Still Not Debt Free but We are Pushing Toward a $1.5 Million Net Worth
June 2024 is now over and thank God.
Inflation is tentatively cooling down as temperatures heat up. Investments made a major pivot from 2022 but we aren’t out of the storm yet. Nvidia $NVDA carried the market for about three weeks, followed by retail portfolio rebalances. Average US household debt spiraled while prices soared. The Fed Reserve is still eyeing long-term prospects for rate cuts in November or December. The debate between President Biden and Former President Trump happened. The less said about that, the better.
With all the chips stacked, we are well on the way to the end of another year with the market north of +20%.
Time flies. If you didn’t get the memo, “We have six months to get active.” With half the year gone, it’s important to look back at your finances and take inventory. Although high prices are kicking our collective global butts, the journey continues.
The TNFG household made nearly $60,000 in debt payments while being short of $34,000 in investment contributions during the 1st half of 2024. Even those simple moves added $90,000 to our net worth. In total, we netted +$250,000 YTD. We will break the data down further.
Table of Contents
Half-Time Pep Talk – Time to Net Worth, Pay Debts and Chill
It’s unsettling how most months fly by in a maelstrom of confusion, politics, finances, and stress. I highly recommend that you take a mental health break whenever possible to re-calibrate and allow yourself to heal.
For the last five years, I warned people of high prices at your local grocer. Those high prices increased the need for higher interest rates. This cumulated into high loan payments.
The median new car loan is pushing $1,000 per month. I should know since we purchased a new 2023 car after 19 years. The price tag was over $50,000 with the monthly payments of $893.59. To make matters worse, the insurance adds another $266 per month.
My problems aside, I can tell you that prices aren’t going down.
Price inflation (the rate of increase) is slowing down, however this isn’t Disinflation. Meaning prices aren’t going to roll back. More people are vying for the same products with less supply, which equals higher prices.
So will we be consumer debt-free this year?
Minus the car loan, maybe. That’s the thing about getting older, things break. From car purchases, AC repairs, and Roof repairs; things get tacked on. We had a slew of medical expenses, and now we are looking at $30k worth of renovation costs, as well as $4k in travel costs remaining. Additionally, we canceled the Peru trip and the Fall trip.
At some point, we found ourselves throwing money out of the window to see if it sticks. We had to pivot and create breathing space. We have to do what we need to reach our financial goals.
The same goes for you. Your budget and goals must stay flexible. Never know when an unexpected cost may pop up. Try not to overspend in the interim especially when times are good. Two of my friends are now unemployed. Last year everything seemed to be going well. This year, everything seems more uncertain. More and more people are experiencing unemployment for as long as 7-11 months.
Prep now, pay off what you can, and invest the difference. You don’t have to spend all the money that you earn. Pause and recalibrate. As for the TNFG household, we boosted our savings to $5,000 for the year (July 2024). We still manage to reach $1.365 million net worth with a great chance of getting to $1.5 million to close out the year.
Quick financial tips
The only intuitive way to stop this; buy or spend less through the end of 2024. If you have loose change, invest more while the market is down, because millionaires are birthed during recessions and downturns. Additionally, if you have student loans, stay glued to Federal Student Loan reform changes. Read the Department of Education’s Press Releases and ask questions.
One big lesson to consider is if you have your money in a savings account at the bank for 0.01% while inflation is at 3.6% for the year, it means you are losing Negative 3.59% of your hard-earned money annually. While banks are even dishing out more dividends to their investors.
As of June 28, 2024, JP Morgan & Chase’s $JPM is up 17.54% over one year vs the Chase Savings℠ account interest rate is 0.01% APY (effective 6/30/2024). I wish I was making this up. And it doesn’t include the dividend yield of 2.27% quarterly. You would have made more money with your money invested in the company instead of in the product.
Can’t say I didn’t warn you; you can’t save your way into wealth.
Here are our 2024 Total Debt Repayments YTD
Table 1. TNFG Mid-Year Debt Repayment Recap 2024
| Credit Card Payments | Interest Incurred minus CC Rewards | Mortgage Principal Repayments | Auto Loan Repayments | Total Expense Payments | |
| January | $6,548 | -$394 | $0 | $700 | $6,854 |
| February | $8,640 | $276 | $918 | $703 | $10,537 |
| March | $12,018 | -$239 | $1,124 | $686 | $13,589 |
| April | $9,771 | $130 | $876 | $682 | $11,459 |
| May | $6,112 | $670 | $925 | $655 | $8,372 |
| June | $6,178 | $58 | $900 | $713 | $7,849 |
| Total | $49,267 | $501 | $4,743 | $4,150 | $58,661 |
How much have we invested to boost our net worth as of June 2024
Grand Total (a clean) $33,125 (Refer to Table #2). While the global pandemic has become old news, the world is still looking over our shoulder at Russia vs Ukraine, the China recession, and the unstable Argentina/Venezuela. I haven’t even mentioned the election.
The Federal Reserve is aiming for this eternal 2% soft landing but we are touch and go for the rest of the year. Stocks are trending upward while the recession impacted different social classes in a myriad of ways.
Only the future will tell however I suspect that some will fare better than others. I’m still betting on a rate cut for Q4 likely November or December 2024. Alas, the old saying holds true, “Can’t debt freedom your way into wealth.” You have to have a great strategy that incorporates both debt repayment and investing.
Table 2. TNFG Mid-Year Monthly Investment Recap 2024
| Employer Investments | Additional Invts. Contributions | Total Investments | Monthly Investment Performance Growth | |
| January | $4,812.50 | $2,250 | $7,062.50 | +4.58% |
| February | $4,812.50 | $250 | $5,062.50 | +6.41% |
| March | $4,812.50 | $750 | $5,562.50 | +2.58% |
| April | $4,812.50 | $500 | $5,312.50 | +0.54% |
| May | $4,812.50 | $250 | $5,062.50 | +9.32% |
| June | $4,812.50 | $250 | $5,062.50 | +6.23% |
| Total | $28,875 | $4,250 | $33,125 | +29.66% |
Celebrating the Next Half after Surviving the First Half
TNFG’s monthly Net Worth Breakdown for June 2024 was wild.
Pending home renovations, medical and travel expenses are pushing hard but the market is pushing back. Our investment performance for the year so far is over 30 percent due to high-tech exposure. We doubled the S&P 500’s performance. Refer to the annual performance graph above.
Over five years, we are hitting over 150 percent. Not too bad for long-term investors.
Bonus for all the readers, if you want to get a near-accurate view of the TNFG Investment Portfolio with all the holdings, click because it’s blue. It will send you to the Google Sheets view. People ask and I always deliver on transparency.
Easing back from our typical Travel Season To close out the Year
First, I would like to express my gratitude. This year we were not hit with an extreme expense besides the fixed one. The extended winter was a bit strenuous for me since I work from home. Cabin fever set it. We came back from Banff (Canada). One more trip to Austin, Texas remains for August 2024.
My wife and I are finding synergy (along with Brownie, our dog). With the rental renewed for the upcoming academic year, I have to update all my documents that are due to expire. The back half of the year is a gamble to invest more money in the hope that we earn more in the market to pay off the renovations in 2025. I’ll try to get a Lowes credit card with no fees or payments for at least 9 months.
I aim to exploit a small assets-vs-debt arbitrage window.
Here’s the Quick June 2024 Summary:
What Happens Next!
“We are in the end game,” referencing the Avengers’ blockbuster movie. In more ways than one, 2023 was a readjustment or rebalancing act but we are making strides to get to the $1 million net worth mark. 2024 is act 2 to get to the $1 million investment mark.
June 2024 ended with +4.25 percent. The cash value growth of $58,057. Pending the $900 transactions on June 30, 2024. Investments carried the load this month, this quarter, and damn near all year. They rebounded better than Dennis Rodman in the 90s.
Our Expenses for June 2024
It was Mrs. Birthday Month!
Credit to the wifey for keeping expenses and excursions low. After that, it was long hikes and better food in Canada. Beyond that, we finally got a slight hold on our food cost. I’m changing my diet radically in Q3. You need to eat less to lose weight and build energy.
The hope is that we establish a baseline for the next six months.
Our goal is to prepare to purchase a new home in 2025 or just sell this one to move south. Every adjustment helps, especially since we are looking at $30,000 worth of renovations. This should up the value and it is looking like a $200,000 tax-free profit when we sell.
Give it (your budget) room. Eat out a little and ease back on the journey. Your budget should work ‘with’ you and for you.
Deeper Dive in the June Net Worth Numbers
Credit cards are being repaid and our FICO scores are higher
Will Investments Continue to Rebound? (For Now)
We currently have an investment portfolio of $912k. FAT FIRE range if we keep this momentum through 2026.
In the second half, we are rebalancing some index ETFs. I think the back half of 2024 might yield an extra 6-7 percent. Time will tell. If you need tips on how to set up a solid portfolio, read How to Build a Long-Term Investment Portfolio Earning 250%.
So what are our next steps for 2024?
What’s the deal for July?
Preparing for the southwest trip in August. The summer heat is not going to play so way more sunrays to acclimate. Making micro changes to our investments in anticipation of the downturn in Q3 2024.
Beyond that here are our overarching goals for 2024:
- Keeping our expenses where they should be by “Not equating happiness and social acceptance based on the money you spend.“
- Get to $100,000 in M1 Finance (by YE 2025) focusing on Growth and Dividend Income that generates at least +$3,000 in passive income by year-end. Check out the portfolio in real-time. If you like the platform and want to start investing, I have the $10 for $10 referral if you need it – https://m1.finance/SYdqDJ2SyADC.
- Shooting for a sustained investment rate with the push for a $1 Million net worth by January 2025. To help monitor your savings, cash flow, net worth, investments, retirement, and more FREE with Personal Capital! Sign up with my link & get a $20 Amazon gift card. *Terms apply. https://pcap.rocks/lawrencegonz
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