In 2005, the founder of Mr. Money Mustache—a website sharing life experiences for men over 30—retired just as he turned 30.
So What Is the Secret That Allowed Peter and His Wife Simi to Retire Early and Live So Comfortably?
In fact, Peter and his wife are hardworking software engineers and active savers. Each year, they save up to 2/3 of their 134,000 USD income. After just 10 years, they had around 600,000 USD after paying off their 200,000 USD home mortgage.
Today, this family lives comfortably on spending of 25,000 USD per year.
Saving and controlling spending is extremely difficult for many people today, but Peter believes a simple strategy can bring success: continually challenge your own habits.
Financial self-discipline is extremely difficult and requires diligent daily practice and changes to spending habits that erode income.
“We are taught how to avoid difficulties in life and enjoy a comfortable existence. Therefore, if we want to be more successful than others, the first thing we need to do is face hardship,” Peter said.
According to this programmer, we should live more frugally and cut unnecessary expenses—for example, stop borrowing money to buy a new car, avoid paying for cable TV, shop economically for food, and encourage children to become independent early… We should also be more self-reliant by learning to repair belongings or paint and renovate our homes, saving the cost of hiring tradespeople.
Although a lifestyle less dependent on material possessions initially makes our lives uncomfortable and unfamiliar, once we get used to it, our savings will grow and we can retire early.
Mr. Peter believes early retirement is not simply about increasing income and reducing spending. In fact, it all starts with changing our mindset and daily habits, and gradually we will save more.
The core issue is not to focus only on how uncomfortable spending less will make your life, but to see how much better your future will be if you do so.
Initially, Peter's decision to retire early surprised many colleagues, who thought the family would not last more than 1 month. Nevertheless, Peter, his wife, and their children continue to live well by changing their daily habits.
According to Peter, saving more than 50% of income and trying to invest is a smart strategy for early retirement. However, even simply changing our daily habits and outlook can let us retire early without agonizing over where to invest money.
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