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!).
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”
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.
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. Continue reading “What You Shouldn’t Spend Money On and Why You Shouldn’t Listen to Me”
A friend asked the other day if I recommended putting money into a certificate of deposit. We talked a bit about her goals and it struck me that with money, as in life, one should have a very clear idea of the purpose of your dollars before you make decisions about where to park them.
Mr. ThreeYear and I follow a simple financial plan with our money. It hasn’t been easy to simplify our savings and investments; we’ve had to eschew certain new accounts, consolidate investments, and roll over old 401Ks. The simpler things are, though, the less likely it is that I mess something up. The less likely I forget to make a contribution or pay a credit card bill. Money can be really complicated so in our experience, keeping things simple is clearer and easier.
We believe that our money goals should be equally simple, but unfortunately, sometimes they’re not. Sometimes we’re trying to accomplish multiple money goals at once and things get muddled.
It’s highly effective, in my opinion, to periodically take a step back and think about what it is you’re trying to do with your various dollars. What is the purpose of a particular pile of money? Then you can make better choices about where to put it.
Here are the questions we ask ourselves: Continue reading “Where Should You Put Your Money?”
Most of us, when we hear we’re getting a 3, 4, or 5% raise, go out to dinner to celebrate and then, without even realizing it, slightly adjust our spending to the “new” income level.
One of the most powerful tools you have, though, especially if you find it hard to save, is your yearly raise. For the last six years, Mr. ThreeYear and I have used every cent of his annual raise to increase our savings and investing.
Why? Because we live a very good life at our current level of spending, and we don’t need to spend more. If we want to go out and celebrate, take a trip, or spend the money some other way, it will be waiting for us in the savings account. If we didn’t squirrel the money away where we didn’t see it, we’d spend it without even realizing it, and then all the effort behind earning that raise would be for nothing.
We’ve frittered away money over the years in exactly this way, and it always made me feel powerless over our spending. “But where did that raise go? How do we spend more now? Where is that money?” Now, as I watch our savings grow, I realize that we’re the ones in control of the money, and we’re holding on to it until we’re ready to use it in a thoughtful way (or invest it, which is my favorite thing to do with our money besides travel!).
Continue reading “Bank Your Raise”
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.
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)”
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.
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.
Continue reading “March Net Worth Update”
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.
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”
It’s International Women’s Day. Go women!
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”
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.
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!
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”
The Wall Street Journal recently reported that household debt, including mortgages, car loans, and credit card debt, has risen all over the world. Shockingly, Switzerland leads the pack, with household debt at 127.5% of Gross Domestic Product (that means, for every $100,000 of GDP a household produces, they hold $127,500 in debt!).
The average citizen in Switzerland, which has traditionally been an extremely wealthy country, has substantial assets underpinning this debt, or at least four times more assets than the average American.
Even so, Switzerland, as well as nine other economies including Canada, Finland, and Australia, have debt levels that are high and rising quickly, at a pace that mirrors that of the US right before the housing bubble. Continue reading “The State of Your Economy”