August Net Worth Update

Happy Labor Day! In the US, this is the day that normally signals the true end of summer. School started for our family last week, and my parents are here celebrating the long weekend.

August Net Worth Update www.thethreeyearexperiment.com

The month of August has been awesome. Weather-wise, it’s the worst month of the year in North Carolina, but I keep telling myself that if I can run in this heat and humidity, I’m set because it’ll just get cooler from here on out. We’ve enjoyed the pool, had Junior ThreeYear go to his first-ever overnight camp in New Hampshire, had two sets of visitors (our friends from NH who now live in TX and my parents), and started school. Mr. ThreeYear and I have been walking the boys to the bus stop each morning, along with Lucy, and it’s been so fun to make friends with our neighbors and see our kids off to school each day.

If you’re just joining, our family of four is on a three-year journey to double our net worth and become location independent. Since we’ve achieved the latter goal, we’ll be primarily focused on the former in each of these reports going forward. Each month, I record our progress on our net worth and our spending. 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 our move and the market, I’m not sure it’s doable. But we’re going to try. Continue reading “August Net Worth Update”

July Net Worth Update

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I am happy. I know I’m in the honeymoon phase of our move, but I am so glad to live in North Carolina. We see my sister, brother-in-law, and niece, maybe three times a week. We spent the entire weekend with them last weekend. I know we’ll start school and get into routines and not see them as often, but my niece now thinks that when she comes to my house, she is supposed to eat marshmallows and watch Captain Underpants on my bed with her cousin.

July Net Worth Update www.thethreeyearexperiment.com

We drive through the streets of our little town and I just smile, because it’s so cute. And we picked it! We didn’t get carried by the circumstances of life to a place. We picked the place we wanted to be and moved there. It’s an incredibly freeing feeling. I am also really enjoying Mr. ThreeYear working from home. Yes, he starts early and works hard, but we get to see him more, because he finishes earlier (no commute!), eats lunch with us everyday, and pops out for coffee breaks. He’s there when service people come by the house, which is reassuring.

Financially, I am not happy, because moving has cost an arm and a leg, and we’ve spent another arm and a leg doing repairs on our new house. Carpet cleaning, painting, air conditioning repair, stocking the fridge, paying neighborhood dues, etc.

I’m trying to keep in mind that this month’s spending has been an anomaly, and because we’re not moving again for a very long time, we will not incur these expenses again for a very long time. Despite all the spending, we managed to increase our net worth. Let’s take a look.

If you’re just joining, our family of four is on a three-year journey to double our net worth and become location independent. Since we’ve achieved the latter goal, we’ll be primarily focused on the former in each of these reports going forward. Each month, I record our progress on our net worth and our spending. 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 our move and the market, I’m not sure it’s doable. But we’re going to try. Continue reading “July Net Worth Update”

April Net Worth Update

Happy May! How are things going for you? We finally have no snow on the ground as of yesterday, and that is not an exaggeration. Winter definitely held on as long as it’s ever held on this year, which is my eighth winter in New Hampshire. For the past seven winters, we’ve had all snow melted by April 23rd (even if we’ve gotten a freak snow storm in May afterwards) but this year, we had snow cover for a whole extra week (lucky us!).

April Net Worth Update www.thethreeyearexperiment.com

We did get some beautiful 70-degree days at the tail end of this month, which made everything feel hopeful and Springy. Our crocuses have bloomed (all 2 of them) and our daffodils are pushing up, as well as our alliums and the dahlias. We spent this month doing a variety of activities, some of which I’ll be revealing down the road (hint hint!). It’s been a busy month. Over Spring Break, Mr. ThreeYear and I took a fun trip to Portland, Oregon, while my mom flew up from sunny South Carolina to watch the boys. She had horrible snowy, icy, weather, so we appreciate her sacrifice even more!

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. 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.

Last month, even though we enjoyed more lackluster results from the stock market, we got a huge jump in net worth since Mr. ThreeYear’s annual stock gift was given out. Each December, his privately-owned company, which is 100% employee-owned, invites outside auditors to set the stock price. Given the wild surge the stock prices took in December, his company’s stock was given a much higher valuation than the year before. That meant all of the stock we currently hold in the company rose substantially, and we received more stock (valued at more money).

Continue reading “April Net Worth Update”

What You Shouldn’t Spend Money On and Why You Shouldn’t Listen to Me

Mr. ThreeYear and I have, over the course of our ten years of paying attention to finances, amassed a pretty decent net worth. We have done it by prioritizing spending in the areas that we care about (like saving for the future) and cutting spending in other areas. Many times on the blog, I write about the things that we do spend money on, like travel, and I can’t help but get excited and implore you to adopt similar spending habits. However, the truth is, this is a mistake on my part, and I apologize for it. You should not necessarily spend your money on the things I spend my money on. Nor should you save your money for the reasons that I save mine.

What You Shouldn't Spend Money On and Why You Shouldn't Listen to Me www.thethreeyearexperiment.com

Why? Because you and I have different values. I’m sure some of our values coincide or else you probably wouldn’t be reading this blog for very long, but it is almost definitely true that you and I value some different things. Your values are based on where you grew up, how you grew up, the challenges you faced, things that went well for you, and special circumstances you currently have in your life. You prioritize your spending based on those values.

In our family, we value three things particularly highly: Continue reading “What You Shouldn’t Spend Money On and Why You Shouldn’t Listen to Me”

Your Money Or Your Life: Chapter 6 (Traveling Book Review)

Today I’m taking part in a “traveling book review” written by Rockstar Finance bloggers. Each day, a different blogger will review one chapter of one of the best money books I’ve ever read, Your Money or Your Life. Written by Vicki Robin and Joe Dominguez, Vicki’s original coauthor who’s since died, the updated version  contains timeless wisdom and current, practical tips for anyone working to make sense of their finances, their work/life balance, and life in general.

Your Money Or Your Life Chapter 6 www.thethreeyearexperiment.com

If you’d like to read reviews for each chapter, I recommend reading Rockstar Finance’s introduction post with links to reviews of each chapter.

The American Dream–on a Shoestring

Chapter 6 is perhaps the most relevant chapter to my life of the entire book. “Laurie,” it seemed to be saying to me the whole time, “read these words and internalize this message: if you want to achieve true freedom, you must learn to control your spending.”

A few years ago, I would have scoffed at this notion. “As if,” I can hear old me saying,”I’m going to earn more and buy whatever I want.”

This would be a terrific strategy if it worked–if it allowed me to increase my net worth, say, or even my happiness. Then we could get all the stuff we wanted just by working harder, and that would make us happier, and we’d all live happily ever after. All the millionaires and multi-millionaires would never declare bankruptcy or feel sad. Hollywood stars, paid millions per film, would never divorce or go through public scandals.

Unfortunately, life doesn’t work that way. As Robin wisely and gently explains, more stuff doesn’t necessarily bring more happiness. Especially once you’ve got your basic needs met. Continue reading “Your Money Or Your Life: Chapter 6 (Traveling Book Review)”

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”

February Net Worth Update

It looks like the stock market is giving us some buying opportunities this month. While our net worth took a dip, we hit our savings and spending goals, so I feel proud of our progress this month.

February 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!

February was a month of full-on winter antics in New Hampshire. Our time in Santiago, just a month before, seemed like a dream, an impossibility! Our lives were cold and snowy this month. We enjoyed a bit of skiing, one week of winter break where we all got sick several times, and of course the Winter Olympics!

Skiing--www.thethreeyearexperiment.com
The boys and I enjoyed a few outings at our local ski slope in February, but not as many as I’d hoped, because of weather and sickness.

This is the second month in our net worth and spending reports for 2018, and although the market had a small “correction” that did negatively affect our net worth, we are still making progress towards our goals.

Continue reading “February Net Worth Update”

January Net Worth Update

It’s time for another net worth update! Are you in the midst of winter, or is it warm and deliciously summery where you live? The ThreeYears are smack dab in the middle of the coldest and snowiest parts of winter, but we made it through January and we’re raring to go for February (Little ThreeYear can hardly wait for Valentine’s Day and all that chocolate he thinks he’ll get from his classmates!).

January Net Worth Update--www.thethreeyearexperiment.com

This is the first report from 2018, and boy is it a good one. Subsequent reports may not be as juicy, given that the stock market may have more “small or significant corrections” coming up, so I’m focusing on January while I can!

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!

We started the month of January off in warm Santiago. We took a three week trip to visit my in-laws, and had an amazing time.

La Moneda--www.thethreeyearexperiment.com
The boys had a blast during our visit to Santiago and San Pedro de Atacama in Chile, even if some of the smiles look forced!

I was very excited to see how our spending would look in January as compared to spending in 2017, given we have now eliminated the mortgage in Chile and our car payment. We’re also working to keep our food spending lower than last year.

Continue reading “January Net Worth Update”

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”

April 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 abroad. Each month, 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 February, we were 9% of the way to doubling our net worth.

I waited until the end of April to post our net worth update, because, frankly, our March update wasn’t very exciting. Thanks to Mr. ThreeYear’s annual stock “gift,” however, April’s update actually moves our net worth dial. Mr. ThreeYear works for a 100% employee-owned company, and each year, in April, he receives a share of company stock (which is privately owned) equivalent to at least 8% of his base salary. The company is audited each December to set the stock’s yearly price.

Although this is an incredible “gift,” we consider it part of his total compensation, because that is what it effectively is, albeit tax-deductible (for all the ins and outs of how such a plan, called an ESOP, works, head here).   If he were to leave the company, he would need to take equal distributions over 5 years and roll the shares into a retirement account.

Kuchen--www.thethreeyearexperiment.com
Spending lots of time baking (and eating!) in snowy, cold March.

March and April were rough months for the ThreeYears, ain’t gonna lie. It’s always one of the toughest times of the year for me, living in New England as a transplanted Southern Belle (or, just…Southerner…). March and April are hard-wired into my psyche as a time when the birds are supposed to be chirping, flowers are supposed to be blooming, and snow is definitely NOT supposed to be still falling. Continue reading “April Net Worth Update”