Personal Finance｜011 Learn from Mr. Money Mustache

Summary: Save money, invest wisely, and discover happiness beyond spending.

"If we can save money, we don't have to work until 65 before retiring. In fact, if you manage your finances correctly, you may only need to work for about 7 years to achieve financial freedom. While this may sound a bit like a fairy tale, it reflects the philosophy in Mr. Money Mustache's blog. Mr. Money Mustache is well-known as one of the most popular personal finance blogs in the United States, so I chose to study his articles over the weekend and summarize what I learned.

Saving money is the cornerstone of wealth and freedom, according to Mr. Money Mustache,  Here are some of his thoughts on reducing living costs:

• Avoid debt.
• Live close to your workplace.
• If you enjoy adventure, consider moving to a different city.
• Don't borrow money to buy a car; avoid purchasing unnecessary vehicles. Always try to ride a bicycle whenever you can.
• Cancel your TV subscription.
• Stop wasting money on groceries.
• Give your children the opportunity to achieve greatness without spoiling them.
• Let go of overpriced mobile phones.

Learn to appreciate the joy of doing things using your body and embrace the humor in everyday inconveniences. 

Another critical theme in Mr. Money Mustache's philosophy is optimism. When we no longer depend on money to find happiness, we can be satisfied with our lives while saving money. This optimism is rooted in several beliefs:

• Inspired by Stoic philosophy, we should focus on being grateful for what we already have and learn to want what we possess instead of longing for more.
• It's essential to control unnecessary desires. Stoics believe that the primary purpose of our efforts should be to fulfill our obligations in life and to support others.

Investing is also key. For example, consider putting your money into a selection of index funds from Vanguard and Betterment, which pay quarterly dividends.

Ultimately, the principles taught by Mr. Money Mustache encourage us to choose a happy, cost-effective lifestyle and to invest wisely to generate passive income. This minimalist approach aligns perfectly with his concepts.