved on to creating other streams of income, living the good life by cutting out the stuff you don’t care about, as well as making more money from your day job.Īs an example I used parts of some of his techniques to get raises in my jobs which were pretty significant in both dollar and percentage terms and because of that was able to put aside a hell of a lot more money to help me on the road to FIRE. The book is about having the right systems in place, automating your finances, spending less than you earn etc. I don’t know if Ramit Sethi is really well known in Australia, I read his book I Will Teach You To Be Rich maybe 10 years ago and it’s kind of an equivalent of the Barefoot Investor but for the US (actually I got the UK edition because I was living there but whatever). With that aside, let’s have a look at the people mentioned and the article! ![]() There’s obviously more than one way to organise your money which is one reason why I find blind following of the Barefoot Investor approach to be somewhat annoying, well that and the fact that he is just plain wrong on a lot of stuff but that is potentially another post at some point. This episode is proudly sponsored by TalkSpace! Get $30 off your first month by using the coupon code OLD, and visit: Talkspace.I read a lot of finance blogs and recently saw this article discussing a couple of different personalities in the FI/FIRE space and their different ways of looking at your finances and potentially FIRE. Facebook GroupĪnd Join the Ol' Family to get your Free Gifts! ![]() This was achieved not through luck or amazing skill, but simply by living a lifestyle about 50% less expensive than most of their peers and investing the surplus in very boring conservative Vanguard index funds and a rental house or two. ![]() Then they retired from real work way back in 2005 in order to start a family. He and his wife studied engineering and computer science in Canada, then worked in standard tech-industry cubicle jobs in various locations throughout the late '90s and early 2000s. ![]() Money Mustache is a thirty-something retiree who now writes about how we can all live a frugal, yet awesome, life of leisure. This is Part 2 of 2.Įpisode 658: The Practical Benefits of Outrageous Optimism – Part 2 by Mr. Money Mustache shares the practical benefits of outrageous optimism.
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