Mr. Money Mustache
The blog that launched the FIRE movement
February 11, 2023 • Blog Review
← Back to ResourcesI came across this awesome blog a couple years back. It was probably my first real experience with a blog that I wanted to follow. He did such a good job at what I consider plain language blogging.
Mr. Money Mustache retired early (FIRE) with some pretty cool ideas of how to live well below your means and still have a really good life. His philosophy centers around the idea that financial independence is achievable for most people through strategic lifestyle choices and disciplined saving.
Who is Mr. Money Mustache?
Pete Adeney, the man behind Mr. Money Mustache, retired at age 30 along with his wife by saving about 70% of their income during their working years. They achieved this through a combination of high earnings in software engineering and extremely low expenses through conscious lifestyle choices.
What makes Pete's approach unique is that he doesn't advocate living in deprivation. Instead, he shows how many conventional expenses are actually making us less happy, not more. His philosophy is about optimizing for both financial freedom and quality of life.
Core Principles of the MMM Philosophy
Bike Instead of Drive
Transportation is often the second-largest expense after housing. Biking for local trips saves money, improves health, and reduces stress.
DIY Everything
Learn to do things yourself - from home repairs to cooking. It saves money and often produces better results than paying others.
Buy Used When Possible
Cars, furniture, tools, and many other items work just as well used but cost a fraction of the price new.
Question Every Expense
Before any purchase, ask: "Will this really make me happier?" Often the answer is no, and you save money while decluttering your life.
The FIRE Formula
Mr. Money Mustache popularized the FIRE movement (Financial Independence, Retire Early) with a simple mathematical formula:
Annual Expenses × 25 = Financial Independence
Based on the 4% withdrawal rule from investment portfolios
This means if you spend $40,000 per year, you need $1 million invested to be financially independent. If you can live on $30,000 per year, you only need $750,000. The key insight: reducing expenses is often more powerful than increasing income.
Why the Blog Resonated
What made Mr. Money Mustache so influential was his combination of:
- Plain Language: Complex financial concepts explained in everyday terms
- Real Examples: Actual numbers from his own life and readers' situations
- Practical Action: Specific steps anyone could take immediately
- Contrarian Thinking: Challenging conventional wisdom about "normal" spending
- Community Building: Creating a movement of like-minded people
Key Articles to Read
If you're new to Mr. Money Mustache, these articles provide a great foundation:
"The Shockingly Simple Math Behind Early Retirement"
Shows how savings rate directly determines how long you need to work. Save 50% of your income, and you can retire in 17 years regardless of your salary.
"Your Debt is an Emergency"
Explains why carrying high-interest debt is a financial emergency that requires immediate, drastic action.
"The True Cost of Commuting"
Breaks down the real cost of long commutes - not just gas, but time, stress, and opportunity cost.
The Investment Approach
Mr. Money Mustache advocates for simple, low-cost index fund investing:
- Total Stock Market Index Funds: Maximum diversification with minimal fees
- Dollar-Cost Averaging: Regular investing regardless of market conditions
- Long-term Perspective: Ignore short-term market volatility
- Tax-Advantaged Accounts: Maximize 401k and IRA contributions first
The Mustachian Way
Being "Mustachian" means optimizing your life for both happiness and wealth building. It's about living richly while spending wisely, and understanding that financial freedom gives you the ultimate luxury: choice.
Criticisms and Balance
While Mr. Money Mustache's approach works for many people, it's important to note some limitations:
- High Income Assumption: The strategy works best for above-average earners
- Lifestyle Fit: Not everyone wants to bike everywhere or do all their own repairs
- Family Considerations: Some strategies are harder to implement with children
- Geographic Limitations: Living car-free is easier in some locations than others
The Lasting Impact
Mr. Money Mustache didn't just create a blog; he launched a movement. The FIRE community has grown to include hundreds of thousands of people pursuing financial independence through conscious spending and aggressive saving.
His influence extends beyond personal finance to environmental consciousness, health optimization, and life satisfaction. The blog demonstrates that financial freedom and sustainable living often go hand in hand.
How This Applies to DIY Money
The Mr. Money Mustache philosophy aligns perfectly with DIY Money principles:
- Low Fees: Avoiding unnecessary advisor fees mirrors avoiding unnecessary expenses
- DIY Approach: Taking control of your investments rather than outsourcing
- Simple Strategies: Index funds and consistent investing beat complex schemes
- Long-term Focus: Building wealth systematically over time
Start Your Own Mustachian Journey
You don't have to adopt every aspect of the Mr. Money Mustache lifestyle, but the core principles - spend less than you earn, invest the difference, and question conventional wisdom - can transform your financial future.