The Money Mustache Community
Around the Internet => Mustachianism Around the Web => Topic started by: caracarn on June 16, 2017, 05:23:49 AM
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This popped up in my Vanguard feed today. Title intrigued me, so took a look. It is a very simplistic article but seems to align with minimizing consumerism and understanding impact on your savings in line with MMM
https://vanguardblog.com/2017/05/25/106000-for-coffee-lets-talk-compounding/
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Skip the comments though. I wish I would have.
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I thought most of the comments were pretty good. The few foolish ones were pretty well responded to.
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That is a good, clear infographic!
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If I were Vanguard, I would argue it differently. The extra (say) $10/week on coffee is equivalent to what you might earn after taxes on $10-15k invested in a Vanguard index fund. So your choice is whether to earmark a fair chunk of your net worth, or to bring a thermos of coffee to work.
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Interesting I thought how little the example was. Why not big changes over the next five to ten years? That would make it much more mustachian IMO. If I've optimized my life in such a way that small costs are finally my worries then I've probably already succeeded financially.
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Coffee alone is no big deal. Neither is cable. Neither is a "normal" cell phone bill. Neither is a monthly mani-pedi. Neither is buying just a little bigger house than you need. Neither is a second kid. Neither is getting a dog. Neither is having a landscaper trim your lawn. Neither is a little nicer car for your little bit longer commute to your little bit house where your extra kid plays with the dog on your well manicured lawn...
But when you stack enough of this crap up in your budget there is nothing left (or less than zero). Many folks grow into adults like frogs in a pot, adding on as income grows. A small luxury here or there seems small in the overall budget, but pretty soon folks find themselves "needing" a wine club membership to keep up with the Jones's. Most can't see the ridiculousness of their own lives and can't figure out how anyone making a mere dual 6-figure income can manage to save anything for retirement.