Mr. Money Mustache: Early Retirement is an Impossible Dream

[Deleted]

We’re about four years into this blog, and at this point I finally have to admit I am a complete and total fraud.
...

This blog post is exactly why I am such a rabid Mr. Money Mustache fan  


www.mrmoneymustache.com/2015/04/01/impossible-dream/


We’re about four years into this blog, and at this point I finally have to admit I am a complete and total fraud.



I mean sure, I saved enough to retire in just nine years and have had a great time running around like a free man in this subsequent decade. But that was an isolated incident, which is a useless model for the average American. Above-average incomes, an appreciating market for stocks and houses, an unusually cooperative girlfriend-turned-wife, and of course plenty of White Person Privilege* came into the picture. It was really luck and fate that got us here, rather than individual effort and choices.



Just look at the bleak picture that the average person faces today in comparison. A dying economy**. Stagnant wages since the 1970s. Sky-high healthcare costs that just keep on rising. Long, congested commutes that could become unaffordable overnight on the whim of any Saudi oil minister. Poor school systems that necessitate private school if you want to live anywhere even close to affordable. A massive load of student loan debt from the ever-increasing cost of university tuition. The list goes on and on.



If you need proof to go with all those negative statements, just look at the results. Americans are facing a retirement income crisis, with far too little in the average senior’s 401(k) plan to maintain their current standard of living, even when combined with expected payouts from Social Security. With budgets already stretched razor-thin, it is impossible to expect the average person to cut any further – either before, or after retirement. Did you get the memo? 73 is the new retirement age. Sorry, but that’s the way it is, nothing you can do about it.



The great experiment of the personal 401(k) plan, foisted upon us by the elites since the late 1980s is a proven failure. The government and our employers should be providing for our retirement through guaranteed lifetime pensions, rather than forcing us to navigate the murky waters of personal finance alone. I feel I have misled you these past four years, functioning only as a pernicious savings scold and encouraging pointless individual effort, when instead we could have focused our collective efforts on reforming our system.







Oh, and April Fools, of course.



I sure hope you didn’t believe those are really the views of Mr. Money Mustache.



Although I did my best to make the awful shit in those preceding paragraphs sound pretty mainstream, it was extremely painful to type it into my computer. My keyboard started to shoot sparks out of its orifices and it is now oozing pus and blood onto my desk. Thoughts like those are so pointless, self-defeating, and just plain wrong and it amazes me that people keep cranking them out.



The problem is not with the intentions of my detractors. These are public-spirited people who are genuinely trying to improve the world. Our difference of opinion lies only in which method we use to get the job done.



The writers who harp about “America’s Retirement Crisis” are really attempting to get the politicians to do something about it: increasing funding to the Social security system and throwing a leash on the some of the nastier elements of the financial industry, who set people up with high-fee 401k plans and then sit back and skim their profits for life. These are fine goals, as long as any rules are implemented in an open and scientific manner, without resorting to rhetoric and fear in the political battle to get them implemented. But as you have noticed, I prefer a different approach.



See, the problem occurs when you rob an individual of the belief that he is in control of his own situation. When you spread the social meme that the the system is stacked against us, and that the system needs to change in order to improve our lives. Whether or not the accusations contain a degree of truth does not matter – you train a legion of powerless people who can’t take care of themselves, you also end up with lazy voters who are easily manipulated by whichever politician will stoop the lowest to appeal to their cheapest emotions.



Just look at the excuses that go around unchallenged these days. We whine that the national savings rate is only 5% and that the average person in their 60s has only about $100,000 saved. But then nobody mentions that only one percent of trips are made on bicycle in this country, and the majority of travel and commuting is done in single-occupant vehicles bought with dealer financing.



We talk about healthcare expenses as if they are imposed upon us, despite the fact that most of the nation’s health spending is done to treat self-imposed diseases related to the biggest four factors: exercise, diet, stress and sleep. US residents spend over $20 billion dollars on soft drinks – a beverage so evil and toxic due to its sugar concentration that any figure above zero is astounding to me. The shit shouldn’t even exist, and yet we guzzle it by the tankerload! You can’t prevent the truly random and unpreventable, but you can lower your expected lifetime cost drastically.



How could anyone possibly complain about having money problems, while simultaneously paying tens or hundreds of dollars per month to have passive video entertainment and commercials streamed into their house? People are simultaneously robbing themselves of money and the necessary mental quiet time that is a prerequisite to getting ahead – building skills, meeting people, getting better jobs or starting better businesses.



The average person spends over 95% of what they earn and burns most of it on necessities that aren’t really necessary. We borrow money and drown in the interest payments. We spend most of our energy working directly against our own best interests. Somebody needs to call bullshit on this practice, because we’re not going to fix it just by raising everybody’s allowance in their retirement years.


No matter how much cash you pump into a sick culture like our own, you won’t solve our money problems. Because the problem is not a shortage of money – it’s a shortage of spirit. A lack of desire and fire in our bellies to embrace hardship and challenge, to get the most out of ourselves, rather than designing a lifestyle that allows us to exert ourselves the least.



So that is why I take this particular stand. I know from first-hand experience, picked up on my own unremarkable journey from minimum wage to early retirement, that taking control of your own time and effort and spending is everything. The same critic that called me a “savings scold” above admits that he hasn’t even started his first investment account. While there is a place for public policy in every great society, it seems unwise for those who have not yet mastered a field of study themselves, to make nationwide prescriptions on that very same field.



So let’s go with a hybrid approach in solving our retirement issue. Policymakers can make sure that the Social Security program survives, because not everyone is going to become a Mustachian, and we’re wealthy enough as a society that there is no need to handle people the death sentence just for poor financial skills. And sure, we should also cut down the worst thieves in the game – there is no honor in a rich person assembling a team of lawyers and marketing gurus to get poor people to sign up for a loan on a 92″ television.



But when it comes to talking and writing about personal finance to each other, let’s drop the sympathy game. We are in control of things, not our government masters or “the elites***”. We get to decide when or if to start our families, and where to settle. Our education and vocation is another choice, as is who we spend time with and how hard we work. So let us never talk about these things as if they get handed down to us from the outside world, because people are all too prone to believe it.



But most importantly of all, let’s stop talking about expenses and spending as if they’re out of our control and as if more is better. Even retiring with zero assets and Social Security alone is enough for a plentiful lifestyle (typically over $1500 per person per month) if you embrace the idea rather than fearing it. Living on a low wage (even minimum wage) and saving a good portion of our income is equally possible. Since there’s a good chance you earn more than minimum wage, plus will have retirement savings greater than zero, there is really nothing to worry about. So, with our new freedom from worrying about stuff, let’s return to work and actually get something done.



—



* OK, Mrs. Money Mustache is 50% derived from the country of India, so she only had half as much White Privilege. But that’s still better than nothing. Plus there’s Indian Privilege to account for as well – is that higher or lower than White? We need to factor this in to the amount of sympathy we demand.



Sure, privilege does exist, and it might make it easier or harder to inherit a company or win a senate seat. But it can’t control your choice to ride a bike, buy less shit, or read library books in your spare time and I argue that frugality is the most powerful factor in earning your independence. After all, most of my equally-privileged engineering coworkers are still stuck in the office to this day.



** Isn’t it funny how these doomer articles keep repeating those words even when it’s not true? The recession ended in 2010 and the country returned to setting all-time records within that same year. We’ve been breaking new ones ever since, and the unemployment rate at 5.2% is almost as low as you can get.



*** Actually, it is possible that some of the whinier reporters might now consider Mr. Money Mustache one of “the elites”. At what level do you lose your respectable credibility as a fellow underdog and become an out-of-touch elite. Do you need $100 million, $1 billion, or is simply having your mortgage paid off enough to put you out of touch with the common man’s plight?

[v]

He's ... kind of a dick.

[tacosforlife]

God, could be be more insufferable with this shit?

Someone who made enough money in his 20s to "retire" after 9 years saying that people can live on minimum wage and save, too? I can't even with that kind of nonsense.

Yes, we all have choices to make, and yes, many people act helpless when they are not.

But he can blather on all he wants about biking and cutting cable, but the fact of the matter is that he made more money in his 20a than the majority of people in order to get where he is, and no matter how hard someone tries, not everyone can achieve what he has. Why is it so hard to admit that not everyone can achieve what he did?

Also, seriously, our society would fall the fuck apart if everyone just "retired" at 35 and blogged. We need people actually contributing!

[Deleted]

I find his outlook really refreshing (duh of course I'd say that) - that if you can break free from some of the nonsense things that "society" values, you can put yourself in a position to be more independent.

I haven't heard him say everyone can do what he did...but I read into it that more people could benefit from making important changes. The pure nonsense that is several hundred dollar a months thrown at TV and cell phones - yeah, that alone won't get you his lifestyle - but it gives you more freedom and more money to invest.

I had a feeling I might be stirring the pot with this one!

[LoveTrains]

Fuck this guy so much. He writes, "See, the problem occurs when you rob an individual of the belief that he is in control of his own situation. When you spread the social meme that the the system is stacked against us, and that the system needs to change in order to improve our lives. Whether or not the accusations contain a degree of truth does not matter – you train a legion of powerless people who can’t take care of themselves, you also end up with lazy voters who are easily manipulated by whichever politician will stoop the lowest to appeal to their cheapest emotions."

IMO, the system IS absolutely stacked against the average american. It doesn't mean that people aren't in control, but it means that we need to re-evaluate what we value as a society. I also don't like his assumption that because I believe the system is stacked against the average person that I'm a lazy voter who is easily manipulated. It sounds like the right wing fodder of not wanting to provide things like TANF and SNAP because you create dependency.

[v]

Apr 7, 2015 18:48:56 GMT -5 @songforyou said:

He lost me at that white privilege asterisk...

If you would just ride your bike more, this whole privileged/not privileged thing really wouldn't be an issue for you.  Sheesh.

[karinothing]

Or try to afford a bike on minimum wage.

[LoveTrains]

I keep re-reading this and getting madder and madder. Let's see....gee, maybe people drink soda and watch TV because they can't afford other kinds of entertainment. You know who has the luxury for quiet fucking reflection? PRIVILEGED people like this douche canoe.

[crashgizmo]

"Sure, privilege does exist, and it might make it easier or harder to inherit a company or win a senate seat."


Is he seriously saying that the only things that privilege relates to are CEO's and Senators? What about equal access to healthy food, safe neighborhoods, and adequate schools? 

I actually like the MMM forum for the case studies, but he can KOKO with that shit. 

[AAM2012]

Hmm yes @shoegal I think you are not doing MMM any favors with this thread and it may get a little lonely on that island you're on. But the good thing is you won't be working while on that island as you'll be retired and enjoying the sun. Meanwhile, we'll all be working for a very long time because we make stupid stupid stupid decisions and aren't in control of our actions.

Well I better get going, I need to get to the library that's 12 miles away before they close at 8pm. I sure hope my bike makes it across the 8 lane highway ok...

Seriously? Just GTFO with that shit...!

[v]

Apr 7, 2015 19:40:18 GMT -5 LoveTrains said:

I keep re-reading this and getting madder and madder. Let's see....gee, maybe people drink soda and watch TV because they can't afford other kinds of entertainment. You know who has the luxury for quiet fucking reflection? PRIVILEGED people like this douche canoe.

I haven't reread it because I know how it would make me feel.  

But I've spent basically all of my time since it was posted trying to dream up the world that would exist if everyone was Mr. Mustache (nobody has more than 9 years of work experience, nobody works for more than 9 years, we all live in LCOL areas that are close enough to work that we commute by bike, we're all hoarding money, and yet the whole economy doesn't fall apart?) and also being really pissed off that someone could find the views in that post "refreshing" and "why I am such a rabid fan."

[mrsfarmer]

Is he going to find me a bike that will fit 2 kids and get me through 6" of snow on the roads in the winter, or is that society telling me I need something else?

[imojoebunny]

I get his point because I see it. Because of my super white, 1% privilege, I get to live in 2 different worlds. One where regular college educated white people, and many successful other races have super schools, pay high taxes, and work "hard" (from home) to make lots of money to pay for all this. And another where mostly undereducated, underemployed, mostly white and Hispanic people, who BTW, are not any less intelligent than my main hipster neighborhood folk, mostly work at places where Walmart is a good job, and the second hand market is bigger than the first hand market by far. (Super sustainable, and their small houses with lots of family, also super sustainable)

It is funny to talk to the hipsters in my primary hood about "sustainability" and low impact on the environment, then go to our other house where people actually have straw bale gardens, animals for eating (hello, those chickens your feeding and not eating, when they quit laying are not "sustainable". ). I don't pretend like Mr. m is that way because he doesn't have to be, but there are a lot of people earning under the average income of their area, and still saving. They are working the options they have, be they a large garden or a commute without a car. One of the wealthier people I know started out riding her bike from dumpy house to dumpy house and fixing them up, in between her shifts at a pizza place. You don't save money $1,000 at a time, you save it $10.00 or $100 at a time.

[v]

Apr 7, 2015 19:53:43 GMT -5 jenny1980 said:

Apr 7, 2015 18:45:40 GMT -5 @shoegal said:

I find his outlook really refreshing (duh of course I'd say that) - that if you can break free from some of the nonsense things that "society" values, you can put yourself in a position to be more independent.

I haven't heard him say everyone can do what he did...but I read into it that more people could benefit from making important changes. The pure nonsense that is several hundred dollar a months thrown at TV and cell phones - yeah, that alone won't get you his lifestyle - but it gives you more freedom and more money to invest.

I had a feeling I might be stirring the pot with this one!

Why is spending money on TV and cell phones "pure nonsense"? I don't get your judgment of what other people find valuable. For many, TV is a comparatively affordable entertainment option.

You have the ability to buy manolos, travel internationally, renovate your home and still save a ton to fund an early retirement. But you're going to begrudge people Netflix? Ok.

Don't forget the ability to hire a personal assistant to take her books back to the library!  Also, SHE HAS A CELL PHONE.

Also, your post deserves way more than just a mere like.

[Deleted]

Apr 7, 2015 17:54:59 GMT -5 @shoegal said:

We talk about healthcare expenses as if they are imposed upon us, despite the fact that most of the nation’s health spending is done to treat self-imposed diseases related to the biggest four factors: exercise, diet, stress and sleep. US residents spend over $20 billion dollars on soft drinks – a beverage so evil and toxic due to its sugar concentration that any figure above zero is astounding to me. The shit shouldn’t even exist, and yet we guzzle it by the tankerload! You can’t prevent the truly random and unpreventable, but you can lower your expected lifetime cost drastically.

Spoken like someone who has never had to worry about healthcare costs.  Wait til you fall off your bike, jerk.

[tacosforlife]

Apr 7, 2015 19:53:43 GMT -5 jenny1980 said:

Apr 7, 2015 18:45:40 GMT -5 @shoegal said:

I find his outlook really refreshing (duh of course I'd say that) - that if you can break free from some of the nonsense things that "society" values, you can put yourself in a position to be more independent.

I haven't heard him say everyone can do what he did...but I read into it that more people could benefit from making important changes. The pure nonsense that is several hundred dollar a months thrown at TV and cell phones - yeah, that alone won't get you his lifestyle - but it gives you more freedom and more money to invest.

I had a feeling I might be stirring the pot with this one!

Why is spending money on TV and cell phones "pure nonsense"? I don't get your judgment of what other people find valuable. For many, TV is a comparatively affordable entertainment option.

You have the ability to buy manolos, travel internationally, renovate your home and still save a ton to fund an early retirement. But you're going to begrudge people Netflix? Ok.

When I made $42,000/year with a $112,000 student loan balance, you know what my entertainment with my husband was? A cheap bottle of bourbon and a Netflix Mad Men marathon. Pretty sure the $750/month I was paying in student loans was doing more to hamper my financial independence than the $10/month I spent on Netflix.

But hey, I'm sure it was my shortage of spirit and lack of desire and fire in my belly to embrace hardship and challenge that kept me from amassing enough wealth to quit my job by 40.

Fuck this guy.

[wise_rita]

Apr 7, 2015 19:58:38 GMT -5 @notquiteblushing said:

Apr 7, 2015 17:54:59 GMT -5 @shoegal said:

We talk about healthcare expenses as if they are imposed upon us, despite the fact that most of the nation’s health spending is done to treat self-imposed diseases related to the biggest four factors: exercise, diet, stress and sleep. US residents spend over $20 billion dollars on soft drinks – a beverage so evil and toxic due to its sugar concentration that any figure above zero is astounding to me. The shit shouldn’t even exist, and yet we guzzle it by the tankerload! You can’t prevent the truly random and unpreventable, but you can lower your expected lifetime cost drastically.

Spoken like someone who has never had to worry about healthcare costs.  Wait til you fall off your bike, jerk.

I CANNOT effing deal with these "retire early" advocates that sweep healthcare under the rug like it doesn't exist.

Does. Not. Compute.

[mrsfarmer]

Apr 7, 2015 19:58:38 GMT -5 @notquiteblushing said:

Apr 7, 2015 17:54:59 GMT -5 @shoegal said:

We talk about healthcare expenses as if they are imposed upon us, despite the fact that most of the nation’s health spending is done to treat self-imposed diseases related to the biggest four factors: exercise, diet, stress and sleep. US residents spend over $20 billion dollars on soft drinks – a beverage so evil and toxic due to its sugar concentration that any figure above zero is astounding to me. The shit shouldn’t even exist, and yet we guzzle it by the tankerload! You can’t prevent the truly random and unpreventable, but you can lower your expected lifetime cost drastically.

Spoken like someone who has never had to worry about healthcare costs.  Wait til you fall off your bike, jerk.

Or some other unforeseen illness. My dad's step sister ate organic, no pop, etc to avoid the breast cancer that killed her mother.  She didn't get the same type of breast cancer as her mom, but she still got a different form of it at the same age her mom did.  Fortunately with treatments now, hers is in remission.

[wise_rita]

Apr 7, 2015 20:02:36 GMT -5 tacosforlife said:

Apr 7, 2015 19:53:43 GMT -5 jenny1980 said:

Why is spending money on TV and cell phones "pure nonsense"? I don't get your judgment of what other people find valuable. For many, TV is a comparatively affordable entertainment option.

You have the ability to buy manolos, travel internationally, renovate your home and still save a ton to fund an early retirement. But you're going to begrudge people Netflix? Ok.

When I made $42,000/year with a $112,000 student loan balance, you know what my entertainment with my husband was? A cheap bottle of bourbon and a Netflix Mad Men marathon. Pretty sure the $750/month I was paying in student loans was doing more to hamper my financial independence than the $10/month I spent on Netflix.

But hey, I'm sure it was my shortage of spirit and lack of desire and fire in my belly to embrace hardship and challenge that kept me from amassing enough wealth to quit my job by 40.

Pfft, your problem was being dumb enough to take out student loans in the first place.  Did you not get the memo that you can just go live on a beach somewhere, throw up a blog and watch the Benjamins roll in indefinitely?  In a magical land where healthcare costs don't exist.

You are a foolish SHEEP and have CHOSEN your pitiful lifestyle! 

[v]

Apr 7, 2015 20:02:45 GMT -5 @mx said:

Apr 7, 2015 19:58:38 GMT -5 @notquiteblushing said:

Spoken like someone who has never had to worry about healthcare costs.  Wait til you fall off your bike, jerk.

Right? I don't drink soda, I exercise like 12 hours a week and eat a very healthy diet. Today I racked up about $1500 in blood work. And I paid cash because I won't hit my deductible for a good while. When this week is said and done Ill have close to $2500 in medical expenses and I am, save a weird and persistent rash, healthy as a horse. 

Take a few naps and I'm sure that rash will go away.

Bootstraps, @mx!

[my3bears]

I agree with PPs and I will also say this - It does seem like expenses have absolutely gone up in terms of what is necessary and a need. People talk about college grads living at home and it didn't used to be that way. Well, it is never used to be necessary to have a cell phone, a computer, internet, a printer with ink, etc., but try job-hunting and interviewing without any of those things and see where that gets you. Those things combined easily total several hundred dollars a month, especially considering the phone and computer have batteries that barely last 2 years till you need to buy a new one. Now try having those on minimum wage? It's just a cycle that feeds on itself.

It's not so easy to cut things like that when you are basically required to have them for employment. And if the wages people make barely cover those expenses plus food, shelter, and transportation, SLs, and a netflix subscription, then yeah, how are you supposed to save for early retirement?

ETA: Not sure if I was clear, but I'm saying cell phones and computers with internet ARE needs at this point, not wants, especially if you are job-hunting and interviewing. 

[lime]

Apr 7, 2015 20:27:33 GMT -5 @kirkette said:

Is the TL;DR of this entitled rich white dude dictates how other people should live?
If so, I'll pass. Thanks!

He's the one that doesn't shower after biking to save money. 

[tacosforlife]

Apr 7, 2015 20:25:35 GMT -5 jenny1980 said:

I am sort of fucking stunned that a wealthy white person is in here dismissing white privilege out of hand. I guess black and Hispanic people just aren't working hard enough.

But it's refreshing!!!1!!1!!!1!!!!!!

[lime]

>>We talk about healthcare expenses as if they are imposed upon us, despite the fact that most of the nation’s health spending is done to treat self-imposed diseases related to the biggest four factors: exercise, diet, stress and sleep.


I hate this shit when someone with ZERO education or experience in health care gives out what amounts to medical advice. 

(And yes, Americans could eat healthy and exercise more, but does that fix everything? No. I could go on with antidotes, but I'll skip it for now.)

[LoveTrains]

Apr 7, 2015 20:35:11 GMT -5 jenny1980 said:

Oh and I love the fat shaming too. Chronic health condition? Your fault, you lazy fatty!

I said it before, and I'll say it again: Fuck this guy. 

[h]

Wait, so we can't blame healthcare costs, inadequate minimum wage laws, systemic racism, or anything else about "the system" for the retirement crisis, but we can blame...soda?

I don't know a lot about this guy--I have always kind of felt like his focus on retiring insanely early at the expense of things like showering seemed a bit misguided, but figured to each their own. Now, however, I hate him.

[Deleted]

This shit right here is why I imagine my mother discouraged me from applying to Smith.  Only the privileged would see living in a bus as "organic" and not being essentially homeless.



From the link @littlemoxie posted.

[h]

Apr 7, 2015 19:29:42 GMT -5 @mx said:

Apr 7, 2015 18:57:00 GMT -5 v said:

If you would just ride your bike more, this whole privileged/not privileged thing really wouldn't be an issue for you.  Sheesh.

And most bike facilities are in white/affluent neighborhoods so enjoy trying not to die while biking on the shoulder to your job that has no bike parking!

And then there is the distance issue. It is so easy to afford housing in a safe neighborhood that is biking distance to work. Good thing people aren't forced to live 50 miles from their place of employment to afford shelter or anything. And of course it is so easy to commute by bike if you have multiple kids.

[Deleted]

I'm so glad to see a pile-on this guy. I read a bit. It was awful. I never went back. I feel that was a good choice.

Yes, I'll probably work for a long while. I hope to have a rewarding career that makes that enjoyable.

[tacosforlife]

Even if you are minimalist in your lifestyle, can you imagine how terrible things would be if everybody stopped working at 35? If we had no doctors, dentists, teachers, police officers, firefighters, social workers, engineers, scientists over 35? If the infrastructure and administration of our electric grid, water filtration system, internet network were left solely in the hands of those under 35? This guy loves to spout off about independence, but he needs people to work in order to maintain a modern standard of living, even if that standard doesn't involve daily showers.


Maybe this dude should find some fire in his belly to do something difficult like getting a PhD in biology and working on a cure for cancer.