Mr. Money Moustache (aka MMM) has some pretty interesting concepts. So far, I’ve read the first 12 blogs written in April 2011 and I’ve quickly realized I have a ton of catching up to do! He’s a smart guy. He’s very analytical in nature and occasionally loses me in the details, but he still has a dry sense of humor that comes out in the blog. He understand realism for the most part and helps you come to your own conclusions with the decisions you need to make. I think there are some good things to be learned from him and plan to continue reading his blog to the point of catching up to the most recent posts. It could take a while, but right now, I don’t want to miss anything he has shared.
So far, actions I want to take to compliment our current savings plans:
1) We have currently dropped back on saving to our 401k, so we can pay down debts. I’m not sure if this is a plan MMM suggested, but our financial advisor recommended it. Hopefully this time next year, we will be debt free except a mortgage payment. (Additional savings +$900/month)
2) He suggested biking everywhere you can. The roads we have to take currently have not been very biker-friendly. I believe a house we have a bid on right now is better fit biking to Newburg shops, so I’m mentally committing to biking to the store and post office whenever possible. (Additional savings +$0.50/mile in gas, maintenance and wear and tear AND +$300/month for the house if we get it).
3) I need to calculate what our actual annual living expenses are and apply that in a mortgage calculator MMM provided. I also need to fill in the rest of the blanks and understand them better with our advisor. This will help me understand what we need to save annually to get to our goal of retiring earlier and living off the interest of our savings instead of the principle. MMM provides some interesting concepts in one of his blogs about retirement calculators.
4) I am currently researching all of our current expenses and figuring out ways to cut 10%-75% of the expense. We took advantage of the black Friday sales this week and invested in a new television. My goal is to eventually reduce our monthly cable bill by switching some of our movie channels off and signing up for one of the streaming media subscriptions. Finding other alternatives for the way we live our daily lives will be a focus going forward.
5) Other adjustments I am going to start focusing on:
– master growing vegetables and herbs
– Save for a boat, so we will be able to fish for a majority of our meals
– Actively save money from monthly savings (i.e. put the weekly amount of money not spent on eating out into savings)
– face the monthly fitness issue. Right now, it is around $250/month for the two of us. I know that is ridiculous, hence why I need to call with it.
– Calculate how much we need to earn from Brass Hammer Designs a month to offset any expenses.
And so, this really begins the effort of “my journey out of the rat race.”