Before vs. After MMM

[purplepear]

Short backstory: I'm 24, graduated college last year with a B.S. in electrical engineering, and have been at my full-time engineering job for a littler over a year. I just wanted to share how my habits/spending have changed in the past few months since discovering MMM.

Things I did before MMM:
1) Financed a brand-new ~$20K car (with the fancy bluetooth integration and push-button start of course)
2) Financed a brand-new 50inch TV
3) Financed a brand-new $2K MacBook Pro
4) Spent $1K throwing an elaborate bachelorette party for my sister
5) Spent $1.3K on clothing (when I have a full closet)
6) Signed up for fancy HBO package
7) Bought fancy iPhone 5 (even though my old iPhone was ~1yr old)
8) Went for the bigger apartment (because I can "afford" it) resulting in an extra ~$200/mon

Things I did after MMM:
1) Cancelled fancy HBO package. Savings: $20/mon
2) Cancelled spotify, hulu, and xbox 360 subscriptions. Savings: ~$30/mon
3) Started biking to work 2-3 days per week. Biking to the grocery store and errands
4) Switched to Republic Wireless and sold fancy iPhone. Savings: $60/mon
5) Paid off financed electronics
6) On track to max out 401K
7) Opened taxable investing account and started investing in commission-free ETFs
8) Got Amex Blue Cash Preferred Card and use it for all groceries/gas/department store shopping. Also referred a few friends to the card. Income: +$30/mon average
9) Started encouraging friends to embrace free social activities (like ultimate frisbee, volleyball, game nights, etc.) instead of going out to bars/restaurants and blowing money.
10) Stopped shopping. Retail Therapy is no longer allowed.

Mostly, MMM gave me a reason to be financially responsible: The Pursuit of Freedom.

What big changes did you notice after discovering MMM?

[BaldingStoic]

Great accomplishments purplepear!  Wish I'd discovered MMM back when I was 24.  I recently sold my Lexus Convertible and now riding around in a 97 honda civic and biking to work 2-3 times per week.  Smaller changes include using the Library and trying to waiting a week before making an discretionary purchases;  This is a great technique for eliminating impulse purchases.  It's amazing how quickly certain purchases can loose their allure. 

 

[domustachesgrowinhouston]

Before MMM:  Thought I was clever buying a 2014 Tundra for $24,500 at 1.8%.

After MMM:  Sold a 2014 Tundra for $24,300.

[briandougherty]

Before MMM: Focused on paying off house, reducing recurring expenses to $0

After MMM: Realized expenses exist so focus on investing to cover those expenses.

[mxt0133]

Before MMM:  Used to ride a motorcycle to work or take the bus.  I would either get up early to workout or workout after I get home.  I would only workout 1 or twice a week, feel cranky after work and no energy to play with my kids.

After MMM:  Sold the motorcycle and got a used bike to ride to work.  I know ride it to work every time I go into the office.  Since I am already warmed up from my ride into work I just spend another 30 minutes in the gym to do some strength training.  My ride home is mostly up hill so I get a 45 minute cardio workout.  I get home unstressed from work and have the energy to play with my kids or go out for a walk with the family.  Health wise I've never been in better shape or had better numbers.

[TurtleMarkets]

Before MMM: I thought " Ill make more money in the future and will be able to save more then. I dont hardly make enough to get by." I did spend a lot on fun things. Having a good understanding of Finance and economics made saving worse. Thinking that there is no way I am gaining any interest on 10 dollars made me just spend it.

After MMM: Got a higher paying job and started being more MMM. Its funny, it seems a lot easier now that I have more money. Now I see 10 dollars as part of a bigger picture.

Before I drove old used cars out of poverty. Now I drive them to save money. It feels very different.

[AugsburgMustache]

Before I drove old used cars out of poverty. Now I drive them to save money. It feels very different.

Haha, captures my feelings perfectly. I used to drive my (current) car because I wanted a vehicle for my 100 mile rountrip commute so my Porsche doesn't get used so much. It was cheap out of a necessity. Now I am proud to pay as little as possible on a car.

Before MMM: bought a Porsche for fun drives on the weekends, dining out 2-3 times a week because I "could afford" it, bought various gadgets for the sake of buying something new, never tracked where my money was going

After MMM (or rather while MMM-ing): sold the Porsche, reduced dining out to maybe every two months and started to cook every meal from scratch (love the hobby!), taking lunch to work and tracking every cent that goes in and out in a fancy spreadsheet that even forecasts my journey to FI (though that one I owe to "Your money or your life").

[boarder42]

Before MMM: 3 cars 2 people. including F150 pickup. Saving well but not as much as we could.  Drank alot 2 bottle of wine a night sometimes - already took lunch and ate out rarely.  - date night once every other week with my wife using gift cards earned thru a work CC

After MMM: sold F150 - Maxing out 401k's already were maxing out Roth's - Started a cash account saving ~6000 a year so far - Dont drink during the week anymore -

Future - possibly sell boat(one of my favorite hobbies is wakeboarding and i have made this as affordable as possible some peoples hobbies on here that people would consider mustachian probably cost more than what my net cost is per year) - open HSA accounts.  - increase savings rate to 65% ... selling the boat makes that easy.  - still in growth phases at work so my income increases basically just get thrown straight to savings. 

[island_guy]

Before MMM:  Always pay for the extras (breakfast on hotel room rate / 'gold package' for theme parks)
After MMM: Cost / benefit analysis on everything - if it isn't worth it don't get it.

Before MMM: Taxis whenever could not take car
After MMM: Bus/walking whenever can't take care

Before MMM: 0.40/tab dishwasher tablets
After MMM: 0.06/tab dishwasher tablets broken in half so each one lasts two cycles (virtually no difference in performance!)

Before MMM: Electricity rate the same day and night (0.17/KWh)
After MMM: Electricity cheap between 10pm-8am with major appliances only used during this time (0.07/KWh) and 0.18/KWh normally

Before MMM: Barest minumum debt repayment
After MMM: Maximum debt repayment

Before MMM: 150 a month on drinks out
After MMM: 20 a month on drinks out

Before MMM: bought essentials in supermarket at inflated prices
After MMM: buy essentionals on amazon.com for fraction of cost and delivered straight to door

Before MMM: expensive credit cards with added 'perks'
After MMM: cancelled all but one (which really did have a valuable cashback perk worth the nominal annual fee)

Before MMM: iphone
After MMM: £30 phone (not per month - cost of phone)

Before MMM: 135/month on gas/electricity
After MMM: 55/month on gas/electricity

Before MMM: 40,000 total debt
After MMM: 20,000 total debt (and reducing quickly each month)

Seriously, I cannot stress how much this website is saving me!  It's like I was living blind before I found this!

[skunkfunk]

OP, I graduated at 24 and am an electrical engineer. That reads like a summary of my financial life since!

[gt7152b]

Before MMM: Making a good salary and living fairly frugal but: 1) no grocery budget, 2) bought a brand new car, 3) bought too much snowboard and biking gear, 4) Used too much energy although way better than average, 5) spent too much on car upgrades, 6) ate out on a whim although I've always preferred home cooked

After MMM: 1) $450 average groc budget for 4 and we are eating great with more staple foods and this includes plenty of good beer, 2) Keeping the car because it is awesome but we drive way less, 3) only buy necessary gear which is almost nothing plus we are well stocked from the free spending days, 4) Average electric bill is about 1/2 and I love looking at the charts showing our energy usage blowing both "average" and "energy efficient" homes out of the water, 5) no more upgrades and I even hacked my last car repair to avoid buying a $120 part, 7) Eating out budget is about $60 per month average. 

[Workinghard]

Before MMM) Being frugal, living below our means, saving as much as we could

After MMM) More defined goals, retirement planning, learning about the 4% SWR, er variable SWR, SS, etc. MMM led me to bogleheads. The combination of the two sites is unbeatable, although I find the people here more friendly in spite of face punches. :-)

[LisaCO]

I discovered MMM in March and it’s still a work in progress, but so far…...

B: Didn’t max out my 401k and didn’t contribute to my IRA
A: Max both

B: ~$2,500 per year on clothes
A: $55 so far this year

B: Dinners out @ 250/week
A: Dinners out @ 50/week

B: Wine with dinner every nights
A: Wine no more than once per week

B: Unused gym membership
A: Used gym members (4x week)

B: Never even looked at purchases or budgeted
A: Track everything

B: BMI in the obese range
A: BMI in the overweight range (and still coming down)

B: 20,000 in credit card debt @ 15%
A: Down to 5,200 @ 0%, which will be paid off by December

B: Vague notion that I’d coast along and retire at some point
A: Retire in December 2014 at age 52

[boarder42]

OP, I graduated at 24 and am an electrical engineer. That reads like a summary of my financial life since!

Being a EE right now is probably one of the best positions to be in the field is exploding

[purplepear]

I forgot to add that since MMM, I've also gained 2 new hobbies. 1) Biking and 2) Home-brewing

Going to bottle my first batch of beer today! Hopefully, it's a success... and not a hot mess.

[pac_NW]

All - very inspiring and great work!

[isbjshaffer]

I'm also 24!

Before MMM- Headed down the modern consumer's version of the American Dream. Bought the nice car, expensive cell phone plans...nothing too crazy.

After MMM- Costco, planted a garden, 1 car, selling the nice car, switched to republic wireless, got a programmable thermostat, started a blog to pursue writing for passive income, get told I'm nuts for thinking I can retire early! :)

[mouse]

Also 24. Haven't graduated yet, so all my money goes towards tuition. I've never owned a car, or been able to buy clothes new...
Unfortunately MMM has not been able to change my life yet because of this.. I was kindof born with the mustache, as I've had no other choice...

but more or less, what will happen is that I will graduate, and all the money I usually throw at tuition will be invested.
And thats that.

[dz1087]

OP, I graduated at 24 and am an electrical engineer. That reads like a summary of my financial life since!

Being a EE right now is probably one of the best positions to be in the field is exploding

Good time for EE's?  I have my BS in EE, but have been active duty Air Force for almost a decade as a flight officer so I can't remember hardly any of it.  I also never got my license, so I'm basically completely out of the discipline.  It was okay though, the Air Force was handing out scholarships when I signed up for college for EE's and meteorology.  My college didn't have a meteorology department, but I did get a free education with a guaranteed job upon graduation....

[Exhale]

I discovered MMM in March and it’s still a work in progress, but so far…...

B: BMI in the obese range
A: BMI in the overweight range (and still coming down)

B: Vague notion that I’d coast along and retire at some point
A: Retire in December 2014 at age 52

Kudos, both for retiring this December and for reducing your BMI. I've found that, in addition to saving an extra $196/month and aiming for FIRE by 2020, I'm also saving my health (by losing the extra weight).

I chalk it up to two reasons:
1) No impulse buys of desserts (don't want to waste my freedom money!)
2) Feeling so good about FIRE energizes me to walk everywhere and eat healthy

Good luck!

[skunkfunk]

OP, I graduated at 24 and am an electrical engineer. That reads like a summary of my financial life since!

Being a EE right now is probably one of the best positions to be in the field is exploding

Good time for EE's?  I have my BS in EE, but have been active duty Air Force for almost a decade as a flight officer so I can't remember hardly any of it.  I also never got my license, so I'm basically completely out of the discipline.  It was okay though, the Air Force was handing out scholarships when I signed up for college for EE's and meteorology.  My college didn't have a meteorology department, but I did get a free education with a guaranteed job upon graduation....

They don't teach anything at school that you will actually use in the field anyway. Everything that I use I learned at work. The most complicated math that I do is done by the computer; I just have to make sure it uses the right formulas.

[bearkat]

Also 24 (and the young shall inherit the earth), and an engineer.

Before:
bought a luxury crossover (used,  but still) and drove it 80+ miles a day for commuting
Had 100% of 401k in company stock

After:
Talked boss in letting me work from another location that's 5 miles each way, and I bike (almost) daily
Asset allocation like an intelligent human and not a mindless worker bee

[dz1087]

OP, I graduated at 24 and am an electrical engineer. That reads like a summary of my financial life since!

Being a EE right now is probably one of the best positions to be in the field is exploding

Good time for EE's?  I have my BS in EE, but have been active duty Air Force for almost a decade as a flight officer so I can't remember hardly any of it.  I also never got my license, so I'm basically completely out of the discipline.  It was okay though, the Air Force was handing out scholarships when I signed up for college for EE's and meteorology.  My college didn't have a meteorology department, but I did get a free education with a guaranteed job upon graduation....

They don't teach anything at school that you will actually use in the field anyway. Everything that I use I learned at work. The most complicated math that I do is done by the computer; I just have to make sure it uses the right formulas.

That's what I figured, but I've been out of the game so long that I'd be starting from scratch!

[CDP45]

Before: only contributing enough to get 401k match, went to cash from 2008-10 in 401k
After: max 401k in .07% index funds, plan to never sell a stock ever again.

Before: Dave Ramsey says to save 15%, and pay off house, I'll retire by 60!
After: 30% of gross is a sissy-pants month, will probably sell house and move further out to FIRE a year earlier.

Before: wow coworker retired at 57? I'll aim for that (youngest person in company to retire that I know of)
After: learned about 4% SWR, things will have gone wrong if not retired by 45.

Before: automatic savings, no real budget.
After: no real budget, but constantly reviewing spending to optimize, buying a lot more from Craigslist, seeing how desperate retailers and sellers are to get any $$$ for their junk. Starting to better appreciate the insane luxury and abundance we enjoy.

[clarkfan1979]

I was always frugal, so MMM just affirmed my previous choices. I typically saved 10% and 20% in a good year. I never thought a savings rate of 50% was possible. Post MMM, my wife and I are around a savings rate of 35% and once the student loans are paid off, 50% will be possible.

My long term goal was to be in the 1%, which I think is around 10 million. Not because I am a spender, but I thought it would be cool. Now, 1-2 million is the long term goal depending on the cost of living where I end up. I might still end up with 10 million, but it's not really a priority.   

[Knapptyme]

Before MMM: Mindlessly going about my perceived frugal lifestyle (already biked to work) while using incandescent bulbs wherever, a 2.5 gpm showerhead, noticeable air leaks around doors and windows, not enough insulation in the attic, and paid people to do work on my house.
After MMM: Left CFL's in place for now, and watched for LED bulbs to go on sale. Replaced everything I could. Installed ceiling fans to cool my family and set the air conditioning up to 78 degrees (not totally ready for 82 in the sweltering humid heat of Florida). Will be blowing insulation in my attic after I air seal all the light fixtures and anything else I find up there.

Before MMM: Let my 403b retirement plan simply deposit into a Money Market account with an employer match because it was "safe."
After MMM: Moved money into index funds and generally diversified portfolio to earn about 5% annual returns or better.

Before MMM: Mortgage paid off, but sitting on extra funds. Thought about a rental property for the future, and letting someone else manage it.
After MMM: Am actively buying a rental property with full intentions to do work myself and become a landlord.

Before MMM: Thought how cool it would be to work at the same place for a long time to leave a legacy (I'm a teacher, so it kind of matters.)
After MMM: Rapidly tearing through every article written, started in on the forums (all since late June 2014), and never looking back at my career once I'm financially independent. So many new hobbies to learn and enjoy, it's exciting to think about.

[Pooperman]

Also 24, also EE (not in practice and engineering physics really... I'm a consultant).

Before: savings rate of -5%.
After: savings rate of 80% (this is temporary and will drop to about 45%).

Before: $1400/month apartment
After: SO's parents' place (free, moving in a couple months to a place at about $1000/month)

Before: investing to retire early
After: investing to retire earlier (sometimes luck happens, eh?)

[skunkfunk]

savings rate of -5%.

investing to retire early

Wait what? You were investing negative money? This is known as either withdrawing or borrowing, not investing?

[dude]

Made many of the same expense cuts -- dropped home alarm, dropped expensive cell phone plan, dropped landline phone, bought clippers and began cutting my own hair, stopped buying Starbucks coffees every morning, started bringing lunch to work 5 days/week instead of just 2-3 days/week.

Got an Amex Blue Preferred, and in addition to the 3% back on gas, I now map out the cheapest gas places and only buy there. Also got an Amex Travelocity Rewards card, because we travel a lot, and pretty much book exclusively through Travelocity (this has saved me $400 on each of the last two trips we booked).

Succeeded in getting the wife mostly on board; she's now saving a ton (almost maxed out on 401k), and spending much, much less than she used to.

And in general, just started questioning every purchase I make -- DO I REALLY NEED THIS???  This has cut my frivolous purchases considerably.

Started investing in preparing myself for my second, fun "career" when I FIRE.

Net worth is now climbing quite rapidly.

Yep, this shit works, and is just so basic it's a wonder I wasn't doing it all before.

[Lian]

Before MMM:   Already very frugal – paying down the last of the debt from a non-frugal phase of life, goal of saving at least half my income once the debt was gone.

After MMM:   Still frugal – learned about the 4% SWR and other useful and enlightening things.

Only wish I had started at a much, much younger age.   There are sources other than MMM for this type of information, and have been for a long time (Your Money or Your Life). Water under the bridge. I won’t be RE (compared to MMMers), but I will be FI.

[rocksinmyhead]

Before MMM:
only contributed enough to 401K to get the match (shoveled the rest at student loans, though)
all 401K $ was in a target date fund with relatively high expenses
paid basically no attention to how much we spent on restaurants, bars, groceries & alcohol
bought way more clothes/shoes than needed ("but it's a great deal!!")
paid no attention to my electric bill
bought stuff when I wanted/"needed" it

After MMM:
maxing out 401K for 2014
shifted allocation to funds with lower expenses
started tracking grocery expenses closely and being a cheapass about going out to eat; threw money saved here at student loans and paid them off in early August 2014
purged my closet (sold a few things to Twice) and drastically cut clothes/shoes purchases... I pretty much have everything I need and now only replace things when they wear out or my puppy eats them (and I try to get those replacement items for <$25 on Twice or ThredUp)
started keeping our house at ~60F in the winter and ~78F in the summer, and line-drying 90-95% of laundry loads
bought a modem/router for really cheap on Amazon so now I save $8/month on renting it from my Internet provider :) (it's the little things!)
for purchases >$50, even if they are practical and totally something I will use, I try to wait and ask for them for my birthday or Christmas. it's also nice because then I actually have ideas to give my mom when she asks what I want :)

basically I wasn't that terrible before MMM and I have a long way to go now, but I've learned a lot!!

[Pooperman]

savings rate of -5%.

investing to retire early

Wait what? You were investing negative money? This is known as either withdrawing or borrowing, not investing?

Investing in the hopes of retiring early through 401k, etc (not nearly aggressively enough). Monthly drawing down e-fund by about 100-300 from overspending causing the -5%. So investing about 6% into 401k (4% match) while losing money every month because of spending too much. It was not sustainable (it also didn't last very long!).

[johnnyapple]

Before MMM: No budget, no idea where my money was going= minimal savings

After MMM: Budgeted out all expenses, know where every dollar is going= maximal savings

[CU Tiger]

Before I figured I would work until 65, at a full time job. I was saving 15% in my 401k. We were paying off our 15 year mortgage at an accelerated rate.

After MMM: 25% in 401k plus an additional $650 per month in after tax accounts. Mortgage is gone. I made extra payments and we got rid of that sucker. I have instituted no spend days. I am going to retire by 52.

[CanuckExpat]

Before enlightenment; chop wood, carry water. After enlightenment; chop wood, carry water.

[ILoveMyBlondeStache]

Hey everyone!  Long time reader, first time poster here!

My best beauty hack to date is that my fiance paints my nails instead of me going to get them done.  It wasn't even my idea.  He offered one day, and I was like be careful what you wish for...and he's been painting them ever since. :)