“You’re not supposed to optimize for money; you’re supposed to optimize for happiness.”

– Mr. Money Mustache (AKA Pete Adeney)

Mr. Money Mustache (@mrmoneymustache — Pete Adeney in real life) grew up in Canada in a family of mostly eccentric musicians. He graduated with a degree in computer engineering in the 1990s and worked in various tech companies before retiring at age 30. Pete, his wife, and their now eleven-year-old son live near Boulder, Colorado, and have not had real jobs since 2005.

This begs the question of “How?” In essence, they accomplished this early retirement by optimizing all aspects of their lifestyle for maximal fun at minimal expense, and by using basic index-fund investing. Their average annual expenses total a mere $25-27,000, and they do not feel in want of anything.

Since 2005, all three of them have explored a free-form life of interesting projects, side-businesses, and adventures.

In 2011, Pete started writing the Mr. Money Mustache blog about his philosophy, which has grown to reach about 23 million different people (and 300 million page views) since its founding. It has become a worldwide cult phenomenon, with a self-organizing community and incredible news coverage. This episode explores his story, philosophies, and routines.

Enjoy!

#221: Mr. Money Mustache — Living Beautifully on $25-27K Per Year https://rss.art19.com/episodes/e4fd3bff-e813-4902-a9b7-aaeba1e86db9.mp3 Download

Listen to it on iTunes. Stream by clicking here. Download as an MP3 by right-clicking here and choosing “save as.”



Want to hear another podcast about earning and saving wealth? — In this episode with Ramit Sethi, we dig into the nitty-gritty tools, software, and experiments he’s used to turn a college side project into a multi-million-dollar business with 30+ employees. (stream below or right-click here to download):

Ep 33: Ramit Sethi on Persuasion, Negotiation, and Turning a Blog Into a Multi-Million-Dollar Business https://rss.art19.com/episodes/7c653f0f-800c-48b8-bfbb-d36906a1e0b2.mp3 Download

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QUESTION(S) OF THE DAY: What was your favorite quote or lesson from this episode? Please let me know in the comments.

Scroll below for links and show notes…

Selected Links from the Episode

Connect with Mr. Money Mustache (AKA Pete Adeney):

Website | Twitter | Facebook

Show Notes

Pete describes a typical trip to the grocery store. [06:28]

What are the average annual expenses for Pete’s family of three? [07:52]

When was the moment Pete realized he had such a devoted fan base? [08:39]

Is Pete a cult leader? [11:17]

If so, what are the tenets of Mustachianism? [12:30]

Pete talks about retiring at age 30. [13:49]

The math behind why you only need twenty-five times your annual spending to retire forever. [14:51]

Why most people who retire early still work — by choice. [17:28]

What misconceptions about Pete’s message are most common among critics and the media? [18:42]

What did Pete have for breakfast? [21:08]

Optimizing happiness on a personal level vs. succumbing to what society says will make you happy. [22:04]

Why spend more on a car than you would for investing in your future? [24:33]

Influential and recommended books. [28:19]

Is there a difference between Pete Adeney and Mr. Money Mustache? [35:05]

As a native Canadian, why does Pete choose to live in the United States? [36:54]

Pete responds to the New Yorker profile about him. [39:15]

Some thoughts on the math behind saving time and deciding which resources are worth consuming. [40:50]

When his expenses remain stable, what happens to the surplus money Pete saves? [44:53]

On removing negatives vs. adding positives: what are the questions Pete asks himself when making a purchasing decision? [46:33]

A recent happiness-boosting expenditure. [49:01]

We agree with Kevin Kelly about the rewards of manual labor. [50:54]

How does deciding to become a parent influence the math behind personal consumption? [55:03]

Pete and his wife pay their son for each mile he rides his bike (with interest on what he decides not to spend). [57:24]

Recommended resources for investing and personal finance. [59:49]

Who comes to mind when Pete hears the word “successful?” [1:11:38]

What are some of the luxuries Pete’s family enjoys — and which had the most positive impact on their lives? [1:15:16]

Favorite documentaries and movies. [1:17:36]

If Pete gave a TED Talk on something for which he’s not known, what would the topic be? [1:18:43]

What does Pete’s exercise regimen look like? [1:20:01]

Bad frugal/financial advice heard most often. [1:23:01]

Favorite failure? [1:25:31]

Without donating or investing it, how would Pete selfishly spend $100,000? [1:32:35]

What would Pete’s billboard say? [1:34:45]

Pete’s biggest challenge at the moment. [1:36:12]

In the last few years, is there anything Pete has significantly changed his mind about? [1:40:43]

Parting thoughts and a request to try voluntary hardship. [1:42:03]

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