Still Not Debt Free. Grabbing the +$900k Net Worth Prize

June 2023 is now over and thank God. Inflation is tentatively cooling down as temperatures heat up. Investments made a major pivot from 2022 but we aren’t out of the storm just yet.

We are well on the way to the end of another year. Time flies. 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 high prices are kicking our collective global butts, the journey continues.

Turns out, the TNFG household made nearly $60,000 in debt payments and $43,000 in investment contributions during the first half. That’s a total of $100,000 bonus to our net worth. We will break this down further.

Half-Way Point in June: Time to Net Worth, and Chill

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.

For the last two years, I warned people of high prices at your local grocer. Those high prices increased the need for higher interest rates.

This cumulated into high loan payments. The median new car loan is pushing $1,000 per month.

Will we be consumer debt free this year?

Honestly, I don’t know. We had a slew of medical expenses, some renovation costs, as well as travel costs to go. We are merely throwing money out of the window to see if it sticks.

Learned that your budget and goals must stay flexible. Never know when an unexpected cost may pop. Try not to overspend in the interim.

All things considered, we still made it to $900,000 Net Worth with a great chance of getting to $1 million to close out the year.

Quick financial tips

The only intuitive way to stop this; buy or spend less through the end of 2023. If you have loose change, invest more while the market is down, because millionaires are birthed during recessions. Additionally, if you have student loans, make sure you pay interest in September before payments restart in October.

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 4% for the year, it means you are losing Negative 3.99% of your hard-earned money annually. While banks are even dishing out more dividends to their investors.

As of July 5, 2023, JP Morgan & Chase’s $JPM is up 28.60% over a one-year period vs the Chase Savings℠ account interest rate is 0.01% APY (effective 7/01/2023). I really wish I was making this up. And it doesn’t include the dividend yield of 2.76% quarterly.

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

Here are our 2023 Total Debt Repayments YTD

Table 1. TNFG Mid-Year Debt Repayment Recap 2023

	Credit Card Payments	Interest Incurred minus CC Rewards	Mortgage Principal Repayments	Loan Repayments	Total Expense Payments
January	$11,741	-$1,055	$250	$0	$10,937
February	$6,211	-$6.92	$1,000	$0	$7,204
March	$14,874	$181	$1,250	$0	$16,304
April	$10,066	$30	$1,250	$0	$11,346
May	$5,226	-$139	$1,250	$282	$6,620
June	$5,439	$1,010	$1,075	$629	$8,153
Total	$53,559	$20.52	$6,075	$911	$60,565

How Much Have We Invested as of June 2023

Grand Total (a clean) $43,050. While the global pandemic has become old news, the world is still looking over our shoulder at Russia vs Ukraine, the China recession, and the unstable Argentina/Venezuela. I haven’t even mentioned the numerous riots in France.

The Federal Reserve is aiming for this eternal soft landing but we are touch and go for the rest of the year. Stocks are trending upward while the recession impacted different social classes in a myriad of ways.

Only the future will tell however I suspect that some will fare better than others. Alas, the old saying holds true, “Can’t debt freedom your way into wealth.” You have to have a great strategy that incorporates both debt repayment and investing.

Table 2. TNFG Mid-Year Monthly Investment Recap 2023

	Employer Investments	Additional Invts. Contributions	Total Investments
January	$4,933	$2,500	$7,433
February	$4,250	$1,510	$6,760
March	$4,967	$2,240	$7,207
April	$4,967	$2,250	$7,217
May	$4,967	$2,250	$7,217
June	$4,967	$2,250	$7,217
Total	$30,050	$13,000	$43,050

Celebrating the Next Half after surviving the First Half

TNFG’s monthly Net Worth Breakdown for June 2023 was wild.

Electrical renovations, dental, and medical expenses are really pushing hard but the market is pushing back. Our investment performance for the year so far is over 19 percent. Refer to the annual performance graph.

Over five-year, we are hitting 92 percent. Not too bad for long-term investors.

Bonus for all the readers, if you want to get a near-accurate view of the TNFG Investment Portfolio with all the holdings, click because it’s blue. It will send you to the google sheets view. People ask and I always deliver on transparency.

Settling into An Aggressive Travel Season To close out the Year

First, I would like to give gratitude for paying $7,000 to fix our electrical issues. Winter was always a challenge since the kitchen hardware was connected to bedroom/bathroom #2. Beyond that, we still have pending travel arrangements to Mexico, Argentina, and Brazil. On top of an extra trip to Texas in October.

My wife and I are finding synergy (along with Brownie, our dog). With the rental renewed for the upcoming academic year, I have to follow up with car insurance clearing, HSA glitch repair, and the PSLF. We have a definite chance to avoid paying student loans by the end of the year. The cancellation would lead to a boost in cash flow of $1,657 per month.

Secondly, we will be picking up more High-dividend ETF stocks like $JEPI, Health, and Consumer Staples. People are brewing to ‘spend’ us back to a booming economy in 2024+ so we have to be ready.

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Here’s the Quick June 2023 Summary:

What Happens Next!

We are in the end game, referencing the Avengers’ blockbuster movie. In more ways than one, 2023 has been a readjustment or rebalancing act but we are making strides to get to the $1 million mark.

June 2023 was filled with unexpected expenses but ended with up 7.18 percent. The cash value growth of $65,472. Pending the $7,000 transaction on June 30, 2023. Investments carried the load this month, this quarter, and damn near all year. Rebounded better than Dennis Rodman in the 90s.

Our Expenses for June 2023

It was Bday Month! Always starts with a detox trip with wifey. This time we opted for a day in Philly. Nothing beats great food and relaxation.

Beyond that, we seem to finally get a slight hold on our food cost. 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 six months.

Our goal is to prepare to purchase a new home in 2024 or 2025. Every adjustment helps, especially since we are looking at $30,000 worth of renovation before we rent the primary.

To offset medical and dental, we took money from our HSAs. The rest is all about staying prepared. Most people are too rigid with their finances. It ends up being all or nothing. This approach doesn’t work for the long haul.

Give it room. Eat out a little and ease back on the journey. Your budget should work ‘with’ you and for you.

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Deeper Dive in the June Numbers

Credit cards are being repaid and our FICO scores are higher

The goal for total debt repayment is $80k in 12 months. This month lost steam and added nearly $3,000 due to medical expenses. The student loan forbearance is ending. Interest restarts in September. Payments in October.

The average federal student loan payment is about $280 for bachelor’s degree completers and $200 for associate degree completers. The average monthly repayment for master’s degree holders is about $570. Now is not the time to press the credit card button. Take a lean summer to prep for the fall.

President Biden and the Department of Education are set to reveal additional terms by August. There are interesting discretionary income caveats that might help you save thousands this year. Stay tuned.

Will Investments Continue to Rebound? (For Now)

We currently have an investment portfolio of $610k. Definitely, FAT FIRE range.

In the second half, we are rebalancing some index ETFs. I think the back half of 2023 might yield an extra 5 percent. 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 2023?

What’s the deal for July?

Preparing for the wedding trip in August. The summer heat is not going to play so way more sunrays to acclimate. Making micro changes to our investments in anticipation of the downturn in Q1 2024.

Beyond that here are our overarching goals for 2023:

1. Keeping our expenses where they should be by “Not equating happiness and social acceptance based on the money you spend.“
2. Get to $100,000 in M1 Finance (by YE 2025) 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 by January 2024. 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

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