We Hit over $950,000. Time to Celebrate in Mexico!?
July ushered in a BIG TNFG WIN. We hit over $950,000 in net worth. So new phone (in Mexico) who dis?
Whereas last year (2022) we reached a whopping 1 Million dollars in ASSETS in less than 10 years, this year were are narrowing the final stretch to the $1 Million net worth goal. For those who are new to the lingo, Net Worth = Assets minus Liabilities. The best way to fix your wealth equation is to 1. Spend Intentionally, 2. Increase your income and 3. Invest-the-difference. The Investment part is fun since it’s a la carte. You can invest in improving your soft skills, technical skills, or education. You can also invest indirectly through your 401k (or equivalent) and/or directly in the stock market. Additionally, you can also invest in the value of your network.
The year that I met my future wife (November 2016), I traveled solo to Canada and Brazil (Summer 2016) and even purchased a Condo (October 2016). I now realize how pivotal and transformative 2016 is as it relates to our future financial freedom.
While most people didn’t believe me at first; throughout the process, it became apparent that it’s not something you can force on people. They either want to be wealthy and stress-free, or they don’t. All we can do is share every tip, tool, and strategy. Can’t say, we never tried to help.
Table of Contents
2-Yrs Since the Business Insider Feature, Inflation/Recession scares are still warring strong
While the year started off downwind, the market has since rebounded.
Inflation hit a peak of 9.1% back in June 2022, the Federal Reserve took even more restrictive action. After a few bank collapses and a lot of layoffs, we are back at sub-3 % inflation. The market rallied from the news which sent stocks soaring but specifically Tech stocks.
So no recession? Well not quite. That’s the whole problem, very few amount of companies are carrying us.
Most Americans are struggling to keep food on the table. Why? It’s a rolling recession. If you have money and means at the start, you are hurting but not so much. However, if you were living paycheck the paycheck, the debt is mounting up. With student loan repayments scheduled to start in Q4, it’s going to be a painful landing no matter what.
What’s it like on our end?
Through the endless motions of the market, we kept investing. And it’s been paying off. We are up nearly $35,000 in market gains. It’s important to note that credit card balances went up by 33%. Although productivity is seemingly up and unemployment is at a new low, we are still very much in a recession.
Prices are up. Eating dinner is now close to $150. Just hanging out for a quick cafe turn into a $50 fee. Tipflation is causing us to stay home. To compensate, the average American will have to make a tough choice. Get off the Hedonic Treadmill, so that you can win a life instead.
With that said, this article will showcase the TNFG monthly Net Worth Breakdown for July 2023 where making money make sense. In addition to our household wins and losses, we always drop useful financial nuggets and aha moments that might help you along your financial freedom journey.
A Million More Mental Problems and 4 Missing Tires in July
Post-pandemic is churning out mental health issues. So much so that crime is up. Even the Actors are striking. The world is struggling to keep up with wealth inequality. Checking with your friends as we cope with another global issue in which money dwindles to food, gas, and utilities.
As difficult as it may seem, we’ve been in this staggered lifestyle for almost three years. And it hadn’t been easy on most people. The best way to cope is to start with a 5-10-20-year plan. Most of our problems are vested in the idea that we aren’t living with any true purpose. We are waiting for things to merely happen to us and for us. It’s the entitlement matrix.
You have to break free and create your own story. Personally, I don’t value labor so we are headed for the financial freedom exit.
Shifting Post July to the 2nd Half of the Year
Hardcore Planning Season from July to December
Day by day it might seem like a hurdle but wealth is counted in the long term. To stay focused, we are moving toward buying a home in 2025. As such, we are investing while paying off debt. The goal by the end is about +$80,000 net worth growth.
So far, this year has been more miss than hit. The 2020-2021 investing cycle was a lot easier by comparison, so the wins come harder and are way more deliberate. At this stage, it’s all about holding on to big wins in 2025.
The market will likely settle at around +5% for the year. Feel free to click on the link to learn how to avoid post-pandemic revenge.
Here’s Our Monthly Net Worth Summary Overview:
So What Happened?
Our assets exploded out of the gate and it lead to an overall net worth boost of 5.50%.
Grateful for the climb. S&P for July might have peaked north of 5%. With all the pent-up energy, quality companies received a much-needed mulligan from the Fed. This helped all investor balance sheets. If you aren’t invested, you are missing out.
For now, we don’t anticipate that the good times will last forever. It’s more likely that there will be a seismic drop in October. This will reflect the issues for Q2. This will lean toward deep discounts and sales for a legendary Black Friday that no one can really afford. The recession is all but certain in 2024.
Either way, we are shifting to:
- Stacking 10% worth of investment cash for future opportunities,
- Purchasing an ETF focused on Utilities,
- Considering selling 50 shares of $XOM while stocks are at an all-time high, and
- Rebalancing where needed.
Our Expenses for July 2023
Coast FIRE Spending is back?!
With the Mexico wedding coming up in August, time for us to start counting macros and decrease luxury eating because over $1,200 for Food and Dining is ridiculous.
In this section, we share our mint.com expense report to show you that we aren’t perfect but we are tracking. Additionally, we aren’t on a budget per se.
We use the Net Max Budgeting method that allows flexibility in how we spend. As long as there is $3,250 in our checking to start the next month’s expenses, we are covered.
After that, we pay expenses and invest the difference.
The travel expenses are high since that’s our passion and it’s great to see family and friends every once in a while. We made the final payment to the Air BnB, which made up a seismic $2.5k. On top, we took out $500 USD worth of Mexican Pesos.
The entertainment stayed fair since we had friends over. Our pet portion is seismic since Brownie needed all his first-year shots and new ‘high-quality food’. This pup is a picky eater but the vet still made me feel judged.
I’m going to be mad if it does nothing. If you are wondering about the Business services, it’s the expenses offset by any income that comes in for the blog or workshops.
What is the Next Step for Us?
What’s the deal for August?
Headed south of the border for a wedding in Cancun. Much needed family recharge time, car repairs, and staying put.
Going to cross out our 3rd of the Seven Wonders of the World. The world is definitely getting smaller so why not travel? All while documenting it on Google Maps, with over 150 million views, here’s hoping Google tosses money at me one day.
Beyond that here are our overarching goals for 2023:
- Keeping our expenses where they should be by “Not equating happiness and social acceptance based on the money you spend.“
- Hold on to our recession-proof investment strategy through Q4 2023.
- Get to $60,000 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.
- Shooting for a sustainable $1 Million Investment Portfolio by 2025. To help monitor your savings, cash flow, net worth, investments, retirement, and more FREE with Personal Capital. Now known as Empower, a name change similar to Twitter going by X. Sign up with my link & get a $20 Amazon gift card. *Terms apply. https://pcap.rocks
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