March Net Worth Update

It’s raining right now, which is a small hint that Spring is making its way, slowly, to New England. The start of April signifies that we’ve entered the fourth month of the year and our experiment continues.

March Net Worth Update www.thethreeyearexperiment.com

If you’re just joining, our family of four is on a three-year journey to double our net worth and become location independent. Each month, I record our progress on our net worth and our spending (gulp!). Last year, we increased our net worth by 32% over the year before! This year, we’re trying to increase it by more than 65% from where we started in December 2016. Given the wild ride the market’s likely to take us on this year, I’m not sure it’s doable. But we’re going to try.

March is always my least-favorite month of the year. The rest of the country is enjoying the first signs of Spring, and we’re still covered under snow. This year, March lived up to the adage, and came in like a lion, with storm after storm that buffeted us with snow and left the skies gray and damp. It went out like a lamb, with a few days at the tail end full of blue skies and (slightly warmer) temps. But April has brought wind storms, more cold weather, and a reminder that here in New England, there is no such thing as Spring.

Spring New England town church www.thethreeyearexperiment.com
A view of our small New England town from the library. This is what Spring looks like.

Continue reading “March Net Worth Update”

Building Wealth for Freedom

I’ve written a lot about getting out of debt. That was the first step for Mr. ThreeYear and me on our journey to financial and location independence.

Or maybe it wasn’t.

Fishing on the beach building wealth freedom www.thethreeyearexperiment.com

When I was in college, my dad started reading a lot about stocks. I was curious, and began reading a bit myself about investing.

I knew nothing about the saving side of the equation, but investing extra money had me curious. I opened my first Ameritrade investing account when I was a senior in college. I invested the money I received as a graduation gift into this account, in some stocks that my parents and grandparents recommended (Coca-Cola, MedImmune, and some others I can’t remember). I picked up the occasional book on investing, such as The Only Investment Guide You’ll Ever Need, and The Little Book that Beat the Market.  I left my money to grow and forgot about it. Continue reading “Building Wealth for Freedom”

Ladies, Time to Figure Out Your Worth #WomenRockMoney

It’s International Women’s Day. Go women!
 Women rock money—www.thethreeyearexperiment.com
Do you know why women are awesome? Well, here are a couple of facts:
  • More than half a billion women have joined the world’s labor force over the past 30 years, and women now account for more than 40 percent of workers worldwide (IMF, 2012).
  • When a mother has control over her family’s money in the world’s poorest countries, her children are 20% more likely to survive (Melinda Gates).
  • 90% of married women identified themselves as the principle household shopper in their household (Statistic Brain). #mamacontrolsthemoneyhoney
Women have come so far in the last fifty years! It is amazing. However, in the areas of financial literacy and business development, we still have a ways to go.

Continue reading “Ladies, Time to Figure Out Your Worth #WomenRockMoney”

To Sell or Not to Sell?

Our family has been planning to become location independent and move for a while, now. Our dream is to double our net worth by the time I’m 40, and find jobs that will allow us to travel more, split our time between two continents, or live in a foreign country for a few years. Because… we only have one life, right? And the kids will be little for like ten more seconds and then they’ll be grown… but making the decision to sell our house? It’s not easy.

To Sell or Not to Sell?--www.thethreeyearexperiment.com

One of the reasons we travel so much is to remind ourselves that there is another way to live than the way we currently do. We are a family of habit, and it’s easy to become so immersed in the routine of our daily lives that we never question our decisions or habits.

But one question that Mr. ThreeYear and I have had nagging at the back of our minds for a while now is… should we sell our house and find a smaller place to rent?As I wrote about in The Best Way to Avoid Lifestyle Creep, keeping your housing costs low is key to financial independence. And we’ve had the unsettling suspicion that our house is a little too big for us for awhile.

After we got back from Chile last week, that suspicion was confirmed. We spent most of our time in Santiago staying in a less-than-600-square-foot (52 sq. meter) apartment. It was small, and with three bedrooms and two bathrooms, was extremely space efficient. Yes, it was a little tight sometimes, and cooking was a bit difficult. But there were definite benefits, as well. One benefit was the shared space. We were able to go downstairs and use the common areas for the Junior ThreeYears to ride their scooter, or swim in the pool. There were tons of other kids playing, too, and while there wasn’t a lot of interaction, because of the language barrier, that would definitely change if the kids had spoken the same language.

Chilean apartment--www.thethreeyearexperiment.com
We made living in a tiny space work for us while we were in Chile.

While we were in the apartment itself, we didn’t get in each other’s way, surprisingly. The boys each had their own bedrooms, and they’d take their few toys we had packed and go play or read in their rooms. We did homework each morning on the small round breakfast table, then would move the school books to another part of the apartment when it was time for lunch. I even lost Junior ThreeYear in that tiny space at one point! (He was on the balcony, reading, and I didn’t see him because of the curtains).

The thing that was so nice about the small space was that we were together, we were cozy, and we were able to enjoy each other’s presence. Our current house is so big that we can’t see or hear each other when we’re in our rooms, and it can feel lonely. Most of our time is spent in the common area, our dining and living rooms, which are basically one big space (and are larger than the entire apartment in Chile, by the way).

Little ThreeYear has grabbed my hand at several points since we’ve been back and asked me to come with him to some remote part of the house, “because I’m scared to go to the basement alone, Mama.” Our basement, by the way, is not a dark, bare-boned forgotten space in the bottom of the house. It is finished, carpeted, and filled with Little ThreeYear’s toys, as well as a comfy couch and chairs. But after all that togetherness in Chile, Little ThreeYear feels lonely in the vast swath of basement without another person.

Basement--www.thethreeyearexperiment.com
Our basement at home is bigger than the entire apartment in Chile.

But does it make sense to sell our beautiful home, which we bought in a short sale at a very good price, with its spacious backyard, forest hiding-spots, and ample space for visitors, to move to a condo with no garage (a huge negative during New Hampshire winters), much less space, and community fees?  Continue reading “To Sell or Not to Sell?”

2017 Net Worth Update

At the beginning of 2017, our family of four started a three-year journey to double our net worth and become location independent. Doubling our net worth in just three years is our family’s big, hairy, audacious goal, and becoming location independent is a work in progress. We’ve still got to figure out where to move, what jobs we’ll have, how our kids will go to school, and lots of other decisions. We have many ideas that we’re working on, but we don’t have one clear decision made about what we’ll do at the end of 2019. But big, life-changing goals are like that sometimes. We muddle through and take each step on faith, hoping that we’ll eventually see the light at the end of the proverbial tunnel.

2017 Net Worth Update--www.thethreeyearexperiment.com

Already, we’ve seen amazing progress this year that we didn’t think we were capable of. I completed A Year of Good Habits, we paid for a new roof in cash, we saved and invested more money than we ever have, on top of that big expenditure, and thanks to a very robust stock market…. Continue reading “2017 Net Worth Update”

Don’t Want to Think About Saving for Retirement? Just Do This.

Personal finance can be overwhelming. There are so many steps, dos and don’ts, behaviors to adopt, what have you. Once in a while it would be nice to have a fail-safe, simple solution to follow to make sure you have enough for retirement.

Don't Want to Think About Saving for Retirement? Just Do This--www.thethreeyearexperiment.com

As Mr. ThreeYear and I struggled to pay off our debt and become more financially responsible, I met with a personal finance instructor who taught at a local college. I showed her the ins and outs of our finances, and I remember her saying, “you’re not even maxing out your 401K?” We weren’t, at the time. We were only contributing enough to get the match, because we were saving for a house downpayment. We’d contributed more in the past, but never maxed it out.

It took us another two years to completely max out Mr. ThreeYear’s 401k, but when we started to do so, I realized that for many people, this was the simple key they were looking for to save for retirement.

Maxing out your 401K is the single best way to save for retirement, lower your tax implications, and spend less, all in one fell swoop. Continue reading “Don’t Want to Think About Saving for Retirement? Just Do This.”

5 Money Moves We’re Making Before the End of the Year

While we’re still over a month-and-a-half from the end of the year, we know that soon, December 31st will be upon us, so the ThreeYears are currently working on end-of-the-year money moves to make sure our finances are in good shape.

5 Money Moves We're Making Before the End of the Year--www.thethreeyearexperiment.com

Here’s what we’re doing to close this year out:

1. Contribute as much as possible to my i401k

Since I’m self-employed, I have an i401k (if you’re interested in the particulars of opening one, read this post). I am playing catch-up with my contributions since we had so many cash goals that we funded with my income this year. So, in the final quarter of the year, and in the first quarter of next year (or at least until we file our taxes), I’ll be contributing a lot to my 401K. Even though the market is high now, I don’t want to miss the tax contributions of these contributions. I estimate we’ll save several thousand dollars on our taxes if I reach my contribution goal for the year.

2. Fulfill our outstanding financial obligations

We’ve got a few outstanding financial obligations, including completing our yearly pledge with our church. We usually wait and pay the majority of our pledge in the fourth quarter of the year, when our cash flow’s better (as a teacher, I don’t get paid in the summer and it takes a month or so after school starts to begin getting paid, so our income rises in October, November, and December).

I also have to pay my fourth quarter taxes for income earned from September through December. I have until January 16th, 2018, to file the taxes, but I’ll probably go ahead and pay what I estimate I’ll owe before the end of the year. I set aside 20% of my income as it comes in, in my business account, so that money is ready to send in anytime I decide to pay the bill. Continue reading “5 Money Moves We’re Making Before the End of the Year”

September Net Worth Update

If you’re just joining, our family of four is on a three-year journey to double our net worth and become location independent. Each month(ish), I’ll keep you apprised of our progress. This year, we’ve got some major goals, including paying off our outstanding debt (car and apartment in Chile), replacing our roof, AND saving around $70,000. As of August, we were roughly 21% of the way to doubling our net worth.

After an unusually warm spell, we’re finally getting the insanely gorgeous leaves New England is known for. As I drive to and from work, I’m privy to the most amazing shows of reds on the trees.

September Net Worth Update---www.thethreeyearexperiment.com

We’re well into the school year. The Junior ThreeYears are adapting to their new classes and homework. I keep adding more students that I need to work with to my schedule, so I’m less and less part-time. I’ve literally used up all my hours in the school day and will now be eating lunch while working with a student. At least I’m paid hourly!

One of the highlights of the month was my first solo girls’ trip in something like ten years. I met my best college friend at my sister’s house in Charlotte and we spent the weekend perusing a local farmers’ market, checking out local dining and brunch options, and catching up. I had such a great time that I vowed to take more of these trips. The best part was, Mr. ThreeYear and the boys had a wonderful time together at home. They went to the movies, went out to lunch at their favorite Mexican restaurant, and had a great time bonding while I was away.

Girls' weekend--www.thethreeyearexperiment.com
My friend and I spent the weekend hanging out in Charlotte and surrounding areas. Here we are in Davidson, enjoying the Saturday Farmer’s Market.

We spent gobs of money in September. Our biggest purchase was our tickets to Chile. Our plan was to buy them with airline miles, but in the end, we decided against that. Mr. ThreeYear wanted to go during Christmas and New Year’s, so it would have taken an insane number of miles for each ticket (something like 120,000 each). We didn’t have enough for four tickets and we thought it made sense to save them. Our second biggest purchase was my master’s course. I have three more to go after this. And I had to pay quarterly taxes as well, although those numbers don’t show up in our spending report. Since I’m working so much this year, I’m setting aside 20% of my paychecks for taxes. I may start setting aside 25%, just to be safe. It’s hard to know exactly what I’ll owe since the amount of money I make varies so much, so it’s better to play it safe.

The stock market is still bullish, and we’ve seen our net worth rise again, despite our massive spend this month. It is nice to be earning a paycheck again, so we can reach our end-of-the-year-goals faster. I’m also so ready to be done paying off our apartment in Chile and our car that I’m wishing December was already here. Wait, didn’t I just write a post about staying in the present?

Continue reading “September Net Worth Update”

August Net Worth Update

If you’re just joining, our family of four is on a three-year journey to double our net worth and become location independent so we can move. Each month(ish), I’ll keep you apprised of our progress. This year, we’ve got some major goals, including paying off our outstanding debt (car and apartment in Chile), replacing our roof, AND saving around $70,000. As of July, we were roughly 20% of the way to doubling our net worth.

We are now in September. School has started, my work has started, and we have weathered the transition pretty well, for being a week and a half in. I’ve focused on making our morning routine for school better, and so far it’s been great. Both our boys have focus medication they take, so I’ve started giving it to them right as they wake up. Then, it has time to kick in and they can actually get their clothes on, come down to eat breakfast, and get their teeth brushed without a zillion reminders, getting distracted with Legos, or staring off into space for half an hour. Better yet, I’m not yelling at them all morning.

August Net Worth Update--www.thethreeyearexperiment.com

That may sound like crazy talk to people who don’t have kids with attention problems, but it’s our reality. I was talking to a teacher this morning, and she (who also has ADHD) said she noticed the kids in her class whose parents yelled in the morning. “Anytime I raise my voice in the slightest,” she said, “they’ll reflectively wince, like they’re hyper-attuned to yelling.” I gulped. I’ve seen my kids do that in the past. Hurts my heart that I was yelling that much. But I’m so grateful that we’ve changed things up, and they’re taking their medicine earlier. They’re able to get dressed, get their breakfast, brush their teeth, and pack their bags, with minimal reminders. And they’re so proud of themselves. With zero yells and lots of “great job this morning!” It feels so awesome. So my fingers are crossed that our mornings keep going so well.

Summer flew by. August was a relaxed month. Each kid had one week of camp, and we spent our days outside, enjoying the summer, inside, putzing around the house, and visiting friends and family. I never wanted the summer to end, but it did, and everyone has reluctantly returned to a steady routine.

Each time summer ends, I’m reminded why location independence is so appealing. While we love routines, and I think we’d enjoy a routine in a new place, having the freedom to explore, visit with family, and plan our days in the moment is a beautiful way to live. Routine weighs us down. Summer lightens us up, gives us travel wings.

Water wings--www.thethreeyearexperiment.com
Summer gives you water wings… um, I mean, travel wings.

Speaking of wings, we booked our flights to Santiago this weekend. So we’re officially booked for South America during Christmas and New Year’s. We’re debating whether to AirBnB our house while we’re gone, as a way to earn some extra spending money for the trip.

August brought us a small up-tick in our net worth. Our Personal Capital Net Worth is actually showing higher than our own Excel spreadsheet, since Zillow has decided to increase the value of our house significantly in the last few weeks. I don’t know if it’s the new roof we put on or an increase in the local market (I suspect it’s the latter) but they’ve upped the Zestimate of our house by about 5%. I’m ignoring it, though, as I only update our house and car estimates at the beginning of each year.

Continue reading “August Net Worth Update”