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Old 12-02-2018, 11:22 AM
 
Location: Portal to the Pacific
5,119 posts, read 5,088,076 times
Reputation: 6343

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Quote:
Originally Posted by cjseliga View Post
With the hundreds of thousands he makes off his blog/website alone each year (I hear it's as high as $300k/year), I'm not so sure he's hurting that much with the divorce!
No, in fact he likely feels liberated.

I always got the feeling that the "family man" lifestyle felt uncomfortable for him. When he talked about his son I usually cringed. He didn't mention his wife much at all.

I guess I don't talk about my husband and kids all that much either, but when I do, I'm pretty darn clear how important they and their well-being are to me. Like, the point of this joint frugal, mustachian living with my husband is entirely to set up the kids.

With MMM.. I felt like he was more doing it to give the bird to societal chains.
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Old 12-02-2018, 11:43 AM
 
10,058 posts, read 4,648,803 times
Reputation: 15280
Quote:
Originally Posted by BigCityDreamer View Post
The article doesn't go into the details. However, I'd like to know how this couple lived their lives to save enough to retire on.

Sure, you can retire in your 30s if your combined salary is $135,000 and you live like a pauper for several years. Few people would be willing to do that though.
no it's doable... With a salary of $135k, living on half would put him at $65,000/year, which is still ahead of the median household income. So he isn't living any worse off than the average household.

And saving $65,0000/year for a decade would would be a straight $650,000, add in the run up in stocks over the last ten years (since 2008 is officially 10 years ago now), it would have doubled and almost tripled by now. So the portfolio would have around $1.5 million

Making $135k/year household isn't too difficult, even in a lower COL area. It takes two people making $65k/year. But from the blog, it sounds like he made more than his wife, but even then a $80k/40k split or whatever isn't hard to imagine.

it isn't a FIRE lifestyle, but I prefer WranglerStar's youtube channel on being minimal, or at least handy around the house. He and his wife and kid seems pretty happy with how they live. They call it homesteading, but its fairly minimal by definition of homesteading to me

But I'm curious if MMM might return of Canada or if he stays in Colorado for his kid
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Old 12-02-2018, 12:22 PM
 
Location: The Berk in Denver, CO USA
14,014 posts, read 20,323,805 times
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Easy to retire in you 30s from an engineering career.
You work at a startup and get lots of stock. Company gets purchased. You collect millions.
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Old 12-02-2018, 12:34 PM
 
Location: :0)1 CORINTHIANS,13*"KYRIE, ELEISON"*"CHRISTE ELEISON"🙏 ❄⭐🎄⛄
2,707 posts, read 5,135,090 times
Reputation: 4739
Question How is he making money off of his blog?

Quote:
Originally Posted by MLSFan View Post
no it's doable... With a salary of $135k, living on half would put him at $65,000/year, which is still ahead of the median household income. So he isn't living any worse off than the average household.

And saving $65,0000/year for a decade would would be a straight $650,000, add in the run up in stocks over the last ten years (since 2008 is officially 10 years ago now), it would have doubled and almost tripled by now. So the portfolio would have around $1.5 million

Making $135k/year household isn't too difficult, even in a lower COL area. It takes two people making $65k/year. But from the blog, it sounds like he made more than his wife, but even then a $80k/40k split or whatever isn't hard to imagine.

it isn't a FIRE lifestyle, but I prefer WranglerStar's youtube channel on being minimal, or at least handy around the house. He and his wife and kid seems pretty happy with how they live. They call it homesteading, but its fairly minimal by definition of homesteading to me

But I'm curious if MMM might return of Canada or if he stays in Colorado for his kid


This is the first I have heard that he is now divorced, when did it happen?

Also, I checked out his blog, and I did not see any adds, so how is he making money off of his blog? Anyone out there know? How does a blog without any adds make money?

Thanks in advance
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Old 12-02-2018, 01:39 PM
 
160 posts, read 91,461 times
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Quote:
Originally Posted by countrylv22 View Post

Also, I checked out his blog, and I did not see any ads, so how is he making money off of his blog? Anyone out there know? How does a blog without any adds make money?


volume.
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Old 12-02-2018, 01:50 PM
 
Location: Vienna, VA
291 posts, read 153,185 times
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https://www.mrmoneymustache.com/2015...view/#comments


Is one of the first things I see on the home page. Most likely he makes the money through affiliate marketing.
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Old 12-02-2018, 01:57 PM
 
26,075 posts, read 28,478,940 times
Reputation: 24783
Quote:
Originally Posted by flyingsaucermom View Post
Oh wow... I just looked it up... I don't know what to say.. I guess he's a mere mortal like the rest of us?

He has a strong personality and probably stubborn as hell so I can't say I'm shocked. But I don't think it fundamentally challenges his personal finance advice and achievement. Maybe he just went too far with it.

I'm not much of a believe in anything, but sacred texts and old philosophers' writings the world over tend to be filled with good life skills advice.

Everything in moderation... even frugality.
I was sad to hear this news as well! Some have speculated that he's a "my way or the highway" kind of guy. It may not have been the frugality, per se, but more that the very determination and singular focus that it took him to achieve FI may have spilled over into their relationship in some not so good ways. Sounds plausible.

Last edited by mysticaltyger; 12-02-2018 at 02:27 PM..
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Old 12-02-2018, 02:10 PM
 
18,845 posts, read 13,587,446 times
Reputation: 14261
Quote:
Originally Posted by cjseliga View Post
With the hundreds of thousands he makes off his blog/website alone each year (I hear it's as high as $300k/year), I'm not so sure he's hurting that much with the divorce!
I think you have to take divorce into account though, maybe not for MMM if the blog is/was pulling in six figs or multiples of it. If you back that out a divorce could entirely blown up their position splitting assets and needing to have two places to live could force you to try and renter the workforce
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Old 12-02-2018, 02:16 PM
 
26,075 posts, read 28,478,940 times
Reputation: 24783
Quote:
Originally Posted by BigCityDreamer View Post
The article doesn't go into the details. However, I'd like to know how this couple lived their lives to save enough to retire on.

Sure, you can retire in your 30s if your combined salary is $135,000 and you live like a pauper for several years. Few people would be willing to do that though.
Basically, the whole point of the FI movement is that you don't get there living the standard American lifestyle or even aspiring to it.

But it's really not that hard to get to FI in your 30s if your combined salary is 135K. You're correct that most people don't want to do what it takes, but that's pretty much the reason why most people aren't FI by their 60s as well, despite an extra 30 years to save/invest.

Now here's the math. I took 25% off the top for taxes, then rounded down to 100k. Then I applied a 48% savings rate. So you live on 52K and save 48K. 52K after tax is about what the current median U.S. household income is. So, while we're not talking fancy here, we're very far from deprivation/poverty/living like a monk/living in a van down by the river, like we hear from so many naysayers.

I assumed the couple started working at age 22 and is now 39.

I didn't include any employer 401k matches, which seems unlikely for someone earning that kind of money.

They probably didn't make 135k starting out, so I did a second calculation with 0 contributions the first 5 years, and then starting with 4K a month 5 years later.

$4000 a month invested in Vanguard's Total Stock Market Index fund starting in January 2001 would now be worth $2,630,535. A very conservative 3% withdrawal rate would give them $78,916 to live on.

Starting 5 years later in January 2006, it would be worth $1,495,328. A very conservative 3% drawdown rate would give them just under $45,000 a year to live on, plus annual adjustments for inflation. A still conservative 3.5% rate would give them just over $52,000, plus annual inflation adjustments. The standard 4% rule would give them $59,800, plus annual inflation adjustments.

Starting in a rotten time period--October 2007--right before the market started crashing, they'd still be in pretty good shape. They'd have $1,197,036. That's not enough if you're using an uber conservative 3% drawdown, but the standard conservative 4% drawdown gives you 44K per year, plus annual inflation adjustments. That might not be enough for many, but you'd still be pretty close to financially free if you'd started 11 years ago. Not bad.

https://www.portfoliovisualizer.com/...nalysisResults

Last edited by mysticaltyger; 12-02-2018 at 02:30 PM..
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Old 12-02-2018, 02:22 PM
 
26,075 posts, read 28,478,940 times
Reputation: 24783
Quote:
Originally Posted by boxus View Post
Lol, because you have to make actual money to retire so early, if at all. Low wage jobs will not provide such funds to do so.
Correct. Even MMM has admitted as much on his blog.
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