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Structurally Unemployed and Underemployed

Can’t make up these number, the struggle is indeed real. In October, the unemployment rate declined by 1.0 percentage point to 6.9 percent, and the number of unemployed persons fell by 1.5 million to 11.1 million.

Many are stuck in structural unemployment.

Structural employment is a form of involuntary unemployment caused by a mismatch between the skills that workers in the economy can offer, and the skills demanded of workers by employers. Structural unemployment is often brought about by technological changes that make the job skills of many workers obsolete.

Unemployment rates declined among all major worker groups in October. The rate was 6.7 percent for adult men, 6.5 percent for adult women, 13.9 percent for teenagers, 6.0 percent for Whites, 10.8 percent for Blacks, 7.6 percent for Asians, and 8.8 percent for Hispanics.

With that said, it is with a high degree of empathy that I side everyone going through this hard time. It might not seem that way but hard times don’t last.

It’s a Start, it’s not the End

Back in 2012, I couldn’t find a job to pay me an adequate salary. I left graduate school with three credits remaining; felt the $125,000 in debt piling up. I didn’t know how to network. My public speaking skills were trash and admittedly my confidence was shot. 2012 was my 2020.

In that darkness, I started to think about ways to improve myself from getting adequate sleep, working out, running and setting goals. I started to read more. I wasn’t a book reader but news articles, clips, and blogs; just about anything would do. I had to learn to just start. Eventually, I landed a job making $23,000 before taxes.

That was my start.

So How’s the Debt Freedom Journey Coming?

Name: Lawrence Gonzalez

Also Known as: The Neighborhood Finance Guy

Location: Washington, DC

Start Date:	2012
Starting Debt:	$125,000 consisting of $120,000 in Student Loans and $5,000 in credit card debt.
Current Debt:	$303,188 consisting of two Mortgages $199,935, Student Loans $88,696, Credit cards $9,823, and 401k loan of $4,734.
Debt Free Date:	Credit card Debt Free 6.2021, Student loan debt free 10.2025, and Mortgage debt free 8.2028

Quick Financial Review

Yearly Expenses:	Approx. $40,000 as of 2020
Income Type:	DINK i.e. Dual Income, No Kids
Income Sources:	Salary Jobs, and Side hustles. In the future: Books, YouTube, Passive Income, Consultations, Rental Income, Teaching.

Questions & Answers:

What is your debt free story? (e.g. How did you get into debt? How and when do you plan to pay it off? What have you paid off so far? What does the future look like?)

I got into debt like most Black and Brown millennials, good old student loans. Although, higher education is one of the fastest ways to escape the poverty cycle; it’s also the fastest way to get into lifelong debt.

The ultimate catch-22, damned if you do, damned if you don’t.

I ended up racking up $30,000 for undergrad and $80,000. In the shadow of the 2008 recession, entry-level roles were hard to obtain. Like a rookie, I used federal loan deferment because I needed to more time to figure out my zero income problem and incurred an additional $10,000 in interest loan capitalization. I eventually found a position making $23,000 before taxes and started paying off debt since 2013.

So far, I’ve paid off all the undergrad debt and even worked with my fiancée to pay off her Student loans of $30,000 by June 2020. We were stuck at home which forced savings and expenditure reductions.

In total, we paid off approximately $60,000 in student loan debt. I also made an additional $35,000+ in graduate school loan payments but most of it didn’t count toward the principal. That’s another tale for another time.

I plan to pay off the remaining $90,000 through the Federal Public Student Loan Forgiveness Plan as of September 2025. The future look very bright.

What resources and/or strategies have you used to help pay off your debt?

The first resource would be the right mindset. If you think, it cannot be done, than you will not achieve anything.

Additionally, I used Mint.com and Personal Capital to track my income and expenses over time. Both are absolutely free super financial tools.

I would strongly encourage people to pay down credit card debt first due to high interest. Don’t neglect investing in yourself through employer plan such as 401ks, 403bs, and 457bs, every bit helps on tax savings and adds to the wealth growth.

The wealth velocity is rarely thought of when dealing with money management and it had accelerated my opportunities to own a home, invest, and participate in an active lifestyle. In investing in my 401k over the last 6 years, I made over $120,000 worth of wealth.

What change(s) have you made to your lifestyle to help you pay off your debt?

I’ve gotten physically and mentally healthier in the interim. I ran Spartan races, 10ks and half marathons. Just an absolute joy to live life, outside the confines of money mistakes.

As I learned new concepts, I’ve help friends, family and complete strangers with their financial literacy. The journey also taught me the importance of creating a confident voice.

My fiancée and I were also able to travel to 17 countries. The big payoff is learning to be intentional about the life that I want to live instead of going with the flow.

What obstacle(s) have you had to overcome while working toward your debt payoff goals?

There are less than 3,000 Black and Brown financial advisors to serve over 23 million minority Americans.

Suffice to say, there are not enough constructive voices as it relates to earning and growing wealth. The biggest obstacle is realizing how much the wealth inequality gap is and how lonely the journey would be.

The hours to learn the information and formulate ideas that can work on a universal scale is daunting but not impossible. I’ve learned that time is the first barrier and knowledge is the second. Occasionally, we are hit with something unforeseen that can cost us $2,000 for example but I’ve learned to mitigate Murphy’s law.

I share financial literacy education through Instagram on a daily basis. The goal is to demystify financial information in a way that’s accessible to more people.

If you want to know more on how to kick your automatic millionaire wealth machines up 10 notches, I’m the guy. I love to dissect information that is often glossed over.

In addition, I love to share other financial influencer work as we all seek to build stronger bonds and communities.

What’s the best lesson you’ve learned about money?

It’s not impossible, it’s improbable. As such, you have a shot. You have to be willing to get up every day for yourself first and foremost.

Every good decision is not binary. Investing in a 401k for example; earns you the matching contribution (if any), tax avoidance of up to $19,500, lower AGI, high tax return, growth in mkt valuation through dollar cost averaging, and even reduction in student loans based on taxable income. See how that escalated.

What will life be like once you’re debt free? Will anything change?

Once debt free, my household will fixate ourselves on the final lap towards earlier retirement. The goal beyond that is to do what we love ie help others in our community, create job opportunities, and ultimately live abroad in Brazil and Portugal.

The best part of being debt-free is to inspire other Black and Brown millennials to say like the Mandalorian, “this is the way.”

What advice do you have for someone just starting their debt free journey?

Forgive yourself. No need to bury yourself in guilt. Use your story as a catalyst or even a book. Once you start on this journey, what you earn is peace of mind and happiness.

It is not the money, you are seeking; it is purpose.

What advice do you have for someone already on their debt free journey?

Don’t be afraid to reviewing the numbers and to be flexible on the way. Things will keep changing. Additionally don’t get married to one way of doing thing. Keep your cup empty enough to receive new information that might even expedite your journey or make it more efficient.

How has starting an Instagram account helped you reach your money goals?

Wait IG helps people reach money goals? Dang I’m missing out.

Bonus: Here’s what my household is working toward?

Closing out the year stronger.

Working on investing an additional $500 to hit the total of $12,500 in M1 Finance Brokerage focused on Dividend Income that generates at least $1,000 in passive Income for starters in 2021. Check out the portfolio in real time. If you like the platform and want to start investing, I have the $20 for $20 referral if you need it – https://m1.finance/SYdqDJ2SyADC.
Boosting back the EF savings with an additional $1,000. Keep tabs on your savings, cash flow, net worth, investments, retirement and more for absolutely FREE with Personal Capital! Sign up with my link & get $20 Amazon gift card. *Terms apply. https://pcap.rocks/lawrencegonz
Getting back to shape – HIIT Mornings. Running, and biking just pushing out effort. I say it all the time but it’s still good. We did start HIIT workouts off of YouTube.
Fixing our homes – December. Fixing the leak damages in our primary home and updating bathrooms in the rental. It’s going to suck but at least you get to see the before and after. The goal is to get back to fully operational by January 2021.