We hit $2 Million in September! We made it!
We were coming off a solid August until the final two-day meltdown, which spilled over into the first trading week of September. What the hell happened? Inflation, savings depletion, political turmoil, home prices, and the unemployment revisions; just a powerful combo of confusion.
Prices are up on just about everything; it’s ridiculous.
The final nail in the coffin was Jerome Powell’s remarks that the market was “fairly highly valued“. Despite it all, NVIDIA found a way to pull us to a victory. My wife and I are now multi-millionaires. As a bonus, after six months, Mrs. TNFG transitioned back to the DC. Our move to Central Florida has been delayed due to return-to-office (RTO) mandates; however, it supercharged our early retirement plans. All that’s left for 2025 is healthier living, a government shutdown, and our year-end trip to Brazil to celebrate our fifth marriage anniversary.
We will be resetting and reloading for 2026 with hopes that the market returns an extra 7% to close out the year. Things change like the seasons; you have to be nimble and change, too. Learn to mix and match your options. Our old trust 2009 Nissan Versa started to have axle issues, and with nearly $40k in home repairs ahead of us, it’s time to lock in again.
It’s also time to be GRATEFUL and enjoy life because tomorrow isn’t promised. Just to be clear, enjoying life doesn’t mean you need to go spend money for the hell of it.
Table of Contents
Snapping Back from our $100k April “Liberation Day” Slump
Although I knew it was coming, I still managed to freeze like a deer staring at headlights. Financial experts also knew it was coming. While August was choppy, the hunt for the bottom of September was real. The September Effect refers to the historically weak stock market returns observed during September. September has been the worst-performing month, going back nearly a century.
Fortunately, the Federal Reserve stopped the bleeding. While it might not have been a definitive win, rates were cut by 25 basis points. This helped surge AI dreams, while Tesla quietly waged a comeback.
American households didn’t help one bit.
The US personal savings rate in August 2025 was 4.6%. The average household’s 2023-2024 monthly expenses were $6,440 (up $400 over 2022’s average monthly. Expect the monthly 2025 average to creep to $7,000 (or $84,000 annually). To make matters worse, the average credit card balance rose to $10,951.
The average American home continues to save less (near record lows) while spending more on credit (record highs). That’s a recipe for long-term financial challenges. 92% of US households have depleted their extra savings and now have less cash on hand than in March 2020. Demand remains too high and productivity too low.
It’s a soft landing, but we have middle-class casualties. While the poor are limited on the cash they have to get them in trouble, the middle class covers that up with debt. Borrowing from your future self equals 3.5x more in the long run for the same item today. The rolling recession is here, and you will feel it sooner or later. This is especially poignant for those who aren’t investing.
Following the News, People Panicked. But We Survived?
Our household net worth clawed back from $1.95M to close +$69k for September (see below). No matter the outlook, we are playing the long game. A downturn is another opportunity for dollar-cost-averaging (DCA) in quality companies. We were overleveraged on tech and carried too much Nvidia. However, we have been rebalancing. Selling high positions and buying into lower-performing sectors such as health, energy, and materials. There is always the next opportunity if you aren’t overly tied to the last opportunity.
For example, Gold has been up nearly 35% year-to-date. We should have scaled back tech and grabbed some gold and rare earth stocks. TNFG estimated shared later.
If you are new to investing, the goal is to BUY LOW and hold for dear life (#HODL). Long-term stock investments typically outperform shorter-term trading (day trading), which attempts to time the market. Over an investing period of about 40 years, missing the ten best days would cost you about 50% of your capital gains (profits). That’s a lot of money.
Avoid the issue by investing in the Vanguard S&P 500 ETF $VOO. It’s diversified and lets you participate in the overall market. The S&P 500 added 3.53% and closed at 6,693.75 for September (closing at a record). This means that VOO is up 13.72% for the year.
Our Investment Performance for the Year, So Far
As you can see above, our household portfolio dropped in Q2 (April 19) but went on a tear. It stumbled at the end because Mrs. TNFG rolled over her old employer’s 401k to her traditional IRA (no tax conversion). This transition confuses the numbers, but we are still north of 20%. Even with the glitch, our holdings are beating the general S&P. It’s been a drag, but this is where winners buckle down.
To think, we started with a $500 rollover into my 401k in 2014 when I got to DC. The portfolio is around $1.3M now, the net/max financial plan and our strategy are still the same (see breakdown below):
- Investing to match in the 401k,
- Paid down credit card debt aggressively,
- Increased my 401k contribution until max (ie limit $23.5k for 2025),
- Started to invest in a Traditional IRA (i.e., limit $7k for 2025) and Health Savings Account (i.e., limit $4.3k for 2025),
- Got more money back during tax season, and
- Reinvested some more.
Financial Changes Hit When You Least Expect Them
While 2025 has been choppy due to Trump’s shenanigans, we are still rolling through the uncertain gauntlet. In 2026, we will need to consider at least $40k for home renovations.
Coming off the great trip to Switzerland and Portugal in June ($15k), and a rental property road trip ($2.5k), there is so much to do now. At this rate, we need to build up our reserves. To do so, instead of crashing out to get there, our household favors an Emergency Plan over Emergency Savings. Time tested this theory, and the strategy held. From credit card points and HSA reimbursements, we were able to cover the cost. All with minimal direct impact on our overall wealth goals. This time, we are waiting until January to sell some stocks and use $15k to boost our reserves and crush our CC debt. This is definitely not your uncle’s financial advice, but rest assured, we are multi-millionaires, we are good a money management.
Disasters and financial emergencies strike, and unfortunately, they will strike again. It’s unfair, but like a hurricane, it doesn’t discriminate. Cut back on unnecessary expenses and double down on getting an emergency savings plan. Financial literacy is not your enemy on this journey; it’s an ally.
So What’s New to TNFG? And Q4?
If you are new to my content, this blog post showcases the TNFG monthly Net Worth Breakdown for September 2025.
There are always usable financial nuggets and aha moments that might help you along the way.
High prices outside translate to spending more time indoors. I’m taking this opportunity to add kinetic weekend activities for the family. It’s high time we walk, play more badminton, go on fun runs, and hit the parks.
This is still a great opportunity to build better habits.
Check out TNFG’s Top 3 Best SMART+ER Goal books for inspiration.
Moving beyond September’s Emergency Mode
To avoid playing too close to the edge, here’s TNFG’s game plan:
- Mrs. Transition back to DC ($5k);
- Repair old car ($2k max);
- Boost +$15,000 into the Savings Plan for 2026;
- Work with extended family for Wills and Estate Planning;
- Get a Term Life Insurance policy (outside of work);
- Start re-stacking credit card rewards and miles through 2026;
- Buy a new $700k home in FY 2028;
- And, settle with +$25,000 in savings in 2028
As things change, it’s best to learn to change with them. The primary intention is to draft the plan to help cement the ideas on paper. Secondly, my household goal is to float savings for emergencies, rental real estate coverage, and/or dry powder for investments.
Either way, having $50,000 on the side seems like a lot, but emergencies are costing more and more.
Rule of thumbs for savings:
- No more than 3x months of expenses. For example, if your average monthly expense is $4,000, you would need $12,000.
- For families, especially if you rely on one income, that’s 6x months.
- If you are considering starting a business and quitting. I would highly recommend 1 year of savings. The caveat is that you go lean out expenses in a demo year to feel what it’s like first.
Even though the game is unfair, there are always rules. If there are rules, there is always a trick to the game. Hard and challenging times are par for the course. They will happen. To mitigate them, you have to stay vigilant and work towards better outcomes today.
Cutting Down Debt and Being Debt-Free
Higher-than-expected travel costs added to our consumer debt in 2025, along with unexpected transition costs from RTOs. We are making some changes this year and cutting down the balance. So far, our credit cards still pay us more than we pay them.
We need to make room for the $40,000 in 3x home remodeling projects in 2026. Time to sure up the place for a new home purchase in 2028. Initially, we wanted to rent out the primary; however, I’m not sure how feasible this will be. Time to sell and use the proceeds to pay off all our debts.
Wealth is all about cash flow management; however, peace of mind is worth its weight in gold. I kinda suck with people, so the fewer unnecessary transactions, the better.
Here’s the Monthly Wealth Summary:
It started pretty badly, but we hit our mark. We closed at $2,020,608. For context, the journey from $1 million to $2 million took 2 years and one month. We saw an increase in our net worth for September 2025 of 3.42%. A cash equivalent value of $69,171. That’s the nature of the game. Sometimes you don’t have to win big. You have to win. Steady wins the race.
Layoffs are still in the air. Unemployment is uncomfortably looming. The government shutdown is still a thing, yet we still made it. I’m furloughed for now, yet still focused on bringing in +$10,000 average capital gains through our investments.
I’m anticipating a +7% rate of return for Q4 2025. October should yield around 3.5%. November is estimated to be the big winner at 3.6%. December will ease out with less than 3%.
What’s working toward wealth creation and what’s working against it?
Yeah, about those $8.5k expenses(11.84% over September 2024)
With prices going up just about everywhere, expenses are reaching record highs.
Specifically, we spent $1,828 on the 2023 auto loan and insurance. Reminder that newer cars are expensive. Our housing costs (for two homes) settle at around $2,797.96. With food costs peaking at over $1,090 (with restaurants). To note, our fixed monthly expenses (real estate and auto loans) are a massive $3,000 with a variable of $1,500. That’s a clean $54,000 per year.
That’s a lot of money. So we have to be careful. Selling the primary home in 2028 at $300k to pay off $150k debt would be great. This sets up the home purchase of $750k nicely. I am happy that the net/max plan is holding up.
What are our next wealth-building steps to close out the year?
Time to brush up on Portuguese and Spanish in twelve months and “unbig” my back.
Beyond that, here are our overarching goals for 2025:
- Keeping our expenses where they should be.
- All about “Not equating happiness and social acceptance based on the money you spend.“
- Add $25,000 in M1 Finance, focusing on Growth and Passive Income that generates at least $7,500 in dividends in 2028.
- Check out the portfolio in real-time. If you like the platform and want to start investing, I have the $50 for $50 referral if you need it. *Terms apply – https://m1.finance/SYdqDJ2SyADC.
- Shooting for a sustained investment contribution rate to reach $2.5 million in investment assets (by November 2028).
- 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
- Next travel season planning is on the way:
- Philadelphia in Spring,
- DC for the fireworks (July 2026)
- Japan in September 2026, and followed by
- A European Christmas in Switzerland and France.
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