How to Inflation Proof Your Net Worth during War
Instead of Love, War, and Greed are in the Air
February has come and gone. However, it was certainly one for the history books.
What started as $64 Billion in Valentine’s day consumerism, ended in a Russian Invasion. Pre-2020 were simpler times indeed.
The stock market was a whole other mess, down $30,000 up $10,000, and so on and so forth. Cryptocurrency and day traders are all but quiet while assessing increasing taxes.
The pandemic has ushered in a new reality, and it’s going to get tougher before it gets back to the new normal. With that out of the way, double down on quality time and cut back on unnecessary spending. While this is not a panacea, this will help cut down financial anxiety while prepping for the financial battles to come.
Table of Contents
A Debrief on War and Decisions for the Future
More than half a million refugees have fled Ukraine during Russia’s invasion, according to the UN.
The battle for Ukraine began in the early morning hours local time on February 24, when Russian President Vladimir Putin launched what he called a “special military operation” into the country of about 40 million, with attacks coming from multiple fronts (from the north, east, and south), and targeted toward multiple cities.
President Putin declared Russia could not feel “safe, develop and exist” because of what he claimed was a constant threat from modern Ukraine. Immediately, airports and military headquarters were attacked. He claimed his goal was to protect people subjected to bullying and genocide and aim for the “demilitarisation and de-Nazification” of Ukraine.
The solution from Western Europe and America? Sanctions, Lot of Sanction.
Getting Back in the Driver’s Seat for Post-War Spring
Welcome back to the TNFG’s monthly breakdown where I dish out all the secrets on the way to becoming a millionaire household.
Like all married men, I have to get approval from the Mrs to say, write and do anything. And even then, my actions can be repealed or sanctioned.
This month, while I highlight our household’s net worth, I’m also sharing support for the innocent in what appears to be an unprovoked war (see images).
Our current goal is to hit $750,000 (by June 2022) which would put us in the millionaire range by next March 2023.
We never saw anyone that looks like us shift from the poor working class (household making under $40,000 per year) to millionaire status in one lifetime. So we decided to share how it’s possible. This doesn’t make it easy but possible.
Inflated Prices from Supply Chain Issues and Russia’s War with the West
An ongoing benefit of tracking our household spending, we found that we overdid again. Food cost has increased so much, that I’m craving the day of $500 per month on food.
February was a massive reset for a lot of families dealing with high price inflation. This is likely to cost most families as much as $4,000 by the end of this year. This is why it’s important to invest versus sitting on large cash reserves.
Here’s hoping that March settles down because our collective consciousness can deal with these seismic changes. Beyond that, on a day-to-day basis, there is room for massive improvements. There is always a way to make some improvements in your life.
Check out this article on Fighting for a Better Life.
Here’s the Monthly Summary:
Market Greed, Violent Rallies, and Post-War decisions!
“Blame the Media and Retail investors because things were going great!”
The market is chaotic, to say the least. A lot of people are jumping in and risking more than they have for a life shortcut to avoid FOMO. However, it doesn’t really work like that and there are stories coming out, chronicling the failures.
At this stage, is best to plan for the future and continue long-term investing while the market continues these violent up-and-down mood swings. Costs are only slated to rise by 2040. The only hedge against that is intentional planning and investing.
Getting Back to a new normal
My job is thinking about going back to the office. I think I got too used to Working from Home. At least, they are giving us an option.
To prepare for this long-term imprisonment, we upgraded our Comcast Xfinity package to the +$30 premium. They are really gauging the price of the internet, we are now paying $125 per month.
With that said, screw XFinity lol.
We are paying for just about everything. Inflation and labor shortages are pushing companies to pass the costs to consumers and voila the perfect storm.
Our food & dining grew to $800+ where as it was sub $450 (2019). This is nearly double and I’m eating way more salads.
We really have to do better with our Amazon shopping since it’s up to $857. Most of that was for the Bachelorette Weekend for my wife and her sisters. If I was being honest, it is also the snacks.
I guess it could have been worst…
While my initial estimation put us at a $700,000 net worth, anxious retail investors kept the market on its toes. Luckily, at the end of the month, a quick upswing helps our net worth go up by 1.25% – a cash value of $8,265.
We barely made it this time and there should be more volatility come March. Up next, electrical repair (cost TBA) in the rental and a new oven (cost $600).
We are seriously catching zero breaks this year. In the end, we still have plenty of hope for a brighter tomorrow. This is the climax of the story where great things happen, and heroes are forged. We welcome the challenge every day.
It’s better to pray for you to improve beyond the last challenge vs diminishing your potential for change.
What is the Next Step for Us?
All is Fair in Love and Wealth. Beyond that here are our overarching goals:
- Investing around $1,000 per month in M1 Finance Brokerage focused on Growth and Dividend Income that generates a future passive income of $3,000 per month in retirement. 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 – https://m1.finance/SYdqDJ2SyADC. Offer only available until March 31, 2022, when it will revert to $10 for $10.
- Shooting for a sustained investment rate with the push for a $900,000 net worth by year-end. 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
- Change Investment Strategy – create a 10% buffer in ROTH accounts and M1 for future buying opportunities. Consider late-phase buying opportunities in international markets.
- Work on blog consistency while adding eBooks and eCommerce by Spring 2022. Pushing to build out for the next 3 years post a $1,000,000 net worth valuation in 2023.
About Author
