Still Not Debt Free, but We Paid Off Nearly $70,000 in Six Months

June 2022 is now over and thank God.

We are well on the way to the end of the year. If you didn’t get the memo, you have six months to get active. With half the year gone, it’s important to look back at your finances and take inventory. Although inflation and high prices are kicking our collective global butts, you still have to trek over the mountain.

Turns out, the TNFG household made nearly $75,000 in debt payments and $47,000 in investment contributions during the first half. We will break this down and more.

Half-Way Point to Paying off Debt or Nah?

It’s kinda unsettling how most months are flying 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.

Last year, I warned people of high prices at your local grocer and it got worse. This pandemic of prices spread far and wide. Everything costs more.

Will we be consumer debt free this year? Honestly, I don’t know. We had a slew of medical expenses, a new puppy and we still need to renovate.

We are merely throwing money out of the window at this point.

The only intuitive way to stop this; buy or spend less through 2023. If you have loose change, invest more while the market is down, because millionaires are birthed during recessions.

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 8.6% for the year, it means you are losing Negative 8.59% of your hard-earned money annually. While banks are even dishing out more dividends to their investors.

As of June 30, 2022, JP Morgan & Chase’s $JPM is up 21.25% YTD over two years vs the Chase Savings℠ account interest rate is 0.01% APY (effective 9/14/2022). I really wish I was making this up. And it doesn’t include the dividend yield of 2.61% quarterly.

Can’t say I didn’t warn you; you can’t save your way into wealth.

Here are our total debt repayments YTD

Table 1. TNFG Mid-Year Debt Repayment Recap 2022

	Credit Card Payments	Interest Incurred minus CC Rewards	Mortgage Principal Repayments	Loan Repayments	Total Expense Payments
January	$10,424	$26	$0	$260	$10,710
February	$7,028	$90	$800	$260	$8,178
March	$4,825	-$19	$1,200	$261	$6,268
April	$26,904	$72	$1,000	$98	$28,074
May	$12,196	$219	$1,000	$0	$13,416
June	$7,074	-$152	$1,000	$0	$7,922
Total	$68,452	$236	$5,000	$879	$74,568

How Much Have We Invested as of June 2022

Grand Total (a clean) $47,000. Even though the pandemic is still a thing, I’m still not sure where and when to wear my mask. While the Centers for Disease Control and Prevention said fully vaccinated people can be indoors or outdoors without masks, the mask rules still apply in some settings.

The Federal Reserve is aiming for a soft landing but it’s likely that a recession is unavoidable. Stocks are trending downward which isn’t good for the average investor. People usually panic if they are losing paper money. Additionally, while the US hasn’t declared a recession, it’s likely that your own household is in it right now.

*A recession is a period of declining economic performance across an entire economy that lasts for several months.

Only the future will tell however I suspect that some will fare better than others. Alas, the old sayings hold true, “You can’t save yourself into wealth“ nor “Can debt freedom guarantee you wealth attainment.”

Table 2. TNFG Mid-Year Monthly Investment Recap 2022

	Employer Investments	Additional Invts. Contributions	Total Investments
January	$4,750	$4,000	$8,750
February	$4,750	$4,750	$9,500
March	$4,750	$3,000	$7,750
April	$4,750	$3,000	$7,750
May	$4,750	$2,000	$6,750
June	$4,750	$1,750	$6,500
Total	$28,500	$18,500	$47,000

Celebrating the next Half after surviving the first half

TNFG’s monthly Net Worth Breakdown for June 2022 was wild.

Violent stock market rallies, medical expenses, and the new puppy is really pushing hard against any progress. Thankfully, we are down but it’s not as bad considering how much everyone else is struggling.

Settling into Normal from June and beyond

Beyond tightening the war chest for the second half of the year, we are looking up the end-of-the-year travel destination so we can celebrate our anniversary and my birthday. We also need to get a new tenant for the rental very soon.

Going back and forth for showing in Florida is not my cup of tea but passive income opportunities are rare and far in between. By 2024, we need to implement a 3-yr aggressive pay-off strategy to the tune of $25,000 extra per year.

Secondly, we will be picking up more High-dividend ETF stocks like $FDVV, Energy stocks, and Consumer Staples. People are brewing to “spend us” back to a booming economy in 2023+ so we have to be ready.

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Here’s the Quick June Summary:

What Happens Next!

We are in the end game, referencing the Avengers’ blockbuster movie. Speaking of which, I’m ready for Thor 4!

In more ways than one, 2020 has offered the world an opportunity to break from the treadmill, process and think, and finally be given a choice. The downturn of 2022 is cementing a hard lesson that everything doesn’t always go well.

Go back to the 2019 lifestyle or move forward to 2023-2024. The TNFG household chooses to move fwd.

June 2022 was filled with unexpected expenses but ended down 1.20%. The cash value growth of $8,369. We are off track to close out the year in stride, we will likely land with a $750,000 net worth versus the January estimate of $900,000. It’s a down year so it can’t be helped.

Our Expenses for June 2022

It was Bday Month!

There were a ton of unexpected expenses in June.

Tons of fun and funds for the wife’s bday in Quebec, Canada so travel was up. Got to do a blog post detailing the expenses.

Beyond that, we spend more than anticipated on shopping since we will have to return to the office soon as well as personal care. As well as implementing a Brownie (our dog) fund of $250 per month into the budget.

Food costs seemed to have settled. I’m changing my diet radically. Got to eat less to lose weight and build energy.

The hope is that we establish a baseline for the next 6 months. Our goal is to prepare to purchase a new home. As always the unexpected must be built into your budget. This is why a zero-base budget doesn’t work.

That’s the basis of expecting the unexpected. A great budget offers flexibility.

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Deeper dive into the June Numbers

Credit cards are being repaid and our FICO scores are higher

The goal for total debt repayment is $90k in 12 months. This month lost steam and added nearly 2k due to medical expenses. The student loans are in forbearance, are still in effect until October so we are pushing ahead as best as we can.

Biden is set to reveal his student loan determination in July or August. I don’t expect much from that.

Investments continue to decline

Eeesh, Bitcoin + NFTs (down 50%) vs how the regular market (down 20%). Thanks to China stepping up Bitcoin scrutiny and the rapid push toward a recession, digital investing tanked (for now) along with Tech stocks. We used to have a $500k portfolio at the beginning of the year. We are technically down $100k or so.

It’s a blood bath.

We have rebalanced some tech and diversified in indexes, REITS, and Dividends. I think the back half of 2022 (+5%) might be richer than the first half. 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 2022?

What’s the deal for July?

Renting out the property in Tallahassee and traveling to NY and FL respectively. Mrs. has a friend’s get-together. I have to see my Goddaughter for her sweet 16 bday.

Beyond that here are our overarching goals for 2022:

1. Keeping our expenses where they should be by “Not equating happiness and social acceptance based on the money you spend.“
2. Get to $50,000 in M1 Finance 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.
3. Shooting for a sustained investment rate with the push for a $1 Million net worth in 2 Years. To help monitor your savings, cash flow, net worth, investments, retirement, and freer with Personal Capital! Sign up with my link & get a $20 Amazon gift card. *Terms apply. https://pcap.rocks/lawrencegonz

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