The Best Way to Avoid Lifestyle Creep

Recently, I was listening to an interview by The Mad Fientist of financial planner Michael Kitces, who is the person responsible for a lot of the research done on the 4% withdrawal rule. Kitces has worked with many clients working towards financial independence and/or early retirement.

The Best Way to Avoid Lifestyle Creep--www.thethreeyearexperiment.com

At the end of the interview, the Mad Fientist asked him for one piece of advice for speeding up one’s journey to FI, and Kitces replied, “avoid lifestyle creep.”

Lifestyle creep, or lifestyle inflation, is the tendency we have to inflate our standard of living as our incomes increase. When we first graduate college and get a “real job,” we’re content to live in an apartment with a roommate, use Goodwill furniture, and drive a beater car. But as we bring in more money, we tend to upgrade our houses, furniture, and cars, and once we trade up for a nicer model, it’s really difficult to downgrade again.  Continue reading “The Best Way to Avoid Lifestyle Creep”

Our Debt Payoff Story: Guest Post on High Five Dad

I’ve written about our debt payoff before, but today I typed up all the gory particulars for a guest post on High Five Dad.

High Five Dad is a blogger who shares lots of debt payoff stories from people of all walks of life, to show you how different people achieve a similar goal.

Our Debt Payoff Story--www.thethreeyearexperiment.com

Debt is pernicious, but when I first married Mr. ThreeYear, I thought it was normal. We thought we were on the right financial track because we were saving for retirement and investing, even though we had a $10,000 credit card balance and car loans.

Mr. ThreeYear and I started out our lives together debt free, thanks to our generous parents and our savings skills while we lived in Chile (Mr. ThreeYear even bought his first two cars outright with cash). Unfortunately, once we moved to the spendy, show-offy land of Atlanta, we changed our ways for the worse and racked up a lot of debt.

Find out what made us decide to get rid of our debt for good and how we paid if off in 18 months over at High Five Dad. Thanks so much for including our story, High Five Dad!!

If you can leave a comment here or there, letting us know what you think or how your payoff story compares, I would really appreciate it! 

And stay tuned for another regularly-scheduled blog post on Friday!

 

 

 

Why I Spent $64 on a Journal

Our family is on a three year journey to double our net worth and become location independent. So why did I spend so much on a journal?!

Why I Spent $64 on a Journal--www.thethreeyearexperiment.com

Doubling our net worth is a stretch goal, a BHAG, and it means we’ll need to spend the next two and a half years saving as much of our incomes as we can, plus working to earn as much as we can.

That means we need to plan our purchases carefully. This month, inspired by Mr. Tako’s family, we’re not eating out, and I’d like to keep that going.

We also spend very little on clothing, especially for the kids because we get great hand-me-downs. Our cars are used and gas efficient, and our furniture comes mostly from Craigslist (but I promise our house doesn’t look like a college student’s).

Living room--www.thethreeyearexperiment.com
Our living room, complete with new-to-us furniture (everything but the rug was bought Craigslist or yard sale).

In the past year, though, I’ve made a very conscious effort to spend MORE money on certain things. There are minimalist bloggers who talk about embracing fewer things of quality. If you buy fewer, but better, goods, they write, you will care for them better and they will last longer. Continue reading “Why I Spent $64 on a Journal”

The 50/50 Budget

50% garden habits budget-- thethreeyearexperiment.com
The garden, 50% in bloom

I have a friend who is amazing in so many ways. She is giving, has co-funded charities that help refugees, and is so excited about life she never stops participating in cool events in our area. She has family who lives internationally so she and her family travel a lot. She is terrified of budgeting. She and I have made Continue reading “The 50/50 Budget”