Posts in Money
October 2018 Money Diary: $500 Rent (Not In America), Automated Finances, & Living As Homeless Digital Nomads

Jennie here.

Here’s the untold truth about what I think about money diaries: I don’t really care about money anymore.

It may sound like arrogance and privilege (which it is) but in reality - if you’ve been following along with The Origami Life blog over the past 2.5 years, you’ll understand that it comes from a place of hard work.

We’re following a broader (financial and personal) life plan.

 
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Source: Our “Financial Priorities: The Origami Master Plan & Blueprint” from September 2017.

The rules/constraints/guidelines we gave ourselves led us to this moment financially. We’re in a privileged position and we no longer have to think about money during our travels and we’re really grateful.



Since We Left America:
Our Rent Was Less Than $550 In Southeast Asia

 
 Here’s a broad overview of the past month.

Here’s a broad overview of the past month.

 

We are officially on our third month of travels (in our round the world trip) and it’s gone by too quickly.

What’s the most interesting (financial) thing that has happened since we left America?

  1. Our rent decreased from $1,400+ down to less than $600 in Southeast Asia. While we were living in Los Angeles, we spent more than $1,400 every single month on rent - and that didn’t even include bills.

  2. Our monthly expenses decreased from an average of $2,800 down to $2,200 simply by moving and traveling abroad.

Just as a frame of reference…
We rented one of the private rooms in
this giant penthouse apartment in Kuala Lumpur, Malaysia…and it only cost us $18 a day.
Note: This was NOT our cheapest accommodation.

To put it simply, we just have more buying power as Americans abroad and the cost of living is much “more affordable” because of that buying power.

My only job while we travel now is to keep our daily budget to under $35 a day (after rent).
And if I’ve stuck to that rule then everything else has already been calculated, planned, and accounted for. We can use the time we used to think about money to think about more important things like client work or pursuing the next creative project we’re interested in.

The point is, we’re now in a position to think for ourselves and to enjoy the day-to-day without the usual stresses of living in a metropolitan American city.


A Closer Look At Our October 2018 Money Diary & Expenses


 
 The Origami Life - October 2018 Expenses (via Good Budget App)

The Origami Life - October 2018 Expenses (via Good Budget App)

 

For those who are interested, here’s a high level breakdown of our expenses over the past month. I can’t say that Ivan is super jazzed about the fact that we spent a total of $2,219.00 for the month of October. He was hoping that we’d be able to keep our expenses below $2,000. From my perspective, it definitely looks like progress as we spent about $2,900 in September. But you know what they say, you lose some and you win some, right?

Rent and Bills $779.00 USD

(35% of our monthly expenses)

We oscillated between Malaysia, Singapore, bus stops, and airports during the month of October. Fortunately, we had a really generous friend in Singapore who let us stay at his place for one week, rent-free while he was away on sabbatical. (Woot, woot to “Joe”!)

So, the bulk of our “rent” was spent on our Malaysian leg, which only cost $546 for three weeks. We didn’t stay in hostels or dorms either. These were nice, tastefully curated Airbnbs with all the modern amenities.  

Eating Out & Entertainment $532.50

(24% of our monthly expenses)

Once we got to Singapore and Malaysia - we stopped cooking. It was simply more cost effective to eat out than to buy and cook our own food.

Here’s the breakdown of a typical meal for two people:

  • Singaporean meal (e.g. fried noodles and hainanese chicken rice): $4 to $5 USD

  • Malaysian meal (e.g. two plates of nasi lemak and two coffees): $2 to $4 USD

Groceries $25.00

(1% of our monthly expenses)

As I mentioned, we didn’t need to cook at all in Malaysia or Singapore. When we were too exhausted to go out we did grab the occasional fresh fruit and vegetables though.

Flights & Transportation $478.50

(22% of our monthly expenses)

Most of our flights to date have been purchased via our airline points. So the bulk of this category were taxes and local transport (e.g. buses, trains, ride-shares, subways etc.)

Relationships $220.00

(10% of our monthly expenses)

Ivan and I mentioned in our last post that we’re going to invest more in friendships / relationships moving forward. That said, this past month, we spent time with two close friends that we’ve known for at least 10 years AND we met four new people through mutual friends.

Miscellaneous $184.00

(9% of our monthly expenses)

This part of our budget was primarily spent out getting essentials at the drug store / pharmacy (e.g. shampoo, cold medicine, etc) and coffee.

I also purchased a basic (nice quality) t-shirt from a boutique shop in Penang, Malaysia for $17 USD. And I love it.



September 2018 Money Diary: Adjusting to Life on the Road (and Ch-Ch-Ch-Changes!)
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I watch the ripples change their size
But never leave the stream
Of warm impermanence and
So the days float through my eyes
But still the days seem the same
— David Bowie, Changes
 
The Origami Life Blog - September 2018 Money Diary Travels
 

Changes to The Origami Life Monthly Money Diary


1. We’re no longer disclosing our monthly income  

In keeping with our views in “Stop Counting Other Peoples Money”, we’re curbing some of the financial voyeurism on this blog. In our opinion, knowing someone’s net worth is neither useful nor relevant. Comparing your financial situation to others, whether positively or negatively, is ultimately counterproductive.

Also, keeping it real: now that Jennie’s salary is no longer mixed in with our remote income, it’s no longer in our best interest to publish our profit/loss statement on a public forum. From here on out, we’ll just make a note of whether our household had positive or negative operating margins.

For September, the Jennie/Ivan household was profitable.

2. About 3% of our monthly spend will now be donated to charity

We’re both firm believers in setting the right incentives. Instead of the quarterly $250 donation we used to make, we will now be donating 3% of what we spend each month to charit(ies) of our choice. The more we spend, the more we donate. Consider it a 3% charitable tax on consumption. Another benefit of donating monthly is that we can now sign up for recurring subscriptions to organizations we support.

3. We’ve introduced new budget categories for monthly budget and spending

 
 The Origami Couple - Expenses / Budget for September 2018

The Origami Couple - Expenses / Budget for September 2018

 

1. Rent and Bills ($1,199)

This category includes cost of hotels/accommodations plus our recurring phone bill ($60 per month), life insurance ($18 per month) and health insurance premiums ($142 per month).

Our major expense in this category was two weeks in a Kauai Airbnb ($975, $75 per night), partly offset by free accommodations in San Francisco (we have amazing friends) and Taipei (stayed with family). In terms of accommodation, Hawaii is likely the costliest place Jennie and I will be visiting this year, so we expect lower rent & bills over the coming months.

2. Eating Out & Entertainment ($481)

Too much good food was had to do it justice here. We try to eat local wherever we go. In Kauai, this means sticking to the cheap staples like taro, fruit, fish and chicken and avoiding fast food chains and anything that’s imported from the U.S. mainland.

3. Flights & Transportation ($734)
Most of this was the two week Kauai rental car ($465 - ~$33 per day) and gas ($60), plus a few Lyft and shuttle rides in San Francisco. Our flight from San Francisco to Kauai to Taipei (with a 12 hour layover in Honolulu) was paid for entirely with airline points ($34 total in taxes and fees).

4. Fees & Visas ($0):

Miscellaneous fees and visas as we cross borders. In September, we were mostly in the U.S., so this wasn’t a factor.

5. Relationships ($63)
This is our way of quantifying our investments in people. It doesn’t have to cost very much. Something as small as sending postcards to friends and family to let them know we’re thinking of them ($8), taking friends/strangers out to coffees and meals etc. Generally, just trying to be more open-minded and considerate of others. One of our goals for the RTW trip is to move as much of our budget from Eating Out & Entertainment (i.e. disposable pleasures) to the Relationship category (i.e. quality time with people).

6. Charitable Donations ($86)

When you get to your little place on Nantucket Island, I imagine you’re gonna take off that handsome-lookin’ S.S. uniform of yours, ain’tcha? That’s what I thought. Now that I can’t abide.
— Lt. Aldo Raine, Inglourious Basterds

Our donations this month went to a $15 a month subscription to ProPublica, with the remainder going to GiveDirectly. Our position on direct cash transfers (while cutting out the charitable middlemen) has been well documented on this blog. I think one of the problems with the rich is that they tend to act like they know the poor better than the poor know themselves. As an authority on myself, I have to disagree.

We’ve subscribed to ProPublica because it’s the only online media outlet that has consistently added value to our lives. Their coverage and local reporting network has exposed conflicts of interest, stomped on bigots, and brought powerful people to their knees. And don’t forget the ProPublica audio tape of children who’d been separated from parents at the border. It’s a sad state of affairs in the media space, when “differentiating yourself” means to have an attention span that lasts longer than five seconds.

Now it’s the consumer’s job to reward ProPublica for it.


September 2018 Favorites: Travels to San Francisco, Kauai, Honolulu, Taipei


Jennie’s Pick(s)

1. Waimea Canyon hiking and sunset drive
Waimea Canyon lookout points and intensive hiking trails really made my trip in Hawaii. During the full day that we went out to Waimea Canyon (which was too short), I had never hiked harder for a more gorgeous view. For anyone thinking of visiting Kauai, come out to Waimea Canyon and spend a few days hiking. It’s a nice reprieve from fast-paced, everyday life.

 
 

2. Helena’s Hawaiian Foods shortribs in Honolulu
(Jennie) Best. Shortribs. Ever. Ivan thinks I’m trolling because he can’t eat beef and the rest of the menu items were mediocre, but I’m not exaggerating! It was one of the best grilled/smoked short ribs I’ve ever had. If you’re ever in Honolulu, you have to make a trip to Helena’s Hawaiian Foods. Skip the Kailua pork (and everything else on the menu) and just get two large orders of short ribs, a few scoops of rice/macaroni salad and the haupia for dessert.

 
 

Ivan’s Pick(s):

  1. Muir Woods National Monument in San Francisco
    I really enjoyed our trip to Muir Woods National Monument in San Francisco. The entire day was just so wholesome and family-friendly it almost made me sick.  

  2. Kauai jungle cottage (Airbnb)
    Check out our Week in the Life post for more context. After some reflection, I’ve concluded that booking this Airbnb was totally worth the arguments, mini-tantrums, and mosquito bites.

    The way I think about it: Jennie has the memory of a goldfish. So what’s more likely to leave an impression on her thirty years from now? Two weeks spent at some copy-and-paste-job Hawaiian resort or the jungle cottage with a gigantic spider on our window and the outdoor bathroom and shower? Exactly. You’re welcome. Jennie can thank me later.


The Origami Life - Our Goals for Next Month


  1. Continue scaling up our business as expenses decline
    Based on the countries we’re planning on visiting the rest of this year, I expect our costs to come down drastically. This is a golden opportunity to step up our billings and ramp up our profit margins to prepare for the more expensive countries in 2019.

  2. Allocate more of next month’s budget to ‘Relationship’ spend over ‘Eating Out & Entertainment’
    As mentioned previously, it’s not really about the dollar amount. This is just our way of quantifying our time spent with people.

  3. Do a better job planning for RTW excursions. Jennie and I are big proponents of slow travel. We thought Kauai was the perfect balance of travel, work and creative projects. Our time in Taipei on the other hand, was not. As we adjust ourselves to a new way of life, I’m sure we’ll arrive at a more consistent pace and schedule.

Readers of this blog or followers on our Instagram would also benefit from more regular posts!



August 2018 Money Diary: Preparing To Travel Around The World & Dealing With U.S. Medical Bills

Jennie here.

Hi all, sorry this post came so late! It’s been a bit of a hectic transition period. Since August (until now - early September) we’ve traveled or moved at least four times. How time flies! And now we're currently in Hawaii taking a "break" and relaxing before we begin our crazy adventure.

So what happened in August?
 


Our “New” Origami Life Begins


Last month, we shared our experience with moving out of Los Angeles. And this past month (August) marked the first time that I’ve been “unemployed” (or funemployed) in the last six years. It actually felt really strange to have 100% control of my days. For example, some days, I’d work from 6am to 8am, take a break, go running at 9am, and back to work again. There were a lot of days that were spent leisurely floating from activity to activity.

 
August 2018 Money Diary Content Image.png
 

Financially, I’d say it was a pretty solid month. For starters, because we left Los Angeles on August 1st - we saved $1,600 on rent and other bills. However, we spent about $1,900 on business expenses (including a new laptop and phone). So our spending rate was relatively high compared to the previous month. But these were also one-time, necessary expenses.

In terms of earnings, I got paid out by my company for essentially a month’s salary (yay) and Ivan and I both billed hours for our business.
 


Dealing With The U.S. Healthcare System & Financial Assistance


I went back to Albuquerque in August for two reasons:

  1. Spend some time with my family

  2. Take care of my parents’ medical bills

It’s no secret to my close friends that I grew up in a low-income household so the biggest concern for me while I travel is that my family make rational financial choices (or if not, I set things up to minimize any potential damage).

Last year was rough on my family - both my mom and dad got sick, had surgery, or went through some extended medical treatment; it was awful and more than anything - they racked up more than $15,000 in medical bills (after health insurance - land of the free!).

Spoiler alert: they couldn’t afford to pay those kind of bills.

So what does this have to do with me? Well, I stepped up and took care of the medical bills and was able to bring some of the larger institutional hospital bills down. In some instances, it was simply helping my family apply for financial assistance programs.

In the end, I was able to help my parents save anywhere between 60% to 75% on several of their medical bills. That meant thousands of dollars in savings!


What did I learn in the process of dealing with the U.S. healthcare system?


U.S. Medical and Hospital System


Lesson 1: The U.S. private healthcare system is a fucked up and completely random system.

When dealing with one hospital, I had to call between 4 to 6 different departments within their system just to verify my parents’ outstanding medical bills. Oftentimes, there are different billing departments or systems for physicians, facilities, and emergency services - AND most hospitals include “contractor” services (e.g. outsourcing anesthesiology or lab teams). It’s almost as if they just “make up a number” when they bill the patient. And if the patient can’t afford that number, they just “make up” another, much lower number. It’s completely random.

Lesson 2: You need to be informed to navigate through the system.

If you don’t validate every line item and/or talk to the right people, it’s hard to know what’s negotiable and what isn’t. So I’d suggest calling and talking (pestering) as many people as possible within your specific hospital. The system is so complex that even seasoned hospital reps can’t help guide you through it.
 


5 Tips On How To Get Your Hospital Or Medical Bill Reduced


If you’re having a hard time paying for your bills, here’s a few things to know:

  1. Always ask - even if you get laughed off the phone. Typically, larger institutions will have some sort of financial support or payments plan. Just call and ask about it. It doesn’t hurt to ask. I asked about financial assistance programs at smaller private practices but they kind of shrugged me off the phone - they only accepted payments or setting up monthly payments; they’re incentivized to get money from you before they send your bill to collections, but that usually takes a while.

  2. Most hospitals should have a “financial assistance” page on their website. In my opinion, they bury the lead when you get your hospital bill but you can definitely find financial assistance information. Just search on Google: financial assistance + [hospital name].

  3. Even if you’re not sure whether or not you should apply for financial assistance - you should try anyway. Sure, most of the applications are based on income tiers but if you’re having a difficult time (e.g. multiple medical bills, you’ve got a ton of student loan or auto loan debt, you’re recently unemployed, etc.) then it’s worth a try. You’ll never know until you ask for it. Also, once a hospital receives your application, they should put your account “on hold” during the evaluation to avoid sending it to collections.

  4. You can speak with a financial assistance support agent at the hospital. It seems like a lot of the larger hospitals will have some sort of support arm for questions and to help you manage through a financial assistance application. Call them even if you think you know what you’re doing. Ask a ton of clarifying questions.

  5. Look into your benefits, you might have support service like “Health Advocate”. There are services out there that can help you negotiate your healthcare services or look into healthcare specific questions for you.


Dealing With Pre-Departure & Administrative Tasks Before Our Round The World Trip


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Other financial highlights of our time in August:

 
August 2018 Money Diary - Good Budget Screenshot - The Origami Life.png
 
  • We were cat-sitting for my sister for two weeks while she was away in Europe. This was a nice change of pace for us since we’ll be on the move for the next couple years. Plus, the cat eventually learned to tolerate us and gave us a routine (e.g. cat-feeding and play schedule).

Savings: Half a month’s rent in Los Angeles (~$712)

  • We lost about 5 pounds each, working out and swimming in my sister’s community pool and gym. Honestly, we’re bringing our weight down for the long-term health benefits. It’s amazing how much easier it is to lose weight when you “have time” to work and focus on your physical and mental health.

Savings: Month gym cost (between $30 to $60 per person)

  • Validating our marriage certificate to begin my permanent residency papers in Taiwan. Although Ivan and I have been legally married for the last four years, we’ve yet to register our marriage in Taiwan. We decided earlier this year that we’d actually start my permanent residency process in Taiwan. Unfortunately, we had to have the Taiwanese embassy in Boston validate our certificate before moving forward.

Expenditures: $15 fee for our application; $7 for postage via snail mail

The bureaucracy is expanding, to meet the needs of the expanding bureaucracy.
— Oscar Wilde
  • We had to send additional evidence for our U.S. immigration application. Let’s put this into perspective, we sent in our application to the United States Citizenship and Immigration Services in 2016 and they just got back to us and requested for MORE information. Basically U.S. Citizenship and Immigration was telling us: “because of our delay, you need to provide us with more evidence of your marriage for the period of our delay...so we can spend even more time reviewing that evidence”.

    Two years and counting. We begrudgingly sent in more information to cover the last two years to showcase that our marriage is still legitimate. Le sigh.

Expenditures: $7 for postage via snail mail.
We had to bite the bullet and send it in but really, it cost more than $7 - more like it cost $7 and two years of dignity and patience lost.

  • We got global health insurance and life insurance. While I dealt with my parent’s bills, Ivan took care of our health and life insurance for our RTW trip. For our global health insurance, we went with Cigna which cost about $142 per month for the both of us (excluding U.S. coverage except for short visits). For context: the cost of getting coverage in the U.S. was equal to coverage for the rest of the world combined.

Expenditures:
$1,700 per year (for both of us) with a $1,500 deductible and 20% copay (excluding the U.S.)
$18 per month for life insurance (I consider my family to be dependents in the event that something happens to me)  

  • A relative died in August and I had to get my dad and uncle last minute flights to Florida with points. Fortunately, we had points to spare. We were also reimbursed by my uncle for less than the carrying value of the points. But family is family. And some things are more important than money.

Earnings: We received cash for $650 - minus last minute booking fees of $160 equals $490.

 

That’s it for this month's Money Diary! Tune in next month for our first month of a traveling money diary.



6 Things (These) Millennials Look for in a Business

Ivan here.

Jennie and I spent the past two weeks negotiating with a procession of incompetent / scummy U.S. health and life insurance providers that make up our banana republic healthcare system. And we’re not amused. So if you’re not in the mood for a rant, I’d skip this post.

You’ve been warned.


Why Millennials are Killing Businesses


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If I had a nickel for every headline crying about millennials killing yet another business that I didn’t know still existed, I’d have more money to spend on their competitors.

It’s not even worth my time to link these click-bait articles (SEO be damned). That’s because the majority of these publications will eventually die. Because they add no social value, can’t even make a profit, and are kept alive by faux outrage, diverting our attentions from more important issues that take longer than a half-skimmed article to explain.

My overall response to these articles can be summarized thusly:

 Mr. Pink from Reservoir Dogs (1992)

"Do you know what this is? It's the world's smallest violin playing just for your business."

Instead of “why are millennials so entitled and killing everything?” let’s ask, “why do businesses built on stale ideas feel entitled to survive?”


Becoming a more conscious consumer


Flaws in human beings are natural and often beautiful, shaped by our experiences, and deserving of empathy. Our strengths and weaknesses are what make our individual stories unique and relatable.

Flaws in businesses, on the other hand, are just sad excuses that leech valuable (and limited) resources from the economy, and from people who could’ve had better uses for their time and money.

While nobody has ever asked to be born, at some point, somebody made the decision to be in business. This means that they are subject to the Darwinian rules of the markets - and to ruthless scrutiny by the consumer.

The rules are pretty straightforward:

If you can’t make a profit and/or can no longer add more social value than you take away, then your business is worthless and deserves to die. What’s more, the sooner you die, the more resources get freed up for companies that might actually improve peoples’ lives.

Some businesses today are part of the solution, others are part of the problem. While we can’t simply “get rid of” problematic individuals (marginalize and ignore, yes), it’s extremely possible to get rid of problematic businesses. Businesses are just vehicles made of money, and money is just the sum total of our values and decisions.

As millennials, what we have to ask ourselves as consumers is:
Are we part of the solution or are we part of the problem?

If you think of our world as a system, and each individual choice is a component of that system, then what are the small things we can do today to improve things over the long term?  


6 Things (These) Millennials Look for in a Business


Here are six ways that Jennie and I evaluate businesses:

1. Follow the golden rule

Repeat after me: always add more value than you extract. And every day that you’re lucky enough to stay in business, you should be working relentlessly toward providing more value for less (or eventually, somebody else will). Define value how you will - but in the long run, the market decides.

2. Transparent pricing

If it takes me more than a minute to figure out your pricing, if you don’t list prices at all or if you include “optional” add-ons that are actually extremely mandatory, I’m going to assume you’re running a non-profit because that’s what you’re going to be.

3. Trust is personal

Business is business, but trust is personal. Do I like you and trust you with my money? Because I only engage with people and companies I like. If you change the rules on me for whatever reason after an agreement has been reached, then you’re getting replaced. I don’t care if it’s $0.01 more than we agreed. Just on principle, I’m going to dispose of you anyway.

At Spectrum / Time Warner Cable, if your own employees have to warn its customers to always keep their receipt after they return their internet routers (in case it gets “lost” and the customer gets charged a fee), then I’m here on my knees praying for the day when I can dance on your grave.

4. Ease of use / technology

If you make the process of buying your product/service hard, or make me wait for hours on the line, I’ll use that time to silently count the days until I can get rid of you for a simpler option. For example, if you only accept physical checks and money orders in 2018, you’re dead to me. If change is too hard or happening too fast for your slowass to catch up, then quit.

5. Bureaucracy

If the right hand doesn’t know what the left hand is doing, if I have to give you the same information three or four times on the same call, then maybe your business needs to be dismantled and cut down to a more manageable size.

6. Customer service

When someone calls customer service, that means something has gone wrong. That’s okay, life happens. Nobody’s perfect.  But how will you respond?

This doesn’t mean giving customers whatever they ask for. The average customer is probably insane. It just means that when you’re dealing with a human being, you need to act like one. If a request is common sense and reasonable, then it should be accommodated. If not, you should be able to explain clearly the reasons why. Any version of “that’s just the way it is” tells me your business has no idea why it does the things it does. Ergo, it should not exist for much longer.


The Origami Life: How We Like to do Business


Let’s face it: we’re buying products and services here - not saving the world. And yet our choices, in some small way, matter. If we don’t like the way the world is going, the least we can do is act on it. It may seem insignificant, like a drop in a ocean, but even if you “fail,” at least you can sit back and say that you did the best you could, at a time when most people didn’t bother to try at all.

As partners in a new business, here are some basic principles that Jennie and I would like to live by:

  1. Putting client interests above our own (e.g. be upfront and honest about our input/thoughts).

  2. Always try to add more value than we’re taking away.

  3. Growing and evolving with our business to make sure our skills are always up-to-date.

  4. Communicating and treating people like human beings and not numbers with a customer lifetime value attached.

It’s a harder way to do business, but it’s also cleaner. Call us narrow-minded, but after a certain point, what’s the point of doing anything if you can’t live on your own terms?

This also explains why Jennie and I haven’t we put any ads or accepted any sponsors on The Origami Life blog. The number of companies we’d gladly associate ourselves with can be counted on one hand (towards the rest we’re lukewarm at best, hostile at worst). It would be hypocritical of us to endorse anything we wouldn’t pay full price for ourselves. As frugal “minimalists,” that’s an extremely short list.

Luckily, The Origami Life happens to be our space. It also happens to be our life. So basically, it’s going to be our way or the highway. And if we can’t have it our way, at least we’ve put ourselves in a position to be patient and build for the long term.

Because freedom is the leverage that comes with wanting things without ever really needing them.



17 Questions With The Origami Life Couple: About Us and Our Future Plans

General Questions

About The Origami Couple and Blog


1. Who are we?

Us - drinking G&B Coffee at Grand Central Market.

We’re Jennie and Ivan, a 29 year old married couple who met in Kyoto, Japan nine years ago, did six years of long distance, then decided to sell our worldly possessions by September 2018 to travel the world. We’re both Type A personalities, which means we’re goal-oriented and try to make conscious decisions in all areas of our life including our relationship, travel and money.

Here are our Myers-Briggs personality results, which you can take here:

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Ivan: I’m very lopsided (INTJ-A).

Jennie: I’m a “Debater” personality (ENTP-A). 
 

2. What are Our strengths and weaknesses?

Jennie:

  • Ivan’s strengths: Ivan is probably one of the most intelligent individuals that I’ve met in my life (if he can let go his ego). His writing, published and unpublished, is actually really good. He has the ability to think both creatively and analytically, especially when he stays the course and doesn’t let small things distract him from his end goal.

  • Ivan’s flaws: Ivan is occasionally arrogant, uptight, and sometimes - his expectations aren’t rooted in reality. Whenever he is “right” about one or two things, he starts to get delusional. That’s why I try not to overreact when he does something really well. I already know I’m going to regret saying such nice things (Ivan: Wait, she thinks I'm a genius, right? Cause that's what I heard). I gotta keep his ego in check for the sake of our financial interests. And when I say he’s uptight, I mean he could stand to loosen up - like, a lot. Sometimes, he gets so wound up in what he’s doing or “the next thing” that he misses moments that could’ve been really meaningful.

Ivan:

  • Jennie’s strengths: Jennie has a way with people and can out-hustle anyone. Not only can she understand and empathize with people, she can tailor her message to get them to do what she wants. Despite this, people like and trust her almost instantly. When we first started dating, I thought this was a fluke. I know better now. Honestly, the ability to “get your hands dirty” and knowing what makes people tick is probably the most valuable skill-set you can have - and it’s chronically underrated by specialist-types who don’t know any better (i.e. people like me).

  • Jennie’s flaws: Jennie’s waaay too process driven for things that don’t need to be mapped out by the second. Sometimes, the answer isn't to create a spreadsheet or a decision tree. Some ideas need time to marinate in your head. She also enjoys barking orders and bossing people (i.e. me) around. So even when we have the same goals, we fight over “the best way” to get there.
     

3. What’s this blog about?

Jennie: I see this blog as a way to both keep ourselves accountable and share some reflections on life, marriage and our journey with anyone who can relate.

Ivan: The Origami Life is a minimalist travel blog with some personal finance and relationship posts thrown in. It’s also a place where we experiment with different ideas. Sometimes, we write posts just to see if we actually believe in it.
 

4. Where are we headed?

Jennie & Ivan: Anywhere in the world where we see opportunities for growth - whether that’s creative, financial, or personal. Over the next 3-5 years, we’re moving away from comfort and stability and towards challenge and risk (while doing it responsibly).  
 


II. Travel Questions for The Origami Life Couple and Blog


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5. What’s our travel style?

Jennie: I’m a type A planner who just so happens to enjoy travel. I love the idea of nailing down logistics, formalizing schedules, and putting together spreadsheets. I know that some of our readers can relate because several of you have shared some amazingly detailed and useful itineraries with us over the last year (🙌 thank you!). It brings me joy to have complete control over knowing when and where I’m going. This means that I’ve researched everything thoroughly and get to do everything I want - so I won’t leave with any regrets.

Ivan: Compared to Jennie, I’m less of a hard-core planner when it comes to travel. I like ironing out the big ticket items like accommodations and airfare, so I can be more carefree with my day-to-day decisions. When I’m traveling, I like to have one goal per day. If I achieve that goal, I’m happy. You could say I’m the more “laid-back” of the two, but unfortunately, this only applies to travel. I can be a pain in the ass in other areas.  
 

6. What do we hope to get out of our RTW trip experience?

Jennie: Although I’m treating my RTW trip as a building block for the next 3-5 years of my life, I just want to enjoy myself and experience things intensely. I’ve spent the bulk of my life focusing on “the next thing” or doing things for the sake of my family. It sounds funny but I’ve been caught up and stressed with work, family, and money for the last decade and I’ve forgotten to just be myself. For my RTW trip, I want to just enjoy whatever happens and comes my way. I want to meet people and forge genuine connections.

Ivan: In my twenties, I think I’ve undervalued personal relationships and social interactions. That’s because as an introvert, I don’t need much company outside of Jennie. Even when I do put myself out there and make connections, I can be pretty lazy in the maintenance department. People often don’t know where they stand with me. This is something I’d like to get better at: maximize the number of genuine connections I have on the RTW trip and the number of “uncomfortable” social situations I put myself in. Then I’ll pick a small handful of those people and try to be more forthcoming with what I think/feel to build more meaningful relationships. (Geez, I sound like a robot trying to be human).
 

7. What countries are We most looking forward to visiting and why?

Jennie: I haven’t put much thought into it because I still can’t believe our trip is finally going to happen. Top of mind: riding the Trans-Siberian Railway partway through China, Russia, and Mongolia. I really like train travel and loved our Amtrak trip across the U.S. we did last November.

Ivan: Rural India because of the history and because I think it’ll be an interesting challenge. I’m also attracted to sleepy backwater countries like Sri Lanka and Laos.
 

8. Are We nervous about leaving our family and our home?

Jennie: Absolutely. I’m worried about all the worst-case scenarios that could happen with my family while I’m away. And that will always be the case because I’m just that type of person. But the thing is, if I was truly scared about leaving, I would’ve never left New Mexico in the first place.

Ivan: This one’s easy. I’ve never viewed North America as home. I have no family here outside of Jennie. Most of my upbringing was in Taipei and I was educated in two languages (my parents are teachers). When I’m here, I think in English. When I’m home, I think in Chinese. Not having any roots is liberating because it often gives me a different perspective on things.


III. Money Questions for The Origami Life Couple and Blog


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9. How can we afford to travel long term?

Jennie: Outside of an aggressive savings plan, Ivan keeps an iron fist on our spending / expenses each month. Every month for the last two or three years we’ve saved more than 50% of our monthly income/salary and accumulated a RTW travel fund of $40,000, a reserve of airline points - while taking care of retirement and other future obligations.

Ivan: Like I said earlier, I can be a pain in the ass in other areas.
 

10. How do we feel about reaching our $40k travel goal?

Jennie: (Deep sigh) I won’t lie, when we hit that $40,000 marker in May...I felt underwhelmed. I literally thought, “wow, so that’s it, huh?” And I think that’s because of the timing. When we hit our financial goal, we were still MONTHS away from leaving for our trip. It felt unreal and almost anticlimactic. Because the savings was always automated and I never look at our bank statements and accounts. It was never a significant part of my daily life. I was doing what I needed to do which was focusing on crushing it at work and building our business.

Ivan: This might sound like a privileged thing to say, but the money is not nearly as important as the habits you build along the way. And the realization that whatever your circumstances, there are usually ways to take back control of your life.
 

11. How has our attitude / relationship with money changed?

Jennie: I’m a lot more conscious about how I spend money now. I’m more aware that if I spend x amount on something for this month, it means that I miss out on other things that I really want to experience, have or enjoy later. But it also means that I buy or spend on things that I really want or that I love now. Having a more conscious understanding of how I spend my money has actually made me much more “fiscally literate” and it’s been a positive effect on my life. I feel like the lessons I’ve learned about money - how and when to use it and how to plan long-term actually makes me a more strategic thinker.

Ivan: I’ve always viewed money as a major inconvenience. It’s a concession I’ve had to make to society in order to keep me and the people I care about alive. The only reason I’m a “minimalist” is because I don’t like conceding much of anything. Money is only as useful as the independence it buys - to ensure that no one can ever influence how I run my life. 
 

12. What are We planning to do to make money?

Jennie: Ivan and I actually started a business earlier this year. We essentially create marketing content for cyber security startups. Due to my experience in the industry and network, we’ve got a roster of clients and plan to continue working with a multitude of security tech / SaaS startups.

Ivan: I passed all three levels of the CFA exam and am a self-taught investor. I work with clients in the VC/private equity space to do financial modeling, projections and writing investment pitches. I’m also using this RTW trip as an opportunity to interview entrepreneurs on the ground in emerging economies.
 

13. What are our next financial goals?

Jennie: I’ve been hustling for the last six years and I feel like I haven’t put much thought into my next financial goals. There’s been one thing that I’ve had on my mind - increasing our net worth / saving for long-term retirement. We’re not one of those “FIRE” (Financial Independence, Retire Early) people though. Although it’s a nice concept, I can’t imagine retiring early and if the last couple of weeks without a job is any indication of what it would be like - I’d be bored as fuck if I retired early. However, Ivan and I have a very specific number in mind for us to live comfortably and completely on our own terms; my next big financial goals is to get us there early while building up my career and potentially having a  family.

Ivan: Over the long term, the risks you take equals your reward (financial or otherwise) - provided you take calculated risks that allow you to survive the short and medium term. So, our next financial goal is to take more calculated risks and being humble in the face of uncertainty.


IV. Love / Relationship Questions for The Origami Life Couple and Blog


 Us at a wedding a few years back.

Us at a wedding a few years back.

14. Describe our marriage.

Jennie: We’re still the same couple that started nearly a decade ago. If you knew us from our early days, you’d see that not much has changed in terms of heated discussions and arguments - because it’s fun for us. The only thing that’s really changes is that we’ve become much better partners, communicate better, and know each other better than anyone else in this world.

Ivan: What she said. I do think as we grow into our new roles as business partners that we should draw a clear line between business and personal. This means carving out time that’s just for the two of us.
 

15. What’s changed about our marriage over the past Few years?

Jennie: At the beginning of our time in Los Angeles, it was a pretty tense time for us due to a big move and stressful immigration processes. But once we decided to be more intentional and conscious with our time - we started planning and spending more time together at our favorite donut / coffee shop. Ivan and still very much love each other, but I’d say that in the midst of the hustle and constant goal-setting (and goal-crushing), it’s one of our more neglected aspects of our lives. We’ve spent a lot of time at coffee shops chatting about big goals, funny stories, and strategizing on work, but we haven’t spent as much time just...being together. My hope is that this RTW trip will help us slow down a bit and continue to grow our relationship.

Ivan: I agree.
 

16. What do we argue/fight the most often about?

Jennie: Most of the time, we argue about really menial things - it’s never about the big picture. It always seems to be arguments related to our behavioral / personality preferences. For example, if I ask Ivan to do something (e.g. take out the trash, do the dishes, or put the laundry in the dryer), I mean I’d like him to do it that moment because I’m compulsive about that kind of thing.

Ivan: I don’t like being interrupted when I’m working or reading, so that’s where most of our arguments stem from. To be clear, I don’t mind noise - so long as that noise doesn’t require a response from me. I’ve gotten better over the years of not lashing out, but some snark is always going to be there.


V. Plans for the Future for The Origami Life Couple and Blog


17. What’s next for Us individually and for this blog?

Jennie: We started this blog as a means for us to communicate our lives and be accountable to our life goals. However, based on emails and we’ve received from our kind readers - it feels like it actually helps add value in some small way. That meaningful / value-add contribution has been one of the more fulfilling things that I’ve experienced over the past two years. My big goal for this blog is to continue creating content that is useful for any reader that comes across this blog. 

Ivan: I’d like to experiment with travel videos. I think understanding how to combine image and sound over time can make me a better storyteller and writer. I’ve watched a lot of “travel vlogs” on Youtube and have been pretty dissatisfied with the results. I’d like to do something different. The best way I can describe it is I’d like to have the “feeling” of the Before Sunrise trilogy in online video form. The exotic destinations should be secondary to the relationship and the conversation in the frame. Hopefully, we can make this happen over the coming months.
 



How I Left My Job & Negotiated My Exit

Jennie here.

From day 1 at my (now former) company, I knew that I was going to leave. It wasn’t that I didn’t enjoy my job or that I didn’t always give 110% of my effort. I just knew what I wanted:

Ivan and I wanted to travel the world (and work simultaneously) starting in September 2018.

So, Ivan and I have had this planned out for more than two and a half years. At the end of July, I finally informed my manager of my intentions.

Given my current manager-employee relationship, I decided not to disclose that I was traveling the world. That’s my personal life, and it was really none of their business.

However, I did share the reasons why I was planning to leave. I stated that I’d changed managers three times in the last year and my relationship with my direct manager always seemed out of sync. I felt like she never really trusted me - her only team member. I also shared that I was exhausted by the constant need for political maneuvering. This is a problem with “careerists” in any industry - everyone’s just angling for the next seat. Whether that’s on a rocket ship or the Titanic hardly matters because nobody has skin in the game.  

I was just tired of it. It all seemed so pointless.


Here was my ask to my direct manager:

  1. I was willing to finish out all of my projects over the next month and help train/transition any new hires.

  2. During my last month of employment, I wanted to work remotely from New Mexico to spend time with my family.

  3. If they wanted to keep me on to tie up loose ends through August, I wanted an extension on my benefits and be on payroll through the end of September.

Truth is, I wasn’t sure how it was going to turn out. Ivan and I were prepared for any one of  three scenarios:

  1. They would let me go on the spot (very likely).

  2. They would let me finish out my work over the next month (not so likely).

  3. They would attempt to persuade me to stay (not so likely).
     


The Results Of My Negotiations - What I Got Paid To Leave:


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In the end, it didn’t turn out 100% the way I wanted. Maybe just 75%. But that was more than enough, considering that Ivan and I would’ve been perfectly happy walking away with nothing:

  1. My manager gave me a one week to “finish up my tasks/projects.” There had been a lot of tension for some time so this worked out well because I got time back in my life.

  2. I coordinated with our HR department and managed to get one month’s pay without the work.

  3. They did not choose to extend my benefits into September (this was always a stretch goal and not a completely necessary one. Our international health care plan begins coverage starting September 1st).

I knew that it was highly unlikely that they’d accept all of my terms and I was right. Ivan and I had anticipated that my manager would be inflexible and might respond negatively to my resignation so we actually pre-emptively cancelled the lease to our apartment at the end of July.


Lessons Learned and What I Would’ve Done Differently In Leaving My Job:


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Here are some of my lessons learned from my first tech startup:

  • Lesson #1: I wish I had better negotiated my employment contract from the very beginning. My former company (like most tech startups) aspired to the “hire fast, fire fast” philosophy. And here’s the thing - those companies will always exist within the startup world, but there are consequences to this type of mentality. In theory, it’s a great idea to cut your B and C players quickly. But this assumes that management is competent and has the ability to distinguish between A and B players - and not be caught up by their own biases and prejudices. Sometimes objectivity and rationality is just a cloak for arrogance and a poor understanding of your own limitations.

    Had I known what I know now...I would have demanded a severance package and better sign-on bonus (relocation package) from the beginning because I was accepting a job across the country. In my next opportunity as a director level or higher, I will definitely negotiate terms that are more favorable to me.
     

  • Lesson #2: I should’ve done better due diligence. I joined the company because I was desperate to leave Boston at the time - my job was going nowhere and my managerial relationship was hostile (Ivan: misogynistic) to say the least. And in this new opportunity, I jumped without thinking too hard about it - I didn’t even negotiate my salary - which I should have.


8 Steps to Negotiate & Execute Your Job Exit Strategy


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Everything in business is negotiable. Trust me, you have more power than you can imagine - no matter what your situation.

Here are a few steps that I’ve gathered to help you negotiate your exit when you decide to leave your job.
 

Step 1: Decide on what you want and make your plan.

For me, I wanted to leave and travel the world by September 2018. You don’t have to wait as long as I did but I felt grateful to have two and half years to do good work, queue up the “next thing” in 2018, and mentally prepare to leave my job. Because I’m a planner, I needed this sort of thing. And I knew that if I didn’t have a “deadline,” I would never leave.
 

Step 2: Always lay the groundwork.

One of the most important things that’s always relevant - whether or not you leave a job or want to negotiate a raise - is you should always do your job well and document everything. Make sure to always document the following:

  • Schedule quarterly reviews with your manager.  
  • How well have you performed in the last 6 to 12 months? What are your metrics?

  • Have a presentation that covers your accomplishments and accolades, with testimonials from other team members across the organization.

  • Send a follow up email of what you discussed and shared with your manager. It’s critical to have a paper/digital trail of your good work.
     

Step 3: Prepare for your “next” thing.

Are you looking to get a new job? Traveling? Give yourself at least 3 to 6 months of interviews, informational coffee dates, or start doing some freelancing. Start early because it’ll only give you more options down the road.
 

Step 4: Assess your relationships.

In any organization or team, you should know who you can  depend on to advocate for your work and accomplishments (before and after you leave). Also, it’s good to have relationships with your executives if you work for a small tech startup. This makes it easier for them to accommodate to your asks when you finally decide to leave.
 

Step 5: Understand your leverage.

Understanding what your advantages are in any given situation. For example, was a lot of your team’s work dependent on you? Are there key company events/milestones during the year where your presence is essential? That’s leverage. And with proper timing, you can use it.
 

Step 6: Decide what you want.

Do you want a more flexible work environment (e.g. working remote 100%)? Are you leaving because you don’t agree with the direction of the company or management? Regardless of the reason, think about what you’re willing to do to help the company transition - and what you want to ask for in return. For example, if you’re a star employee - you can offer to help train the new replacement over the course of x months. And for your troubles, you could asked to be paid x extra for the additional months you’re putting in. If you’ve got a family, always ask for an extension of your benefits. In my case, my healthcare was 100% paid by my company so it would have saved me over $1,500 a month.
 

Step 7: Understand and accept the fact that the exit meeting may not go the way you want.

That’s just life - it’s not always going to work out the way you had intended. The moment you say, “I’ve been thinking about leaving the company…” it’s up to external forces and how they respond. I don’t want to downplay luck in all of this. On the other hand, they also say that luck is preparation + opportunity.
 

Step 8: Control your own narrative - remember the future and leave on positive terms.

Sure, it’s important to negotiate the best terms in your separation agreement but keep in mind that this goes beyond money – what you agree to and how you go about it can affect your career long term. When I left, I did an informal “exit interview” with every single one of the co-founders and executives at my company. I wanted to express gratitude to them, share why I was leaving, and make sure that I controlled my own narrative even after I’m gone.
 


The Bottom Line: Everything Is Negotiable; Ask For What You Want


If there’s only one takeaway that you have from this post, it’s that the world is malleable and you have more power than you think. And you owe it to yourself to ask for everything that you want because who knows - you just might get it. 

Early on, Ivan and I both realized that the “where” you end up isn’t nearly as important as the “how.” The journey over the destination applies to pretty much everything in our lives. And even when things don’t work out the way we want, you can still be confident in the fact that you played your hand the best you could. And that’s all anyone can ask for.

If there’s only one takeaway that you have from this post, it’s that the world is malleable and you have more power than you think. And you owe it to yourself to ask for everything that you want because who knows? You just might get it. 



July 2018 Money Diary: Choreographing Our Move Out of L.A. (to Save Time and Money)

July 2018 Budget Summary


 
July 2018 Money Diary - The Origami Life Couple
 
  • $3,148 spent in July (vs. $2,800 budget)

  • $4,712 in monthly savings in July

  • Round the world trip savings: $40,286 (out of $40,000 goal)

 
 

Choreographing Our Move Out of Los Angeles


Ivan and Jennie here.

Moving sucks. It doesn’t matter where you fall on the spectrum: from helpless hoarder to smug minimalist. It’s like boiling a frog in 100 degree water versus 200 degree water. One pot may be twice as hot, but either way, that frog’s been cooked.

While you can never completely remove the stress that comes with a move, there are ways to save time and money if you plan months in advance. Considering that we’ve moved to several different cities/states/countries over the past decade, this is one area where we’d consider ourselves experts.

Jennie’s Note: Just FYI, even though everything was 100% on timeline and under control - I will tell you that Ivan did not keep his cool in the moving process. He was still super stressed during the last week.
Ivan’s Note: Like I said, boiled frogs. And since Jennie likes to complain that I never provide enough details in our money diaries, I’m going to overcompensate in this post by giving a full play-by-play account of our move:

Timeline: How We Saved Time and Money Planning Our Move from Los Angeles


1. T-minus 60-90 days: how we settled on a move-out date

IVAN: There’s never a perfect time to move. Chances are, you’re going to procrastinate until the last minute. Some landlords make it easy by having a renewal clause built into the rental agreement. You either have to renew the lease for another year or move out.

In our case, our lease defaulted to month-to-month after the first year. Not sure how it works elsewhere, but this seems to be standard practice in Los Angeles. This worked out perfectly for transients like us who were never planning on staying long term, but less so for low-income families fighting gentrification (and the lack of character, imagination, and community that, for some reason, always seems to follow wealth and luxury).

The Origami Life - Donust USA

Three months before the move, Jennie and I were sitting down to breakfast at Donuts USA,  yellow notepad and pen in hand, as we made a list of all the dependencies that were keeping us in the city (and our apartment). One thing was for sure: we had no emotional ties to Southern California.

Our single biggest dependency was negotiating Jennie’s exit from her job (yes, it’s possible to negotiate your exit. A long overdue Jennie post is in the works).

The main thing we had to consider before moving:

What was the earliest we could leave LA before our September round-the-world departure date without:

  1. Messing up Jennie’s negotiating leverage.

  2. Being an undue burden on Jennie’s family in Albuquerque, who graciously offered to take us in.

In the end, we landed on August 1st, or one month before our September departure. We gave our landlord three months’ notice as a goodwill gesture.

Total Savings

  1. Time saved from Los Angeles: a whole month of August - or 31 days.
  2. Money saved in August: $1,425 in rent + $65 in internet + $15 in electricity = $1,515
     

2. T-minus 60 days: created a moving checklist

 Source: Our actual Trello board for moving and prepping for our RTW travels

Source: Our actual Trello board for moving and prepping for our RTW travels

JENNIE: Shoutout to any Trello users out there! Because I’m a type A planning freak, I wanted to have a spreadsheet or trackable task list that Ivan and I both had access to (see image above). I didn’t want any excuses about how he “didn’t know” that we were supposed to do specific things. Although Ivan gets annoyed with my constant “let’s create a spreadsheet” or “let’s create a plan” suggestions - it ultimately helped decrease a ton of stress and work by the end of our move-out date.

Total Savings

  1. Time spent wondering whether we forgot anything. Or realizing after the fact that we forgot to cancel the electricity or the internet.

     

3. T-minus 45 - 16 days: sold our personal and bulky furniture items for extra cash

IVAN: Since we’ll be living out of our 40L backpacks for the next couple of years, this meant purging everything.

We buy furniture with the two year resale value in mind. Since we only own five articles, it’s not a huge list to keep track of. This means understanding the prevailing styles and trends and sticking to that scheme when we make furniture purchases. Jennie has an eye for this. In Boston, Jennie purchased a blue velvet couch from Walmart that came to about $400 after taxes and shipping but somehow, she managed to sell the damn thing for $250 when we moved out of Boston two years later.

Total Savings

  1. Sold $160 worth of goods on Craigslist.

    1. Bought full-size Askvoll bed frame (with the Luroys slatted bed base included) for $179. Sold it two years later for $90.

    2. Bought 2 Ikea Kallax bookcases for $34.99 each. Sold both for two years later for $30.

    3. Jennie was given an Apple Magic Mouse 2 (worth $79) and she sold it two years later for $40.

  2. Sold $80 worth of books at The Last Bookstore in July.

  3. Jennie’s pièce de résistance: Bought a Macbook Air back in 2014 for $600 (with friend’s student discount + tax free weekend) and was offered a $370 gift card from Bestbuy in 2018. Realized when we got home that the employee thought our Macbook Air was the latest version. Since we didn’t mislead anybody, we’re taking this as a bank error in our favor.

Jennie’s Note: We’ve been on a lucky streak this past year, and it’s making Ivan extremely paranoid. For starters, we got the Southwest Companion Pass offer this year, which was only available to California residents - just as we were planning on doing a lot of domestic travel. Then we got $400 worth of free Airbnb credits through this now expired offer - a couple months before we go on our RTW trip. And in June, when I treated my whole family to an expensive meal in Albuquerque, I found out afterwards that the employee had actually refunded me that amount on my credit card statement. If you believe in karma, it looks like Ivan and I are going to be pretty screwed in 2019.


4. T-minus 15 days: deep cleaning the apartment

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JENNIE: Essentially, Ivan was a huge pain in the ass for weeks about “deep cleaning” our apartment.

Here are a few useful tips we have for you:

 Our apartment...post-deep cleaning

Our apartment...post-deep cleaning

  1. Not-so-white walls: Combine warm water, baking soda, and vinegar to create a paste that will quickly clean white walls as well as brighten it.

  2. A greasy stove top: Okay, so Ivan and I aren’t great about cleaning our gas-fueled stove top...so grease definitely built up. In this instance, we sprayed everything down with an all-purpose cleaning solution and scrubbed; when that didn’t work, we used the back of a spoon to scrape off remaining greasy residue.

  3. Heavy duty mounting tape on your walls: I had double sided mounting tape on our wall for months for our “inspiration” wall and our maps....and just never bothered to take them down. We took my hair dryer to the tape and melted it and it quickly came off the walls. Total lifesaver.

Total Savings

  1. Securing our $2,098 one and a half month security deposit. At least we hope so - we haven’t heard back from our property manager yet.


5. T-minus 10 days: held a goodbye party at a friend’s

JENNIE: By now, all of our furniture except for our mattress is sold, the floors and walls of our apartment are fairly spotless. And we were onto more meta things: saying goodbye to friends and Jennie quitting her job.

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Against Ivan’s will, I set up a “goodbye BBQ” party and invited all of his old high school friends that we were close to. And believe it or not, people came in from San Diego, San Francisco, San Jose, etc. We were grateful several of them could come out and spend time with us. Although Ivan doesn’t say it often, we value all the friendships and relationships I’ve maintained over the last two and a half years in California.

We’ve had several great trips and memories from our time in SoCal:

  1. Daily coffee dates at our favorite donuts shop.

  2. Christmas in Death Valley National Park.

  3. Thanksgiving in Joshua Tree.

For Ivan, he uses too few words to express his gratitude for his friends. Eating BBQ and watching some dorky high school films that they wrote/directed/edited over a decade earlier was another way to say thanks for hanging out with us and that we valued our friendships.

Total Savings

  1. Well, we put in a lot of effort here into planning the little shindig, but it was worth the investment to spend time with some of our good friends.
     

6. T-minus 7 days: donated the remaining unsold (but useful) items and saying Goodbye to Los Angeles

IVAN: Jennie scheduled the mattress for pickup three days before we officially moved out. Fortunately, L.A. has some great city services for bulk item pickup and recycling. For our 72 hours in LA, we slept on a mattress topper and a yoga mat we purchased from the Japanese dollar store Daiso.

Before her last day of work, Jennie also dropped off our rental internet router and I spent the remainder of the day getting rid of and donating any final knick knacks left in the apartment.

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On the last day in our sad and empty L.A. aprtment, we took our remaining chairs and set them up outside of our community hallway and balcony. We ordered takeout, listened to Twin Peaks: The Return OST (this series still haunts me), and chatted at length while we watched our last sunset in L.A.

Total Savings

  1. Fortunately, we had paid rent through the end of July and were able to stay at our apartment until August 1st - without paying extra.
     

In summary: we've left Los Angeles and we're moving on

And there you have it - our long goodbye to Los Angeles with tangible savings in time and money over the past three months. Now, we’re onto the next chapter in our lives.

We don’t plan on looking back anytime soon.


 

June 2018 Money Diary: Removing Stress from Personal Finance

Jennie here.

Another month has come and gone. Let’s get right to it!

 
June 2018 Money Diary The Origami Life.png
 

The Origami Life Couple’s
Expenses in June 2018:


 

The Origami Life - June 2018 Expenses via Goodbudget

 
  1. Rent and Bills ($1,656.00)
    Per usual, our rent and bills account for about 50% of our total expenses. This will be the one of the last rent payments we make for the foreseeable future. In July, we’ve given notice to our landlord and our last day in Los Angeles will be July 31st. Then it’s three weeks in Albuquerque to spend time with my family before it’s off to the first stop on our RTW trip - Hawaii!
     
  2. Groceries ($192.00) and Eating Out & Entertainment ($312.00)
    This past month, we didn’t spend very much on groceries because we’ve been traveling quite a bit (to Albuquerque for Father’s Day, and to SF again). By the numbers, it looks like we got lazy, but what actually happened was that we shifted our spending a bit.
     

  3. Quarterly Charitable Donations ($250.00)
    We aim to donate at least 3% of our budget on a quarterly basis to causes we care about. This month, we’re giving to GiveDirectly again. Direct transfers are cool! Say yes to efficiency and choice, and say no to bureaucracy, friction and good intentions.
     

  4. Miscellaneous ($162.00) and Family ($161.00)
    June miscellaneous and family expenses came from two things: (1) visiting my family in New Mexico for Father’s Day weekend with many dinners, lunches, and some gifts and (2) morning coffee dates together.
     

  5. Business Expenses ($70.00)
    New category! In June, I went on a quick trip to San Francisco (fully comped by a third-party - will talk about this in a future post) and spent some coffee money on client meetings for our business.
     

  6. Life Happens ($44.00)
    We both got new glasses in June and had to put down some cash for our eye exam co-pay (hate the machine that blows air into your eyes). Also, Ivan got really depressed while I was away and gorged himself on a Fatburger turkey sandwich and a Maui Banana milkshake. Ivan’s note: the milkshake wasn’t good. Should’ve stuck with chocolate or vanilla.
     

  7. Travel ($23.00)
    Earlier this year, we were fortunate enough to score a Southwest Companion Pass through a California-exclusive offering. We’ve been traveling for the past six months on this Companion Pass - wherever Ivan goes, I go and all we have to do is pay and additional tax/fees. So in June we used some of our points to book a flight to New Mexico from California and only had to pay the tax ($23.00) on the Companion Pass flight.


Thoughts On Money in June 2018:

What Does Money Mean To Me?


 
abandoned-achievement-cement-880477 (1).jpg
 

If you had asked me the following question three or four years ago: what does money mean to you? I wouldn’t have known how to answer such a question.

Thinking back - money was a constant source of anxiety and stress for me.

I don’t think I really understood the true power of personal savings until the last two years. I mean, I grew up thinking I’d never have money - that I was defined and limited by my lower class upbringing. It’s been a long journey but somehow Ivan has helped me sort out my financial life and helped me think more step back and look more at “the big picture”.

For the last six months, Ivan and I have traveled every single month (both together and separately). We’ve used this as a sort of mini warm-up to our RTW trip. Four years ago, I would have never fathomed the idea that I’d feel so comfortable and unafraid.
 

How do I feel about money now?


Once my finances were finally “in order”, the biggest emotion I felt was: relief.

I don’t really stress about money anymore. Well, occasionally but that’s because Ivan likes to “freak out” from time to time, but it’s usually not a problem because we’ve built in buffers to our budget.

Once you take the first steps to managing your budget, those types of things are ingrained in you and are woven into your psyche. Your relationship to waste, money, and savings changes - for the better. It becomes a living and breathing idea in the back of your mind.

Ivan has been publishing our Back to Basics series recently, and we hope it will be helpful to the readers out there who are still figuring their personal finances out. I’ll be writing some of the future posts on negotiations and relationships (Ivan: I’m not qualified to talk about the latter).

Here are the “Back to Basics” posts we’ve published so far:

  1. Back to Basics: Understanding The Money Game

  2. Back to Basics: How to Think About Your Paycheck

  3. Back to Basics: Making A Budget

See you next week!



Back to Basics: Making a Budget
back to the basics (1).png

Ivan here.

In the previous post to this “Back to Basics” series, I talked about how millennials making $2,500 a month should allocate their paycheck.

To summarize, they should mentally divide their paycheck into three equal parts (~33% each):

  1. Rent and Bills Fund ($833)
  2. “Present Me” Fund ($833)
  3. “Future Me” Fund ($833)

Another way of thinking about this is:

  1. My overhead (i.e. fixed costs)
  2. My short term needs (i.e. money I need within 12-18 months)
  3. My long term wants (i.e. money I need beyond 18 months)

This is how things should look in the perfect world. Unfortunately, saying that the world is not perfect might be the understatement of the century. Most people aren’t even remotely rational or sane.

  Source: https://fred.stlouisfed.org/series/PSAVERT

Source: https://fred.stlouisfed.org/series/PSAVERT

In 2018, the U.S. personal savings rate is 2.8% - a historic low. This is partly a symptom of our two-tiered economy where the rewards disproportionately benefit the top 40%, while technology and trade outflows decimate the bottom 60%.

The other part is people feeling too pleased and comfortable with themselves.

It’s been almost a decade since the last recession. We are now in the longest bull market in post WW2 history, where the value of most assets have been rising (eg. stocks, real estate, bonds), while consumer prices have been falling (eg. Amazon, airline tickets). “Dumb money” has entered the market in droves, peaking in December 2017 when cryptocurrencies hit their record highs. “FAANG” stocks are now being priced for perfection. Nothing could possibly go wrong, right?

This is my opinion, but there’s no better or more urgent time to start thinking about making a budget than times like these. In a market economy, rewards often go to the few at the expense of the many, because the many are typically unwilling (or unable) to take short term pain for long term gain.

Or to quote Warren Buffett: “Be greedy when others are fearful and be fearful when others are greedy.”


Making A Budget: What is a Budget?


A budget is the marriage between our aspirations and reality. It’s also an expression of our priorities. People in project management probably know this diagram:

pick two - fast, good, or cheap. You can't have it all.

Since resources are limited: fast and cheap won’t be good, cheap and good won’t be fast, good and fast won’t be cheap.

The same concept applies to your budget and paycheck.

Out of your financial needs, you should prioritize two:

  1. Overhead (Rent & Bills)
  2. Short term needs (Present Self)
  3. Long term wants (Future Self).

With the average millennial’s $2,500 a month after-tax paycheck:

  • High overhead and short term needs means punting on your debt and retirement and letting interest accumulate into your midlife
  • High short term needs and long term wants means living in an undersized apartment in an undesirable neighborhood (or even city)
  • High overhead and long term wants means living on cheap groceries and never eating out, traveling or shopping.

Now pick one.


The Fairness Argument: Millennials, Baby Boomers and Their Finances


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Jennie and I have seen the panic in peoples’ eyes at the mere mention of a budget. The conversation usually starts off with a question:

How can you afford to quit your 9 to 5 and travel around the world for over a year?

Our answer: a combination of privilege and having a budget that prioritizes a few things for a long period of time. Specifically, we keep our overhead way below what most are comfortable with, so that we can save for our long term wants without sacrificing the small pleasures that keep us going day to day.

For example, before we “graduated” to our $1,395 a month studio apartment in West Los Angeles, Jennie spent years renting a closet-sized room on the outskirts of Boston for $450 a month, while Ivan paid $650 a month (Canadian dollars) for a basement unit on the outskirts of Toronto. We made these short-term sacrifices by choice.

At this point, we usually get one of two responses:

  1. Denial: “I could never do that. That’s just not who I am.”
  2. Blame: “You’re privileged and definitely not the norm. Our system is rigged to benefit the top 1%. The most important thing is to fix the system instead of putting unrealistic expectations on ourselves.”

Jennie and I have had variations of these conversations with fellow millennials over the past two years. We empathize with these feelings because they’re based on kernels of truth.

But there’s a difference between what feels popular, good or just (i.e. the right thing to say) with what’s rational and productive (i.e. changing with the facts).

Looking through the windshield, millennials have it tough. Looking at the rearview mirror, baby boomers have had it easy. But it’s also true that everything looks easy with hindsight. The road ahead always looks dark and uncertain- for every generation, in every time period.  

Expecting to achieve the same results as our parents by doing the exact same things they did defies basic laws of markets and evolution.


The Biggest Misconception about Making a Budget


The biggest misconception people have about budgeting is that having one means denying yourself everything.

This may be true for people making under $37,000 a year, which according to MIT’s living wage index, is the minimum salary a single adult needs to live in San Francisco, the most expensive city in the country.

But not all of us live in San Francisco. And if you’re above the $37,000 threshold, having a budget is not only a realistic option, but a necessary one.

To say that a budget means denying yourself everything, we first have to agree on what “everything” means. Does “everything” include vacations to foreign countries? Drinking and dining out a few times a week? High-end gym memberships and yoga classes? Personalized chauffeurs that drive us to and from bars (Lyft/Uber)? Does “everything” include a cleaning lady (this is real. we’ve seen this) that comes twice a week to tidy up our one bedroom apartment?

Where does “everything” begin and where does it end?

 
aspirations vs reality budget
 

And that’s what a budget is for: to draw a line between our aspirations and reality.

By and large, millennials want a luxurious life, for a less than luxurious price, before we can realistically afford it. Because “everything” was what we’d imagined we’d be getting when we became adults.  

Ironically, sacrificing short term gratification for long term goals through a budget, is the most “adult” thing I can think of.


3 Tradeoffs We Made With Our Budget


Let’s bring it back to our hypothetical millennial. $40,000 salary, $40,000 in student loans, $2,500 a month paycheck, divided into three funds in the “ideal world”:

  • Rent and Bills Fund ($833)
  • “Present Me” Fund ($833)
  • “Future Me” Fund ($833)

Here are three ways Jennie and I approached this problem in the real world:

1. Underspend on overhead: keep rent & bills to
less than 30% of our after tax paycheck.

This means at a $2,500 monthly paycheck, around $650 was allocated to rent and bills. And we’re not talking hypotheticals here:

  • In 2014, Jennie made $42,000 a year. As recently as 2014, Jennie’s salary was $42,000 in a high cost of living city (Boston). She paid $450 per month for rent & bills to stay in a closet-sized room in a house shared with two other roommates.
  • In 2012, I made $58,000 CAD. My starting salary in 2012 was $58,000 (CAD), paying $650 per month in rent on the outskirts of Toronto, while my peers rented one bedroom apartments in the downtown financial district. We were consultants, usually traveling four days a week, and were rarely home.

If we had had $40,000 in student loans, we would’ve paid it off aggressively within three years. Instead, the extra savings went directly into our fuck-off fund and retirement. No debt and a fuck off fund allowed us to swing for the fences in terms of raises and higher paying jobs. Higher earnings in turn, funded our fuck-off fund, retirement and other long term goals. A virtuous cycle begins and gains momentum (this happens much quicker than you think). Meanwhile, our overhead stayed fixed on one year leases.

2. Underspend on depreciating items in favor of value add experiences

Jennie gave away her car to family and started taking the bus. The total cost of all the furniture in our home is under $1,000. We don’t have the latest technology in our home or in our pocket. We make little to no new clothing purchases outside of travel gear, clothes which will eventually have to fit into 40L backpacks.

In return, we traveled across America by Amtrak rail, held our wedding in Taiwan, honeymooned in Okinawa, attended the jazz festival in New Orleans, made business contacts in San Francisco, camped in Death Valley and Joshua Tree, spent quality time with family and friends in Taipei, Albuquerque, Denver, Boston, and San Diego.

For us, the small adjustments meant bigger returns on experiences that we love so much.

3. Planning months (or years) ahead for large purchases
so we don’t have to deny ourselves small ones

Our dirty secret: we divide the cost of large purchases across multiple months to absorb the impact.

We never mentioned this explicitly in our money diary, but we bought a $1,000 camera last year in July 2017 to bring on our RTW trip. Using an accounting gimmick, I divided that expense into two $500 items, and logged them in our budget under “Education & Investments” in July 2017 and August 2017. This “smoothed” out our spending, but more importantly, we did it because Jennie and I had already planned out this purchase eight months in advance - so we “freed up” $500 in the budgets of July and August to absorb it.

In return for long term planning for large purchases, we never have to deny ourselves smaller ones. Whenever we have a craving: for tacos, chocolate, a fizzy drink, coffee, donuts, macarons, bubble tea, the occasional take-out etc, we never have to “check our budget” to see if we can afford it. Even if we go slightly over-budget in some months, who cares? Buy it, log it, and move on. Micromanaging small transactions wastes precious time and headspace - and it really isn’t our style.


Finding Your Budget Sweet Spot


dessert-donuts-doughnuts-273773 (1).jpg

There are many variations to a budget that can be tailored to the things and experiences that matter to you. Jennie and I aren’t saying that our way is the “right” way.

But the common thread of all budgets is that something's got to give. And if you sweat the big, uncomfortable things (you know, the material things we tie unnecessarily to our self esteem and identity), the small things take care of themselves. 

In our case, we said to ourselves:  "fuck paying overhead and let’s live for the now and for the future. If we have to live in squalid surroundings or tight studio apartments, then so be it. At least we'll have each other." 

That was more than we could’ve hoped for after six years of long distance.

After reading this, some might be disappointed that I haven’t provided any answers on “what to do.” Fortunately, that’s not the point of this series. Nobody can tell you what to do, or convince you to do something you’re not ready for. Money is less a math problem, but an emotional & psychological one.

The only thing we can control is an awareness and understanding of each trade-off we make. We need to construct a budget that takes into account those trade-offs: between overhead, our present self and our future self. Finally, we need to ask ourselves whether we can learn to live with the end result.

Because perfection is the enemy of the good.



May 2018 Money Diary: What Makes the Perfect City?

Ivan here.

The highlight of May was a four day trip Jennie and I took to New Orleans to attend the New Orleans Jazz & Heritage Festival. It was on my bucket list of items to check off before we leave North America to work and travel around the world.

 
Money Diary May 2018.png
 

Total cost of the New Orleans trip was around $600, with the help of Southwest Airlines points (transferable 1:1 via Chase) plus the Southwest Companion Pass.

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Now, with money out of the way, let’s talk about something I care about...


The (Very Short) Lifespan of Music and Cities


Diamond or doorknob?
Sapphire or sawdust?
Champagne or just home brew?
Tell me, tell me, tell me, dreamface,
What am I to you?
— Duke Ellington, Tulip or Turnip

I’ve been a casual fan of jazz since high school. It’s one of the most liberating art forms to emerge from the U.S., with a focus on “dialogue” and “improvisation,” something that really resonated with me from a young age. Spontaneity has never been my strong suit. Generally, I have what most people would consider an uptight personality. Music and writing helps me experience and feel things I’d normally miss in the moment.

In recent decades, jazz has gone the way of classical music. It’s stuffier, more “high brow” now. Academics have gotten their hands on it, turning a working class art into a “discipline,” to be studied at arm’s length like a museum piece. When this happens, art loses its original vitality and connection to everyday life.  

I think this applies equally to capitalists and cities. There’s something about achieving a certain level of wealth and comfort that tends to narrow peoples’ imaginations. One of my biggest fears is to wake up one morning and settle into a conversation with Jennie over breakfast about the price of real estate.

Like music, I think every city has a limited lifespan. Like the perfect sushi, every piece of nigiri has its own time. Its moment in the sun. And it’s up to each of us to decide the kind of city we’re looking for - before it's too late. 


3 Things We Look For In a “Perfect” City


Downtown Los Angeles, California


There are three main things Jennie and I look for in a “perfect” city:
 

1. Cost: How much does it cost to live there?

Economics tells you a lot about cities. The average price of rent determines the type of neighbors you’ll have, the kind of retail/dining experiences available, and even the opinions people tend to hold. From our experience, Jennie and I are a lot more comfortable living in neighborhoods that are affordable to a wider range of people. This not only helps our wallet, but provides a form of stimulation that’s very hard to find in certain parts of New York, San Francisco or Los Angeles (where we live).

Affordable cities like New Orleans and Philadelphia have some of our favorite types of places. For example, at the Bacchanal Wine Bar in New Orleans, we were eating cheese and sipping red wine at a table with two certified hipsters, a middle-aged couple from Houston, and three local contractors/electricians who were originally from Guatemala and Honduras. By contrast, the only Hispanic people we meet in the tolerant, liberal oasis of West Los Angeles are construction workers, cleaning ladies, nannies, and gardeners. We have a huge fucking problem with this.
 

2. People: What is the general attitude toward life?

Are people ambitious or laidback?
Do they prioritize getting the most out of life today or working for a better tomorrow?
Is there room for different ideas and perspectives?

To what extent do people care about how they look versus who they are?
Do they communicate directly or indirectly?
Are they comfortable with dissent and conflict?
Are they individualists or collectivists? 

These are just some of the questions Jennie and I ask ourselves when we visit a new city. We tend to gravitate towards certain types of people. People who like to push the envelope and are unafraid to say what’s on their minds, even at the risk of being “wrong” or causing offense. These are usually the same people who tend to be less flaky and can be depended on to do what they say they’re gonna do. And while it’s hard to make sweeping generalizations about large groups of people, we’ve traveled to enough places to notice certain patterns and differences - even between residents of neighboring cities.
 

3. Convenience: How easy is it to get around?

None of the first two points matter if the city is inaccessible.

  • Is it possible to get around by public transit in a reasonable amount of time?
  • Can people of similar interests come together in an area?
  • Are there social/invisible barriers that prevent people of different backgrounds from mingling?

OUr Verdict on Los Angeles


 Some beach in Los Angeles, California.

Some beach in Los Angeles, California.

Basically, the “perfect” city we’re describing here is the exact opposite of Los Angeles. 

LA is not very affordable, the average person here is too cool and trendy for us, and it’s certainly not convenient. Now, I’m sure there are some wonderful people living in this city who we’d get along with swimmingly. But if they’re from East LA and we’re from West LA, they may as well be from the surface of Mars.

If our trip to New Orleans this month (and every other trip we’ve made outside of California) has taught us anything, it’s the realization that Los Angeles is not our type of city.

Honestly, Jennie and I are surprised we took two whole years before coming to this conclusion. Of course, every place has its positives and negatives, and we’ve really tried to make the best of our time in this city. But when we actually sat down and weighed the city’s pluses and minuses, all the positives were much lower on our list of priorities.

We've learned that some things are just more important than 284 days of sunshine.



Back to Basics: How to Think About Your Paycheck

Ivan here.

I’m going to start this “Back to Basics” series by making a few assumptions about the paychecks of the average millennial. By definition, this won’t cover everyone’s situation. Some readers might be better off, others worse off.

Even so, I hope this three-part “paycheck” mini-series will still be useful as a framework for thinking about the money that hits your bank account every month.


‘How did you go bankrupt?’ Bill asked.
’Two ways,’ Mike said. ‘Gradually, then suddenly.’
— Ernest Hemingway, The Sun Also Rises

3 Principles of Financial Literacy


If I could boil down financial literacy into three basic concepts they would be as follow:

  1. The number you see on your paycheck is not the number you can afford to spend.
  2. Debt is dangerous and should be avoided or paid off as soon as possible.
  3. Small, steady changes add up to life-changing progress over time.

That pretty much covers it. The rest are just details. Something you learn along the way through experience or a Google search. In personal finance, boring is good. Managing money should be like going to the gym or any other chore you can think of.

Get it done, get it over with, and get out.


Who is the average millennial struggling with money?


In this mini-series on the average millennial’s paycheck, I’ll be working from the following assumptions:

Who is the Average Millennial?

the average millennial debt savings
  • Age: 25-35
  • Pre-tax income: $40,000
  • After-tax income: $32,000 (California tax rates)
  • Debt: 1x salary, or $40,000 in student loans at a 4% interest rate
  • U.S. healthcare premiums: $2,000 a year
  • Monthly paycheck (after taxes and deductions): $2,500 per month

I chose the ages 25-35 because let’s be honest, most millennials are underemployed in their early twenties and barely have the time (or means) to think about personal finance. The average salary for millennials in the U.S. is actually around $35,500 a year, but I bumped this up to $40,000 when I remove the under 25 group. The paycheck figure doesn’t consider any other pre-tax deductions outside of healthcare - like a 401k match offered by an employer.

The goal of this mini-series to demonstrate, step by step, how a millennial with a debt balance equal to one times her current salary could get to a position where she has one times her future salary saved for retirement.


Millennials - How to Think About Your Paycheck (Part 1 of 3)


The best way to think about your paycheck is to break it down into three steps:

  1. Start with a blank slate: “In the perfect world, how much of X can I afford with my current paycheck?”

  2. Assess the reality: “In reality, where is my paycheck going?”

  3. Make a plan: “what changes should I prioritize and make first?”

In Part 1, I’ll cover the first step, and answer the following question:
 

“In the perfect world,
how much of X can I afford with my paycheck?”

 

The way Jennie and I think about this is simple.

The average millennial should take their $2,500 per month paycheck and divide it into three equal funds of $833:

  • $833 - a rent & bills fund,

  • $833 - a “present me” fund

  • $833 - a “future me” fund

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1. Rent & Bills Fund ($833 per month)

This fund is for rent plus whatever bills you need to bring your place up to basic, livable standards. And by basic I mean: electricity, water, and gas. I’m not factoring in other modern essentials like internet, phone bill, or gym memberships. That comes later.

  • How much you spend on rent & bills is the biggest determining factor for how painful the next steps will be. The more you deviate from $833, the fewer options you leave yourself down the road. In some cases, it makes sense to pay a little more for rent as long as the savings in transportation cancels it out.
     
  • Now I know what some might be thinking: what if $833 doesn’t come close to the average price of a studio apartment in my city? The answer is simple, but unpleasant: if you can’t rent a studio apartment on a $833 budget, you can’t afford to live alone on your current paycheck. Consider getting roommates or renting a private room in a house.
     
  • It also isn’t a great idea to rent a place based on the prospect of a future raise. You never want to put yourself in a situation where you need something to happen in order to keep your head above water. Even if a raise is likely (or even imminent), pre-spending your future earnings eliminates any upside and flexibility it may have given you.

To summarize: in the perfect world, your rental situation should always stay a step behind the growth in your earnings.
 

2. “Present Me” Fund ($833 per month)

This fund is for your current self. For all the expenses you’re likely to incur within the next 12-18 months. Things you need to stay alive - while being reasonably happy and sane. This includes the essentials like internet, phone bill, transportation and groceries, and the discretionary like eating out, shopping or travel.

  • All essential expenses should be negotiated and paid for, as much possible, in bulk or upfront (i.e. stocking up on toiletries on sale, calling your mobile provider for special promotions, planning your grocery list in weeks)
     
  • All discretionary expenses should be ranked and prioritized in order of importance to you. If you have more than three things on your list, strike out the extra items because they’re not that important to you.  
     

3. “Future Me” Fund ($833 per month)

This fund is for your future self. For all the expenses you expect to incur in 2+ years. I’ve put some thought into the below rankings and concluded that, all else being equal, this was the most efficient way to handle the competing priorities of cash, debt repayment, and retirement:

  1. High interest loans: credit cards and other high interest debt always comes first.

  2. Emergency fund: at least 2-3 months of living expenses set aside in a high interest savings account. Assuming you’re allocating the full $833, this can be built up within 4-6 months.

  3. Student loan debt: I’ve written a post before on why you should prioritize paying off all your student loans before you even worry about retirement. Assuming your paycheck remains static, you can pay your student loan balance off in 4.5 years. If you build in a 5-7% raise each year, the payoff time is closer to 3 years.

  4. Retirement: Up to $5,500 annual contribution limit for a Roth or Traditional IRA

  5. Fuck off fund: at least 4-6 months of living expenses set aside. This is on top of your emergency fund, so another 4-6 months of savings should get you there.

  6. 1st savings priority (pick one: downpayment, education, wedding, travel etc)

  7. Retirement: Up to $18,000 annual contribution limit for your 401k

  8. 2nd savings priority (pick one: downpayment, education, wedding, travel etc)


...But Reality Gets In the Way

Unfortunately, life doesn’t happen on a spreadsheet. But what the above does show us is what a “stress-free” financial life would look like, and is a “rule of thumb” that Jennie and I actively follow when making our own financial decisions.

In part 2 of this series, I’ll talk about how to assess your current financial reality, to find a budget “sweet spot” that works for you.



Back to Basics: Understanding the Money Game

Introducing the

Back to Basics Money Series


 
When you go mountain climbing, the first thing you’re told is not to look at the peak. Keep your eyes on the ground as you climb. You just keep climbing patiently, one step at a time. If you keep looking at the top, you’ll get frustrated.
— Akira Kurosawa
 

Ivan here.

Jennie and I have been wanting to do a ‘back to basics’ money series for a while. The timing just never seemed right. When you’re knee-deep in the process of self-improvement (financial or otherwise), it’s hard to come away with any useful insights beyond a list of tips and tricks. I think more important than telling people “what to do,” showing them the “why” and the “how” is what really empowers them to look at their own situation in a different light.

When it comes to money, there are very few formulas or “recipes” to follow that work for everyone’s situation.  

Our only goal for this series is to encourage people to go out of the norm of what’s “expected” and start thinking for themselves.


How We Got Here:

Money Means Freedom


back to the basics.png

The reason Jennie and I are launching this series today is because two things have happened:

  1. Last month, Jennie and I met our $40,000 RTW trip savings goal after a two year process of budgeting and saving.

  2. In the second quarter of 2018, we met our freelance goal of making at least $2,500 per month in consistent, remote income.

What this means is that our $40,000 RTW travel fund turned out to be unnecessary. Our travel will likely be more than covered by our income on the road.

Like we’ve said before: it was never about the $40k, just as it was never about travel. It was about the process of learning how to keep our heads down and climb the mountain - one step at a time. It was about understanding what our priorities were and what we were willing to sacrifice.

Even if the $40,000 were to vanish tomorrow, the money habits Jennie and I have acquired are ones we’ll have for the rest of our lives. Something that no one can ever take away.

Because once you understand the game, you’ll never run out of moves to play.


Why Money is Like the Game Jumanji


Money is like the game Jumanji:

  1. It’s inescapable: no matter how long you try to put it off, the game will find you whether you want to play or not. In the meantime, the sense of dread and anxiety grows stronger with each passing day.

  2. It preys on our hopes and fears: Too much hope is greed. Too much fear is panic. As human beings, we all go through cycles of overconfidence and insecurity. Money is saved and spent, prices rise and fall, and the game serves as the barometer for both the social mood and human nature.

  3. Jungle rules apply: Capitalism, even in its most regulated form, is a system of opportunity and exploitation. In this ecosystem, you’re either the pursuing or the pursued, the hunter or the hunted. In an economic system predicated on “growth,” standing still is moving backwards.  

When faced with this game, all of us need to make a decision on whether we want to be proactive or reactive. And it’s not easy. Sometimes, it can feel like you’re being whipped about by forces beyond your control. You might even start to believe that there’s something inherently wrong with you. Being poor and living paycheck to paycheck is just who you are, and there’s nothing you can do to change it.

This feeling is only half true. We don’t often get to pick the hands we’re dealt. Some things happen to us that we just can’t change, and at some point, we’re all going to have to weather some turbulence. And yet, there are always things that you can control.

So you need to make the decision: do you want to be proactive or reactive with your life?

The process of remembering who you are, and what you want, and how you respond to the ups and downs of your life will, over the long run, make all the difference in the world.


/Ivan inhales, begins rant

Life: It’s Not a Race & Nobody Knows Anything


First of all, fuck this noise.

 
 

What irritates me about articles like this is that not only is it counterproductive, it was also conceived and published to deliberately provoke a response. Specifically, anxiety and controversy. Why should we give a fuck about what “should” happen by when?

If we want to play the “should” game, I can do it too. For example, I think print media companies “should” be profitable by 2018. But if I were a betting man, I’d take the under on the profitability of MarketWatch and the chances it survives the next decade.**

[** Author’s note: I don’t need to guess. According to public filings, Marketwatch’s parent company News Corp, reported a $1.1B loss last quarter. You want to know how to make this company bleed? Stop giving them engagement and clicks].

This segues into my pet topic, which I’ll break down into three statements:

  1. Nobody knows anything.

  2. Everyone is just making it up as they go along.

  3. Everything is negotiable with the right kind of leverage.

“Nobody knows anything” is always my going assumption until someone proves otherwise.

You’ll be shocked how true this is. Some people are just better at pretending than others. Some like to hide behind a veneer of credibility, authority or “success,” but the truth is, they’re often plagued by the same sort of doubts and insecurities as you. Because they’re human. And no human being is deserving of our blind worship. When you actually peer under the hood of how the world works, you’ll be amazed that anything gets done at all.

The more you come to understand this, the less time you’ll waste wondering what’s wrong with you.

/ends rant


Topics We’ll Cover

in this Back To Basics Money Series


Over the next few months before Jennie and I leave for our RTW trip in September, we’ll cover five broad categories in this “back to basics” money series, including but not limited to the example topics we’ve listed below. We’ll try to publish these in chronological order, from the beginning of the process to the end:

1. Fundamentals of Budgeting

  • Hitting the reset button on your finances (“where is all my money going?”)

  • Finding your budget sweet spot (“how much money do I need?”)

  • Handling the emotions of budgeting (“how do I avoid my spending impulses?”)

2. How to Spend Less:

  • How much (insert item) can I realistically afford?

  • How to simplify and plan for the long term?

  • How to factor in fun and luxury purchases?

3. How To Earn More

3. Money Talk & Relationships:

  • How to manage financial anxiety

  • Marriage and finances

  • How to talk to your family about money

4. Investing in Yourself (Retirement, Education etc):  

  • Investing 101: from account creation to long term indexing

Stay tuned! See you next week.



April 2018 Money Diary: A Different Kind of Life

Ivan here.

Twenty two months ago, Jennie and I published our first money diary. Back then, we had some hopes and dreams about what our life and marriage could be, a few ambitious goals, plus zero dollars saved in our round the world travel fund.

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Since that publication:

  • Our cost of living has remained unchanged: We spent $2,787 in July 2016 versus $2,815 in the past month.  

  • Our average monthly spend has decreased: we averaged $3,140 per month in 2016 & 2017 versus $2,800 in 2018.

  • Our donations to charity have increased: From $0 in 2016 to $1,250 in 2018 (to date).

  • We’ve hit our $40,000 savings goal for our round the world trip:  $0 in 2016 to $40,286 in 2018.

 
April 2018 - The Origami Life Money Diaries
 

The shift from spending $3,000 a month to $2,800 isn’t about cutting costs or making ourselves miserable. We’ve actually learned to be more efficient with where we spend our dollars, by prioritizing our spending in areas that add value to our life. For example, over the past two years, we’ve significantly cut back on Eating Out and Miscellaneous spending, and moved those savings toward Travel and Charitable Donations.  

This goes back to how we value money: it’s not about what you spend, but how you get the maximum return for every dollar you do spend by:

  1. Eliminating waste and mindless spending habits

  2. Setting clear priorities on the things that matter to you

Having met our savings goals, Jennie and I now have some loose ends to tie up - but we’re on track to transition to the next chapter of our lives by September.


I told you what I was going to do.
— Daniel Plainview, There Will Be Blood

Travel On Your Terms versus On a Corporate Expense Account


A week after I returned to Los Angeles after two months in rural Taiwan, I tagged along with Jennie on a work trip to San Francisco. As one half of Origami Partners LLC, I had a few prospective clients up in the Bay Area, and wanted to take advantage of the free accommodations to set up some meetings downtown.

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Walking around San Francisco after two months of solitude in rural Taiwan was jarring to say the least.

I don’t have strong feelings about the Bay Area. From certain angles, I guess it’s a beautiful city. On the other hand, it’s also a microcosm for the massive income inequality and skyrocketing rents we see around the world.

San Francisco is by far the most expensive city in the United States. And it’s the kind of city that makes you pay for it in other ways besides money. Personally, I think New York City fits this description as well.

To explain what I mean, I want to share what it’s like to travel on a corporate expense account. The best way to begin is by comparing the cost of two very different lifestyles...


Comparing the Cost of One Month in Rural Taiwan vs.

One Week in San Francisco with an Expense Account


 

Cost of One Month in Rural Taiwan

(self funded)
Cost of One Week in San Francisco

(with expense account subsidy)
Roundtrip Train Tickets (from Taipei):
$50

Airbnb Rental:
$238

Electricity:
$15

Bicycle Rental:
$15

Food: $8 x 30 days:
$240

Total out-of-pocket spend:
$555
Flight/airline tickets to SFO (from LAX):
$205

Hotel (fully expensed):
$1,604

Uber Rides (partially expensed):
$259

Food (partially expensed):
$558

Total spend:
$2,626

Total out-of-pocket spend:
$780

Obviously, it shouldn’t be news to anyone that living in San Francisco is more expensive than living out in the Taiwanese countryside. But just how much more expensive, is something that we don’t always appreciate until we see the numbers:

It’s more expensive to live in SF rent free for one week, traveling on your employer’s dime, than it is to spend an entire month living in rural Taiwan.

This would be an okay tradeoff if traveling on an expense account was all it was cracked up to be.

But it isn’t. Maybe it feels amazing at first, but slowly, hedonic adaptation kicks in. Which is to say that when you start getting used to driving Ferraris, anything less than a Mercedes will make you feel like a peasant. And if someone gave you that Ferrari for free, it wouldn’t mean anything to you at all.

Traveling for free on someone else’s dime makes things less rewarding - not more.


My Takeaway from Two Different Ways of Life:

Life in the city versus life in the countryside


If we truly want to treat money as a “vote” for what people and society value, it’s hard not to look at that $2,626 number spent in just one week in SF and realize how absurd it is.

$2,626 says nothing about anyone. It’s just a number that gets moved around faster so people can drink slightly more expensive wine and eat at slightly more expensive restaurants. It could easily have been $5,000 or $10,000. It makes no difference because human beings were barely conscious in the decision making process at all.

$2,626 is just stimulation for the economy - so the poor can get by and the rich can get used to (and grow bored of) slightly better versions of what they already have. 

*

By writing this post, I’m not advocating that everyone retire to the countryside and start living off the land. I would be a completely useless farmer.

The larger point I'm making is that these are two lifestyles on opposite ends of a wide spectrum. And having experienced two starkly different realities back to back, I now have a better idea of which direction I’d like to move towards.

 

March 2018 Money Diary: Job (In)security & Worst Case Scenarios

Jennie here.

And finally..Ivan is back from Taiwan after being away for two whole months.Trust me friends, I’m excited he’s back too. But before I get into the nitty gritty of everything that happened last month...I want to just pat myself on the back - it turns out when left to my own devices...

I saved a few hundred extra dollars without Ivan around. A “normal” month of spending (without Ivan) in April was pretty successful overall compared to our normal budget. I achieved this without being conservative or cautious with my spending. I just stuck to normal routines and was mindful about not going overboard when I wanted something.

Beyond normal savings - I experienced a more challenging issue this past month: potentially losing my job earlier than I’d anticipated. My mentor and direct boss was fired this past month in a power struggle, which means that Ivan and I may get to go on our RTW trip a couple months earlier than expected!

Nothing is certain yet - but I’m prepared for the worst. Ivan, however, was quick to remind me that this is no big deal.

[Editor’s Note: How am I wrong exactly? With only five months left before our planned departure and $1,800 away from our 40k goal, even if we lose we can’t lose. I mean, seriously. As Jay-Z would say: you gotta get that dirt off your shoulder.]


There Are Some Things You Can’t Control:

[No] Job Security At Tech Startups


Snapchat recently laid off 220 employees in February and March and it’s estimated to save them $34 million per year in salaries, taxes, and stock-based comp forfeitures.

Were these employees surprised? Or as insiders, did they see this coming from a mile away and prepared for the worst case scenario? Although I don’t work for Snapchat - I do work for a tech startup. And here’s what I’ve learned since the very beginning of my startup tenure:

Job security doesn’t exist in tech startups and getting laid off or fired can easily happen to you.

And here’s the truth about most startups - they often embrace the idea that they should hire fast and fire fast. Most executives and high level managers may not admit it but the truth is: they have never regretted firing anybody. In fact, there’s a higher chance that they’ve regretted not firing somebody quickly enough. Although this makes sense logically speaking - it’s an uncomfortable idea that individual contributors (like myself) have to quickly come to terms with.


There Are Some Things You Can Control:

You Can Learn to Live with Uncertainty


chair-clock-computer-373883 (1).jpg

In recent weeks, I’ve been experiencing something of an emotional and value crisis in my job because a re-org happened within my group. It’s prompted a lot of questions about whether or not I’ll have a job in a few months or what my self-worth is to an organization.

I recently heard something that a tech executive said:

“You’re not looking for stability, you’re looking for predictability.

Predictability is the degree to which a correct prediction or forecast of a system's state can be made either qualitatively or quantitatively.

Here’s the thing though, when you have external variables involved like self-motivated human beings, emotions, and office politics...can you really have true predictability?

Well, you probably can’t have full predictability but you can make foundational choices at the beginning. For us, we chose to save rigorously and assumed worse case scenarios.

What have I learned from my job instability?

  1. The bad news, I don’t know if I’ll have a job in a month or two. I mean, does it suck? Yes. Is it bad? It could be - I mean, who doesn’t like a steady paycheck? I’ve never been unemployed or laid off in the last six years of my professional career either. So, it’s uncomfortable.

  2. The good news: Ivan and I have already planned for the worst case scenario. Because Ivan and I have built up a foundation of exhaustive budgeting, we have a cushion (e.g. our Fuck Off Fund) that protects us in situations like this.

So, what’s next?

Stay the course and continue to do what we’ve been doing: grow our business, save every month. So long as we don’t deviate too far off our normal budget, then we’re okay. I thought that I would go into panic mode (e.g. extreme savings) because of this uncertainty but we’ve been fortunate enough that this issue feels like a drop in the ocean.


Charity Highlight Of The Quarter: No Lean Season


Like I mentioned, we’re staying the course. And at the end of every quarter, we donate $250 to a charity of our choice. This month, our donation dollars are going to a charity called No Lean Season. It’s a non-profit that offers no-interest loans to poor rural households in rural northen Bangladesh during the time of seasonal income and food insecurity ("lean season") between planting and the major rice harvest. Up until this quarter, we’ve primarily focused on donating to causes primarily focused on children in Sub-Saharan Africa. So, I wanted to make sure that we’re diversifying our donations to other regions and populations of need.

 

 

Have you ever prepared yourself for potentially getting let go or fired?

How was your March budget?

Did you have any major highlights or wins in March that you want to share?

 

 


February 2018 Money Diary: Travel Excursions and Investments In Relationships
 
 

Jennie here again!

I can’t believe how quickly February has come and gone. Ivan is still away in Taiwan and currently progressing on his first fictional novel! Now let’s get to it...

 
Screen Shot 2018-03-04 at 7.38.08 PM-2.png

This is the breakdown of our income, spending, RTW savings, and general monthly savings.

  • Income: $8,034

  • Spending: $2,895

  • Round the world trip savings: $36,258 (out of $40,000 goal)

  • Savings: $5,139 in monthly savings

 

Highlights From My February 2018 Money Diary…

Without Ivan By My Side :(


 A short trip to San Francisco...

A short trip to San Francisco...

  1. Ivan has been away for more than a month and I noticed how much less I consume without him around. SO, theoretically, without Ivan I should be able to save quite a bit of cash, right?! Wrong. Ha. I actually did pretty well for the first half of February because it turns out I don’t need to eat as much when Ivan is around. My grocery spending was only $144 over three weeks in February. I realized that it was a waste for me to cook food for one so I re-allocated most of my budget towards eating out and entertainment.
     
  2. Air travel was our most expensive expenditure (after rent/bills) at ~16% of our overall spending. This month, we had a ton of travel planned and spent $453 on flights alone. The following is the breakdown of our air travel in February:

    1. My flight from Los Angeles to San Francisco: $45

    2. My flight from San Francisco to New Mexico: $6 (Fortunately, we used our Southwest airline points to cover the costs of this flight.)

    3. Ivan’s flight from LA to Taiwan: $402 (This is round trip! SO cheap)
       

  3. I still managed to overspend this month because I traveled to San Francisco. I probably spent more than $200 in San Francisco over the course of one week. Fortunately, I got to stay at a friend’s house for free so I spent $0 on housing. However, the bulk of my available budget was spent on traveling around San Francisco and networking with new contacts and potential clients at coffee shops. More on this later in my upcoming mini-travel post to San Francisco.
     

  4. I ended up overspending because I paid ~$80 for my dad’s birthday dinner. This is something that I don’t feel bad about. I went home to visit family and it coincided with my dad’s birthday. I paid ~$80 for the entire family meal for a six people. After being in Los Angeles and San Francisco...I could only think: OMG, this meal was SO affordable. We ate at my dad’s favorite Chinese seafood restaurant (even though it recently changed ownership). We ordered fried flounder, spicy eggplant, salt and pepper shrimp, and a whole roasted duck. Nom. Great food for six people in New Mexico.
     

  5. Life happens so I spent $75 on a deep cleaning at the dentist this past month. Fortunately, my vision and dental insurance is covered my current company but I still had to pay a $75 deductible during my first visit to the dentist this year.


Thoughts On February 2018 Spending: What Life Is Like Without My Partner


pexels-photo-877695-3-2.jpeg

Life without Ivan has felt pretty lackluster but it really pushed me to think more consciously about the things I want to achieve and still need to work on. Here are a few budget-related thoughts from this past month without Ivan:

  • Time alone is so good for the soul and for the wallet. As much as I miss Ivan, I’ve found that time apart from him has shown me HOW much money we spend as a couple. Ivan has a runner’s appetite so my grocery budget decreases by more than 50% when he’s gone. If this were a normal month at home, I would have ended up saving a significant amount.
     
  • Eating alone in public seems sad at first but it’s actually refreshing. There was a pretty sad moment one weekend where I ended up walking to our nearby Mitsuwa. I didn’t feel like cooking so I went to the food court, ordered my usual $7 “Katsu-jyu” box, and ate as I watched the Olympic curling event. At first I felt lonely but then I realized that it was kind of liberating - in a way, I was taking myself out on a date and it felt empowering. My high from my “self-date” continued as I bought some steak for myself to cook later that evening. And let me tell you, I forgot how much I love beef. I no longer eat beef because Ivan doesn’t eat it - but that’s a story for another time.
     
  • Investments in meeting new and old friends and contacts is worth every penny. I spent the majority of February attending a couple parties, going on hikes, and meeting a ton of people for coffee. I did these things to get myself out of my comfort zone. I probably spent around $150 just on new social interactions and I think it was worth every penny. I believe that so long as I’m genuinely open to meeting others and listening to them - that I will learn something new. I heard truly vulnerable and honest things from a lot of people and I realized that’s emotional-labor that is worth the investment of my time and money.

Anyway, happy savings in March! And I can’t wait to share with you a “normal” month of spending (without Ivan) in April.

  • How was your February?
  • Did you have any major highlights or wins in February that you want to share?


Should We Sacrifice Time For Money?
There are only the pursued, the pursuing, the busy, and the tired.
— F. Scott Fitzgerald

Ivan here.

If I were so inclined, I could convince someone to get me a job in finance within the next six months, making a conservative salary of $70,000. If I were to take this job - and Jennie continues to work at her current company - in 6-7 years we’d have enough saved to never have to work again.

This isn’t my opinion. This is math based on our current savings/spending rate - assuming that neither of us gets a single raise over the next decade. This also assumes no financial mishaps over the next five years: long term medical bills, family, layoffs, war, nuclear fallout, or having twins/triplets. But when we assume no raises, and the fact that Jennie and I are human beings and not mannequins (and won’t just let events steamroll us), I think we can manage a good portion of these risks.

Knowing all this:

Why are you and Jennie leaving for your RTW (round the world) trip at age 30 (September 2018) when you could leave at age 37 and never have to worry about money again?

business-time-clock-clocks-48770-2.jpeg

The Costs and Benefits of FIRE

(Financial Independence, Retire Early)


I admire the FIRE (Financial Independence, Retire Early) mindset. I think it’s a wonderful and empowering way to give people something to work towards that’s drastically different from how society teaches us to live. It’s especially useful to help people get out of debt and live within their means.

But beyond this is where I start to question its usefulness. After a certain point, you’re simply sacrificing time for money - with diminishing returns.

Here are the five limitations of FIRE:


5 Limitations of FIRE


pexels-photo-879802-2.jpeg

1. Not all time is created equal

Jennie and I view our thirties as the prime of our lives. Not just because good health is never guaranteed to anyone, but because the risks we take today have more upside than downside. We currently have no mortgage to pay, no kids to feed, and no aging family members to take care of. Psychologically, we’ll probably never be more amenable to change than we are in our 30s - less set in our ways, more open to new ideas.

And what’s the worst case scenario if we get tired of travelling and life as a digital nomad? We’d simply pick up where we left off and go back to a 9-5 job. Is that so hard in our thirties?

If someone came to us today and offered five extra years in our early thirties in exchange for 10 years of my 50s, 60s or 70s, we would take that trade in a heartbeat. That’s how we value time. You may not have the same values, but the point is that time isn’t created equal, and we shouldn’t be sacrificing it for a “number” and forget to actually live.  

Side note: I wouldn’t do the same trade for five years of my early twenties. I was an idiot back then.

2. Everything compounds over time

Not just money. Bad habits, unproductive hours, stress, meaningless relationships also compounds over time. We all know the opportunity cost of not investing: historically it’s 8-10% a year. But what’s the opportunity cost of lost time, time you could’ve used to figure out what gives you meaning and purpose?

How do we put a value on that?

It’s easier to fixate on money because it’s the most convenient thing to measure, but I think it’s a poor substitute for what we really want to do and the person we want to be.

At the end of the day, no matter how much you accumulate, money is just options on the future. By setting a goal to achieve FIRE 7-10 years down the line, all you’re doing is delaying a decision you needed to make anyway. Seven years later, you’re “done,” holding a bunch of options you could’ve used 7 years ago to do what was important to you. Now you still gotta figure out what that is. In other words, you’re back to square one - only with a few extra bytes of memory in your bank account.

3. Beyond the bare essentials, money has no utility

Daggett: I've paid you a small fortune.
Bane: And this gives you power over me?
- The Dark Knight Rises

I attended a private high school in Taipei, where pretty much everyone (else) came from wealthy families. I’ll never forget something that a friend of mine told me. It’s a statement that I’ve thought about for a long time, because I think it’s both funny and insightful.

He said to me, “there’s nothing to buy.”

It’s true. Our basic needs have stayed the same since the age of the caveman: food, clothing, and shelter. With more money, we simply invent more complicated ways to satisfy those needs. But fundamentally, they’re the same. In my opinion, the luxury mark-up for anything is just a 20% markup for quality and an 80% antidote to boredom and existential dread.  

What’s more, people allow themselves to become compromised by money. Money makes them keep their heads down, accepting the dirt that needs to be shoveled, to prop up a system they don’t believe in. So nothing changes. I understand that impulse very well: there’s a more expensive mortgage to pay for, higher end restaurants to dine at - a lifestyle to maintain.

Outside of covering my basic needs and the basic needs of my old and decrepit future self, I just don’t see a point. When you don’t need the one thing that somebody can offer, you take away their power over you. You allow yourself to become completely unpredictable.

4. We have no interest in [early] retirement

None at all. Jennie and I are repulsed by the whole concept. What would we do in retirement? Read all the books we’ve been meaning to read? Travel to all the places we’ve been meaning to travel to? We could just as easily do those things now. In fact, we do.

And if we’re actually working on something that we enjoy, something that’s tied to our passion, and embedded into our very lifestyle, to retire from our work would be the same as retiring from life. The things we work on now should be the things we can build upon for the rest of our lives.

5. We’re skeptical of external measures of success

It's us against the world.

Remember that scene in The Dark Knight where Heath Ledger’s Joker sets fire to the mafia’s mountain of cash? The looks of confusion on their faces is priceless. They literally don’t know what to do next. It’s not that I want to be the Joker per se, I just don’t want to have to measure myself by other people’s metrics.

Whether you make $1,000,000 a year or have $1,000,000 sitting in your savings or brokerage account - that’s what society tells you you’re worth. You could choose to feel good or feel bad about it, but the end result is the same: your inability to decouple your internal sense of satisfaction and meaning with some external measure of value.

By making your own rules, you gain the leverage to say or do anything that you feel is right. From there, a vista of new options open up that you never thought was possible.


Our Goal: To Lead a

Well-Ordered and Time-Rich Life


Be steady and well-ordered in your life so that you can be fierce and original in your work.
— Gustave Flaubert

This entire post was just my roundabout way of saying that an obsession with anything, FIRE or otherwise, isn’t healthy. Delaying gratification to the point where you miss out on the prime of your youth simply doesn’t make sense. Or as Warren Buffett puts it, “it’s like saving up sex for your old age.”

Are the basic needs of Jennie, me and the members of my family taken care of for the foreseeable future? Yes? Then money becomes instantly irrelevant until that answer trends toward a no. If achieving FIRE happens naturally within the flow of our life and the direction Jennie and I want it to go, then that’s all well and good. But if not? We really couldn’t care less.

The narrative that people often adopt is: “If I can just get to X, then I can give myself permission to do Y.” FIRE is no different. But here’s the truth:

You never needed permission to do anything.



January 2018 Money Diary: Made Some Money, Had Some Fun

Jennie here!

Ivan is away for two months in Taiwan to embark on his life-long goal of writing his first novel (more on this in the coming weeks). I’m filling in for this month’s Money Diary because he still recovering from jet lag.

January felt like it went by excruciatingly slow for us and it turns out it was because we did so much! If the January 2018 Money Diary is an indication of what’s to come...I’m pretty excited about what’s going to happen the rest of the year.

In January 2018, we had $5,611 in monthly savings and
are now at $34,258 in our total round the world trip savings.

 
 

Here are the five highlights for our latest January 2018 Money Diary…


 
Good Budget January 2018 Money Diary.png
 

1. We’ve adjusted our monthly expense goal: we’ve budgeted $2,800 a month for 2018.

We missed the goal by $23 this month but we’re still feeling good about this goal going forward. I think that we’ve been working really hard towards this eventual transition (AKA massive cuts to our spending) over the last two years and we’re finally getting the hang of it. I don’t even feel the squeeze anymore. When we first started, it was really difficult for me to adhere to a budget but now, it’s like drinking water or breathing air. It’s much more natural for me to think more logically about where, why, and how much money I spend.

2. We started our own business!

Insane, right? The upfront costs were charged to our December 2017 expenses but January 2018 was the first month we billed our clients under our new business: Origami Partners LLC. We now have several clients that we’re working with and we’re both excited to begin this strange, new - unknown chapter of our life. More posts to come on this in second half of 2018.

3. We went to San Diego for a 3-Day weekend and spent ~$155 between the two of us.

carne-asada-fries-2.jpg

Ivan’s old high school friends from Taiwan were having a mini reunion and I didn’t want him to miss out. One of Ivan’s high school friends from East L.A. drove us to San Diego (we covered gas) AND we stayed at another friend’s apartment for free! So the total trip expenses was primarily food and entertainment.

My general thoughts on San Diego:

  • Food is SO CHEAP in San Diego compared to L.A. Our most expensive meal was $28; we had lots of grilled meats, tacos, and burritos...And Carne Asada fries are legit.
  • San Diego is worth a weekend visit. The weather is generally warmer, the beaches are beautiful, and they’ve got gorgeous natural tide pools. San Diego was the break that I needed after a shitty work week in L.A.

4. We had a “fancy” wedding anniversary Korean BBQ lunch together for $73 (tip included).

At the beginning of the month we saved some of our eating out budget for an anniversary dinner or lunch. I dragged Ivan down to Koreatown to have an insanely decadent Korean BBQ lunch and it was perfect. The service, the amount of food...all worth it. This is as fancy as our restaurant outings get now because it’s all we really need. After lunch, we grabbed some groceries from the nearby Korean store and spent an additional $31. That’s romance, too, right? We’re living our lives together like a normal married couple. Mundane things should be celebrated too!

5. In January 2018, we started to slowly purchase our Round The World (RTW) Trip essentials.

Ivan finally gave in and bought a new $100 Kindle (e-book reader) to replace the old one he broke last year. If you know Ivan then you also know he’s the angel of death to all things technology.We also spent $210 on Uniqlo essentials for our adventures beginning in September 2018. Some of our essential purchases included an ultra light down vest and quick-drying activewear tops and bottoms. As we’re beginning to accumulate the essentials, our goal of traveling the world is beginning to feel very real and it makes me excited but also anxious to leave sooner...


Thoughts On January 2018 Spending: Treat Yourself Today


 
 
 
 

Sometimes, you just have to treat yourself.

Between launching our business and extensive preparations for our RTW trip, we sometimes forget to step back and give ourselves the chance to just enjoy our lives. Afew things got us through this long, slow month - and I wanted to share them with you:

  • We didn’t spend much money during the holidays so we jumped right into our goals in the new year. During the month of December, we didn’t spend a lot of money because we don’t really celebrate (Western) holidays. That put us in a really fortunate position to start off the year on a positive note.

  • Holiday gift cards helped us save a little money too. I got two gift cards worth a total of $50 from work in December (yay for White Elephant parties). So, I used up about $35 worth of credit on coffees and lunches from the designated cafes. It was just nice to treat myself to the occasional lunch or coffee without worrying about going over budget.

  • Ivan’s best purchase for January 2018 was his Kindle. He broke my old Kindle last year before our big train trip and has been holding off on buying a new one because he’s cheap. But he’s a writer and he needs to read; he’s already gone through most of our books in the apartment - and not reading makes him grouchy. So I’ve been encouraging him (for months) to get a new replacement because it’s vital to his work. When he finally bought it, I was relieved because he seemed little more relaxed with a fully stocked e-reader in his hands.

  • My best purchase for this month was a cheap jump rope from Daiso. Against Ivan’s wishes, I purchased a jump rope at Daiso for $1.70. It wasn’t about the money. He didn’t see the point in accumulating more “stuff”  that we’d eventually have to throw away in 6 months - but I think it was a fantastic purchase. The weekend after I bought it, we ended up competing against each other to see who could reach jump the most times. I lost. Goddamnit. However, it was really refreshing that something so small could change up our workout routine and pull us out of what could’ve been a mundane Saturday. Sometimes, you just need something minor to jolt your life in a good way.

That’s it for now folks. Happy savings in February!


How was your January? DId it go by quickly?

Did you have to re-adjust your budget after the holiday spending?

Did you have any major highlights or wins in January that you want to share?