💼 My Rule Series Vol. 2 - Money Edition - "Zero in 3 Years" is the Ultimate Investment Strategy: Earning Power Grows by Reducing
💼 My Rule Series Vol. 2
Hello, this is Roel.
I think everyone has their own "personal rules" in both work and private life.
Whether it's something you never do, something you won't compromise on, or how you act in certain situations—these small personal rules actually shape who you are.
"This is something I never do"
"This is the one thing I won't compromise on"
"When this happens, I do this"—
These small personal rules
are actually what shape a person's character.
In this series,
💼 Work
🏡 Private Life
💰 Money
🧠 Mindset
I would like to share my own personal rules
based on these four pillars.
▼Vol. 1
Today's theme is—"💼 Money (Investment) personal rules."
💰 "The 3-Year Rule"—Training Earning Power by Spending Money Down to Zero
Today, I'd like to introduce one of the personal rules regarding investment
that I have been practicing for a long time.
If I had to name it, I'd call it the "3-Year Rule."
While this is a rule about money,
it is actually a way of thinking that connects directly to the design of one's life.
🇯🇵 How to Live Wealthily in a Country with Progressive Taxation
Japan is a country with "progressive taxation," where the more you earn, the higher your taxes become.
I'm nowhere near that level, but for high-income earners,
when you combine residence tax and social insurance premiums,nearly 55%disappears from what they actually receive.
On the other hand, the tax on investment profits is about 20%.
I have a feeling it might go up to around 30% in a few years, though...
In other words, it's a structure where it's difficult to become wealthy just by "earning through labor."
Standing on this premise,
I make it a point to place the mechanism of "making money work for you" at the center of my life.
💡 The base is a two-layer structure of "defense" and "offense"
The first thing you should do is very simple.
First, secure your living expenses and prepare an 'emergency fund.'
Ensure you have enough money to live for 6 months to a year, even if you quit your job.
Up to this point, it's 'defense.'
And all other money earned is directed toward 'offense = investment.'
In my case, I steadily build up my assets, focusing on index funds.
⏳ This is where the '3-Year Rule' comes in
Now, this is the main point.
Let's assume you have 10 million yen in surplus funds.
Many people would think, 'Since it's surplus money, I'll invest it little by little.'
But I—allocate it on the premise of using it all up in 3 years.
Calculating this,
10 million yen ÷ 3 years ÷ 12 months = approximately 300,000 yen.
In other words, I decide to 'invest 300,000 yen every month.'
The assumption is that it will be zero in 3 years.
🔥 A mechanism to put 'earning pressure' on yourself
Naturally, if you do that, your savings will decrease.
But I don't see that as a 'crisis,' but as 'fuel.'
Because there is a 3-year grace period,
'If I keep going like this, I'll run out of funds. So, should I start a side hustle?'
'Should I aim for a promotion?' or 'Should I increase my annual income by changing jobs?'—my thinking naturally shifts.
Instead of working hard to avoid losing money,
'work hard to keep investing'.
This mindset keeps me in 'update mode' at all times.
▼ The 3-year rule was naturally one of the reasons I became independent
📈 If your earnings increase, strengthen the rule further
If you can comfortably continue investing 300,000 yen a month,
the next step is to increase that amount and reset the '3-Year Rule' again.
For example, make it 400,000 yen a month and return to the 'premise of using it all up in 3 years.'
In this way, you gradually increase the load you place on yourself.
As a result,
both the 'meaning of earning' and 'how to use money' become increasingly refined.
Investment → Growth → Increased Income → Further Investment.
Once this positive spiral begins to turn,
your relationship with money changes completely.
By the way, I am not just pouring all my surplus funds into investments;
as I have mentioned here, I am also investing in important experiences and memories right now.
🧭 Rather than 'not reducing' money, design it to 'move'.
The essence of this rule
lies not in 'protecting money,' but in 'designing how to move money.'
It is not bad to feel secure by holding onto savings.
However, challenges are not born from security.
That is why I dare to set a deadline and move my money.
I circulate my funds over a three-year span to evolve myself.
That is my '3-year rule.'
I still live based on this personal rule even now.
💬 If you resonate with this even a little—
it would be a great encouragement if you could 'Like,' 'Comment,' or 'Follow.'
(I generally follow back)
📡 By the way, I also post updates and experimental topics on X (formerly Twitter) on a whim.
👉 Click here for X