Avoiding being Broke, Fireworks, Making Money, and Millennial Investing

We should have known that the lock down wouldn’t have lasted. Americans can’t keep still for too long.

Welcome to TNFG’s monthly Net worth Breakdown. In the vein of BudgetAreSexy.com by J-Money, this is a brief synopsis of our household’s assets and liabilities. Besides throwing in great tidbits and fund management facts, the biggest questions that you will see every month:

Positives – What went well?
Negatives – What didn’t go so well?
What am I working toward?

Table of Contents

Mid-2020 Flashback

Though there has been a ton of changes in our lives due to the COVID Pandemic, the world pulled through. Well close enough until we started to hear about COVID parties and Round two.

I still remember real estate investors laughing at stock investors and voila the fastest recovery ever. I also remember the Debt-Free community having their cake, and clinging to their emergency funds. All this while millennials wished heavily on Housing collapse that didn’t happen.

Some panicked and withdrew money from employer sponsored plans like the 401k, 403b, and 457b to their detriment. To make matters worse, they withdrew while the market was down realizing their losses while missing out on all the sweet 40% recovery. On top of that any money withdrawn, though it may be penalty free; they would still have to pay taxes on it on their 1040s by April 2021.

Read The CARES Act lets people raid their 401(k) for cash during the pandemic…should you?

Others are seating on cash – I know one couple hoarding $75,000 like it was toilet tissue (earning less than 1%). They could have made $22,500 (30%) on the market easily but fear is a hell of a motivator.

Some rushed to refinance options due to falling loan rates while taking on new closing fees and extending the terms of their loans. Hint – PS: Refinancing is 90% a bad deal, read Are there any downsides to refinancing your mortgage?

My household stayed the course and kept dollar-cost-averaging our way while adding a new Brokerage taxable account through M1 Finance. The final tally showed that our cash reserves increased, and credit card debt decreased.

Net increase of 18%

So what’s the Post BBQ July Recap?

Our net worth climbed from the gutter of March 23, 2020 and it’s been on a rampage ever since. For July, we are up a solid 8.81%. The biggest mover, credit card debt. We paid off of an additional $1,565 for 18.51% improvement. We saw a nice push in investment growth for 6.07%. Other liabilities i.e. TSP Loan from 2017 decreased by 4.93%.

The fiancée took a much needed family break for a month to handle more wedding stuff, down south. I, on the other hand, headed south to handle turnover for the rental property in Tallahassee with minor repairs. It’s getting close to the wire and hopefully we get someone to take the lease. Another COVID tragedy – my guaranteed rental income.

Turns out, I didn’t get the job promotion but I did earn two cash awards. Back to the drawing board to build my resume. I was deflated for a day but I kept it moving.

1. Positives – Reflect on what went well?

Investments and Passive Income. Hit the halfway mark for M1 Finance portfolio.

I’m beginning to understand more about investments while blending income earning through dividends and growth stocks. I learned not to be married to under performers, mainly the travel industry comes to mind. Instead, I pick up JETS ETF which is made up of US domestic airliners. Travel is still happening so I think it’s a decent time to invest for the surge post 2021.

I created the Zodiac portfolio comprised on 13 holdings with a payout monthly due to O Realty Income REIT while the rest dish our dividends quarterly.

On top of that, we added an additional $1,000 to the ROTH IRA while selling OXY stocks for a profit of $250 before the stock took a tumble. I guess it pays to pay attention and sell while the going is good.

Rental Management. Realizing the necessity of outsourcing, I’m entering a contract with a Proxy manager. The entire thing will be a Win-Win for everyone since I don’t have to travel and toss money at a Tallahassee motel.

Website up. July was the launch – all thanks to my plus 1, the fiancée. She designed and redesigned this website. I ran out of bandwidth but I think she found a slight side hustle? Fingers crossed.

2. What didn’t go so well this month?

Physical activity. Felt like I had the flu and feeling low on energy. I almost thought it was the Rona. Nah, just seasonal allergies for the W.

Over spending. Everything was a little more expensive than originally thought. It was rough all around from Rental Property to Wedding. This wedding thing is a drain on resources. The industry has gone carnivorous.

Upstairs leak again. Caught it before I left for Tallahassee but now it’s up to me to push everyone to get the damages in the second room repaired. Just a headache. This will continue until late October (I’m guessing).

3. What are we working toward?

Salvaging the rest of 2020 from the clutches of failure.

Establishing systems and processes. In order to get more done, I’m going to have to be regimented and excited. I will also need to play and rest accordingly.
Creativity and dollar conversions. Working on better IG posts, website with articles, and maybe a few workshops that I can use for passive income.
Working on investing at least $10,000 in M1 Finance Brokerage focused on Dividend Income that generates at least $1,000 in passive Income for starters in 2021. 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.
Getting back to shape – Please!
New Gear – The Fiancée cleared the purchase of a Yeti for Podcasting and Logitech Brio for Zoom Lives and such. I highly recommend them. Check out the Amazon Associates link.

Last Rounds on Income and Cashflow

Just keep reminding yourself that 2020 isn’t over yet. There are a lot you can do to ensure that you have a better 2021 and beyond. Fail fast and get back up. I’m failing again and I’m growing, there is truly nothing new under the sun vs just people trying to get better. I’m learning to get better and trusting the Net Max Financial Plan for Couples. It’s working for my household. We are up 8.81% so it’s not too bad.

Next Month, I’ll dive deeper into my M1 Strategy, proving yet again with a bit of intentional living an setting goals, the Impossible is just Improbable.

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