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Interview with Mr. Money Mustache

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Re: Interview with Mr. Money Mustache

#221

Post by vasilipupkin »

dceddia wrote: post #182
stlHusker wrote: post #127

Earlier quoted context omitted.

You can't claim to be financially independent and come back two years later with this gem: "The secret is that my wife is no longer really retired, and in fact she started a business that is now big enough to FUND OUR ENTIRE FAMILY'S LIFESTYLE." http://www.mrmoneymustache.com/2017/03/06/etsy-shop/ If not outright dishonest, it certainly gives the off appearance that you can't put any weight in the numbers he is throw…

MMM gave a talk last year[0] where one of his key points was "Work is better when you don't need the money." That's what he's doing when he says he is "retired" and yet works odd jobs to make money, or his wife sells things on Etsy for fun. I do think there's something behind the idea that it's more fun to do money-generating activities when you don't need the money they generate. Also, his talk is pretty funny (and…

ok. but if you don't need the money, why not do a million other activities that don't bring in money?

Re: Interview with Mr. Money Mustache

#222

Post by sidlls »

markdog12 wrote: post #202
sidlls wrote: post #34

Earlier quoted context omitted.

That's what almost every one of these success stories, blogs, etc. are. They're very heavily weighted toward survivor bias and elide much context around being born into relatively privileged circumstances.

Maybe other bloggers were "privileged", but MMM grew up in a family that didn't have a ton of money, and he payed for his own college via jobs he worked as a teenager. In short, he worked his ass off.

Sure, he and his wife clearly worked for what they have. Doesn't mean there isn't survivor bias (luck) and privilege at work. For example, anybody who can pay for their own college from jobs they worked as a teenager is privileged.

Take a look at his own story: http://www.mrmoneymustache.com/2011/04/08/mr-money-mustaches...

He doesn't say he grew up in a family without a ton of money. He grew up in a frugal family. In Canada, with a number of social support systems that simply don't exist elsewhere. He could attend a local University on his teenager job savings and had a good job waiting for him upon graduation. He and his wife found a fixer-upper they could afford to fix up. And so on. These aren't things that happen to or for most people. The suggestion that his experience generalizes is terrible.

Re: Interview with Mr. Money Mustache

#223

Post by avenoir »

tonyedgecombe wrote: post #139
avenoir wrote: post #37

How much money do you have to have in index funds to live comfortably off dividends? Isn't it an astronomical amount? I have ~$100K in index funds and i'm making about $100 (if even that)/month right now which just gets reinvested. You'd have to have at least half a mil to get any kind of serious money out of this.

Are you paying a lot in fees? I would have expected a better return than that.

Very possible since this is a managed account. I am terrified of doing anything in the stock market, unfortunately.

Re: Interview with Mr. Money Mustache

#224

Post by reverend_gonzo »

codydh wrote: post #217
reverend_gonzo wrote: post #102

Earlier quoted context omitted.

The reason to rent is for the ability to move on demand. If a family is renting in the same place for decades, that is their problem. The moment you realize you are going to stay in one place for an extended period of time, there is no reason to continue renting. Sure, not everybody can purchase their dream home. But they can purchase something small, build equity, and upgrade in the future. The government also has p…

It's common for people to get stuck below or near the poverty line. It's difficult to save for a house down payment (much less build up the credit to get a loan for the rest) when you're struggling to pay for rent, bills, and food. Ignoring this cycle is missing the reality for many, many people.

Absolutely. Some people definitely do have it a bit harder than other people. But, outside of medical/mental issues, or just a stream of bad luck, people generally make it harder on themselves due to certain choices in their life.

My parents came to America without a dollar in their pockets. My dad's income was running a convenience store which barely made enough to pay his bills. So both parents worked, effectively minimum wage jobs, and saved for years so they could build their dream home and send their children to college.

We never went out to eat, rarely went on vacation, and parents don't drink. So, they were able to fulfill their dreams.

When people say they want to own a house, but are unwilling to find a cheaper location, stop drinking, stop eating out, drive older beat-up cars, well, then they've made their choice. The system has its issues, but no one deserves anything, and the system is not the problem here.

Re: Interview with Mr. Money Mustache

#225

Post by vasilipupkin »

J-dawg wrote: post #183
stlHusker wrote: post #127

Earlier quoted context omitted.

You can't claim to be financially independent and come back two years later with this gem: "The secret is that my wife is no longer really retired, and in fact she started a business that is now big enough to FUND OUR ENTIRE FAMILY'S LIFESTYLE." http://www.mrmoneymustache.com/2017/03/06/etsy-shop/ If not outright dishonest, it certainly gives the off appearance that you can't put any weight in the numbers he is throw…

I think his definition of "retired" is pretty simple: his family could cover all of their living expenses from investment income alone. When you think about it, this is pretty much what we mean by "normal" retirement as well. If a 70 year old retiree does some maintenance on his rental property we don't accuse him of lying about being retired. Your point about medical bills doesn't really hold water. I'm sure plenty…

if you are doing 3 different jobs ( 4 counting the etsy shop ), you are working at 3 jobs. That's not retirement. Sure, he claims his investment income covers his expenses, I get that. But, no matter how you look at it, he is working. He is not retired. If a 70 year old is spending time doing maintenance on rental properties, that 70 year old is working part time

Re: Interview with Mr. Money Mustache

#226

Post by markdog12 »

sidlls wrote: post #222
markdog12 wrote: post #202

Earlier quoted context omitted.

Maybe other bloggers were "privileged", but MMM grew up in a family that didn't have a ton of money, and he payed for his own college via jobs he worked as a teenager. In short, he worked his ass off.

Sure, he and his wife clearly worked for what they have. Doesn't mean there isn't survivor bias (luck) and privilege at work. For example, anybody who can pay for their own college from jobs they worked as a teenager is privileged. Take a look at his own story: http://www.mrmoneymustache.com/2011/04/08/mr-money-mustaches... He doesn't say he grew up in a family without a ton of money. He grew up in a frugal family. I…

Do you mean to say he is privileged because of the country he grew up in? If so, I certainly agree.

Re: Interview with Mr. Money Mustache

#227

Post by the_gastropod »

garettmd wrote: post #64
GiorgioG wrote: post #32

Earlier quoted context omitted.

Assuming you decide to not to have kids ;)

And assuming there are no bad events in your life which drain your savings, like health issues

Best thing you can do to protect yourself from bad events like health issues is to have a cushion of cash! The strategy is the same: spend less, so you can save more money.

Re: Interview with Mr. Money Mustache

#228

Post by cerberusss »

UK-AL wrote: post #82
astura wrote: post #47

Earlier quoted context omitted.

He touches on that in this post (with numbers): https://www.mrmoneymustache.com/2015/07/27/rent-vs-buy/

Those numbers dont really work in the uk.

So what numbers do work in the UK? I'm from The Netherlands, and I also find that these numbers don't work for me. However, I have a spreadsheet with my own numbers and it shows I can retire about ten years earlier than the rest. And that's nothing to sneeze at.

Re: Interview with Mr. Money Mustache

#229

Post by sidlls »

markdog12 wrote: post #226
sidlls wrote: post #222

Earlier quoted context omitted.

Sure, he and his wife clearly worked for what they have. Doesn't mean there isn't survivor bias (luck) and privilege at work. For example, anybody who can pay for their own college from jobs they worked as a teenager is privileged. Take a look at his own story: http://www.mrmoneymustache.com/2011/04/08/mr-money-mustaches... He doesn't say he grew up in a family without a ton of money. He grew up in a frugal family. I…

Do you mean to say he is privileged because of the country he grew up in? If so, I certainly agree.

That's certainly part of it, yes. He simply didn't have the adversarial childhood that lower and lower-middle income households in America have.

It's not like he started on third base to get his home run. More like he started on first or was intentionally walked.

Re: Interview with Mr. Money Mustache

#230

Post by ahelwer »

vasilipupkin wrote: post #221
dceddia wrote: post #182

Earlier quoted context omitted.

MMM gave a talk last year[0] where one of his key points was "Work is better when you don't need the money." That's what he's doing when he says he is "retired" and yet works odd jobs to make money, or his wife sells things on Etsy for fun. I do think there's something behind the idea that it's more fun to do money-generating activities when you don't need the money they generate. Also, his talk is pretty funny (and…

ok. but if you don't need the money, why not do a million other activities that don't bring in money?

Why does it matter whether doing what you want to do brings in money?
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