1531: Why Hardcore Saving is Much More Powerful than Masterful Investing by Mr Money Mustache

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Investing, Business, Education, Self-improvement

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🗓️ 19 May 2021

⏱️ 9 minutes

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Summary

Mr. Money Mustache talks about why saving is more powerful than investing. Episode 1531: Why Hardcore Saving is Much More Powerful than Masterful Investing by Mr Money Mustache Mr. Money Mustache is a thirty-something retiree who now writes about how we can all live a frugal, yet awesome, life of leisure. He and his wife studied engineering and computer science in Canada, then worked in standard tech-industry cubicle jobs in various locations throughout the late ’90s and early 2000s. Then they retired from real work way back in 2005 in order to start a family. This was achieved not through luck or amazing skill, but simply by living a lifestyle about 50% less expensive than most of their peers and investing the surplus in very boring conservative Vanguard index funds and a rental house or two. The original post is located here: https://www.mrmoneymustache.com/2011/04/26/why-hardcore-saving-is-much-more-powerful-than-masterful-investing/ Let Ryan Reynolds help you cut your wireless bill to 15 bucks a month at mintmobile.com/OFD Please Rate & Review the Show! Visit Me Online at OLDPodcast.com and in The O.L.D. Facebook Group Join the Ol' Family to get your Free Gifts and join our online community: OLDPodcast.com/group Interested in advertising on the show? https://www.advertisecast.com/OptimalFinanceDaily Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	This is Optimal Finance Daily, Episode 1531, why hardcore saving is much more powerful than
0:07.3	masterful investing, by Mr. Money Mustache of MrMoneyMustache.com.
0:12.7	And I'm your host and personal finance enthusiast, Diana Mariam.
0:17.1	This is the show where I read to you and to myself frankly, from some of the best
0:21.7	personal finance blogs on the planet, every single day. We're surrounded by messages of how
0:27.5	difficult it can be to make ends meet and build wealth. So thank you for spending this time
0:32.4	with me where we can empower ourselves to take control of our financial health.
0:37.1	For now, let's get right to it and continue optimizing your life.
0:45.1	Why hardcore saving is much more powerful than masterful investing, by MrMoneyMustache of MrMoneyMustache.com.
0:53.6	I was recently enjoying a conversation with a new friend. Despite my best efforts to sound normal
1:00.3	and busy, this person eventually figured out that my wife and I don't actually do enough
1:05.0	paid work to sustain the normal middle-class life we seem to lead. From here, he pride out the
1:10.9	fact that I am Mr. MoneyMustache, the freaky magician who retired at 30. When people learn this,
1:17.7	they immediately start grilling me on my presumably amazing investment skills. You have to be a
1:24.1	stock market wizard to retire unusually early, don't you? Unfortunately, I have a pretty poor
1:30.7	investment record myself. As an early 20-something, I thought I could pick winning stocks and ended up
1:36.7	buying some that went nearly to zero. These were balanced by some that went up nicely and these
1:42.6	experiences combined to average out to about the same return the stock market as a whole would
1:48.1	have given if I had just bought a nice index fund. Through my later 20s and 30s, I thought I was
1:54.3	wise by squirreling lots of money away in the excellent Vanguard 500 index fund, or VFINX.
2:02.4	But then, the great recession happened and temporarily backed out all those gains.
2:07.5	I did make some reasonable money from home ownership and managing a rental house,
	...

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