The Six Streams of Income We’ll Rely on in Early Retirement

Even though Early Retirement is a few years’ off for Mr. ThreeYear and myself, since we plan to continue to work when we move abroad, we do plan to retire early (before we’re in our fifties and sixties), and have ever since we began our personal finance renaissance in 2008. Our current goal is to double our net worth by the end of 2019, and even if we leave those investments alone and add not another penny to them, we’d still be able to retire a few short years after that. When we do retire, we’re looking forward to the possibility of multiple streams of income to tap into.

Six Streams of income--www.thethreeyearexperiment.com

Though Mr. ThreeYear and I primarily invest in index funds (we have a “slow and simple-don’t get greedy” philosophy), we currently plan to have several streams of income available to us when we retire. Some will be passive, and others active. While this wasn’t necessarily a conscious plan on our part, life has worked out this way and we’ll take these streams of income we’ve developed along the way. Continue reading “The Six Streams of Income We’ll Rely on in Early Retirement”

Letters of Intent

Mr. ThreeYear has been after me for a couple of weeks. “When are you going to contact international schools? When are you sending letters of intent?”

Our family is on a three-year journey to double our net worth and move abroad. One possibility for our move involves me getting a job as an ESOL Teacher in an international location.

Letters of Intent--www.thethreeyearexperiment.com

Why would I continue to work when we move abroad? Wouldn’t that limit our location independence? First of all, our plan is to move to one specific international location for a couple of years. We’d really like to expose our kids to new cultures, languages, and parts of the world. We do want to enroll them in a formal school, however. A teaching position gives us many of the benefits we’re looking for.  Continue reading “Letters of Intent”

How Other People Can Help You Reach Your Goals

We all need a little help in life. When it comes to staying on track with our goals, friends and partners can make a huge difference in your success rate.

Other People Help Reach Goals--www.thethreeyearexperiment.com

Running Partners

For example, I’m currently training for a half marathon. It’s a beautiful half marathon that takes you through picturesque New England towns and by gurgling brooks and horse farms, one of the most popular half marathons in the area.  This will be the fifth time I’ve run it and the race is happening weekend after next. I’m a little behind on my training, though.

Yesterday, I needed to run ten miles. The only time I had to do it was before work, which meant I needed to get up at 4:30am and start running at 5am. The night before, Tuesday night, a friend had a get-together. If I had to run those ten miles by myself, with no one to support me or keep me on track, I’m sure I would have stayed way too late at the get-together and would have found a reason not to get up the next morning. Continue reading “How Other People Can Help You Reach Your Goals”

DIY Mayhem in May

This month, the shower arm in our bathroom has broken, it has taken four different light fixture tries to replace the kitchen light above the sink, and our kitchen faucet has sprung a major leak. We’re getting quotes from roofers in the area to replace our roof. Because there’s a dearth of roofers in the area and the cost of labor and materials is so high, our best quote is $14,000. Yes, that is correct. The cost of a used car. One year of private school education. More than a years’ worth of groceries.

On May 14th, Mother’s Day, it snowed. It rained for fourteen days straight before that. Last week, we got two medical bills for a total of $2,000. We’ve been negotiating a new diagnosis with doctors and the school for our youngest child.

We’ve also had some awesome things happen this month. Mr. ThreeYear became an American citizen on Friday and my dad came up for a surprise visit. After the rain and snow, we got a week full of 80 degree weather and the flowers are blooming. Everything is green and alive. The school year is winding down–as of Wednesday, we’ll have just four more weeks.

American Citizen--www.thethreeyearexperiment.com
We are officially a better nation now that Mr. ThreeYear’s a citizen!

We’re healthy, have a stable and happy home life, reliable jobs, and money in the bank to cover our expenses. In the grand scheme of things, the problems that have besieged us this month are minor annoyances. Continue reading “DIY Mayhem in May”

My Favorite Online Tools to Save Time and Money

There are hundreds of new apps that purport to make our lives better, but sometimes it’s hard to wade through and figure out which are really worth incorporating.

That’s why I wanted to share a couple of apps and browser extensions that I’ve been using lately that are awesome.

Online Tools--www.thethreeyearexperiment.com

Unroll Me

Unroll Me is a free service that cleans up your inbox. I get a lot of subscription emails from LinkedIn, my local hardware store, the National Council of English Teachers, etc. These are emails that I don’t want to unsubscribe from, because the information they contain might be useful. But it mostly clutters up my inbox (there should be an “appropriate amount of emails to send weekly” course for these stores!). This brilliant service allows you to either unsubscribe from or “roll up” the emails you don’t want to hit your inbox. Continue reading “My Favorite Online Tools to Save Time and Money”

Planing Our Way to Frugality

When Mr. ThreeYear and I decided to turn our financial lives around in 2008, we had a lot to learn. When we first started to budget, we wasted tons of money on what we now consider unnecessary expenses (things like alarm systems, cable, and yard service).

Planing Our Way to Frugality--www.thethreeyearexperiment.com

We were living in Atlanta at the time, and the dominant culture in that city can be a bit… showy. Since public transportation is limited there, as it’s one of the most spread-out metropolitan areas in the country, cars are a must. And one of the most popular Atlanta pastimes seems to be car one-upmanship. There was even a Lexus Lot at Turner Field, so that Lexus owners could park their cars in an exclusive lot much closer to the field. We were driving a BMW and an Acura at the time (although they were both very used), even though we had debt.

Then we moved to New England and we were exposed to a completely different culture. In the rural New England hamlet where we live, people like to say that they’re of hardy stock. After all, you have to be tough to brave seven months of snow, mud season, and the fierce weather that characterizes the very northeastern-most region of the country. Natives of this region are often seen in January in nothing more than plaid shirts, jeans, and boots, with temperatures in the teens (that’s roughly -10 for you users of Celsius). Continue reading “Planing Our Way to Frugality”

Our Simple Financial Management Plan

Einstein said there are five ascending levels of intellect:

  • Smart
  • Intelligent
  • Brilliant
  • genius
  • and simple.

Our Simple Financial Management Plan--www.thethreeyearexperiment.com

So many times, we think that complicated strategies are inherently better. But have you seen Einstein’s theory of general relativity? The one where he challenges all conventional notions of matter moving in space and time? That puppy is simple. Continue reading “Our Simple Financial Management Plan”

Our Secret Weapon Towards Financial Independence

On our journey to financial independence, most of us know by now that we need to spend less than we earn and invest the difference. There is no magic formula for building wealth, other than focus, restraint, and patience.

Or is there?

Our Secret Weapon Towards Financial Independence--www.thethreeyearexperiment.com

It’s been said that personal finance is 90% behavioral. For our family, that was definitely true. We understood the how of personal finance pretty quickly, and in fact, the more we simplified, the better results we had. Pay off debt, max out retirement accounts, invest in low-fee index funds. The why of personal finance was much more difficult. It’s been much harder to curb our desire to spend in the here and now for such a distant goal. Continue reading “Our Secret Weapon Towards Financial Independence”

A Year of Good Habits: Drop Your Phone in the Toilet

It’s May! At last, in New Hampshire, flowers are starting to bloom. The trees are changing colors–light greens and yellows, deep reds, are starting to emerge in the vast forests along the interstate. It’s the time of year to be out in nature, to rejoice in the sunshine and the promise of warmth. It’s also a time when it’s easy to get distracted from your financial goals, to let the warmth and ease of summer melt away the self-discipline and resolve needed to make it through winter. (Figurative winter, we’re talking about. Spring is a time, apparently, when I wax poetic).

There are about six weeks left for me in the school year, and I’ve begun to reflect on this past few months as summer approaches. Professionally, it’s been a great year. Continue reading “A Year of Good Habits: Drop Your Phone in the Toilet”

The Paradoxical Problem of Choice

In this great big world of ours, we have many options. We could live virtually anywhere. So why don’t we? Why is it that we get trapped in a city we don’t really care for, doing a job that’s not our favorite, fulfilling the expectations that society has for us, but that aren’t our own?

Choice--www.thethreeyearexperiment.com

I have a friend who’s lived all over the world. She has lived on four continents in the fifteen years that I’ve known her. And yet even she and her family are debating where to live next, now that she’s tied to a job in Europe when their home was in Asia. Should they stay in Asia? Should they move to Europe? What would be best for her husband’s business? What would be best for their daughter?

Tons has been written about decision fatigue, busyness,  and the lack of focus associated with always being connected to the internet. 

We know that too many options, in whatever form they take, produce paralysis. Continue reading “The Paradoxical Problem of Choice”