mr money mustache the shockingly simple math

Mr money mustache the shockingly simple math series#

Here’s a breakdown of how much biking for 10 years instead of taking the car will add to your net worth. If you invested that $93,432 over a period of 10 more years, how much will it be worth? What about 20 years? And 30 years? Now let’s get back to the above estimate of how much you can save by biking daily as a lifestyle. He states in his self-introduction, “my own retirement income comes from a dead-simple asset allocation: a bunch of index funds at Vanguard and Betterment which pay quarterly dividends.” After selling his house for $400k, he invested 80% of that windfall into Vanguard’s index funds. MMM himself even invests his chunks of extra cash into index funds. He has consistently advised readers to simply buy low-cost index funds from Vanguard.

Money Mustache is a believer in simple passive investing through index funds. The other half is figuring out exactly where to invest those savings to let it grow into a sizable early retirement nest egg. Saving money through biking is only half the equation.

Where does MMM invest the money saved through biking? Now, the exciting thing is what we get to do with those savings! That brings us to how MMM invests his savings for early retirement. We’ll evaluate later in this article how he reached that calculation. The estimated $93,432 is reached by adding up all of the savings from gas, insurance, health costs, added productivity, and other associated savings. That $93,432 might seem like a lot for just biking around, but the math checks out for the average American consumer, and I’ve even seen very similar results in my own life (explained below). The grand total of savings from making biking part of your daily life for 10 years adds up to a shocking amount: $93,432 in 10 years just from biking! He states, “From this savings alone, doing a couple of bike errands per day (4 miles) in place of car errands will add up to $10,752 over ten years.” If following MMM’s advice to make biking a lifestyle choice, the savings on just gas alone add up to be over $10,000 in a period of 10 years. The cost savings come in the form of gas, car deprecation, and maintenance. Money Mustache estimates that you will save 50 cents (USD) per mile by riding a bike instead of driving. How much money can you save through biking? MMM makes a convincing argument in well over 30 total articles on his blog that biking is hugely underestimated when it comes to saving money, improving health, retiring early, and ultimately saving the planet. One of his primary methods of saving money and retiring early was to ride bikes whenever possible, including to work, in the winter, with a child, and even with heavy cargo. Money Mustache estimates that the savings of biking instead of driving add up to $93,432 over a 10-year period. Money Mustache retire early through biking? I will also review my own Mustachian lifestyle and share how much money I’ve been able to save through biking to work.Īnd to Pete, since I know you’ll be reading this, thank you for writing sh!t into the computer. Money Mustache states about biking to save money, reach financial independence, and retire early. As soon as I realized that his advice is founded in math and statistics, I instantly gobbled up all of his articles and immediately started biking to my job in NYC, saving 50% of my income, and investing in index funds for the following 5+ years.īelow is a summary of everything Mr. I have been a secret MMM reader since I stumbled on his blog in 2016. Money Mustacheīut how realistic is it to make biking part of your daily life? And more importantly, what kind of impact can MMM’s biking advice make on your finances and health? “Mustachianism has many facets… But if I had to strip it down as far as possible, down to just one single action, and I wasn’t allowed to talk about anything else, the choice would still be simple: ‘Ride a Bike'” Mr. MMM routinely comments throughout his blog that biking is one of the single most important lifestyle changes to make you rich, happy, and healthy.

Mr money mustache the shockingly simple math series#

In fact, MMM’s very first article in his popular “Get Rich With” series was titled “Get Rich With Bikes.” He even states that a bicycle is “ probably the single most important and highest-yielding investment a human can possibly own.” On the surface, MMM seems to primarily write about financial independence and optimizing investment decisions to make you rich.īut what people generally glance over is that MMM is an unapologetic bike enthusiast who prefers to power his personal transportation (as well as bike trailer) with his own two legs. Money Mustache (Pete Adeney) is the lifestyle finance guru who retired at age 30 and now has one of the largest online cult-like followings in recent history.