The MMM Show - Episode 3 

"Pay off debt or invest first?" 1:28 "Can I retire early using only real estate?" 4:09 "Is dividend stock strategy optimal?" 7:17 "Should I still 'stash a lot of my income if I enjoy my job?" 10:49 Please include time stamp links in description. I would prefer to skip certain topics. Thanks for starting this channel, please keep it up!

Kudos to your producer he is doing it right!

I’m financially independent and retired at 26 today (quit my job 2 years ago this February), and am enjoying retirement because of the principles Jacob & Pete preached - since back in 2010-2011. Love the RU-vid content & engagement. I’ve had great engagement with my subscribers on the channel. It’s a great platform. You’ll crush it :)

I am famous now! ;) I understand that it depends on the interest rate what debt you should pay off instead of investing, but I was brought up with the idea that getting into debt for anything other than a house or a investment in a business startup is not smart. So like you say it's psychological. I would prefer to pay off all loans and start from zero. But I am from the Netherlands and we do things different here ;) Mister MM you would love it here, we all ride bikes, only get in debt for a mortage and we love being frugal!

2:45 Well done Kid. Love it.

I am happy to hear that you and your son jumped into RU-vid. I am a family med doctor who makes 200, 000 a year. I am married with three kids under 6 years old. We have no consumer debt , no credit card or car loan debt. We own a house with a mortgage. I have about 120,000 in student loans at 3.3 % and my wife who stays home with the kids has 20,000 in student loans. My employment offers a 401k match which we fully fund. I do drive 20 min every day to work and I am exploring the idea of riding a bike to work. Here is my question. My in laws are pushing 70 and have no assets, no retirement, and no plan if they were to need long medical care. Should we and the siblings buy LTC insurance? It can be a t bit pricy at their age. We were planning on also putting money away to a non retirement index mutual fund that would cover the additional cost if they needed more money. The other option would be to allow medicaid to cover the cost of long term care. I struggle with this option because medicaid facilities can be undignified places to spend in your last year's of life. Thoughts?

I'm so glad that you started RU-vid! Please keep going with it!!

It's great to see that you are enjoying the RU-vid experience. I can imagine undertaking this with your son is especially rewarding. Speaking of progeny: I'm in my late twenties, married and we've been pursuing FIRE for the last few years. We're likely 10-12 years from retirement and we'd like to start our family in the next 2-3 years. Now for the question: what are some common pitfalls and challenges new parents face that the MMM lifestyle might bump up against? How to anticipate and overcome them?

A mashup video of MMM and AthleanX would be incredible.

Thanks for trying out the RU-vid route. Doing a great job and really enjoying it.

MMM & Son, thank you. I do hope you guys continue to create these. Such needed wisdom and I do expect this channel will grow quickly to where it WILL become an easy income for you. Are you on your way to an MMM Podcast soon? 😊

Absolutely interest rate matters a lot. It boggles my mind that the Dave Ramsey people would focus on 2% interest when they might have other debts at 25%. Paper cut vs a gushing wound.

Anyone noticed the explosion in his hands at 2:45? :D

I am so happy that you joined RU-vid...Fellow Canadian on her own financial journey!!

Love this! Great questions and answers that myself and others have searched for but haven’t been able to find reputable straight forward answers to. Thanks MMM, you nailed it. Keep it up!

What should someone who plans to retire soon focus on? I'm planning to retire early this summer if markets hold up. But, I'm a little unsure what I'll do with that time. (But whatever it is, it will be more fun than working!) Also, if there's any financial stuff soon-to-be retirees should know, I'd like to know. I'm enjoying the show and am a long time fan! Keep it up! I encourage you to also do shows in which you don't answer questions but simply talk about whatever you think we should know. Some questions/topics wouldn't occur to us but might to you.

When I first got my job 5 years ago, I loved it. I thought i would be happy working for a full career. The longer i have been working, the more I value the goal of financial independence. I wish I had started seriously saving earlier.

I think the show would be better if you split it into two segments 1. Daily Lesson 2. Answering Questions. Cheers!

This channel is gonna blow up

The Music in the beginning and at the end was awesome. Thumbnail is also great :) good job, and keep going at it

Excellent show, MMM! What advise would you give for non-US residing Mustachians? Depending on the country, some aspects can be huge in supporting financial independence (e.g. no student debt, no income tax), but I am specifically asking about long-term investment in countries with unstable stock markets and unstable politics. For example, is there an efficient way for non-Americans to buy into American index funds (i.e. without massive broker commission that render low-profit investment more-or-less useless)? What other advise would you give?

Headed to CampFI South East this afternoon. This new show will be a topic of excitement. Thank you!

So excited you're doing this show Pete! You've mentioned building a town as a fun big project... This fascinates me and I'd love if you'd share your fundamental thoughts on the matter ie what do you see as the core factors you must have to build and manage a town? What role would you as the (co)founder and investor take? Do you keep some level of control or build key elements such as housing and simply see who is attracted to it. Any thoughts you have on this topic would be super interesting and fun! Thanks Pete and son!

Nice job! That was super easy to watch and easy to listen to. Have fun on your break & back at school

Like how simple you explain things!

So glad you are doing this. Big fan!

MMM. I was raised lower middle class, very aware of my parents money problems at a young age. I didn’t like the way that made me feel and vowed to work hard so that I would always have options. No help through schooling, but was able to live at home and drove a 1970 Vw bug for 14 years to keep my debt down. I started out with negative $80,000 net worth at age 31. I’m 39 now. Net worth is $2.6 million with $1.6 million in my primary residence (fail) after doing two live in flips, and $1,000,000 spread over one air bnb, two 1st trust deeds, private equity, and the stock market, all yielding different returns. I make a good wage but the wife and I (mostly wife) spend more than “we” should. I live in an expensive area if you couldn’t tell by the home prices. I crave simplicity and just want to sell off everything, move, and put it all in a vanguard 4% payout fund and call it quits. I don’t hate my job, but would not choose to do it if I didn’t have to. I have many hobbies including building furniture, designing and installing car stereos, wood fabrication, home audio systems, networking, construction, etc. I now have a 5.5 year old in kindergarten which makes my pipe dream of getting out even more difficult. We save 50-60%/year and I calculate retirement by age 48 if we don’t move, but it could be now if we did move! Loved your blog since 2013!!

Amazing show! I heard about you through financial RU-vidrs, the How to Money podcast and Ted Talk hosts. I didn't know you had a blog but I'm definitely going to check it out. I'm a 25 yo guy from San Jose CA and Im barely getting into FIRE. I have a 60k income as a manager at Amazon and I regretfully have a 19k car loan im paying around 500 a month for the payment and insurance. I wish I had just stuck with riding a bike to work. Keep the shows coming!

Didn’t expect anything but awesomeness coming from you and your son! Thanks pete!

Thanks for making these videos. I’m a big RU-vid watcher and your videos keep me motivated to save.

My husband and I have re-set up our life in Colorado (from Michigan) Sept 2017 and now prioritize time together as a family (we have 2 boys ages 3&5). We are both nurse practitioners (age 34) and can easily both work good paying positions. But at this time since moving to CO I am staying home and my husband works at an Urgent Care three 12 hr shifts per week. We love that he has 4 days off per week. We live below our means, max out Roths and 403B, and continue to add to our emergency fund. We rent a house here in Colorado for now and also have a rental house in Michigan (we plan to pay off this house in Feb 2019, this is our only debt). We are on a steady track but could do much better financially if I worked because we could save or invest all my income. My questions for you are: As a dad and as a financial person, when would you recommend I go back to work? Now, when kids are both in school, never? And just as a fyi there are options in my career for prn positions, part-time, as well as full-time. Do you recommend we continue to rent our house in Michigan (it is a 2006 ranch home in a subdivision close to Grand Rapids, good school district, and we rent without a property management company), move back into it (all our family is in MI but we Love CO) or should we sell it? Any other advice/thoughts/recommendations would be so greatly appreciated. Thank you in advance!

Thanks for taking my question. Happy New Year to you !!

Can you give me some advice? I recently became an "adult" and I want to start off on the right foot financially. *What do I need to do/learn to start off right when I eventually start working?* My family has always struggled financially, there are 8 of us, including my mom and seven kids. My mom can't currently work because she has to take care of the kids (including special needs). We currently rely mostly on welfare, with some help from a friend who is living with us (hopefully not for long) who buys and sells electronics online. I don't know if I could, but I would really like to be able to support my family short term until my mom can start working. I have hardly any knowledge about how stuff really works as far as jobs, stocks, banking, or really any of the adult stuff they should have taught us in school. Obviously I am now doing my part in learning this stuff online which is how I came across your channel.

It’s an episode a day!! Holy! That intensity. I wish I could keep up that level of intensity.

I was directed to your blog by another RU-vidr (Luke Smith @ RuralVacant Land) I’m racing through the blog as quickly as possible, only to find you’ve now got a RU-vid series!? What luck! Thank you for kicking the free game and prepare for your channel to blow up. Real recognize real ✊🏾

Loving the RU-vid channel! Great work! Both of you!

Hey MMM-family, Greetings from Germany! The YT-Channel is a GREAT idea. Seems like your offspring is just as entrepreneurial as you are. Great work, keep getting the word out. Being a fairly young and a new reader (3mo.) I was saving before finding your blog but it was you who made me "see the light" and I want to thank you for that. Just in addition I have a question if you like: I was a student so I was always saving every € I could but it needed your pointing finger to realize the holes everywhere where money and energy leaks throught. I changed my lifestyle in order of common sense but I have the urgent inner task to wake my family up who I see suffering to all possible problems you mentioned. Especially my father, who is selfemployed and allways hard working, he does not have enough energy anymore to make this 180° change. How can I push them into the right direction without seeming even weirder than now with my "No-thanks-you-can-bath-in-honey-and-get-your-nails-done-without-me"-attitude. Thanks & all the best!

I'm just getting into this FI journey, but I find it a bit overwhelming to believe I could stick with it to the end. What mindset is the most important troughout the journey to keep on pushing even when the goal is still far away?

Great show! I've been waiting for you to do this!

Thanks for sharing what you have learnt

That hand smack with the fire is pro like editing. Good job. Makes people stop and look. Or rewind. Lol

That fist bump fireshot was awesome... hahaha. keep up this great series.

I appreciate you sharing, love your videos!

Thank you MMM team! Lots of common sense life advices

What should you spend gift cards on? do you just buy more luxuries, or are there ways to actually enrich your life when people give you these?

I’m 18,I’ve started to adopt your recommended lifestyle choices for early retirement and I enjoy it! Any suggestions on how to to start investing and saving money at this age? (I’m currently in college and have a part time job)

Good answers for the details you had available. Keep it up.

Here's a harder question... I'm currently taking your advice investing about 70% of my income and should be retired in 5 years. My question revolves around the idea of how much longer we can really except to see growth in the market at the historic rates. Given that in recent years to keep this growth going employers have been cutting back benefits, and stagnating wages for the middle class. And considering the half a dozen environmental catastrophes headed are way noting of course that climate change is only but one of many dominions in this mess. I'll be 36 when I hit my retirement but I can't help but to think when I'm closer to 60 the economy won't be what it has been and we'll be seeing significant decline. I guess what I'm asking is how much in your opinion should I be planning for this?

I am glad , you are doing this

When calculating your savings rate percentage should you include your mortgage payment as saved or as spent? Part of it is going to your principle savings but the other bit is gone to the mortgage company?

In your "True cost of commuting" article, you say that a logical person would pay $15,900 more per mile for a house that is closer to your work. But it is often the case that the type of residence you can buy as you get closer to a city is much different than one farther out. For example, if you want to live very close to work in a big city (let's say NYC) as opposed to commuting in from north central NJ, then you will likely have to buy an apartment instead of a house on some land. Furthermore, you get way less space for paying much more. This can be quite a conundrum for a family of five that wants some space and doesn't want to be stuffed into a little box. How do you reconcile, generally speaking, living out in the burbs on some land and having top schools vs living in close to work in a city with terrible schools and higher cost of living (even when factoring in your extra $15,900/mile)? For the sake of this question, just assume that all my current and future job opportunities are concentrated in one small area in a big city.

Have less than 5 years left on a 35 year mortgage we took out 8 years ago. We paid at least 20% extra per year and cut years and years of interest. Never had any other debt because we’ve only bought what we could afford, so that helps. We started out marriage with $20 CDN and just stayed frugal. This isn’t a brag fest, my question is actually when we are mortgage free our spending will be cut in half. We don’t have tons of investments, we work for ourselves, but we’ll still need to cover basic expenses. We like working hard, but could you suggest ventures that allow for more time and freedom to hang with our kids (we homeschool), travel etc without only having passive income? Tried being landlords a few times and kind of sucked at it!

MMM >> Dave Ramsey

how do you feel about trying to purchase index funds that are considered more sustainable? i.e. trying to avoid investing in big oil

My TSP (federal government version of 401k) is “full,” but the tax break I get from contributing allows me to invest more money than if I didn’t invest in the TSP. Should I continue to max out my TSP or not?

Thanks for getting on RU-vid. Can’t wait to share your links with my 1 year old kid once she turns 12! Hope to get her exposed to Mustachian principles early in life!

Do an episode on your e-bikes.

How much would you value escaping the office/cubicle? If you were to exchange a well paying indoor career for a not as well paying outdoor career prior to FIRE, can you quantify that benefit?

This.Is.Great. Dear MMM, I've been voraciously reading your blog (all posts since the beginning of time!) for the past month or so and am up to the beginning of 2018. While I didn't iron my childhood banknotes I did have a treasure chest I kept them all in. I too can spend many hours in a stream creating dams and pools and changing the flow of water. I am also at my happiest when in nature or producing/creating something (check out my RU-vid channel, it will be right up your street). I just spent the day cutting foil backed insulation with an entrepreneurial friend and feel the life satisfaction you describe so well. I also have a dislike for inane rules and tend to be a contrarian. And many other similarities besides. I've very much enjoyed living your retirement vicariously through you. No doubt there's so much more to come, keep up with RU-vid, it's an amazing platform. I don't really have a question, just felt compelled to say the above.

Love the show! Any plans on publishing this as an audio-only podcast in the future?

Hey MMM. I think I read once that you only keep something like $3K in your checking account to pay for living expenses at any given moment (while earning a living in a standard job). What if you work as a contractor and constantly have the looming specter of the contract ending and potentially having a gap between clients. Would you do the same thing and risk having to sell some stocks at the low, or would you do something more like what Suze Orman suggests and carry 6 months of living expenses in cash? lol, if you haven't guessed I'm a contract software engineer and winter is coming.

What should you do after you've maxed out your 401Ks/IRAs/HSA's (especially for a young professional without a home)? I know there are taxable accounts and real estate, but it just seems less straight-forward after those accounts are maxed out.

Gotta say i really liked the shirt from the previous episode. Maybe you can get a shirt sponsor 😃 Thanks for changing our lives by the way! Its been 3 years now, 75% SR and i owe you a 🍺 at the very least.

Hi MMM. Great show. What are your thoughts on using leveraged ETFs to invest in the Stock Market Indices. For example 2x or even 3x leveraged ETFs to amplify the average stock market return (of course bearing in mind the downside risk during crashes and corrections).

hey whats up mmm, im new to the channel but im already a fan! have heard a lot about you from biggerpockets and other similar channels. i currently have a small amount of credit card debt and know i should pay that off before i invest (like you just advised) BUT i feel we are presented with a really nice opportunity to generate money by the current state of the economy and a potential near by recession that would make stocks, rei, precious metals and crypto a very lucrative investment. my question is essentially should i continue to put off paying my debt in an effort to save money to invest. the interest on my debt isnt killing me and is actually somewhat minimal. i personally feel that the opportunity cost of paying off my debt is very high compared to the gains that i could make by strategically saving and investing? any advice is appreciated!

The legend! 💕

12:00 MMM book of wisdom: "Shits can get old pretty fast."

Any ideas on how to live the mustachian lifestyle but get to live close to the land as well? I've been infected with a back to the land philosophy and don't think I could live without a large garden, a few chickens, and my dairy goat (no joke). But I want to live frugally. We've looked for rental arrangements, communes, live in caretaker agreements etc but it seems the only way to keep these parts of our lives are to own our land. Can this "back to the land" lifestyle be lived frugally?

What is your opinion on putting money in a health savings account?

You responded to a question below (by djspock5150) talking about how your son is learning so fast behind the scenes and how it is a great addition to an education. I'm curious what are your thoughts as a father on traditional education and career paths versus non-traditional education and career paths?

Hi MMM, Can you pass the link to the article on dividend investing approach? Here in Australia, we are getting more than 4% of income on Vanguard ETF (e.g. ASX:VAS with an expense ratio of 0.14%), 5% if you include Tax credit refund, so I'm interested in what you have to say with regards to dividend investing approach.

MMM, Can you talk about retirement investing for people who currently work in the US but may retire in their home countries? What implications would that have on 401k and Roth accounts?

I’ve been watching your videos for a few weeks now and although I am passionate about becoming financially independent, as I am sure most people are, I am hesitant to invest in stocks just yet. I am currently working towards saving for a new roof and originally didn’t plan on investing in stocks until I paid for the roof. I have couple grand saved and that is currently my only savings. I’m 27 and have a job that I’ve almost been at 2 years. Would it be more financially beneficial to invest the money in stocks now or wait til after I have replaced my roof, which will last a maximum of two more years per the roofing tar my husband dumped on it? Or should I just wait for the next recession to buy stocks at a ridiculously low price?

Thank u for getting the channel going. I'm on a 4 year plan. Question. I have several qualified retirement plans that only have an advantage after 59. What's the best non qualified I can do?

I'm 36 have two kids and recently went back to work in a dream job (I did the whole follow your passion not the money thing with my degree) Unfortunately it doesn't pay well, just 47k in Sydney. On top of the superannuation guarantee I salary sacrifice an extra 10k into retirement costs. My take home pay is 2600 per month which all goes on living costs including childcare. I had turned down much higher paying jobs in order to take a job in a career I genuinely enjoy. Is this a hair on fire situation? Should I quit my job and go for something much better paying?

Could u cover health insurance. Seems this is the 800 pound gorilla.

I'd like to buy a small, fixer-upper house in a good neighborhood then fix it up and put the basement on Airbnb. However, I'm not good at fixing up houses... Do you have any book recommendations that will give me a starting point in learning how to do that?

I owe about 75k on my home with an interest rate of 4.25%. Do I focus on putting all my extra money into Vanguard index funds or do I do a combination of extra mortgage payments and index funds? I am 30 yrs old and currently have a net worth of about 300k, no credit card debt and already maxing pretax 401k contributions.

Will Mr Money Mustache be able to upload his blog articles in a podcast format on RU-vid or other platforms? That would be very useful for people like me, who generally prefer a podcast format with headphones, as it’s compatible with a more active lifestyle.

Wisdom!

Any tips for biking in large cities (New York, DC, etc.)? I've only ever biked on paths or suburban streets, and biking in the city seems a little daunting.

Hi why don't you put previously available videos on/by you on this channel as well?

Hi MM! What are your recommendations for a career(s) that doesn't take a huge investment to complete (trying to avoid student loan debt), but also earns a considerable/decent income (70 -100k per year)? I have been in my career for the past ten years, following your ideas for a few--making good progress, but can't retire yet. Feeling the boredom, and would really like a career change, but some of the obvious options include 25-40k or more in tuition to get another degree. Thoughts? Thank you!!

Production is getting better, all tho there's some background noise (like a thud) that was a bit annoying - listen @ 0:17 for example. Except for that, great stuff.

Question: Other than completing a college degree, what are some things a young, aspiring engineer can do to increase their chances of good employment?

If you were in your 20’s today, what part of the US or world would you choose to live in (if Colorado was not an option)?

House hack here, made a 2br into 3 br. 30 percent increase in rent. Index Vtsax. Back up again from 59 range. Pete what do you think of lending club investing?

Hey MMM, at 3:23 you said student loan payments are NOT tax deductible, but the payments you make on interest actually are...what did you mean exactly?

Hey Pete, found your "cult" just a couple months ago and it is changing my life! Keep up the good work! Just a quick question, what camera are you using for this? I've started blogging and looking to do maybe a RU-vid channel for our travels. Thanks!

Can you do an simplified infographic video on the math of early retirement that I can show my wife to get her on board?

Great show thanks :) My question: I'm a 53 yo male, based in Melbourne, Australia and would like to ethically invest in Index Funds (US based is fine), both for myself and my two children, 24 & 22. Is there a way to only buy Index Funds that don't invest in fossil fuels, etc?

Love the new show MMM! Idea: Take it outside, like grocery shopping, activities ect. Question for the next episode: How do i inspire my wife to cut down on spending? My only reply from her is "I'am a woman!"

No particular financial question, but I was wondering if you dress up as wolverine for Halloween Parties? LOL!!!

GE cut it's dividend. If you're looking for dividend stocks, maybe stay away from GE.

Nice to hear your voice after reading your words for so long! So... this is great. Lighting and lenses are on point. One suggestion: lavalier microphone (I like the Sony ECM-44B) or at least a pop filter for that one so that we aren't getting loud puffs of air from your b's and p's. Keep it up! Looking forward to the next episode!

Good stuff. Do you feel like more people still get started with Mustachianism now that you don't post many blogposts anymore? Or is the mania over?

What do you think your annual spending would be if you were a single mand without kids?

Whip out your freedom. Love that.

I would be one of those channels that hasn’t grown quickly.🤣 Lol it’s ok though, I know nothing about editing and analytics, and I don’t do “haul” videos about useless stuff, so that’s to be expected I reckon. 🤷🏻‍♀️

You often talk about living close to work so you can easily commute... But the housing pricing is crazy especially when living in big cities like San Francisco. At what point are housing prices so ridiculous that even down sizing does not garantee a decent commute and it is worth living with a long commute for affordable housing. I'm scared of what a loan to get a house in a good location would do to my finances.