One of my inspirations is Pete Adeney, aka Mr Money Moustache. Having retired at the grand old age of just 30, he’s since started a personal finance blog. How did he do it? By saving hard and planning effectively. His website is massively popular and now extends far wider than personal finance, encompassing issues such as family, business and general well-being.
The central tenet is that the only logical pursuit is happiness. Ah yes, and that well-run finances can go quite a way in unlocking this human potential too.
This is incredibly similar to the Profit First system, where predictable cash flow and hardwired profitability create peace of mind, which in turn drives creativity and even greater profits. So on it goes in a virtuous cycle.
Below I have highlighted some of my favourite MMM blog posts with a brief synopsis of the key points.
WARNNG: MMM’S BLOG IS LIBERAL WITH THE USE OF SWEAR WORDS SO IF YOU’RE OFFENDED BY SUCH LANGUAGE, PLEASE STEER CLEAR.
So, why the name Money Moustache? Apparently it’s something to do with it rhyming with ‘stash of cash’. Anyway, it doesn’t matter, but the underlying ideas are powerful.
MMM often refers to this philosophy as Mustachianism and those who follow it as Mustachians. It’s witty, self deprecating and insightful. Enjoy!
Why £10 matters. A lot.
In the process of making a ton of wealth, the idea that £10 matters seems to be a distraction. MMM highlights the importance of small, incremental changes, which over time result in a massive difference to lifetime outcomes. I love this bit:
“It’s a good question, of course. It is this perception of “small” versus “large” amounts of money that is the downfall of most of us. It drives many to fantasize about lottery winnings, since that’s the only way to become a millionaire if you’re not a Rapper or a greedy corporate CEO, right? The solution to this is a change of mindset. It’s time to start getting excited about ten bucks again.”
Don’t buy a Tesla. Unless you’re me.
This is one blog in which I strongly disagree with MMM, although mainly about tax breaks which relate to the UK and which he’s no doubt unaware of. Despite being an environmentally aware and tech savvy person, he can’t justify the expense of a Tesla.
Well, I have bought a Tesla and it’s generated cash for CloudAccountant.com in year one owing to the tax breaks. See our blog for further details on this (and it’s a lot of fun!).
Bang for buck, part 1.
MMM makes the case that frugality drives happiness. This is the killer line for me:
“When Mustachians gather, they show off the way they have modified their 30-year-old work trucks to work harder than brand new ones while burning less fuel. They bring their home-made radios to the campsite and share tales and tips of how it was made using entirely leftover materials. They discuss strategies on how to feed a family with peak nutrition and deliciousness, for less than $1 per person per meal. And unlike those who compete to consume more, these people actually have something to be proud of – they are blazing the necessary path towards a sustainable life for everyone.”
These principles applied to business make for greater margins and more cash in the bank.
Bang for buck, part 2.
MMM is a software engineer by profession and wants to make things work as efficiently as possible. Running our companies in this way releases significant chunks of otherwise lost profit. He writes:
“Spending is a skill: a Mustachian can buy the same lifestyle with $25,000 that might cost a Consumer Sucka $100,000 per year. If you can cultivate this skill, the Art of the 75% reduction, at any income level, you can go from a lifetime of being in debt, to being rich enough to retire in less than 10 years. Similarly, a company that can operate with this level of skill will quickly become the most successful company in history.”
Likewise, Profit First focuses on applying these skills to running a company. Check out Chapter 8 – Find Money Within Your Business.
Interested in seeing how you can take your business – and life – to the next level using Profit First? Click ‘book a call’ today to start the journey!