Our Investments Dropped $50k in the Red. Inflation Madness Continues!

Inflation madness, a world war but everyone can’t stop talking about the Oscars. While I’m not sure what is in the water, one thing is for sure, we all need therapy. France is spot on for offering free annual therapy sessions especially after the pandemic ends. The verdict is out on if it ended or if we are merely living with it from now on.

Inflation Madness, a Slap, and a War?

The longest March ever (again). And, the stock market is losing control.

Retail traders have grown unstoppable in their paranoia and the inflation madness is setting in. The inverted yield curve is tilting toward a Recession for 2023. All while Will Smith slaps Chris Rock, it’s pandemonium.

Time-out, what is an inverted yield curve?

An inverted yield curve describes the unusual drop of yields on longer-term debt below yields on short-term debt of the same credit quality.

The yield on the 2-year Treasury note traded briefly above the yield on the 10-year note.

Basically, it means that investors think that the long run sucks and it’s better to take your money out quicker.

For the average American facing inflation that leads to an increase of about $6,000 in total annual expenses, the worse is yet to come.

At least April is here?!

All about Inflation Madness and the Cost-of-Living Crisis Pot of Gold

This is our TNFG monthly Net Worth Breakdown for March 2022.

Every month, we share our numbers to see if we can make cents of all the nonsense. Additionally, I drop gold nuggets and hints to improve your financial understanding.

The goal of sharing monthly is to disprove others; It’s not impossible to grow wealthy. Building wealth works, even when the world seems to be in a dire place.

In the end, consistency matters so put in the time. You will find that the journey is one of self-discovery and change.

It’s not the money at the end of the rainbow; you will come to realize that it was always about your time. Furthermore, try not to get too hammered down about situations that you have no control over.

March 2022 – Inflation and Gas prices are the only things that are up.

Our next goal is to hit $750,000 by June 15, 2022. Unanticipated costs are coming out of the woodwork to make this difficult.

With a new oven, electrical repairs, and other renovations totaling just under $10k, the BlackRock CEO was right, millennials are going to learn hard lessons. The Russia-Ukraine war is ending globalization which will send prices soaring.

On top of that, my wife and I have $15k of medical bills coming up. Like a lot of Americans, we are feeling squeezed. However, unlike others, we know that any financial crisis comes in waves. It’s best to prepare and stay the course. So how did we do for this March in route to close the year?

See our ending Net Worth as of March 31, 2022 (below)

Investments bounced back post Federal decision but it can’t stop a Recession

Wall Street on Thursday ended its worst quarter since the first three months of 2020, which included the Covid pandemic lows in late March of that year.

For Q1, the DOW and S&P 500 closed down 4.57% and 4.95%, respectively. While, the NASDAQ lost 9.1%. Our investment portfolio fell from a high of $532,000 back in late 2021 to $483.928. Unfortunately, this is the new normal of investing.

All points indicate a recession in 2023.

The Market Dropped in the Final Minutes

Sometimes what we hope for doesn’t hit.

Our first goal was to knock down credit card debt to $5,000 but the passive income checks did not come through in March. Let’s see if we clear out this debt by June 2022.

Taxes are due on April 15, 2022, so if you didn’t get a chance to invest in an IRA, now is a great opportunity to hit the nail.

Prior year contributions are a subtle way to maximize your benefits. As for my household, we owe about $15,000 in taxes.

Passive income is sweet at the moment but poisonous later.

Our savings are going back up with a grand total of $5,000 by the end of the year.

For us, we rather put it in the market versus keeping too much inflation savings on hand. At +7%, we are really losing money by being too protective. However, I welcome the float room to keep my wife financially secured and mentally.

All in all +3.88% in a month is better than nothing. We are merely thriving over surviving and being average. I anticipate a +12% ending for our strategies.

Our Household Expenses for March 2022

No stimulus payments this year and no passive income support for March.

My sister-in-law is getting married in May so we are spending in the festivities. Well mainly the ladies and their weekends.

Bonus, my best friend got married with the news of a baby on the way. Nice way to close out 2022 since this might be a December baby like me.

Car insurance came in so that’s where the $1k is coming from. Insuring 3 people and 2 cars is quite costly semi-annually.

With prices fluctuating, it’s best to loosen the purse strings and see where the cards fall.

Utilities and all other companies are adjusting to the inflation cycle by passing the cost to the consumers. Cut where you can just be the policy.

Home, Food, and Health!

As the cost of housing goes up, we are doubling down on necessities and creativity. Trader Joe’s is a great space to get quality wine for less. Their pizzas and baked goods are a welcomed change of pace.

Whatever you don’t need, you really don’t need. And, spend differently buy buying more assets to get ahead (see final graphic on wealthy spending habits).

Finally, calm your investment nerves. If it wasn’t for investors’ fear of inflation or normalcy collapse, we could have hit $700,000 but alas we got to $685,000. Our net worth went up by 3.88% – a cash value of over $26,000. While I see a lot of people pushing the Debt Free Journey or the FIRE movement, I’m just seating on the side with the Net Max Financial plan and doing both.

Beating March Madness, Looking ahead Beyond Inflation

Although we didn’t beat the buzzer, we got each other. I really couldn’t do this journey alone.

Beyond that here are our overarching goals for 2022:

1. Front Load our ROTH IRAs by Mid Year to invest in Google Stock prior to the Split. Right now they are cheap and their earning look great into 2023.
2. Investing $1,250 per month in M1 Finance Brokerage focused on Growth and Dividend Income that generates at least $1,000 in passive income in 2023. 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.
3. Shooting for a sustained investment rate with the push for a $750,000 net worth. 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
4. Prepare for an Epic Financial Literacy Month: (4) Workshops, 2 Podcast Interviews and a New Blog Series just for readers. Pushing to build out the website until we hit $1,000,000 net worth valuation.

About Author