Changing the Narrative of Wealth by Valuing Time

Although completely unhinged, August 2024 was a good enough month for wealth creation. The Cocaine Bear Economy turned into the Meth Bear Economy which kicked off with a complete collapse of the market when the S&P lost 3% on August 5th.

My wife and I ended the month with a trip to Austin (Texas), and some great news.

Mrs. TNFG got a new job in Florida. Although this shift comes with a $40,000 salary reduction, it’s part of the next phase of our journey. This will require new moving expenses as well. 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, wellness and partially moving South.

We were also 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.

Financial Freedom Measured in A Thirteen-Year Window

For context, let’s go back in time. My Wife and I 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, due to our investments, our net worth plunged a clean $50,000 (March 2020). We stayed the course and by April 2021, our wealth 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 $1.5 million.

These numbers aren’t shared to boast. They are intended to show proof that wealth compounds. And that, the wealth journey starts slow and ramps up toward one goal, TIME freedom.

“We are truly a far cry 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. I’ve seen that happen time and time again.

The things that helped:

• Free financial apps like Empower (formally 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

In the end, this is just more proof that your life can change drastically. If you are struggling right now, it doesn’t mean you will struggle forever. Complaining on social media won’t wish away your responsibilities. No matter who you vote for each election cycle, this is on you. You are the main character of your story.

Either way, you look at it, you have to do more today to help move you forward.

Massive Repairs, Travel, and High Prices Couldn’t Stop Us

Wait did the COVID pandemic randomly restart again? I guess it’s an August thing. The U.S. is seeing a late-summer spike in COVID cases — at least we aren’t required to mask up again. During the Paris Olympic Games, the “World’s Fastest Man” collapsed on the track. U.S. sprinter Noah Lyles managed to win a bronze medal in the 200-meter race. Lyles tested positive for COVID-19 two days before the 200-meter final.

Bennifer is no more again. Jennifer Lopez called it quits with Ben Affleck. The Democratic National Convention happened. Politicians are pulling out all the campaign promises from a $25k home tax credit for first-time home buyers to free IVF treatment. The race is still neck to neck which is oddly par for the course.

On the financial side, NVIDIA dropped a great quarterly earnings report and still lost more than 10% of its value because it was not as great as investors wanted. You really can’t win for trying. The Federal Reserve signaled that it may start cutting interest rates but didn’t promise September. Investors heard what they want to hear and believe it’s going to be September. None of this makes any sense anymore.

Besides the investment market drama, social media was not happy with the House of Dragons Season 2. No matter how you spin it, prices are increasing and layoffs are happening. It’s getting hard so check up on your friends.

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.

New to TNFG?

If you are new to my content, this blog post showcases the TNFG monthly Net Worth Breakdown for August 2024. There are always usable financial nuggets and aha moments that might help you along the way.

I’ve also been known to be the most transparent financial literacy person on social media, check out how our wealth has been growing since January 1, 2024 (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 merely 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 vigilant and work towards better outcomes today.

You will have to challenge yourself to Limiting Beliefs to change your trajectory. Check out the video (below) for tips on how and why:

Going Backwards into Short-Term Debt-Free Territory

We were hit with a surprise $608 vet visit for Brownie’s annual check-up. Still looking for a contractor to renovate the primary home. We are slated to pump an extra $40,000 or less to update the main bathroom and both bedrooms. The end goal is a more liveable space while we look for a forever home and then rent or sell (in 2025).

On another note, I found out that since 2016; we 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 +$75,581. While the Vanguard Total Stock Market ETF approach would be up +63,490. 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 $10,000 was frivolous spending. This month, we spent $1,000 on shopping but I think 60% was the replacement ring for my wife.

Our Investments were Down for the Month But Still Up +20% 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 is still the same (see breakdown below):

1. Investing to match in the 401k,
2. Paid down credit card debt aggressively,
3. Increase our 401k contributions until max (i.e. limit $23k per person for 2024),
4. 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),
5. Got more money back during tax season,
6. Nab some dividends if available, and
7. Reinvest whenever possible.

Intentional Living – Investing while Paying Off Debt in 2024

	Tax Deferred or Tax-Free		Matching Contribution	Total
His and Hers 401ks	Tax Deferred	$46,000	$11,300	$57,300
His and Hers ROTH IRAs	Tax-Free	$14,000		$14,000
His and Hers Health Savings Account	*Tax Free	$4,150	**$1,000	$5,150
After-Tax Brokerages M1 Finance	Taxable	$13,550		$13,550
Total Investment Contributions				$90,000

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 2024

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 about +$90,000 in investment contributions. We are investing a ton mainly 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.

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Here’s the Monthly Wealth Summary:

There was a moment when I thought we were going to close at $1,600,000. 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 8.80% or $134,558. Pension assets reajusted. 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 $5,500 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 ($44,000) and rental mortgage ($55,000) before considering a new home. If we are lucky, we can sell the primary and pay off $200,000 in liabilities in one go.

Even more, expenses work against building wealth

Thankfully, our rental tenants renewed. I didn’t have to do an extra trip out of state this year for turnover and repairs. Having tenants that you treat right, can lead to a great relationship over the long term. Next year, my little cousin might pick up the lease at a reduced 1/2 price. Family is family and she is attending my alma mater.

Overall, happy that the net/max plan is keeping us provisioned thus far.

For the last 8 months, our YTD investment contributions hit nearly $52,125 while our total debt repayments were $71,30. Sounds outlandish but we generally run all expenses on credit cards.

Brownie is a picky eater but he is pulling his weight. He hit 11lbs (finally).

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 all the world is a stage.

No one is going to do it for you

In 2021, China restricted video games for their kids for only three hours per week from Friday night to Sunday Night. They realized that sometimes you have to change your entertainment lifestyle to change the wealth and prosperity outcome.

No matter if you like their approach or not, they figured it out. You have to learn to police your financial weaknesses.

What are our next wealth-building steps to close out the year?

I have to bring in more passive income in 2025 and brush up on Spanish. Got to train for the 10k in October. We look forward to moving South. Relocating won’t be easy but we are mentally ready for it.

Travel is our drug of choice.

Beyond that here are our overarching goals for 2024:

1. Keeping our expenses where they should be. All about, “Not equating happiness and social acceptance based on the money you spend.“
2. 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.
3. Shooting for a sustained investment rate with the push for a $2 Million Net worth (by YE 2026). 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
4. Head back to school in 2025-2026? to eventually study for the Certified Financial Planner designation. I’m sure I know this stuff but this will add more credibility to my online news features.

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