Since it’s February 15th, I thought it was a good time to start reflecting on this year’s goals. (Just kidding, I’m just a little slow in posting these). So, what are my goals for 2017? This is Year One of the Three Year Experiment, so I feel compelled to get them right.
My Goal Sheet
I filled out my goal sheet several weeks before the New Year. I’m somewhat of a goal nut, because I find I get so much more accomplished if I give myself a framework (it helps me focus because I’m very easily distracted. Especially by my new-to-me-got-it-on-eBay iPhone 6). Continue reading “This Year’s Goals”
Last week, I was offered a new gig as a part-time ESOL Teacher. This gig will allow me to work in two schools for a total of about 30 hours maximum per week. But is it a good idea? Does it help us with our three year goals?
A New Gig Helps Me Mind the Gap
Personal finance bloggers talk all the time about the ways to increase your net worth—spend less or make more.
Some advocate spending less, some show you how to make more. Some, like Afford Anything, talk about both—minding the gap between how much you spend and how much you earn, and getting it as large as possible.
My husband is the main income earner of our family. I, on the other hand, work only 15 hours a week. But part of my job is making sure I’m here before and after school, taking kids to appointments, and making sure life runs smoothly for the Three Year Experiment family. The more I’m at home, the smoother things run. But I’ve also found I have to work. I go a little crazy if I don’t.
What does making your bed have to do with your financial health? Good question!
Habits are important. Good habits are small behaviors that seem so trivial, yet they can reap profound benefits in your life. Take this blog, for example. I couldn’t find any time during the day to write, so I told myself I would get up each day a little earlier and write for the first half hour or hour. That behavior, multiplied by many days, has created blog posts and content. Continue reading “A Year of Good Habits: Make Your Bed Every Day!”
Yesterday my husband sent me a link to this school. Last February, almost a year ago, we went on an incredible, two-week anniversary vacation trip to Asia. I’ll highlight how we did that in a future post. We started our stay in Bangkok and my husband loved it. I mean, really loved it.
First of all, Bangkok is an incredibly cosmopolitan city. The food, which is abundantly piled on practically every square inch of sidewalk space, is delicious. Everything is shockingly cheap. We stayed in an AirBnB at the edge of Sukhumvit, a really nice part of the city, for about $23 a night. We ate meals on the street for around $2, for both of us. We splurged on an English-speaking guide, who took us anywhere we wanted to go all day long, for about $80.
**This year is A Year of Good Habits. Each month, I’ll focus on developing or strengthening one financial habit to better automate that behavior so we can double our net worth in three years and become location independent. In January, I’m focusing on setting and sticking to a budget as the goal. To do that, I started using a new budgeting software called You Need a Budget. Below is my take on how that’s working out for us.** (By the way, if you click the link above, you’ll get a free month and I’ll get a free month. Thanks for supporting this blog!).
Here We Go
Why did I pick budgeting as a habit? Is it a habit, exactly? If we look at a habit as a behavior or set of behaviors that have become automated, then the way we channel the money that comes into our house is a habit. In the past, I’ve used the 50/50 budget method and Mvelopes software to channel our family’s finances. Some people use an anti-budget which works, too. But for me, a reformed spendthrift, I need the parameters of a budget to help me spend less. I say “I” because my husband does not have this problem to the same extent. He doesn’t spend much (I am also the family purchaser, for the most part. I buy groceries, pay insurance, etc.).
One of the books that has had the biggest impact on how I think is Charles Duhigg’s The Power of Habit: Why We Do What We Do In Life and Business. Using emerging findings from the field of neuroscience, Duhigg explains how habits, good and bad, are formed.
He explains a concept that has been revolutionary for me. Brains are the body’s biggest energy sucker and use around 20% of the body’s available energy, so they need to work as efficiently as possible. Automatizing behavior is a way to cut down on energy use. Think about the first time you tried to tie your shoe. It took an incredible amount of focus and energy to make your hands form the loops and tie the shoes. Now, you do it without thinking about it. It’s become automated and you don’t have to use as much conscious brain-power to do it.
Our family’s dream is to move internationally in three years. In order to do that, we’ve set a goal of doubling our net worth by December 2019. While that amount of money won’t replace our yearly expenses using the 4% rule (yet!—we’re slowly bringing down our spending), it will give us enough financial security to leave our “safe” jobs to travel.
For us “semi-adventurous” folk, having that nest egg in the bank is important. Everyone has different levels of tolerance for financial security.
My husband grew up very, very poor, in Santiago, Chile. While his family always had enough food to eat, he spent time after school collecting wood scraps in order to heat their house. His mom worked three jobs after his dad died, when he was 13, in order to keep their family afloat. As you can probably imagine, financial security is important to him.
love minimalism. I discovered Becoming Minimalist and The Minimalists about three years ago. I started my minimalist journey with Courtney Carver, of Project 333, and used thirty-three items of clothes per quarter, for about a year. At the same time, I started cleaning out our house, getting rid of things we no longer needed.
During one January break, when we were snowed in, I tackled about twenty boxes of books that had been stored in various basements since my college days. I curated my collection, keeping maybe thirty tomes, and giving the rest to charity. I read Marie Kondo last year, and Konmaried the rest of my house.
While The Minimalists recommend a more radical approach of boxing up everything you own, and then only pulling out the things you need as you need them, my own more measured approach worked better for me and our family.
I think it would have been very hard for my boys to suddenly have nothing in their rooms and have to go dig out the toys they wanted. This way, I’ve slowly boxed up things they don’t play with anymore, and I store those in a big Tupperware bin in our storage closet. If the boys don’t ask for any of the toys inside for six months (and they rarely do), then I donate them to charity.
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. But she is terrified of budgeting. She and I have made dates to sit down and look at her budget but she keeps cancelling—she can’t bring herself to do it. She is afraid that if she puts the numbers to paper that she will be forced to stop doing something she likes—travel, supporting charities, enjoying local entertainment.