The Tim Ferriss Show
#221: Mr. Money Mustache — Living Beautifully on $25-27K Per Year
Episode guests
Podcast summary created with Snipd AI
Quick takeaways
- Evaluate purchases to determine genuine wants versus needs and procrastinate to see if desire diminishes over time.
- Optimize expenses by eliminating negatives from life, such as unnecessary purchases or those providing only marginal utility.
- Allocate surplus money to causes and projects that align with personal values and bring long-term happiness.
- Find satisfaction and fulfillment in building and manual labor, as it provides a unique and rewarding experience.
Deep dives
Thought Process in Making Purchases
When considering buying something, Mr. Money Mustache starts by evaluating if it is something he genuinely wants or needs. He then procrastinates to see if the desire diminishes over time. He also considers the space the item will take up and how he would feel if it broke. He focuses on removing negatives from his life, as happiness is often increased by eliminating sources of dissatisfaction. He avoids purchases that are unnecessary or only provide marginal utility.
Optimizing Expenses by Removing Negatives
Mr. Money Mustache believes in optimizing expenses by eliminating negatives in his life. For example, instead of buying an expensive car, he chooses to ride a bike, saving money and improving his physical fitness. He also built his own studio, which not only satisfied his need for space but also brought him genuine happiness and a sense of accomplishment. By removing negatives, he finds that his happiness is maximized without needing to spend excessive amounts of money.
Allocating Surplus Money
Mr. Money Mustache allocates surplus money by donating to causes he supports, such as organizations promoting altruism. He also considers creating projects that could have a positive impact on society, such as promoting bike-based transportation and sustainable living. He views money as a valuable resource and aims to use it in ways that align with his values and bring him long-term happiness.
The Joy of Building and Manual Labor
Mr. Money Mustache finds building and manual labor to be incredibly satisfying and rewarding. He enjoys using his hands to create and improve his living spaces. The process of building his own studio and home brought him a sense of accomplishment and happiness. He suggests that everyone should try building something at least once in their lives, as the physical and mental aspects of construction provide a unique and fulfilling experience.
Importance of Finding Balance in Life
One of the biggest challenges for the speaker is finding the right balance between being satisfied with their life and striving for more. They want to avoid being too complacent or too driven, but instead, find a middle ground that brings happiness and fulfillment.
The Power of Voluntary Hardship
The speaker highlights the concept of voluntary hardship as a way to find greater happiness and satisfaction. They encourage listeners to intentionally embrace challenges and discomfort in their lives in order to appreciate the value of simplicity and to avoid becoming too dependent on material possessions.
Changing Perspectives on Success
The speaker admits to having once believed that success was solely tied to achievement and wealth. However, over time, they have come to realize that true happiness comes from finding balance, focusing on creating, and being present in the moment.
Exploring Mustachianism
Listeners are encouraged to visit the speaker's website, mrmoneymustache.com, to learn more about the principles of Mustachianism and to read a variety of articles that cover topics related to financial independence, lifestyle optimization, and finding happiness through simple living.
Mr. Money Mustache (@mrmoneymustache -- Pete Adeney in real life) grew up in Canada in a family of mostly eccentric musicians. He worked in various tech companies before retiring at age 30. Pete, his wife, and their now eleven-year-old son live near Boulder, Colorado, and have not had real jobs since 2005. This begs the question of "How?" In essence, they accomplished this early retirement by optimizing all aspects of their lifestyle for maximal fun at minimal expense, and by using basic index-fund investing. Their average annual expenses total a mere $25-27,000, and they do not feel in want of anything. Since 2005, all three of them have explored a free-form life of interesting projects, side-businesses, and adventures. In 2011, Pete started writing the Mr. Money Mustache blog about his philosophy, which has grown to reach about 23 million different people (and 300 million page views) since its founding. It has become a worldwide cult phenomenon, with a self-organizing community and incredible news coverage. This episode explores his story, philosophies, and routines. Without further ado, please enjoy my conversation with the one and only Mr. Money Mustache, Pete Adeney. Show notes and links for this episode can be found at www.fourhourworkweek.com/podcast. This podcast is brought to you by Varidesk. You've probably heard of research concluding that sitting all day is terrible for you ("sitting is the new smoking" is a phrase I hear a lot). But standing all day isn't an option for everyone, either. My assistant and I have been enjoying the use of Varidesk, the middle ground that effortlessly converts your standard desk to a standing desk (and back again) in seconds. It comes fully assembled -- just take it out of the box, put it on your desktop, and go. Models start at just $175; check out Varidesk.com to see which one might be the right fit for you. It even comes with a 30-day, hassle-free return policy if you decide it's not your style. That's Varidesk.com. This podcast is also brought to you by Wealthfront. Wealthfront is a massively disruptive (in a good way) set-it-and-forget-it investing service, led by technologists from places like Apple and world-famous investors. It has exploded in popularity in the last two years and now has more than $5 billion under management. In fact, some of my good investor friends in Silicon Valley have millions of their own money in Wealthfront. Why? Because you can get services previously limited to the ultra-wealthy and only pay pennies on the dollar for them, and it's all through smarter software instead of retail locations and bloated sales teams. Check out wealthfront.com/tim, take their risk assessment quiz, which only takes 2-5 minutes, and they'll show you -- for free -- exactly the portfolio they'd put you in. If you want to just take their advice and do it yourself, you can. Or, as I would, you can set it and forget it. Well worth a few minutes: wealthfront.com/tim.
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