The Money Mustache Community
General Discussion => Share Your Badassity => Topic started by: SenoritaStache on November 25, 2015, 03:25:52 PM
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So I’m sitting here thinking of all the changes I have made in 2015 due to MMM. All of which have improved my life tremendously (deeply grateful for MMM). With that in mind, I would love to hear what changes you have made this year.
Lost 25 pounds (originally lost 30 but recently gained 5 back while on vacation )
This is a very important achievement for me, since I have struggled with my weight for many years. My motivation behind it was 1. I was and still am very uncomfortable in my own body. 2. What I’m I doing, striving for FIRE when I’m neglecting my health/body? What good is all that money and freedom if I don’t take care of myself along the way? Will I even get to enjoy it if I keep this up? 3. This quote really motivates me, goes like this, “If you want something you have NEVER had (aka a cute little/healthy body), you got to do something you have NEVER done”.
Cut cable. Was spending anywhere between $60-$65 per month. Switched to Roku/Netflix. Now I spend $0.00 (I use my brothers password for Netflix)
Cut Internet. Now I can use up to 14GB from a hotspot from our phones. Saving about $60-65 per month. Now spending $0.00 extra.
Rented out 2 rooms in my house. Increased income or at least living for free. Incoming rent $1,300.00 per month, but my monthly payment is $750.00 PITI. Then I pay both electric/water bill (less than $200 for both) from their incoming rent. So I don’t technically pay for that either. Cash flowing $350+ per month, while living for free in my own house, and while not paying for the electric/water bill either.
Stopped driving to the store. Will put off purchases for as long as possible. Then when I have a nice list of things I need, I go to the store either via walking or biking (silly past me!! Driving to the store, PLEASE!)
Learned/Opened and investment account.
Moved an old 401k, to a traditional IRA (lot less fees)
Purchased an electric pressure cooker. I have only used it once but it was awesome. Looking forward to all that home cook’n!
Switched from traditional lady products to a cup. Absolutely changed my life, wow!
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Great thread idea! And congrats for turning your home into a cash machine! Also, congrats on the weight loss!
As I posted in an other thread, here are my main accomplishments:
- signed a mortgage for a real estate investment (that will also have the bonus of causing a massive tax reduction).
- applying to jobs at least a third or twice my current salary (cause before I didn't dare)
- finishing student debts in december
- opening an investment account
- moving to a place much bigger (lived in a one room place before with SO, now having a "real" home) for an affordable price, and be able to walk or bike to work from there.
And having a more mustachian philosophy with life. Standing for myself, and not being afraid of calling b*llshit when I see it and stop toxic work/friends relationships.
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This is an awesome thread. Congrats on your progress!
Here's my list of 2015 financial accomplishments:
- began tracking expenses in Mint in earnest
- reduced restaurant spending by 50% or more
- switched from Verizon to Cricket for mobile phones - savings of nearly $100/mo
- cut my electricity bills in half by using my windows the old fashioned way
- quit Starbucksing myself (except when using a cc reward gift card)
- made lump payments to student loans (about a third of the principal) in addition to regular monthly payments
- paid off my husband's (@#$%!) car loan in full using summer salary
- moved savings account from BOA to a mix of high interest accounts at 5%: Netspend/Brinks/Ace Elite plus Ally at 1% for immediate access
- quintupled my 401k monthly contribution and maxed our IRAs
- earned about $1300 cash in credit card churns plus over $200k miles (taking my husband on trip to Europe for less than $100/person soon!)
- earned about $1400 selling stuff in attic/garage on Craigslist, yard sale etc.
- refinanced my mortgage from 30 years at 5% to 15 years at %2.875
- Began buying most of my work clothing second-hand on Poshmark
- Started an HSA now that my employer is offering and signed up for payroll contributions that will max it next year
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Neat thread. Here's the life changes/accomplishments for 2015, for both my wife and I.
FIRE'd (both)
Got pregnant (wife)
Self-published some books (wife)
Got rid of all the stuff we owned, save two backpacks (both)
Started full time traveling the world as nomads (both)
Walked 500 miles on El Camino de Santiago (both)
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Switched from traditional lady products to a cup.
Me too, liking it so far.
-Opened an investment account
-Went for cheaper rather than closer to work when I moved (I cycle so minimal extra cost for travel), saving myself ~£200pm
-Simplified my grocery shopping and started bulk cooking
-Started evaluating frivolous spending in terms of money/time cost vs enjoyment. Just because I can 'afford' to do something doesn't mean it's the best use of my money.
-Finally started selling stuff to declutter my home. It's not a huge money maker, but it gets stuff out of my house and without it going straight to landfill.
It's nice to reflect on positive changes over the year :)
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Paid off my VISA
Paid off a college loan
Paid off my wife's VISA
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Baby steps compared others, but significant to me:
- set biweekly TSP contribution so I max out annual limit
- began tracking all spending, investments, loans with Personal Capital
- began decluttering house and liquidating some of my hobbies/collections; made several thousand on eBay / craigslist and more importantly got back space and a little bit of peace you lose when you accumulate stuff
- got rid of cable box in guest room and home phone, got govt discount from Verizon. Together they reduced my bill by about $60/month (wife won't let me cut cable completely)
-began throwing more $ at student loan principal, should have done it long ago
Goals for 2016:
- finish off my student loan and re-fi wife's loan if it isn't eligible for forgiveness (should find out soon)
- convince wife to keep her paid off car rather than buy SUV if we have a second child (this might require divine intervention)
- get better handle on nutrition and meal planning to lose weight and save $ on food spending
- Continue eBay and CL selling to get rid of additional stuff, including the inevitable unwanted christmas gifts and decorative knick knacks people keep giving us.
- not financial, but work on spending more time out doors and relaxing to keep stress way down
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What I accomplished in 2015:
- Started reading MMM and forums
- started tracking expenses using Money Monitor
- figured out net worth
- Quadrupled savings compared to last year by reducing spendypants tendencies and increasing income
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Great thread idea, and good work all!
This year I:
- Am set to contribute max $18k into 401(k) for first time
- Am set to max $5.5k in IRA
- Opened an after-tax brokerage account
- Moved to an apartment with 2br vs 1br, but cut rent from $950 to $800 and new place *includes heat, internet, and washer/dryer* Savings ~$270/mo and now I have a home office / guest room!
- Left Verizon ($65/mo), used T-mobile to pay my ETF and then promptly jumped ship to Project Fi with a Nexus 6. Now paying less than $33/mo even with international roaming
- Kept healthy and enjoyed the hell out of life
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Well done all!, mine:
- Had my savings/investment epiphany thanks to MMM and similar sites - now saving 60% of income!
- New job, increased income 20%
- Moved house away from London - saving £300 a month on rent and bills
- Cut commute from 2 hours of trains to a 30 minute run down a gorgeous canal
- Now live off local fruit and vegbox and a bit of meat from the butchers
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^ Off topic but high five Mustachian National fans! Love the name. Welcome.
It is really cool to see what everyone has done in a year. What i find so inspiring is seeing how the little things add up and this is a great thread for that.
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-Graduated from nursing school (no more additional loans!)
-I got a job
-Moved to a house in a cheaper part of the city
-Got married (this is going to be some sweet sweet tax savings)
-Set up a home gym and cancelled our gym memberships
-Started religiously using Mint to track expenses
-Cut our restaurant budget WAY down. From several hundred per month to less than $50 per month, usually less than $20
-Switched a lot of our staples foods to bulk purchases at Costco (rice, eggs, cheese, salsa, butter)
-Started buying wine at Grocery Outlet. Even cheaper per bottle than doing Bota Box (even with the Ibotta rebate) or the Trader Joe's Coastal. Essentially eliminated the beer and cider, which was always more spendy, since we have spendypants tastes.
-Stopped buying clothing except to replace specific worn out items
This is how we saved $30k this year, when our income will come to maybe $90k.
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These are the posts I like to see, to the point and outlining really important changes. Full of tips at the same time and I get to see how others are doing. I don't have much to say myself unfortunately. I started investing for the first time and tracking my spending. Using Mint for a whole year (since Nov 2014) has been truly an eye opener. It's time for me to make some changes.
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Love this thread! Changes I've made this year:
-started using YNAB
-opened and contributed regularly to a Roth IRA (my first investment account!)
-added an awesome part-time job
-sold or donated about 60%-70% of my belongings, including really expensive hobby items that I didn't use any more (high-maintenance musical instrument and tons of sheet music). Used money earned to pay down a loan to parents
-started spending more in line with my values (for example, cut out habitual restaurant meals and donated that money to charity instead)
-started eating much healthier (see: fewer restaurant meals above!) and lost 30 lbs so far
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* Rolled over old 401k to IRA
* Finally began moving cash from a stock-option success into Wealthfront
* Killed landline
* Canceled all print magazine subscriptions.
* Cut back lawn irrigation to two days a week.
* DH became so adept at bus that we are selling our larger car.
* Created and maintain monthly budget (everydollar).
* Got a Fitbit Charge and started walking and sleeping more as a result.
* Grew meaningful quantities of garlic, onions, spaghetti squash, sunchokes, pumpkins, sweet potatoes, rainbow chard, tree collards, artichokes, sorrel, peppers, eggplant, tomatillos and herbs in home garden.
* Learned how to butcher and process a chicken; learned how to roast a whole chicken; learned how to turn savory vegetable scraps and chicken bones into stock.
* Learned how to make fresh pasta.
* Learned how to make fridge pickles.
* Learned how to make pizza dough from scratch.
* Learned about sourdough bread, kombucha and vinegar ferments.
* Got off Starbucks treadmill, now home roast $4/lb green beans from Costco.
* Decluttered a huge amount of stuff, sold surplus goods on eBay for extra income.
* Learned how to do several types of sprinkler repairs
* Stopped being afraid of DIY tasks (thanks for the help with the brake-light replacement, MMM DIY forum!) and collected some useful, minimalist tool sets for future projects from estate sales and Harbor Freight
* Started ordering bulk groats from Azure Standard for ultra-affordable, ultra-healthy morning oatmeal.
* Did home energy audit with Kill-a-Watt and found a handful of places where we can reduce “vampire” electrical loads, and let go of worries about other electricity draws.
* Battled trash, plastic and consumerism-at-large by following many of the Zero-Waste Home practices advocated by Bea Johnson.
* Adopted the following “non-disposable” options: fountain pen, zippo lighter, rags, menstrual cup, part-time family cloth, handkerchiefs, safety razor.
* Used up the last plastic trash bag and don’t buy them anymore!
* We don’t use the garbage disposal anymore (unplugged it!) and compost the vast majority of organic materials that pass through our home. We have significantly reduced our production of both landfill trash and recyclables. We take out our green bin maybe twice a year, and our blue and black bins can go out every two or three weeks rather than every week. We will extend those intervals in the new year.
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Wow, what an awesome post!
Jengod, what do you use for garbage bags now? Or nothing?
Goldenneko, it is so cool that you started applying to better paying jobs because of this forum/site. I love that having a handle on your finances can give such a boost in self-worth.
-This year we maxed out our 401ks and iras for the first time. It sounds like kind of a small thing on this site because everyone's doing it, but as two kids from blue collar families, it's really amazing to us that we've been able to do it.
-I too went to the lady cup which is so much better than any other option I've ever tried.
-We opened our first taxable account this year and transferred all spare dollars to it.
-I took the travelmiles course and started getting miles and rewards for my purchases.
One thing that I was able to do this year was a direct result of this site and my life changes was the most important to me. When my sister went suddenly into the hospital with a life threatening illness, I was able to drop everything and fly across the country to sit with my family in the icu, and help deal with her care and her young son. If it hadn't been for this site and forum, I would have been in no position to do that and it probably would have all gone on a credit card (and not the kind you immediately pay off at the end of the month). It's been a complete life changer.
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This is a nice encouraging thread. 2015 recap:
-Paid off student loan 17000
-Started prn/parttime travel nursing which has increased my salary
-Utilized my bike more
-Got all my light bulbs upstairs to LED and downstairs they are all CFL
-DIY clothesline installation with no dryer used for last 6 months
-Paid down an extra 5000 to mortgage
-Increased all my and my wife's retirement accounts
-Raised all of our meat and butchered myself (chickens, ducks, turkeys, 5 pigs, 1 beef)
-Increased size of my garden and canned/preserved more food
-Spent more time with family
-Increased net worth
-Gave more to church/charity
It's been excellent reading everyone's post on this thread. Keep up the good work!
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Jengod, what do you use for garbage bags now? Or nothing?
-This year we maxed out our 401ks and iras for the first time. It sounds like kind of a small thing on this site because everyone's doing it, but as two kids from blue collar families, it's really amazing to us that we've been able to do it.
Rockstache, we use nothing now. In the kitchen we have a trashcan with a removable plastic insert (Simple Human stainless on the outside). We have two bathroom trashcans elsewhere in the house and those are just emptied into the plastic insert when it's time to do a trash clear-out. The key is that there is very little wet or gross stuff in the trashcan now because we compost most of that.
In other news, I think it is AMAZING that you maxed out 401ks and IRAs. That is huge. Congrats.
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Here's mine:
- Stopped buying beverages. Tap water only, including when at work.
- Started tracking all spending to the last penny. Previously, I simply set worthy financial goals and then met or exceeded them.
- Stopped eating out about three months ago. No sit down restaurants, no carry out, and no fast food.
- I've reached minimal FI. Including SS (once I'm old enough) I could fund 130% of my current spending for the rest of my expected life, without earning another dollar. I'm working OMY for inflation and extra contingency.
- Lowered my Winter thermostat setting from 68 to 60 daytime, 55 nighttime.
- I will max out my 401k at $24,000. On a middle 50k wage.
- Instead of a CD, I will deposit an IRA at $6,500 in a Vanguard account.
- Walked 3 miles home in Summer heat when my car broke down, instead of calling a cab.
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I just started reading MMM a few months ago.
- Went from a savings rate of zero to 59% in a few months
- Refinanced house from 4.65% to 3.9% interest
- Lowered Cell Phone bill from $130 to $50
- Cut cable
- Lowered internet connection costs from $99 to $69
- Lowered car insurance from $150 a month to $99 a month
- Bought an e-conversion kit for my bike
- Started riding said bike for ALL errands within a 6 mile radius
- Joined Costco and cut grocery bills in half by shopping sales and buying in bulk
- Bought a freezer for the garage to keep my bulk meat and veggie purchases
- Stopped going to restaurants, period.
- Stopped ordering delivery/takeout
- Started making all meals at home
- Started maxing out my 401k contribution every month
- Set up a cash savings account with $2500 for emergencies
- Set up a Vanguard account that I put $2000 into every month
- Started using Personal Capital to track ALL expenses and also track net worth
- Started paying $250 extra every month toward my mortgage principal
- Got a job working from home so I have zero commute
- Started ruthlessly chasing down wasted energy in our home
- Got net worth above $300,000
- Started reading books again after years of not reading for pleasure
- Started actively looking for, and utilizing, "free days" at places like the local museums, zoos, botanic gardens, etc.
- Stopped buying books or renting movies - Netflix and the Library are my sources for these things now
Wow, that's a lot for one year. Can't wait to see what can be accomplished in 2016!
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Great idea for a thread! Commenting to document our journey AND to keep this thread sticky for future great ideas!
In 2015, we discovered MMM, allowing us to accomplish the following:
* Paid off student loan
* Paid off car loan and sold car
* Moved to a new apt, saving $1000 a month in rent
* Started religiously budgeting and tracking expenses with Mint, and tracking savings/investment with Personal Capital
* Maxed out 401K
* Cut grocery bill in half
* Cut restaurant spending in half
* Moved from AT&T to Airvoice, reducing monthly phone from $180 to $60
* Based on those budget adjustments, we now save my husband's entire paycheck and live just on mine
* Learned about investing, then set up investment accounts and automated investing (thanks iofestavi!)
* Doubled our net worth!
All of this allowed us to set a target FIRE date of 5 years
In 2016, we hope to:
* Cut travel budget in half
* Allow me to half-FIRE (move to part-time or lower-level job)
* Continue saving at least 40% of our income
* Find at least one free form of entertainment a month
* Increase exercise levels
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2015 was the year of enlightenment for my wife and I.....
*Found MMM and some other FIRE type websites
*Made our first budget
*Through budget savings, increased our emergency fund and contributed more money into investment accounts.
*Saw our Networth increase!!
*started tracking all saving and spending to figure out savings rate and met goal of 40% savings
*Applied for a new job that hopefully I will start in 2016 that will increase my pay and opportunities down the road in my career
*Realized how much farther ahead my wife and I are financially then other friends/family who make more money
*Found out how great my work benefits truly are. I have a small salary but after looking into everything, my benefits are amazing and help me save lots of money.
2016 Goals
* Get grocery bill down another $100-$150 a month (We eat lots or organic meats and veggies)
*Purchase a new car for $10K or less
*Increase savings rate to 50%
*Increase Networth as much as possible
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I just did one!
-Signed up for my company's 401(k). Even better: offers Vanguard index funds.
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This is an awesome thread!!! You are all an inspiration!
I discovered MMM in September of this year. So far we have...
- Identified serious lifestyle inflation
- Increased savings rate from 10% to almost 50% (it's still early; I hope it's sustainable)
- Got bikes and began cycling for nearby errands
- Cut restaurant/take out spending by 75%
- Unregistered one of our two vehicles (and maybe sell if experiment goes well!)
- DIY'd home repairs that we would have outsourced pre-MMM
- Decreased consumption of meat, increased consumption of pulses and fresh fruit/veg
- Convinced both sides of my family to have a gift-free Christmas!
Goals for 2016:
- Prioritize health and fitness!
- Cut grocery bill by 25% ($400 to $300 a month for two people)
- Maintain or increase savings rate of 50%
- Increase bike use, decrease car use
- Decrease mindless screen time, increase reading time
- Expand garden (in size and variety of produce)
- Cut cable TV & home phone (contract expires October 2016)
- Lower cell phone bill (contract expires December 2016)
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Wow, so many awesome accomplishments here! You guys are a truly inspirational bunch! Here are mine:
--Maxed out my 403b AND my 457b this year for the first time ever. This meant that more money was going into my retirement accounts each pay period than into my pocket!
--Just accepted a new job that's a $34k raise from my current one! It's also only 4 miles from my apartment with both great bus and bike commute options so I can stop commuting by car.
--Increased my net worth by 38% from this time last year!
--Paid off the last bit of my student loan. This means I'm now entirely debt-free other than whatever I charge on my credit card in the course of a given month.
--Cut back on my diet soda consumption. I still allow myself a 12-pack a week, but I've entirely stopped ordering them at restaurants or buying them from vending machines, 7-11, etc., and I switched to the generic store brand, so that's brought my soda costs down to ~$150/year from the $1000 or so I was spending before(!!).
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Love this idea.
I discovered MMM in 2015 and read every post. Decided it would be a good lifestyle to implement. Accomplishments so far:
-Cut way back on errands, consolidating for one trip when I'm out of everything
-Stopped "shopping" and started only buying what I need
-Started tracking everything in Personal Capital
-Replaced heating/cooling system in my house without having to finance it
-Stopped eating out unless for special occasions or on giftcards I already had
-Contributed $500/month to a Vanguard account
-Contributed 15% of my salary to my 401(k)
-Stopped buying beer and started brewing it with a couple friends
-Worked from home half the time, cutting down on commute expenses
-Replaced all house bulbs with LEDs
-Lowered thermostat to 65 (in the winter) and put on a sweatshirt
Goals for 2016:
-Pay off student loan
-Have tolerance for people in my life who do not live by MMM principles (I have found that this really irritates me)
-Increase Vanguard contributions to $1500/month
-Prepare to replace aging car when the time comes
-Break into net worth of $100k+
-Focus on health and wellness
-Turn 30 (not exactly FIRE-related but still noteworthy)
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- Got a new job that will increase my pay by 50-80% over my previous job depending on bonuses.
- Maxed out all tax deferred savings accounts for my family.
- Streamlined credit card and rewards programs to maximize personal rewards for our grocery/gas spend and my work travel. Should average about 5% return on credit card expenses.
Goals for 2016.
Save and invest >$100K between my wife and I (Combined across all accounts)
Crack the $1Million net worth barrier.
Deadlift 500lbs
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A great, and very inspiring thread!
2015:
1.) Found out about MMM! Had an epihany about what I was doing and how much better I could be. Went from about 20% savings to almost 50%
2.) Switched cell phone plans from AT&T to Cricket - $70/mo savings
3.) signed up for some focus groups and pay to surf/survey type activities - worth about $1000/yr
4.) maxed out 401k
5.) maxed out HSA
6.) put $40k into house and set up to pay an extra $400 mo (will turn a 30 year mortgage into 15 year payoff)
7.) set up recurring $900/mo into taxable investments and $800/mo into savings
8.) sold new car, bought older used car that gets better MPG
9.) cut eating out in half
10.) electricity witchhunt in the house, converted a lot of lights to LED
My focus for 2016 is purely mental. Rather than being on frugal autopilot, each decision is a somewhat painful one. I need to get to the point where not spending money is the default state, not the one I have to force myself into.
We just found out we are having a second kid so I want to see how we can optimize for having a kid the second time around. The first kid was definitely not planned with a budget in mind.
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Good thread--giving me ideas and inspiration! Thanks everyone!
Me-- 2015
having zero REI dividend this year.
Completed the "get rid of stuff to match the number of the week" challenge
Learning delayed gratification by getting rid of Netflix and relying on inter library loan
Making my own kombucha
Got my dumpster diving route dialed in
Biked to work every day I worked.
2016--
Increase bike repair knowledge
Bring fasting into my regular eating habits
Kill the sugar habit once and for all.
Saving 80 percent of my take home pay (5 percent increase from last year)
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It's cool to see so much positive change. Looks like a TON of people have discovered Mustachianism recently and are in that awesome stage where you get to make all the massive-money-saving changes! We've kind of passed that already, so any changes we make at this point have a pretty low return.
We did maintain our 60% savings rate I believe (we do the final totals on New Years day), and passed the 150K net worth mark back in May. That's about it though.
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Found MMM and absorbed the blog and big swathes of forum like a sponge :)
Actually found out where all my money goes.
Become agast at crazy levels of wanton spending.
Stopped buying stupid shit
Stopped going out for food so much (still a lot of improvement to go here)
Began throwing out/selling much of the crap that has been accumulated over the years. The amount of space this has given me living in the exact same apartment minus the clutter is incredible not to mention the reduced effort to store it all and the bit of money it puts in the back pocket. (About 50% done with this)
Contribute to get govt 50% match on kiwisaver
Currently applying for gainful employment over the summer break.
Still lots to do but finding MMM has been a big catalyst for all these small changes which add up
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How did you get 5% savings with Ally/Elite etc.?
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LOVE this thread! So many great ideas!
In the past two years I got divorced (hello, debt) and re-entered the workforce after being a SAHM (starting from scratch FTW!), then lost my awesome job a year in when the company closed with no notice. Moved across the country 5 months ago for a new job, discovered MMM, and have accomplished the following:
*Eating in 99% of the time
*Will have paid off one credit card by the end of 2015
*Rolled over two small 401(k)s into current employer's and began contributing again
*Took advantage of employer's Dependent Care FSA (max contribution) for 2016
*Started an HSA (no employer contribution, sadly)
*Started an FSA (phasing it out in favor of high-deductible insurance and HSA in 2016)
*Ditched the Keurig and bought a high-end coffee grinder/percolator on CL for CHEAP
*Sold clothes the kids have outgrown
*Sold an expensive purse I never used
*Got the kids like-new bikes on CL for Christmas for a fraction of the cost (Omaha is very bike-friendly)
*Located a new apartment closer to SO's work so he can bicycle commute; it also has a garage to store our bikes, stockpile good grocery deals, etc. AND it's located next to a neighborhood market
*Have begun researching areas to eventually buy a house in an area where bike errands will be easy, library nearby, etc.
*Began powerlifting -- already seeing health and strength benefits
*Ditched Netflix - now just use Prime TV and digital thingy (a gift) to pull in local channels
*Ditched satellite radio in car
In 2016, plan to do the following:
*Pay off other credit card
*Start throwing massive payments at auto loan
*Pay back parents for loan (for relocation and crooked divorce attorney)
*Move to more Mustachian apartment when current lease is up
*Take work clothes to a tailor to be tweaked instead of buying new
*Buy a bike and trailer for me and begin doing errands
*Cut gas consumption in half
*Slowly and gently convince SO to forgo hedonistic purchases in favor of paying off his debt
*Publish another novel and pimp others to increase royalties (second income)
*Research investment options for when high-interest debt is paid off
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We only discovered MMM this year (wish we found out sooner!) Changes have only been made in the past 2 months after years upon years of reckless spending..we never had any debt, no students loans, no credit card, but our spending was still crazy so we clamped down big time.
eat at home for all meals, restaurants used to be 2-3 times a week. now reserved for occasions with friends and family.
sold all our crap on craigslist and ebay
invested a huge chunk of "emergency" cash into the market leaving only about 15k for emergencies (used to be close to 6 figures)
started doing more "free" activities with the kids such as hiking, trips to library, hanging out at parks (used to always need to go "somewhere" with some activity that included $$$
sold my 4 year old paid off MDX and leased a Prius. I know some would disagree with the lease but it was only $239/mo and the gas savings pays for over half of that! Plus got back 23k from the sale of the MDX and put into index funds.
and the biggest of all, we listed our over priced luxurious house for sale. going to rent cheaply for a while and maybe get back to home ownership in a few years, hopefully in a less heated market and for a much smaller affordable house.
very life changing stuff, THANKS MMM!
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Triumphs:
Wife cuts kid's hair (and, now that she's got some practice, cuts mine).
Switched from Verizon to PagePlus on cell phone ($90 -> $30)
Been better about packing my lunch.
Submitted all my expense reports for the year. (Naturally disorganized, and had been leaving too much money on the table.)
Have bought almost nothing for New Baby, save for wipes/diapers. Third child gets the leftovers.
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The only thing I did was reduce my cell phone plan. By calling up Verizon, I got my bill reduce while increasing my services. A crime how they play games.
In 2016, I am setting up some goals for myself so I am looking forward to the new year and doing things differently.
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Wins:
- DH will pack peanut butter and only complain once or twice if I fail to plan ahead for work lunches. He used to go out and buy lunch every single time!
- DH has gotten more in the mindset of trying to fix stuff instead of immediately buy a replacement. He has become so much more patient in this aspect.
- Finally got to switch our cell phones to cricket. $40/mo saved.
- Maxed 401ks, Roths, and HSA's for the first time ever!
- Took 3 week backpacking trip. (Maybe not a win because now I want to quit my job and travel)
- If we stay on course we will squeak by and hit 50.1% savings rate! Not including HSA, company match, or student loan principal (About 56% if you include all that).
- Started a brokerage account! We are using it as the vehicle for what would be extra loan payments.
Losses:
- Failed to reduce our budget to live on one income. This is very stressful with DH on a contract job which abruptly stops and forces weeks off without notice.
- Entertainment and discretionary spending is super high.
Next Year:
**Really unsure. I'm so tempted to give up and just blow up my life in one way or another. Potentially move back to an apartment and give up my hobbies and lifestyle inflation. Or quitting my job. Taking time off to travel (except I have no money!). Either way DH's lucrative contract job is up in March and we really need to buckle down and reevaluate. As a result, I can't plan to do so well in the savings dept next year as a definite. I'm thinking more in terms of a soft skills type of movement towards mustachianism as my focus.
What I'd like to do:
- Save enough in Jan-May (10 years after graduation sounds like a very good motivator!) to have the brokerage account match remaining student loan balance. It will be very tough to not liquidate the account and pay them off on a random day of depression. Ideally I'd like to continue paying minimums, open a second brokerage account for savings (leave this one alone), and have a big bonus when the loans are paid off in 10 more years. We will see how this goes.
- Max 401k's, IRA's, and HSA's again
- Get expenses down to one income level for stress relief.
- Stop worrying and obsessing about money and updating mint/and spreadsheets daily.
- Gain some sanity, step back, and start working on myself and fulfilling interests. Learn to not feel guilty about spending money on something I'm interested in or is building skills. Just do it so I can grow as a person. Allow DH to feel the same.
- Start exploring new careers or jobs that offer flexibility without worrying about the money aspect. Ideally, I'd like to find a career or niche I can get into where I only work 6-9 months of the year and then have extended time off. But I have no idea what this is or how to get there!
- Kick internet addiction!
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Used YNAB & Mint to track things.
Downsized from a studio apartment to a room in a shared apartment.
Took two graduate courses in spring (instead of the one I planned) to keep a scholarship and then kept the momentum going after my work contract ended in June, so I will end up finishing half the degree requirements this month.
Got a part-time job.
Found a full-time job that will start in early 2016, assuming some last details work out.
I've only maintained, rather than adding to, my net worth in 2015, but considering that I've been unemployed or underemployed half the year and have paid for two career-related international trips plus 18 graduate credits, I'm pretty happy with that.
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- Paid off business loan $9,400
- Paid off student loan $7,000
- Paid off car. Own vehicles outright.
- Husband fenced our house himself
- Grocery budget for 3 under $400 several months
- $6,500 in spouse's 457 plan
- Canceled Dish Network. Use Netflix.
- Cancelled gym memberships. Bought kettlebells off EBay.
- At least 20 donation trips to Goodwill.
- Save about 40% of gross income either through actual savings or debt paydown, and tax optimize a good bit more with dependent care FSA and, unfortunately, expensive employer health insurance.
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2015 Accomplishments:
- New job with ~25% pay increase and metro accessibility, enabling the next two points...
- Sold my car
- Set 403(b) contribution to max (will not hit max until next year; did this when I started the new job)
Goals for 2016:
- Improve technical work-related skills
- Consider side-hustling
- Work on putting quality over quantity when it comes to new purchasing needs to be more environmentally sustainable
- Get tiny balcony garden to grow more than 10 baby leaves of swiss chard (it did do OK on our herbs, but it would've been nice to get actual vegetables!)
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I love this thread! Already have gotten a few ideas of what to do next. Struggling a bit this month and last with keeping up with frugality consistently.
But, we had a great 2015:
• Reduced spending on interest by paying off 33K in debt principal so far. Paid off 3 student loans.
• Reduced student loan interest by refinancing 7.65% loan to 3.35% through Earnest (https://goo.gl/OjXubY (https://goo.gl/OjXubY))
• Got a new job that will increase pay by 17%. Got two raises and a promotion. HB got a raise.
• Lower internet bill from $60/month to $54/month
• Made homemade laundry detergent and dishwasher soap.
• Reduced spending on travel, random Amazon purchases, and eating out. (Still needs further work!)
• Replaced ½ of bulbs with LED bulbs when on sale from Home Depot.
• Weather-proofed the house
• Implemented personal allowances & made it so all eating out comes out of allowance. This led to reduced eating out. We eat from home much more than we ever have.
• Learned how to make pizza dough, pie dough, pizza sauce from scratch
• Got wills done and optimized life insurance
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Wow! Lots of ass kicking in this thread. It's also got to be a huge kick to MMM to see how many people amplified their lives by being smarter with the resources God gave them... Here's my list of changes...
1. Most importantly of all, I changed my life from my paying others to use their money to now having others pay me to use my money! Everything below are small, yet kick-ass, victories in this vein. We now earn far more per month on our money than we pay in interest or other damned fees.
2. Used cash I inherited plus a steady stream of income to pay down my mortgage from $247K at year end 2014 to $109K at year end 2015.
3. Recast my mortgage from $1100 per month to < $500 per month.
4. Redployed our after tax investments from mostly "growth" to "income+growth". Despite the market, still grew original assets 4% and increased monthly passive income over $1,000 per month. Add that to #3 above and our money now pays us almost $1,600 a month more than it did last December!
5. Cut expenses. Negotiated my cable company down from $93 per month to $36 per month for broadband plus most basic local station cable. Dropped our power bill almost 20% with LED bulbs, smarter consumption, new appliances, air conditioning tuneups. Eliminated a car loan to drop the monthly "nut" we had to make and increase saving margin / debt pay-off ability.
6. The thing that is the most feel good of all is my wife and I now talk about debt as "our" adversary. Before, debt was "my" adversary because I am the financial guy and pay the bills, etc.. And spending money we didn't have was her friend.
7. I paid off all our existing cars and have tamed my expensive car habit of 25+ years. But my gift to myself will be new wheels once I've paid off our mortgage entirely plus saved for the next wheels.
8. Maxed my 401K for the first time in my life. Opened a Roth account.
All was not wonderful though (if folks read this far even). I joined a swim/tennis club that costs us $225 per month for the family to use it. We need to F-ing move back to a smaller swim tennis neighborhood or somewhere else where we don't have to buy friends. And I bought my daughter a used car on credit to shave $500 or so off the sales price that I have to pay back early in 2016. Life is hard, but good and we're dealing with it.
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Great thread! We got our sh*t together this year, around July, when our bank updated its website and it longer played nicely with Mint. So we searched around for another solution and found MMM and YNAB. EYES NOW OPEN!
This year we:
*Developed a frugal, serious and realistic budget, slashing spending in absolutely every category
*Paid off $9K cc debt
*Ditched our lease car and PAID CASH for a used Prius
*PAID CASH for our half of my step-kid's braces
*Paid off a ton of back taxes
*Got back to daily intense exercise -- at home, not a gym (and DH lost 35 pounds!)
*Religiously taking our lunches to work
*Took a camping staycation instead of something more expensive
*Developed a sense of "we're gonna be OK financially" for the first time ever.
For 2016 we're on track to:
*Pay off $40K in student and personal loans by August
*Put aside deposit money for our eventual move to another apartment
*Start maxing out DH's 401K by September
*Start investing in VTSAX by September
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Figured my shit out!
-moved from high fee mutual funds to low cost index funds
-stopped paying extra on our mortgage, investing in tax-advantaged accounts instead (50% savings rate this year)
-considering moving to a more mustachian-friendly area
-made a budget
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Been on the MMM path for a number of years, but also seeking to improve!
2015:
Opened an account at Vanguard and rolled over an old 401k
Listed our "MIL apartment" on Air BnB to make some extra cash
Upped my grocery shopping game and starting making better use of our BJs membership
Nearly doubled my income from 2014 through good networking and some major hustling
2016:
Rollover two more accounts in my Vanguard IRA
Make a price book for groceries and stop relying on my memory
Expand side business #1 to make it self-sustaining
Launch side business #2
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- convince wife to keep her paid off car rather than buy SUV if we have a second child (this might require divine intervention)
LOL! My wife has a paid off sports car she bought new before we met. It is our only car. Whenever we discuss kids she brings up buying a *new* POS (enter any SUV here). Why does everyone think one needs 60+ cubic feet of cabin space to transport a less than 1 cubic foot infant? It is so bizarre to me. And MMM has made me feel confident in saying this out loud in 2015, even though I have been thinking it as long as I can remember. :)
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Accomplished in 2015:
- Maxed out my TFSA (41,000$) - left my old ones in government bonds (I used to work as a freelance photographer with very little job stability... this made me feel better). Other half (3/4 of which was contributed in 2015) put in low-cost index funds.
- Contributed to my RRSP (just enough to lower myself to lowest tax bracket, but leaving enough left-over for when I make a higher income).
- Took a frugal and lovely vacation to Costa Rica (counting it as a win because it makes me insanely happy and the two weeks cost as much as my paycheck was for those two weeks... so not too bad).
- Re-started freelancing, depositing all this revenue into my US account (dual-citizen), so I can contribute 100% of it into my IRA.
- Convinced my friend to rent-out his empty condo here while he works overseas. Help manage the place in exchange for 10% of the monthly rent.
Goals for 2016:
- Continue to max-out my TFSA
- Contribute more into RRSP
- Open taxable account (most likely Vanguard) with what I should not contribute to RRSP (no where near high enough tax bracket for it to be worth wasting RRSP room).
- Continue the side-hustling without burning out.
- Do some traveling, of course.
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- After having a MMM style savings rate (30-40% minimum) for the last few years, I finally beat my nerves and opened both an IRA and a taxable account through Vanguard. It's wee and delicate still, but it's a start!
- Over the course of the last year got a 4K/year base raise, and this year got a 4K bonus. Makes that savings rate even sweeter (when you're not a high income earner especially).
- With that raise and switch of office locations, I can now walk the mile to work. Get the blood flowing and I don't pay for parking.
- Lazy-weather-proofed my patio door for the winter (rolled up blankets!)
- Not money related, but I started upping the time I'm spending on personal projects (writing) that do not turn an income, likely never will, but make me happier.
- Am planning a vacation to Costa Rica??? Somewhere... in march, hopefully using Groupon and saving some bucks there.
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2015 Accomplishments:
-Opened i401k for myself and will likely max by April 2015 (self employed).
-Purchased second rental property.
-Bathroom and Bedroom remodel for kids (split one large bedroom into two small) and added a Trex deck to outdoor living space paid for with cash and all completely DIY.
-Sold Audi A6 4.2L and bought a Honda Pilot (not the most mustachian but saving a ton in maintenance for something I don't drive often).
-Husband maxed 401k.
-Got rid of cable, stream netflix and local antenna
-Switched from ATT to straight talk, saving $90/month
-Paid $200/month extra on main mortgage
-Saved $10k towards kids' college funds
-Started cutting my own hair. Always cut husband's and kid's previously.
2016 Goals:
-Roll over all old 401k's into IRA's with Vanguard
-Do estate planning with a lawyer, which will likely involve setting up a trust.
-Max all tax advantaged accounts again.
-$10k into college funds
-Bump extra on mortgage payment to $300 or $400/mo
-Make weekly trips to local Library with kids (by bike)
-Make at least 50% of grocery trips by bike.
-Go from 3 days/week of work to 2 days/week of work (scheduled to start in Jan!).
-Quit work in June or July to be SAHM
-Kitchen remodel with cash and all DIY
-Possibly remodel master bathroom with cash/DIY (which would conclude all major remodel projects, may be pushed into 2017).
On a personal level:
- I'd like to lose the last 10-15 lbs that's been nagging me since forever. I'm about 10 lbs below my pre-baby weight but another 10-15 would be ideal for me not to feel "fluffy"
-Completely kick the diet soda habit. I've cut way back to about 1 per day but I really think I need to eliminate it completely as it's a slippery slope and I also think it's a bad example for my children.
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Love this thread as it's so practically inspiring.
2015:
-- Lived in Colombia for 4 months of the year, saving mad $$ while living a more luxurious lifestyle.
-- Backpacked over 150 miles for the cost of food, saw beautiful sights and saved mulah.
-- Increased business revs from $960 to $6,000 in 8 months.
-- Bootstrapped the above business and only "spent" $5,000 to do so (which I have earned back).
-- Highest all-time networth.
-- Created and maxed out Roth IRA.
-- Back to Colombia again for Jan & Feb to save that money!
Ways to easily improve 2016:
-- Go out for food less in PNW, more in Colombia.
-- Spend less on drinks in general.
-- Live abroad more.
-- Use Mint.com everyday to track expenses.
-- Grow net profit to $12,000(±$500) a month.
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Been on the path for several years, but continue to optimize. Big accomplishments for 2015:
- Finally wrapped my head around (and my husband's too) that retirement is real and achievable in 5 years or so. Read some great books (Ernie Zielinski).
- Thanks to MMM, finally hacked ACA and premium credits, mega back door roth strategy, and HSAs... This knowledge has helped me gain confidence in my retirement models and planning. Looking forward to maxing HSA in 2016.
- Ran another half marathon. Started yoga class. Dumping $60 monthly yoga class fees for at-home yoga and core work-outs in 2016. (Glad I took classes though to learn the technique.)
- Maxed out 401K contributions, Roth IRAs, managed to stash a couple extra thousand in non-qualified investment funds. Total retirement savings this year with employer matching contributions was $70K.
- Delved further into 7-figure net worth category; increased net worth by 25% from beginning of year.
- Achieved savings rate of 50%; working to optimize further; still working on the low hanging fruit
- Dumped more clutter; took the tax deductions, sold some stuff on amazon.com (continuing this goal...)
- Learned "artisan bread in 5 minutes a day" technique, started soaking my own beans, devoted more time this year to batch/home cooking, have focused more time on "eating what's in the larder", and have continued to look at grocery savings and reduce waste. Learning to eat like kings at home for less.
- Enjoyed more time with aging parents; saw a dear friend I hadn't seen in 15 years; started spiritual formation at my church (meaningful).
- Went to a couple of great live shows; attended the Big 12 basketball tourney (bucket list items).
- Gave nice charitable gifts to things I believe in -- my church, refugee aid, my alma mater, cancer research...
There's plenty I want to change in 2016, but in the final calculus I feel like it has been an abundant, happy year. And tomorrow's my birthday! (I just bought myself some Vanguard funds...)
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There's plenty I want to change in 2016, but in the final calculus I feel like it has been an abundant, happy year. And tomorrow's my birthday! (I just bought myself some Vanguard funds...)
Happy birthday! What a great gift to your future self! :)
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I was introduced to Mustachianism about mid-year 2015. Since then I've read the majority of the blog posts. I thought I was on a very good path to retirement compared to my peers but since MMM I:
- maxed my 401k contributions
- increased my after-tax contributions by 3x
- increased effort to pay down mortgage. now < 7 years
- overcame my fear of ladders to fix our gutters
- convinced my wife to contribute to her 401k
- convinced my wife to set up weekly automatic investment
- downsized my paid-off car for a small pickup truck (cheaper and more utility)
- bike to work more than 50% of the time
- reinstated my library card
- posted to a public forum (I'm not much of a social media guy)
Plans for next year:
- renovate the garage into a gym / workspace so I can cancel my gym membership
- more biking
- cut our food spending even more
- budget for some travel
Best of all this has led to some great conversations between my wife and I about what we want for our future. Conversations which are ongoing but might not have happened otherwise. Thanks MMM and friends!
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Very cool thread.
This year I have made a few changes.
-Sold our second car and primarily use public transport
-Signed up for the local library and read plenty of books and comics (comics are perfect for quick digestion and forgetting, even better when they are free)
-Started investing in a vanguard account
-Playing more sport and staying more active
-Started the 5 2 diet and have lost a few kg so far, enjoying the energy changes and being more in tune with my body
Really satisfying to type that all out
Sent from my A0001 using Tapatalk
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Great thread for reflection. This year we have:
- Sold 2 cars and are now a 1 car family!
- Cancelled cable.
- Reduced phone bill by 100+ a month.
- Cut 600 off home owners insurance by cancelling unneeded coverage and raising deductible
- Reduced dinner out to once a month
- Lost weight due to more home cooking and biking.
- Decluttered every room in the house.
Thanks to the MMM forum our lives are more frugal, simplified, and healthier.
Sent from my iPhone using Tapatalk
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Ally at 1% for immediate access
1% at Ally!? Just finished transferring my account from Cap One far the additional 0.25. Free money! Thanks!
Fantastic thread!
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Awesome thread.
I paid off my student loans in November 2014. Once this was done, I made my "2015 new years resolution" to become more knowledgeable in personal finance. So my January began by reading "The Millionaire Next Door", then "The Wealthy Barber", then "The Wealthy Barber Returns", "a Random Walk Down Wallstreet" and then the real kicker was starting MMM and reading every article from day 1. When February 1, 2015 rolled around I had a much clearer financial plan and made significant lifestyle changes.
1) Read a ton of personal finance books and blogs
2) Started not only tracking expenses, but also my NW. For some reason this really helped more than budgeting or expense tracking.
3) Got a roommate to live with me. It happened to be a good friend so we made a deal where he is getting a great deal on rent, and I'm making a few hundred dollars I wouldn't otherwise make.
4) Got a Costco membership and grocery shopped more efficiently. I went from ~$125/week to ~$75/week and eat better now then I did before.
5) Reduced my energy usage by 18% by purchasing LED lights, unplugging things not in use, using my dryer less, not using the heat dry on the dishwasher etc. Hydro also ran a promo where i earned $50 for reducing my energy by more than 10%.
6) Ties in with #5, but I tried to purchase a drying rack on Craigslist to use my dryer less. Turns out the person I was trying to purchase the rack off was my neighbor and just gave me the rack for free. #winning.
7) Bought a commuter bike so I could cycle to work in the rain (already own a fancy roadbike which hates the rain), Cycled to work approximately 40%-50% of the time. Once I was in a routine I hated days where I had to drive to work because of a meeting somewhere else.
8) Researched and learned to drive more efficiently. I usually get closer to 600km to a gas tank than the 450km I used to get. (Hypermilling)
9) Reviewed my current auto-deposits into investments and increased them by 100%.
10) Changed to a more frugal mindset where I clearly understand the value of each dollar. For instance, I crashed my fancy road bike this summer and the frame was toast! I was so close to spending $3000 on a brand new bike before calmer heads prevailed, and i bought a nice used carbon frame for $300 and put the bike components back together.
11) DIY whenever possible. For instance, I needed a dining room table. I took an old ratty table a family member was going to throw out, spent $30 on stain and sandpaper and created a gorgeous harvest table that looks and feels brand new. It's seriously nicer than the +$1000 tables I see others buying.
12) Go to a Ubrew place for beer and wine with my dad. I was skeptical at first, but we found one we really like.
13) Icing on my MMM cake was a 10% raise I received a few months ago.
I have read from other places that the "frugal" changes were a drain on people but I'm honestly so much happier and at peace now that I understand the value of my money and KNOW that I will be Financial Independent before most people ever are.
Goals for 2016
-Pay off the clown car and hopefully never finance a vehicle again.
-buy out a family member that assisted in a real estate purchase.
-continue on my path!
- >$100K NW
But like everyone, I do waste money... For instance, I got a puppy. Puppies are a huge cost but I just love that little furball so much.
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2015 Accomplishments
-Our fourth child was born in June
-Increased our Savings Rate from 35% last year to 47% this year (although fell short of the 50% I was hoping for)
-Tithed 10% of our income this year, plus extra to make up for being behind last year
-Started and maintained a budget using YNAB to track every penny
-Switched to a High Deductible Health Plan and maxed out the contributions to our new HSA
-Maxed 401k for the second year in a row
-Opened tIRA for myself and maxed out the 2014 and 2015 tax year
-Opened Roth IRA for my wife and contributed $1k; our early 2016 bonus will be put towards maxing this out for the 2015 tax year
-Opened a taxable account and contributed $5k
-Road my bike to work 30 times on my 30 mile round trip commute
-Cut out monthly services (Spotify, extra disks from Netflix, etc)
-Bought power strips that kill power to our passive electronics when not in use
-Used a push reel mower for 75% of our grass cutting
-Dug up a garden and grew vegetables
-Cut eating out by 75%
-Cut alcohol purchases by 50% and started brewing my own cider
-Increased our Investment Accounts from $77k to $125k
-Laid out a plan to be FI in 14 years
Goals for 2016
-Hit 50% Savings Rate
-Max our tax advantaged accounts
-Ride my bike to work more often; start using it for small errands
-Install a deer fence so that we don't lose so much of our garden
-Cut alcohol purchases down to $10 a week
-Lower our thermostat during the winter to 65, raise it during the summer 78F
-Build a short term emergency fund, not tied to our investment accounts
-Continue the rest of the improvements from last year
-Use credit card rewards to pay for 90% of our trip to San Francisco for a family wedding next fall
-Focus on buying quality items that will last when the need arises
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Great thread.
A few new things for me from this year:
* Starting using online cashback/rebate sites and coupons.
* Learning to sew.
* Purged about 90% of clothing owned and consigned most rather than just giving them away.
* Cut takeout/restaurant consumption waaay down.
* Cut alcohol consumption to nearly zero.
* Moved a bunch of accounts to Vanguard.
* Nearly maxed out 401ks for first time ever (DH and me).
[Edited for word correction.]
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2015 accomplishments:
Paid off all remaining non-mortgage loans (wife's car and pool loan... long story on that second one), $15K total.
Cut home and car insurance by half ($1K a year).
Maxed out HSA and invested max possible in stocks.
Ramped up to maxing out 401k at end of year.
Planted a dozen plants in our backyard (was dirt) and installed drip irrigation system myself. Only lost 3 of the plants and two were due to being unsuited for harsh sunlight (didn't learn that until after they were planted).
Phone bill under $50/month for both of us with new Republic plans.
Optimized pumps, AC settings, surge protectors, etc to average $100/month electric.
2016 goals:
Kill off PMI on mortgage.
Finish backyard with no loans and as much diy as possible.
Max out all retirement accounts.
Get bike for wife so we can bike for groceries.
Cut restaurant spending significantly (at least half) while maintaining grocery spending which is pretty good (around $125/month).
Good thread to inspire us and remind us how much we can improve still!
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Wow, great thread! Very inspiring :). In 2015 I:
- made the maximum extra payment allowed on my mortgage
- found MMM in August (through a link on a Dutch blog about increasing happiness and simplifying life), read all of it + some other FIRE-related websites
- started tracking all of my spending
- stopped pretty much all stupid train station spending (mainly coffee / snacks on the go) by bringing snacks from home
- switched internet providers for €30 per month savings
- cut the landline phone
- stopped paper magazine subscription
- cut most charitable donations (which were at high levels due to previously higher income) except the ones I really care about
- stopped company gym membership in favour of running outside
- started on the backlog of chores around my house
- made an effort at slashing the grocery bills (slowly getting there)
- started investing instead of just saving
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Paid off one of my husbands student loans.
Bought our second home (rental property).
Closing on another property this week, which we will live in and rent out the back house. We will then be able to rent out our current home.
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By the time one hits FI, most of the low-hanging fruit is gone. I'm FIRE, but DH is still working until he hits his "magic" pension number. In the meantime, we are living on his salary and letting our investments continue to grow.
Two big wins for us this year:
- We flipped our first house (for which we paid cash) and made a $62,500 profit before taxes. (We put supplies on a now paid-off rewards card = free hotel nights.)
- We put our flip profits down on another rental property, which will have positive cash flow, because we got it for the price it sold for in 2002 and are doing a 10-12k rehab ourselves. Got a 30-year fixed mortgage at 3.875%, so yay for cheap fixed-rate money and positive cash flow on Southern CA rental property!
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2015:
- Got married
- Discovered MMM
- Punched myself in the face a few times for my crazy spending
- Fully switched over to using the CC to accrue rewards points
- Maxed 401k.
- Started investing in mutual funds.
- Talked to a financial advisor to discuss how to diversify my current portfolio
Goals for 2016:
- Refinance house from a 30 year to a 15 year mortgage
- Cut spending in half or more
- Buy bikes for exercise and short errands
- Reduce home insurance cost
- Start a backdoor Roth IRA
- Declutter house
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In 2015 My husband & I have:
Maxed out our 401K & IRA's
Moved all investments to Vanguard & Betterment
Got a 20% raise and earned extra $$ in a side gig
Achieved a 65% after tax savings rate (pre-MMM 35% savings rate)
Switched AT&T bill ($120/m) from to Republic wireless ($50)
Cut eating out from 2/week to 1/month
Cut internet from $90 to $35
Started biking to work (7 miles each way) at least 4 days per week - saving $10/week
Automated investments to limit $$ leaking out to non-essentials
Figured out we are conservatively 5 years to FI
And the best part the changes have not negatively impacted us - we are just as happy
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2015:
- Refi from 30 year at 4.85% to 15 year at 2.75%
- fixed up house to address energy sucks and long term issues (foundation)
- researched and established HDHP and HSA for 2016
- established and funded Vanguard Roth IRA
- established Vanguard taxable account
- increased 401k contribution rate for first time in 3 years
- calculated FIRE date and ER budget for first time (target = 8 years)
- reduced monthly expenses for internet, phone, auto insurance
2016 goals:
- decrease vehicles from 3 to 2
- increase tIRA and 401k contributions, max Roth IRA after selling ESPP shares
- move "rollover" 401k contributions to Vanguard tIRA ($200k) to decrease expenses
- eat local, organic, fresh and reap health benefits
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Love to see all the new folks going through the same initial transformation I did when I found MMM several years ago -- cutting those unnecessary bills/expenses, ratcheting up savings! A lot of serious ass-kicking going on here!
This past year, nothing earth-shattering:
1. Re-fi'ed mortgage (technically it was in late 2014) to 3.5% (from 4.25%);
2. Started extra $6,000 catch-up contributions in Jan (on top of the $18,000 max) for 401k since I was turning 50 this year (for a combined annual total, with match, of $31,000/yr);
3. Got an $8,000 raise, and channeled it all to savings (almost all -- life insurance went up because I turned 50, so that ate up a little bit);
4. Passed 200k miles on my car and it's still going strong-ish (check engine light is on, head gasket's starting to go, but it's driving fine!).
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Paid off one of my husbands student loans.
How'd the other husband feel about that? :-p
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I found MMM in January of this year, and I'm so glad I did.
- Sold my house and bought a smaller one, which cut my mortgage in half from 310k to 155k
- Sold my vehicle and bought a cheaper, smaller, more fuel efficient vehicle.
- Paid an additional $15k on my special assessments on my new house to get rid of the high interest rate amounts
- Maxed my 401k for the first time ever and then....
- Maxed my MEGA backdoor roth available with my 401k, for a total of 38k invested
- Fired my financial adviser and moved my individual brokerage account to Vanguard
- Found out about the backdoor roth also, so maxed that out this year, at Vanguard of course
- Just completed a refi on my house from 30 yr to 15 yr, going from 4.125 to 3.375
- Bought YNAB and track every. last. cent. I. spend. Yes, I'm a YNAB addict. I look at it multiple times a day (kinda obsessive, I know) to see if I can cut costs even more. I love entering each expense manually. It's motivation to do better, so I don't have to enter so many expenses.
- Complained to Dish and cut my monthly bill from $100 to $45.....I just bought an antenna so that will soon become $0
- Sold over $300 of crap in my house that was just unnecessary and looking to sell even more
- Drastically cut my restaurant budget to $25 a month. I recently looked back at one of my CC charges last year, and I spent over 7K on restaurants last year, and that was on only one CC. Major face punches for me!
- Joined the awesome Whole30 group on this forum, and am loving cooking at home and trying new recipes.
- Excited for FIRE, and dreaming about adventures to come
- Feeling content with life
I'm pretty darn happy to write this all out, and I'm sure that I'm even missing some things. Ok, I opened YNAB and saw some more to add:
- Opened an account with Ally and moved my emergency funds there to earn more interest
- Removed my budget line for travel because I plan to use rewards from CC. Now I just need to sign up for that class to understand churning better.
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Yep MMM inspired some big changes in 2015 for me...
1. Paid off car loan early and reminded me not to go out and buy a new one again to start the loan cycle all over again, Lil' Red will be driven into the ground before replacement is purchase by cash only of course
2. Zeroed out CC debt
3. Switched job location - same job just location is now within walking distance
4. Ramped up savings for trip to New Zealand in June 2016
5. Salary sacrificed into superannuation which will make for a nice retirement egg - love my job as librarian so don't wish to retire early
6. Really focussed on paying off mortgage - estimated to be 12 years to mortgage freedom (instead of 27 as preferred by bank)
Thanks MMM and forum contributers, regular reading of posts keeps me focussed and on track to achieving goals
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Fabulous thread!
2015 was a big year for me too. Even though I only discovered MMM this summer, I was already making some very Mustachian life changes, with an eye toward FIRE in 6-7 years:
- I quit my previous job, saying goodbye to a commute that took 30-60 min each way AND cost a toll of $7.50 per day, and took a new job, where I bike 1 mile to a fabulous job that also pays better :)
- My SO moved in, cutting my monthly rent/expenses in 1/2 and motivating me to sell or donate a lot of clutter I had accumulated over the years, which felt awesome.
- Started bringing my lunch to work two days/week and eating out way less
- Simplified my investments and put together an actual investment plan
- Maxed 401K and HSA contributions
- Learned about and did a backdoor Roth IRA for the first time
- Paid off the last $15K of my student loans
- Paid off my car (which I am going to sell in Jan. 2016)
I feel so great about these changes, and motivated to do more! It's time to put together my 2016 goals...
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I found MMM in late June... Husband and I have been slowly making changes for years (no cable, taking advantage of 'free' or cheap local entertainment, slowly upping retirement contributions, etc), but finding MMM has helped us hone our focus and challenged us to make quicker changes/better choices.
2015:
-paid off DH's student loans & have been attacking mine since August
-Bought bikes just before finding MMM for fitness, but quickly switched to riding them for most errands, visiting friends in town, etc.
-took a serious look at our spending and set a real budget for the first time with concrete savings goals
-began tracking every penny and finding areas to cut wasteful spending.
-We have both lost significant weight this year which has necessitated buying more clothes than normal, but we were able to find some truly lovely thrift shops
-paid enough extra on the mortgage to drop PMI
-Signed up for an HSA and will begin maxing out with the new year
-Started using my library card (might seem minor but I used to spend at least $30-40 per month on books)
2016 Goals:
-Kill my student loan by March
-Sign up for and max out my 457B at that time
-Continue to cut fat in budget (I'm looking at you restaurant spending)
-Ride bike to work consistently. I did it a few times this summer/early fall, but I do not feel very confident yet riding in the dark on the busy highway I have to take to work. This might continue to be a non-starter for me in the late fall/winter/early spring, but I hope to ride to work frequently in 2016.
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Started reading MMM about one year ago. I have read almost every article and even if I always had a small north-european mustache the MMM blog really helped me see the light and do some mustache-growing decisions.
Some of the changes I made:
- Cancelled my fiber-internet subscription.
- Changed to a much cheaper phone subscription with unlimited data. Using phone as wifi-hotspot at home
- Changed electricity delivery company, cut electricity cost by at least half
- Increased saving rate to about 60%
- Implemented a strict rule about never paying anything to get to office and during working-hours. Which means no fancy lunches outside, and always walk or take bicycle to work.
For 2016 I look forward to continue my path I started 2015. It will be a lot harder to increase my saving rate during 2016 as most of the easy tricks has already been made.
However I have three goals I would like to accomplish.
- Reduce my alcohol consumtion to the minimum. My goal is to never buy alcohol in store, and only allow for maximum a glas of wine at dinner with my girlfriend. I'm really excited to see the change both from a health perspective and how it will increase my stache. It is not a huge expense for me, but it is definetly something I do not need in my life. And I really hate to see the staple for the alcohol-cost in my excel-sheet every month!!
- Will try to renegotiate down my house-loans a tiny fraction
- Find a side hustle to generate a few extra dollars to my growing stache
And thank you all at the MMM Forum. You are really inspiring!
Keep up the good work for next year!
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I haven't done much of a change. I bought a used Prius, and i didn't have a car before. So not really mustachian. I've started to make my own bread, so that's new! I also invested a total of 55 000 USD into Vanguard Total Stockmarket, so my finances are getting better!
I'm a long time reader of MMM, so I've tweaked nearly everything in previous years. I don't eat out, live close to work, cheap rent, cooks much of my food from raw ingredients and you're getting the picture. I'm not a really large spender so everything is already tweaked.
Edit:
I forgot. I've reduced my alcohol consumption by quite a lot!
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Great Thread! I had to chime in. My wife and I accomplished the following:
- Discovered MMM and the MMM philosophy
- Fired Ameriprise and moved my IRA to Vanguard, Cut out ~2% points in FEES!!
- Paid off all remaining student loans
- Paid off car loan
- Maxed out my 401(k)
- increased wife's 401(k) to 10%
- Opened an IRA for wife, maxed it out, and did back-door Roth conversion
- Sold condo that wife had purchased as a single gal and was costing us $500 in negative cash flow every month as a rental (once tax and HOA is figured in) and plan to use the proceeds to repay 401(k) loan we took for down payment on principal residence in 2013 - this was pre-MMM days
- purchased a lightly used 2006 Honda Odyssey (100K miles) for CASH - never again will we have a car payment!!
- Quit my shitty job and negotiated myself a nice $15K pay raise at the new gig!!
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My first post was Dec 9th 2014 and it's been an amazing year. I just scanned all my good/bad/goofy posts for this year... In 2015 the big wins are:
- Maxed my 401K savings for 2015 for the first time ever! (mainly due to MMM changes last year + 2015 items below)
- Increased our gross savings rate of our "after tax" income dramtically from ~20% to close to 50% of take home pay (considering everything that stayed in our possession such as 401K, home equity, after tax savings, college savings, reinvested passive income).
- Shrank the mortgage balance almost ~$140K (through savings all year and a large "chunk" payment. 'Nuff said about this elsewhere :)
- Grew annual passive investment income from $2K to $12K.
- Finally bit the bullet to liquidate the Education IRA accounts we had at our old broker and move them to the 529 plan (or simply cash).
- Continued to fund the the college accounts given other debt paydown.
- Grew overall 2014 cash investments' principal 3% (compared to S&P decrease thus far of -3% since Jan 1, 2015)
- Negotiated my internet/cable bill from $93 to $36 a month for 12 months for the exact same package for ~$700 a year savings. Annual negotiating is very Mustachian.
- Trimmed auto insurance options w/o touching key liability / collision limits for $800 a year savings.
- Sold clutter items to pay down mortgage above.
All wasn't perfect though. Stupidly bought a car wth debt for my youngest (will pay off in March). And am still paying far, far too much for kids activities. But realized state college years' cash flow will actually save us money vs. high school years thus far! (considering expected net college expenses beyond college funds saved thus far compared to the past 4 years' high school monthly activities, music/dance lessons, etc.). They are my best investments... in all our futures!
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Update since last post: We sold our second/bigger car! Pocketed $17k and since we stopped driving it a couple months ago (when we first listed it), we have been walking much more!
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Great Thread! I had to chime in. My wife and I accomplished the following:
- Discovered MMM and the MMM philosophy
- Fired Ameriprise and moved my IRA to Vanguard, Cut out ~2% points in FEES!!
- Paid off all remaining student loans
- Paid off car loan
- Maxed out my 401(k)
- increased wife's 401(k) to 10%
- Opened an IRA for wife, maxed it out, and did back-door Roth conversion
- Sold condo that wife had purchased as a single gal and was costing us $500 in negative cash flow every month as a rental (once tax and HOA is figured in) and plan to use the proceeds to repay 401(k) loan we took for down payment on principal residence in 2013 - this was pre-MMM days
- purchased a lightly used 2006 Honda Odyssey (100K miles) for CASH - never again will we have a car payment!!
- Quit my shitty job and negotiated myself a nice $15K pay raise at the new gig!!
GerryS, Can only imagine how much better you feel after killing that many financial parasites in one year (Ameriprise, loans, condo) AND getting the better gig... Awesome!
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To update later and follow for now. Love the ideas here b
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- Got a job
- Discovered MMM
- Stopped eating out at work to save money
- Started drinking water instead of soda a work
- Lost 30 lbs since July
- Saved around $9k
- Started looking for a better job
I've gotten a couple of phone calls about possibly getting an entry level IT position, and I really hope one of them leads somewhere so I can jump all into working towards FIRE instead of reading about investing with the hopes of doing it someday.
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- lost 10 pounds (last of the baby weight)
- cut grocery budget from $10,500 to $5800 (and counting, probably come out at $6000)
- made a few Christmas gifts
- enjoying socializing with friends at the winery at which we are members (free glass of wine!)
- enjoying socializing with friends in the park at weekly potlucks
- did a "no new clothing" challenge - did buy some items, but generally only stuff that I needed
next year need to cancel the land line. We only have one option for internet and it's terribly expensive (rotten people), so we alternate with grouping phone and not, but they increased prices. Last month the phone part was $35 PLUS $30 for 9 phone calls. Eff that. Even if we cancel phone, I think our best price on internet will be $80 a month.
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- Paid off the mortgage, woo!
- Started regular exercise and meditation
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-Started detailed tracking of spending with mint and google sheets.
-Cut back a lot of restaurant spending
-Being more cognizant of spending on hobbies
-Brought in more income with the Photography side business
-Got a raise and a bonus at the rat race job
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Started tracking all of my expenses
Set yearly goals for investment balances
Opened a brokerage account with Vanguard
Maxed out the wife's IRA
Upped my 401(k) contribution
Paid off student loan and truck loan
2016 changes:
Get rid of cable
Pay off 2nd Mortgage
Decide to continue mutual fund investing or pay down mortgage
Implement envelope system for grocery, out to eat, and personal categories
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Wow, everyone is doing such amazing things!
In 2015:
Saved $50/mo by switching cell phone plans
Saved $78/mo by switching internet providers
Got a promotion & substantial raise
Got rid of PMI
Working on a refi of 5.75% mortgage...will probably not come through until 2016
For 2016:
Refi!
Will re-allocate mortgage savings to modest home improvement & increasing investing
The hardest one: cutting cable. DH likes sports & is reluctant to give up DirecTV, we are spoiled right now.
Maybe try to work on educating my Mom on investing
ETA "my Mom". She has expressed some interest recently.
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Not a big income, and have been in this site on and off since 2013 so no huge changes in 2015 but...
- Asked for a raise and got it: 10% take home increase. Never dared negotiating before.
- Got promoted this winter: another 10% extra pay. Going straight to savings!
- Not sweating every single expense still leaves us within budget. Frugality is just that ingrained now. I can let go a bit.
- Getting the BF on board, although somewhat sceptical.
- Educating myself on index investing for serious. Even when that meant plowing through the tax rules and fineprint.
- Began investing, even though I don't have "money I can miss". My financial future is just that important to me.
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-Started reading the MMM blog in May after a blurb on ABC news
-Hit 200,000 miles in my 2005 Scion Xb (and still averaging 35mpg)
-10 day road trip to Colorado for a grand total of $300 / person.
-Opened up a lending club account.
-Switched from Cricket to Ring+ $0/mo plan. Saving ~$350/year
-Biked to work ~60 days total. 1,100mi biked for the year
-Got engaged!
Nothing too extreme but, my fiance is definitely on board. I feel like we will be saving more in 2016 because of the shared expenses.
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Great to see all the positive changes people have made! Here are mine.
Changes in 2015:
1. Became a 2 income household
2. Moved TFSA money from high fee mutual funds to low fee index funds, and changed family banking system to be more efficient and make it easier to track savings and spending.
3. Saved more money this year than ever before, even after a period of unemployment for both myself and DH
4. Feel somewhat stable in an unstable job
5. Spent all spring/summer riding my bike for errands and entertainment
Goals for 2016:
1. Buy DH a bike, and bike more
2. Max out TFSAs
3. cook enough (or prepare sandwiches) so I don't buy any lunches in 2016 (I actually made this New Years Resolution in front of my coworkers so that they can call me out if they see me buying my lunch.)
4. Be more active
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K20: why don't you start a journal?
Sent from my iPad using Tapatalk
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K20: why don't you start a journal?
I did in fact start a journal! First entry was on August 23rd. I resisted at first but then realized it was just what the doctor ordered.
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Love this thread!
2015 successes:
Traded in SUV for Prius-- got $ back
Husband traded in car for 2nd Prius
Dropped $90/month off cable bill (husband not ready to entirely let it go because sports)
Got Citi Bank double cash back credit card (pay every month)
Increased my paid work
Dropped Netflix down to $8/month
Cut back on restaurant eating by about 90%
Switched from weekly trip to Starbucks to monthly
Said "No thanks" to various requests to serve on volunteer-based committees
Most of these changes were in response to my husband's job loss, and we are still struggling to recover from that. But it feels damned nice to look at this list and see the positive changes we've made. Grateful I started reading MMM before he lost his job, as I knew immediately that we could make some big changes.
Happy New Year, MMM's!
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Some of the new habits I formed or solidified in 2015:
- Buying discounted gift cards for the fast-food/fast-casual places I frequent. These ranged from 10-30% off.
- Tracking nearly everything on Mint, which gave me insights into my spending
- Participating in a new physical activity (judo), which cost some money initially but increased my happiness and fitness level by an unexpected amount. Most of my exercise activity before that had been solitary
- Read some introductory books on Stoicism. The time periods where I remember to put it into practice, I have experienced less worry and irritation.
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I honestly don't think any of these would have happened had I not stumbled onto this website a little over a year ago:
Home - Refinanced mortgage from 30 year to a 15 year at 3.125%.
Auto Insurance - Cut in half, simply by calling around.
Home Insurance - $250 less/year
Gas - We now average $50/month in gas for both of us combined.
Bike - I use it now!! Main source of transportation in the summer, and use occasionally during the school year while teaching.
Cable TV- What Cable TV, we didn't have that to begin with!
Groceries - We are spent $250/month less than than in 2014.
Restaurants - We eat at a Restaurant no more than once per month, and usually with a gift card.
Clothing - I bought zero items in 2015 for myself.
403B - I opened an account, and it's Vanguard. Got about 10k in it.
Roth IRA - I opened an account and maxed it.
Years - Wife and I both bought 5 years for our pension 65K, and paid off 30k of it. This will allow us to retire at 48 with full pensions.
Side Hustle - Made an extra 25K playing fantasy sports.
CC Churning - Learned how to do it, have about 200k miles currently.
Expenses - Opened Mint Account and use it to target expenses to lower.
Net Worth - I track it once a month...and it always goes up thanks to changes above.
FIRE Plan - I know what this is and I have one! My wife is on board with it too, which is even more awesome.
Wow, let's go!!!!
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Life changes pre-MMM (January-September):
-Technically November 2014 - legally 50/50 custody and 50/50 time with my kids. Divorce finalized in August 2014.
-Started using YNAB, managed to stem the financial hemorrhaging from the divorce. Positive savings rate for first time ever.
-Continued to get better at half time solo parenting and navigating co-parenting.
-Passed my medical speciality fellowship boards.
Life changes since MMM (October-December):
-Changed the way I think about and manage money. Now an established habit.
-Pre-interest savings rate from 15-20% (required payments on loans basically) to ~40%. Real savings rate is currently 25%. Now an established habit.
-Slashed expenses - food, restaurants, cell phone, etc - there is a long list. Now an established habit.
-Started biking everywhere. Now an established habit.
-Selling car (Listed today, in fact).
-Starting to vigorously attack my debt.
-Lost 10 pounds (unintentionally).
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Awesome accomplishments everyone!
2015
*Got a promotion with a nice raise
*Cut Directv
*Switched from Verizon to Straight Talk $120 - $45
*Fixed my bathtub myself with a $30 part
*Got net income over $100k
*401k up to $170k
*Paid cash for backyard landscaping
*Paid cash for other furniture
*Began paying down CCs
2016
*Hoping to convince my boss to do a HDHP with employer funded HSA
*Also pushing to make a change in our retirement plan to allow for the mega backdoor Roth
*Continue to pay down CCs, car payments, and other loans with the goal of mid 2017 to be all but mortgage and student loan debt free
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Decided to make every transaction feel painful to make sure I was really buying something I really wanted and getting better prices. Really hard to do but I am working on it.
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ok i like this format so I'm stealing it!
Home - bought in 2013 but it's gone up almost 20% in value since then. lots of DIY remodel, all new kitchen, paint everywhere, landscape, bathrooms being re-done, DIY nursery fully outfitted, and still improving with sweat equity. Plus we like it here!
Auto Insurance - paid out on a totaled car. invested some of the left over in vanguard
Home Insurance - checked to make sure it's still the cheapest.
Gas - used less, combined more trips, fewer random road trips to kill time
Bike - got one for each of us and have them tuned up! getting started
Cable TV- What Cable TV, we didn't have that to begin with!
Groceries - still cutting back, but better than it was
Restaurants - still too much, but making better health and value choices
Clothing - cleaned out wardrobe, only bought needed stuff, mostly used or at least discount
403B - upped by 2%, going to up by a few more soon
Roth IRA - still no, but did open a vanguard finally
Years - had a decent one. got married with 2 big parties (family all over) and made some solid mustachios choices, did our own food and decorations and booze and whatnot. counting gifts I think we ended up ahead maybe $100 for the whole shebang. not bad considering the national average is $24k and the "Dallas" average is like $33k. oh got pregnant and had only minor issues when the wife got her car totaled by an idiot at 6 months... it's helpful to have a cushion to know one of you not working a while doesn't mean the end of the world.
Side Hustle - working on some, but nothing crazy. might start making high end designed knives to sell, but it's a lot of work. I do enjoy it though.
CC Churning - nah. did switch all bills to a rewards card to travel free this year
Expenses - cutting back, much less spending on my hobby gear (shooting) than in the past. recognizing need/want more and more, but damn that's tough
Net Worth -actually give a shit about it! it's hurt by student loans but found out I can make those go away 15 years sooner than I thought since I'm at a non-profit.
FIRE Plan - working on it! really do like my job, so not to keen on RE, but I think the first goal might be to get the wife done with work since she doesn't love it.
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Have a bit of time to update now. I've been on the MMM bandwagon for about a year, but am still working on DH
Have just about completed a 1 year clothing ban. Almost broke down to buy some new summer shirts when some other MMM online friends suggested a clothing swap party. Did a potluck, had a nice evening and ended up with some new t-shirts I wanted
Cut my cell phone from $30/month to $17. Hard to go lower in Canada.
Bought a bike using my fitness credit from work for $600 and biked as much as possible with the kids in tow in the trailer. Managed to do over 600 km, saving about $120 in just gas and wear and tear costs
for the most part only bought 2nd hand clothes for the kids, except for shoes and winter coats found on sale.
Switched funds to EFT to cut management fees
When washer died, found a free one via FB and then when it broke a week later, helped DH figure out how to fix it!
2016
Gearing up for a cross-country move, so busy listing things we don't want to take on VarageSale and selling as I can.
Really trying to think what we need/don't stuff wise and cut our consumption. keep up my clothing ban until at least we move, then start thinking more 2nd hand for me as well.
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Have a bit of time to update now. I've been on the MMM bandwagon for about a year, but am still working on DH
Have just about completed a 1 year clothing ban. Almost broke down to buy some new summer shirts when some other MMM online friends suggested a clothing swap party. Did a potluck, had a nice evening and ended up with some new t-shirts I wanted
Cut my cell phone from $30/month to $17. Hard to go lower in Canada.
Bought a bike using my fitness credit from work for $600 and biked as much as possible with the kids in tow in the trailer. Managed to do over 600 km, saving about $120 in just gas and wear and tear costs
for the most part only bought 2nd hand clothes for the kids, except for shoes and winter coats found on sale.
Switched funds to EFT to cut management fees
When washer died, found a free one via FB and then when it broke a week later, helped DH figure out how to fix it!
2016
Gearing up for a cross-country move, so busy listing things we don't want to take on VarageSale and selling as I can.
Really trying to think what we need/don't stuff wise and cut our consumption. keep up my clothing ban until at least we move, then start thinking more 2nd hand for me as well.
Just curious what kind of cell phone plan you are on. Does that 17 bucks include any data or just a basic phone?
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My phone is pay as you go with bell. No data, unlimited texts and calls at 50c per min. I don't use it except for emergencies and just text. Basically so daycare can reach me if kids need something.
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And I thought my cell phone was good! But I find I am using my cell as my primary phone and my house phone is my secondary phone, an extra $10 with Fido. But one way or the other we both have a cheap second phone - win!
My phone is pay as you go with bell. No data, unlimited texts and calls at 50c per min. I don't use it except for emergencies and just text. Basically so daycare can reach me if kids need something.
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I think you can max your RRPs but not claim it, or only claim part. So you can get the advantage of longer investment time, by investing as you have room, but optimizing your tax benefit. Not 100% sure about this, say 95%, so check it out, but if you have the money it might be worth doing.
Costa Rica - I hope that was in February? There comes a point when even the toughest Canadian can be lured to warm beaches. ;-)
- Contributed to my RRSP (just enough to lower myself to lowest tax bracket, but leaving enough left-over for when I make a higher income).
- Took a frugal and lovely vacation to Costa Rica (counting it as a win because it makes me insanely happy and the two weeks cost as much as my paycheck was for those two weeks... so not too bad).
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@K20 - a lot of this sounded like my last few years - then I clicked and you are a guy. We should link your spendy ex-wife up with my spendy ex-husband - think how happy they would be together ;-) I just want to know how you managed to get all that debt transferred to her - I am stuck with half of ours. It is amazing how easy it is to live relatively frugally once the spendy person is not involved. And often there is plenty of money to fulfill ours wants as well as our needs, once we are not subsidizing the spender.
Off to find your journal - Hawaii,mmm. Hope you have pictures! ETA - did the journal search,couldn't find you. Address in journals?
Maybe you could link your journal at the bottom of your posts? Given that you wrote "I'd be interested in your thoughts on my transformation."
Started to make some changes after my 25 yr. spendy marriage ended in May 2015. Since then...
- got rid of $300,000 in total line of credit and mortgage debt -- all transferred to spendy former spouse. Current total debt $0
- stayed in a friend's cottage on a lake gratis for two months post marriage
- let my hair grow since May
- sold my 2012 Jeep and am now happily car-free
- cancelled my CAA membership
- bought a decent used bike, negotiated a half-off list price deal
- started to eat more vegetables and less meat
- learning to cook healthier, cheaper meals: trading computer lessons for cooking lessons
- cancelled my Sirius XM subscription that I had for 5 years.
- didn't re-up my Flickr paid account
- disconnected, deleted the app., zeroed the balance and said goodbye to a 6 yr. Starbucks habit
- now brewing my own coffee rather than going out
- stopped buying stuff
- simplified my wardrobe: currently 2 T-shirts and 2 Aloha shirts 6 to 10 workout gear items
- currently living a re-boot dream 2nd of 5th month in Hawai'i - will go home with more $ than when I arrived
- brought only carry-on luggage and my bike to Hawai'i for my 5 months here
- reduced eating out to once-a-month while trying not to think of restaurants as a food source
- didn't renew my Costco membership: will go with a friend to use her card (today in fact)
- started to walk 2 miles 2-3 times per week
- continue to swim or ride a bike 3-4 times per week
- lost 32 pounds after my retirement 2yrs. ago
I feel very fortunate that I listened to my parents in the 70s and went to university and got a job with a defined benefit pension that will see me through for the rest of my life. Life is good as I've always tried to be a glass-full kind of thinker. I discovered MMM just before Christmas so you can imagine my excitement while reading his posts and knowing I was already a follower. Bonus that MMM is a Canadian like me.
I'd be interested in your thoughts on my transformation.
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Been doing something like MMM for years, having read YMOYL in the 90s, so lots of the easy stuff was done (one cheap car, little driving, cheap house, LCOL, biking, DIY) . . . however.
-entirely stopped with the remaining coffee-shop trips at work, in fact any/all food at work: -$800 /year
-finally stopped paying for haircuts! -$350 /year
-annual re-negotiation of insurance etc. -$400 /year
And so on . . . but the main thing is:
-only worked 75% and lived for all of 2015 on the amount that will be available in retirement (from a work pension and SWR from savings).
This worked out perfectly, including much travel and luxurious living (i.e. wine and nice food). Yes there's STILL room to cut back if ever needed.
So this was "pre-tirement" year 1 of 2. Pension kicks in after that.
Sort of a glide path toward total freedom to "work" ONLY at "fun stuff that doesn't really pay." Or not at all.
Loved the extra time/freedom and did not miss the foregone cash. There's no substitute for experiencing, in part, the life you are planning.
Proved that the (also foregone) extra savings I might have piled up by working 100% are also not gonna be required. So . . . onward.
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Lots of great people making good changes. Congrats to you all. I'll keep my list short and sweet
- Downsized our home reducing our mortgage roughly 40%
- Paid off all remaining debt
- Traveled more (2 actual vacations and 2 hiking/camping trips)
- Made significant home improvements
- Biked much more, as opposed to driving
- Started getting in shape again (continuing into 2016)
- More than doubled our savings rate
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Yes, congratulations to all for more mindful living.
In 2015:
-I discovered the MMM website
-I started the FIRE conversation/research with my husband.
-Purchased an income property (currently making improvements to rent February 1, 2016)
-Started eating out much less
-Started to develop an attitude of gratefulness for having a relatively rich, safe, and fantastic life.
-Negotiated for a much lower internet rate with Time Warner Cable.
-Cut my cell phone data plan and what I pay
-Discovered I could read the Washington Post online for free instead of $10/month by using my graduate student email account. Also went from paying $20/mo for the NYT online to $7.50/mo.
-Cancelled my $5/mo Consumer Reports online subscription. (I kind of regret that. The rate is now $8/mo.)
-Bought a used VW Golf TDI right after the scandal which saved me close to $2,000 on the purchase price. I now get fuel at most twice a month as opposed to every 10 days. Sold my 2001 RAV4 for $4,400 (above Blue Book).
-Got LASIK
-Finished Invisalign
-And, began purging my closet of clothes and shoes I don't wear anymore.
Wow, that was cathartic. I had no idea how much stuff I accomplished last year. And there's so much more I didn't list.
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I feel like 2015 was the year we started to get our finances back on the rails after years of living a faintly frugal version of the typical North American spendypants lifestyle. Things we did:
-Started a budget spreadsheet to get a handle on what we were spending where and allocate money at the beginning of the month.
-Learned to live within budget categories rather than spending stuff and then trying to wedge it into the budget (this was the big one for my husband, that I've been pushing for for a long time).
-Got funds established for recurring fixed and variable expenses (insurance, car repairs, etc.)
-Practiced more at thinking over how to solve non-urgent problems over the long term rather than just throwing money at them.
-Started using our rewards credit card for everything to get rewards points. (paying off credit cards each month.)
-Joined Costco and learned to shop there; got a Costco card and are using it to get rewards points.
-Improved our home's energy efficiency by insulating the attic, insulating various gaps in the basement, and replacing the ancient water heater and HVAC system with energy-efficient versions.
-Cooked at home more and ate out a lot less, making it a conscious decision each time we ate out.
-I stopped buying food at work and cut down a lot of my spending at work by shopping less frequently and not stockpiling. (I work for a drugstore; the food there is all convenience food and it tastes lousy. And I don't need to have 5 bottles of shampoo in the closet gathering dust.)
-Instead of buying a new couch when our old one started to fall apart, rebuilt our old one and also made new cushions for a used one we got from our neighbor, yielding 2 fresh couches for $400 or so.
-Refinanced my student loan to cut the interest rate from 6.8% to 5.365%.
-Got serious about making extra payments on student loan rather than paying extra only when we had the money.
-Upped my 401k contribution rate from 8% to 12% (and to 13% this last week) and contributed $5500 to an IRA for my husband.
-Started biking more frequently and bought a cargo bike secondhand.
-Did our taxes myself and learned a lot about tax planning that informed my approach for 2015 and going forward.
Plans for 2016:
-Potentially refinance house if we can get down to 80% loan to value and thereby ditch PMI. We are sitting on about 10k of money from my husband's parents that may get us there.
-Hoping to pay off one student loan entirely and I think we can do it.
-Hoping to fence off garden so we can start gardening more--the deer ate most of our garden this last year.
-Hoping to de-landscape some parts of our yard so we have more time for productive gardening and don't have all these ugly under-maintained patches.
-Hoping to max out 401k after getting a promotion at work, though I'm not sure this'll happen.
That's a decent list, though I feel like realistically we are only at the start of a long process. I feel like I have made a lot of progress in terms of my mindset and my husband has made some, though not as much as I'd hope for. But I'll keep on trucking.
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Great thread! Since I discovered MMM, I have:
* Tracked my spending, made a budget and started throwing money at debt
* Changed jobs to a permanent role - a little further away than my old job, where I was a contracter, which does involve spending £30 a month on a train ticket, but it is roughly the same wage and has great benefits, I can see me staying until I retire
* Enrolled in the company pension plan, with a 9% match
*Walk EVERYWHERE possible. I even got a little shopping trolley on wheels and walk to and from the grocery store weekly
*Switched to Lidl (Aldi equivelant) for groceries
* Turned off heating, lights etc as much as possible, resulting in a £400 return from my electric company
* Sold quite a few items online, got approx £400 in profit
* Painted my spare room myself rather than get in a decorator
* Seriously cut down my at home wine consumption
While I have never had cable, not had a car for several years and have always made my own lunches, I never knew where my money was going. MMM has changed that, as well as helping me declutter my life and home and get healthier. I am now on track to pay off my debt and get saving within the next two years, and while I won't retire early - well, I hope to be 60 rather than the expected 67, I will be FI by 48 - I'm 45 right now.
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This is an awesome thread. Congrats on your progress!
Here's my list of 2015 financial accomplishments:
- began tracking expenses in Mint in earnest
- reduced restaurant spending by 50% or more
- switched from Verizon to Cricket for mobile phones - savings of nearly $100/mo
- cut my electricity bills in half by using my windows the old fashioned way
- quit Starbucksing myself (except when using a cc reward gift card)
- made lump payments to student loans (about a third of the principal) in addition to regular monthly payments
- paid off my husband's (@#$%!) car loan in full using summer salary
- moved savings account from BOA to a mix of high interest accounts at 5%: Netspend/Brinks/Ace Elite plus Ally at 1% for immediate access
- quintupled my 401k monthly contribution and maxed our IRAs
- earned about $1300 cash in credit card churns plus over $200k miles (taking my husband on trip to Europe for less than $100/person soon!)
- earned about $1400 selling stuff in attic/garage on Craigslist, yard sale etc.
- refinanced my mortgage from 30 years at 5% to 15 years at %2.875
- Began buying most of my work clothing second-hand on Poshmark
- Started an HSA now that my employer is offering and signed up for payroll contributions that will max it next year
Can you tell more about this one?
"- moved savings account from BOA to a mix of high interest accounts at 5%: Netspend/Brinks/Ace Elite plus Ally at 1% for immediate access"
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Since starting to grow my mustache in late 2014...
-lost 20 lbs and kept it off
-started biking to work in mid-May and got over 1900 miles in by year-end
-developed an amazing oatmeal recipe (cheap + healthy + delicious = trifecta!)
-built a small cold frame for the garden to extend the growing season
-started to use our crockpot
-decreased my caffeine consumption
-got two promotions, for a raise of 25%
-sold mutual funds with high expense ratios, bought Vanguard
-sold a lame life insurance policy, bought Vanguard
-sold some expensive hobby gear for $2,000, bought Vanguard
-started renting our place on Airbnb, earning $2500 in 7 months
-opened 529s for the kids
-maxed 401Ks and IRAs for the first time
-started getting credit card bonuses, leading to a free cross-country train trip for our family
-took advantage of some bank account promos, earning 500, with another 300 almost in
-started raising livestock, learning a lot, getting very cheap, very high quality meat and eggs, and pocketing $400
-hit a savings rate of 44% (which will increase in 2016 due to our household income rising)
-went through everything we own and got rid of a couple car loads
-switched cell phone providers, saving over $1000 on the year
-switched car and home insurance, saving about $700 for the year
-"downgraded" a car, putting another $7000 in the bank
-got equipment to switch my beer-brewing to all-grain (and save more)
-got at least 3 others into MMM : )
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The wife and I started the mustachian lifestyle changes in 2014, mostly before finding this website (although I think reading the website has been helpful for her). There is one undeniable mustachian item I've picked up in 2015:
*** eating fistfuls of almonds for an occasional mid-day snack ***
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I'm going to make a change in 2015. I'm going to search more seat cushions for free change to put onto my mortgage ! I'm getting the F out of debt !
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It kind of feels like things are at a standstill now but looking back we did make a lot of changes:
Transferred funds away from active management and into index ETFS
Increased our savings rate by a lot
Improved energy efficiency
Cut back on spending
Sold some things we didn't need
Started getting more credit card rewards
I'd like to set some specific goals for 2016 too.
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Great job everyone! Some 2015 highlights:
-worked my ass off at my job, got 15% raise enabling hubby to stay home with our baby and not pay for childcare, while he does side hustles and works on adding value to our home
-had our first baby, the old fashioned way! We did a home birth with awesome nurse midwives, the whole thing including pre- and post-partum care cost $2500 (would have paid our full $5000 deductible if we did a hospital birth). More importantly, had a beautiful empowering experience, drug-free (and yes it did hurt like hell but I now know I am super woman!)
-all baby gear was basically given to us as gifts! We've spent very little on her.
-needed a suit for hubby since he was getting ordained, scored a massive sale at Joseph A. Bank and got 75% off. I mention this because it was a huge win! Got a super nice suit for $200! The sales lady said she'd never seen a deal that good there.
-cut down on food wasting in our house big time, which allowed us to buy more organic. Been shopping mostly at Costco and sales recently. Making our own baby food too of course.
-lost weight without dieting or gym by being thankful for my food and not overeating, breastfeeding (the most amazing diet ever), and going on walks here and there. Baby gets great nutrition for free while using up my fat stores. A win-win!
-working on decluttering big time after reading Marie Kondo. Loving it! Selling extra stuff.
-put in garden beds
-upped my 401k contribution, and our company started doing a better match woo!
-started cutting my own hair and hubby's hair and realized I'm super good at haircuts haha! About to try my own balayage highlights soon...
-focusing more on what truly matters to us--God, family, etc.
-learned how to make delicious food for gatherings and potlucks using cheap ingredients. Bread, eggs, popcorn, etc--people love it and I don't spend much!
-also I do use a lady cup as some mentioned above, but again, breastfeeding is also amazing in that it delays getting your cycle back, so I haven't had to deal with that all year! Woo!
-working on paying off all debt as fast as possible including the house so we can just work part time things we love (our version of FIRE--we are artists)
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Cut cable!!! It's going to be hard to do without sports (and a few other channels), but going to make a run at it!
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Neat thread. Here's the life changes/accomplishments for 2015, for both my wife and I.
FIRE'd (both)
Got pregnant (wife)
Self-published some books (wife)
Got rid of all the stuff we owned, save two backpacks (both)
Started full time traveling the world as nomads (both)
Walked 500 miles on El Camino de Santiago (both)
You really walked 500 miles ? You are my hero !
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You really walked 500 miles ? You are my hero !
It's simultaneously not as hard as it sounds, and really difficult. :P
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You really walked 500 miles ? You are my hero !
It's simultaneously not as hard as it sounds, and really difficult. :P
Thats a ton of exercise Good Job ! Saved gas also !
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-Cancelled my $5/mo Consumer Reports online subscription. (I kind of regret that. The rate is now $8/mo.)
FYI, check out your local library, because mine allows me to access Consumer Reports online (from my home) for free.
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Useful and Inspiring thread.
2015:
- Took a job in a new country. Doubled my salary. Expenses went up 100% but new salary more than covered it.
- Turned down a car for the job and took the rideshare offered instead - saved on gas, insurance, maintenance, parking (x2).
- Eliminated (multiple) daily coffee purchases. Enjoy one on the weekend - because you do need to reward yourself.
- Prepare my own lunches / dinners
- Lived in a hotel for 1 month during relocation. Reversed my routine to eat a large breakfast (included in hotel), stocked up on fruit at the hotel for snacks. Made sandwiches for lunch. No kitchen in the hotel but cleared out the minifridge and filled it with fruit/veg and made salads for dinner.
- Stocked up on free shampoo/soap/tea/coffee from hotel for a month.
- Took short local vacations, had friends/family visit and explored with them.
- Read a few financial books.
2016 Goals:
- Work as hard as possible.
- Learn more about investing / start investing properly.
- Have baby #1! ........................... (without mat leave benefits)
- Secure good insurance to cover expanding family
- Continue saving like crazy until whatevers next.
- Study side hustle opportunities for 2017+ (will be too busy in 2016 to start anything)
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In 2015 I:
cut my grocery bill in half
Cut my restaurant expenses by 30% (mostly spent while traveling for work)
Cut my spending on recreation and alcohol by 50%
Bought a bike
Moved several thousand dollars from a savings account to stocks
Began contributing to my 401k
in 2016 I plan to:
cut my grocery bill by 30%
further reduce restaurant expenses
Ride my bike to and from work (28 miles round trip) all summer
Fully fund my 401k
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2015! A big year!!
-I discovered MMM! (July)
-Finished grad school
-Got a new job and increased income by 40%
-Opened my first 401k
-Became a YNAB user
-Started paying down debt like a wild child!
-Opened a savings account that actually does something
-Moved apartments and cut my train/bus commute by 30 min!
-Fixed my car door by myself for $5.99 and got words of encouragement from a dude walking by as I labored
-Procured a bike
-Procured a library card
-Evangelized MMM to anyone who would listen
-Became a homesteader and learned to make fancy lady staples such as almond milk, veggie broth, and hummus
2016:
-GOODBYE credit card debt (Feb 7th!!! so close)
-Begin the student loan trudge. (Feb 8th...)
-contibute the matched amount to my 401k
-Figure out what investing entails...
-Work towards my dream job situation day-by-day, minute-by-minute!