What can happen to a child who, at the age of 10, irons a $ 20 bill and stores it in a photo album? Well, very simple; who ends up retiring with only 30 years. We are not located in Spain, but in the United States and we are talking about a famous blogger known as Mr Money Mustache.
Pete Adeney, as this person is really called, lives in Longmont, Colorado, and is one of the top representatives of the FIRE movement. His blog, , is a bible of financial independence and tells how he has managed to accumulate the money necessary to not have to work anymore.
The philosophy of Pete and his family is to live with less to live better and his method is quite simple. So much that it could be summarized in one sentence: spend little, earn a lot and invest .
Spend little, earn a lot and invest, the method of Mr Money Mustache
Mr Money Mustache teaches us that we must learn to live by spending very little money . Our society is one hundred percent oriented to consumption. We believe that the more things we buy, the better car we have, the bigger our house is or the more times we eat in restaurants, the happier we will be, but it is not true.
The result of not transgressing the norms of what is politically correct is that we live to work, when it should be the other way around . Daily mornings, hours and hours of office, nights of insomnia thinking about paying loans … For what? To have a new TV? To buy us an SUV? To go on vacation 7 days a year? This lifestyle does not make any sense.
Pete realized this and decided to break a spear. He studied the engineering career paying with small jobs, so he avoided debt. He also knew how to say no to big expenses, like buying a good car or a big house. And also moved from Canada to the United States attracted by the lower cost of living and higher wages.
He decided to live without luxuries , but also without shortages, reducing his expenses to the minimum expression and saving more than 50% of his salary every month. As a result of this lifestyle, their savings began to grow . Thanks to the investment it got them to grow at a much higher rate.
The investment strategy of Mr Money Mustache was very simple and we have already talked about it in our blog: that replicate to a . Specifically, Pete opted for funds from Vanguard , the second largest index fund manager on the planet.
And what happens when you save, invest and let time pass? Well, compound interest becomes your best friend and multiply your wealth . That happened to Mr Money Mustache, who at the young age of 30 got no obligation to work anymore.
The capital gains that your investments generate, the income you get from giving talks explaining your method and the benefits that thousands of visits to your blog give you are more than enough for Pete Adeney, his wife and son to live a life with the that we would all dream , in which there is no excess, but neither the need to turn off the alarm and get out of bed every morning to go to work.