After last week’s scare about the internet I thought I’d balance the ledger with some of its benefits.
Many people enjoy reading personal experience stories, especially when it comes to money.
Often we want to see how we measure up against others or look for hints, ideas or new ways of thinking and there’s a huge number of personal finance websites that offer those things.
One of the most popular and interesting is a site called Mr Money Moustache (www.mrmoneymoustache.com).
The writer is a former software engineer who retired at 30 with his wife – yes 30! At 36 he started the site and has gained an almost religious following.
In over 300 articles (written in his trademark abrasive and profane style) he addresses his philosophies on consumerism, eliminating waste, paying extra for convenience and investing.
When employed he and his wife had well-paying jobs, but were unrelenting when it came to saving.
They never actually had a budget, but started looking at expenses, not individually, but over a 10 year basis.
One big saver was living closer to work, eliminating the need to drive – imagine cutting out a tank of petrol a week over 10 years, for some people it equals a year’s income.
They also had some luck on a house renovation and sale while the US market was still booming.
For investing, they pushed most of their savings into passive, share market index funds, ensuring they continued to invest whether the market was up or down.
A higher income and the real estate sale may have allowed them to reach goals quicker than most, but they pulled up stumps after hitting their goal of $600,000 with their house paid off.
The dividends from investments, lack of mortgage and continuing frugal nature allow them and their son to live comfortably and efficiently on $25,000 a year.
While Mr Money Moustache still works on odd jobs and maintains his website, it’s at his choosing.
He continues to reinvest those extra earnings to ensure his family will be comfortable for some time to come.
Peter Mancell is a director of Mancell Financial Group and FYG Planners AFSL/ACL 224543, www.mfg.com.au This information is general in nature and readers should seek professional advice specific to their circumstances. Looking for highly rated financial advisers in Australia to reach your goals?
