Understanding The Time Value of Building Real Wealth
August 2025 was cooking until the last week. It felt like we were running hurdles like a pro and tumbled hard at the finish line. The Meth Bear Economy is back, and it’s showing no mercy on consumers. To kick off the month, my wife and I were locked into cleaning and maintenance for the rental property. Money was spent. By the end, we were hemorrhaging money even with inflation coming in 0.1% cooler than July 2025.
Any good news?
A year later, Mrs. TNFG landed a new job back in DC. This shift comes with a $9,000 salary upgrade and tons of complexity. Alas, it’s part of the next phase of our journey. This will require new moving expenses, new outfits, and an increase in transportation fees. Sometimes the overall plan requires a setback to set up for the future. With four more months left, the rest of the year is all about health and wellness. Time to level up and slim down before Brazil.
Flashback: Last year, we were featured in a new Business Insider article titled “The Millionaires Next Door,” written by Noah Sheidlower. Check it out and let me know what you think.
Table of Contents
Financial Freedom Measured in A Thirteen-Year Window
For context, let’s go back in time.
My Wife and I started this journey with a combined six-figure debt. We hit absolute zero net worth in January 2018. It was a breakeven point when our Assets matched our Liabilities. At the start of the pandemic, our net worth plunged by $50,000 (March 2020). Unlike the naysayers, we stayed the course. By April 2021, our wealth had skyrocketed to $500,000, which led to a feature on Business Insider. Three years later, we hit over $1 million (August 2023). And now, we are up to $1.95 million. Four percent away from $2 million net worth.
These numbers aren’t shared to show off; this is proof that wealth compounds. The wealth journey starts slowly. After that, you are hit with challenges and decisions daily. Each good decision takes you closer to the goal. While each bad decision puts you three steps away. In the end, you are buying back time.
“We are far from where we started.”
A very long way from counting every dollar of the $1k per month I was making, and stretching it to cover bills and pay off debts (March 2012). Growing up poor is a traumatic experience. However, you can’t let it kill your willpower. It happens time and time again. You aren’t the first nor the last person to struggle with this.
The things that helped:
- Free financial apps like Empower (formerly Personal Capital)
- Podcasts: The Money Guy Show with Bryan and Bo, Journey to Launch with Jamilla Souffrant, and Marriage, Kids and Money with Andy Hill
- Strategies: the Financial Order of Operations, and the Net Max Financial Plan
More proof that your life can change drastically. If you are struggling right now, it doesn’t mean you will struggle forever. Become the main character of your story, and learn to add more value to your time.
Massive Repairs, Unemployement, and High Prices Couldn’t Stop Us
I guess it’s an August thing.
The U.S. is seeing a late-summer price spike along with massive unemployment revisions. Nearly a million more unemployed than anticipated. In an episode of underreaction, you already know what the President did. Trump fired Erika McEntarfer, the Commissioner of the Bureau of Labor Statistics (BLS). He accused her, without evidence, of manipulating job data for political purposes. We are living in wild times indeed.
This places the Fed Reserve in a tough rate-cut position. Investors heard what they wanted to hear and believe it’s going to be September. None of this makes any sense anymore. NVIDIA dropped a great quarterly earnings report and still lost more than 4% of its value. These haters don’t want us to be great. You really can’t win for trying.
High prices outside mean more opportunities to focus on health and wellness inside. You don’t need more money to start building better habits. Check out TNFG’s Top 3 Best SMART+Er Goal books for inspiration.
Don’t let disaster strike again without a response. Cut back on unnecessary expenses and double down on getting an emergency savings plan. You deserve more than to struggle.
There’s a lot of Shenanigans. However, Are You New to TNFG?
If you are new to my content, this blog post showcases the TNFG monthly Net Worth Breakdown for August 2025. There are always usable financial nuggets and aha moments that might help you along the way. I’m likely the most transparent financial literacy person (influencer of 3) on social media.
Check out how our wealth (Assets minus Liabilities) has been growing since January 1, 2025 (below):
A Million and One Limiting Beliefs in August
“The Man who says he can, and the man who says he can not… Are both correct?” Confucius
He said this over 2,000 years ago. There is truly nothing new under the sun; the rest is merely acceptance. You don’t have to be the strongest, fastest, or most creative. You have to be willing to put in the work. Most people obsess about other people. Overly concerned with what they don’t have while neglecting what they do have.
Life is unfair and unbalanced.
Even though the game is unfair, there are always rules. If there are rules, there is always a trick to the game. My wife and I learned that hard and challenging times are par for the course. They will happen. To mitigate them, you have to start being vigilant and work towards better outcomes today.
You will have to challenge yourself to overcome Limiting Beliefs to change your trajectory. You do that by studying how money works. Here’s a great video on how to double your money:
Going Backwards into Short-Term Debt-Free Territory
We were hit with a $750 rental property fix. On another note, I found out that since 2016, we have spent over $40,000 on Amazon deliveries. Have you ever done a review of your purchases?
If $500 per month was invested into Amazon $AMZN or $VOO for the same period, I would have? Under the Amazon scenario, our wealth would have grown by +$150,000. While the Vanguard Total Stock Market ETF approach would be up +125,000. Either way, that’s a wealth differential of +$100,000.
It makes you think. And no, I don’t expect you to stop spending money on Amazon. I’m pointing out the little costs that add up. I’m sure that at least $5,000 to $10,000 was frivolous spending.
Our Investments are up +17% YTD
As you can see above, our household portfolio dropped twice this year. The first time in March and again in August. But at least, we are beating the general S&P. It’s been a drag, but this is where winners buckle down and level up.
To think, I started with a $500 rollover into my 401k in 2014 when I got to DC. The portfolio is around $950k now, the net/max financial plan and our strategy are still the same (see breakdown below):
- Investing to match in the 401(k),
- Paid down credit card debt aggressively,
- Increase our 401k contributions until max (i.e. limit $23k per person for 2024),
- Started to invest in a Traditional IRA (i.e., limit $7k per person for 2024) and Health Savings Account (i.e., limit $4.15k per person for 2024),
- Got more money back during tax season,
- Nab some dividends if available, and
- Reinvest whenever possible.
Intentional Living – Investing while Paying Off Debt in 2025
| Tax Deferred or Tax-Free | Matching Contribution | Total | ||
| His and Hers 401ks | Tax Deferred | $47,000 | $10,500 | $57,500 |
| His and Hers ROTH IRAs | Tax-Free | $14,000 | $14,000 | |
| His and Hers Health Savings Account | *Tax Free | $1,500 | **$1,000 | $2,500 |
| After-Tax Brokerages M1 Finance | Taxable | $4,000 | $4,000 | |
| Total Investment Contributions | $78,000 |
*Triple Tax Advantage
**Health Insurance Plan Kick Back
Dwindling Wealth. Here’s the market screenshot so far (below)
More Winners than Losers (for now?). Keep buying low and #HODL (Hold for Dear Life):
Investing Goal remaining from September to December 2025
Since we are investing while paying off debt, it’s a long way to Victory, but it’s been rewarding. The goal by the end of this year is to secure approximately $90,000 in investment contributions. We are investing a significant amount, primarily because it reduces our tax liability for the year.
My wife and I aren’t skipping on fun and jumping back to our end-of-the-year international trip.
Here’s the Monthly Wealth Summary:
There was a moment when I thought we were going to close at $1,975,000. And then, the market started to hate on $NVDA. August might have been a mess on the investment side (+$5,415), yet it was a simple win overall.
We saw an increase in August of 1.28% or $24,933. Pension assets re-adjusted. Home equity remained steady. I still think we have more of a desirability crisis versus a true affordability crisis in the US. People are still fighting; there are more benefits to owning your home vs. Renting. Especially with rent going up at least 40% since 2019.
The financial nerds hint at the S&P recapturing an extra +5% toward year-end. No matter what happens next, you need a great financial plan that helps you build generational wealth.
What’s working toward wealth creation and what’s working against it?
Prices are going up just about everywhere. After all the Federal Reserve rate hikes, inflation is slowing down. It took a while. Why? Turns out Americans are spending a lot. This is becoming a game of attrition.
On average, my household spends $6,000 monthly. Most of these dollars go toward housing costs, travel, car expenses, and food. Money is flowing in and out of our hands. We have $3,000 of mandatory debt repayments (two mortgages and one auto loan). Where most people mess up is picking up more liabilities on a whim.
My wife and I will have to pay off the car loan ($35,000) and rental mortgage ($45,000) before considering a new home. If we are lucky, we can sell the primary and pay off $215,000 in liabilities in one go.
Takeaways for August and the journey to time wealth
Growing up is hard. Let your destination match your mindset.
While it might sound mean, in truth, we will all have to grow up one day. Make today the day when you start to believe in yourself, your family, and your trajectory. For good or for bad, you have to act because the world is a stage.
What are our next wealth-building steps to close out the year?
Travel is our drug of choice.
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 $10,000 in M1 Finance, focusing on Growth and Passive Income that generates at least $5,000 in dividends in 2025. 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. *Terms apply – https://m1.finance/SYdqDJ2SyADC.
- Shooting for a sustained investment rate with the push for a $2 Million Net worth (by YE 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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