We Fail No Spend November Every Year. We Travel Instead!
Since high inflation is here to stay, my wife and I travel instead. Every November in conjunction with Thanksgiving, our wedding anniversary and my birthday, our family books a flight. It’s always feels like a great time to reflect, detox and catch up.
It’s worth investing to enjoy the world.
While last year’s Disney trip was great, our second trip to Lisbon, Portugal definitely topped it. As a bonus, we got in a rental car and drove to Seville and Ronda, Spain.
Turns out, a lot of people are learning about Lisbon and marked it as their top destinations for 2023. If you never thought about it, you really need to rethink it.
It’s a pretty comprehensive city with more range than Quebec City. Lisbon also has more charm than the gloomy UK or the over the top Paris or Rome.
The food is spectacular while prices are still affordable. Especially if you are traveling from the US, it’s likely cheaper to go international than staying domestic.
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At this point, what’s next?
The annual inflation rate for the United States is 7.7% for the 12 months ended October 2022 after rising 8.2% previously, according to U.S. Labor Department. In response, the market has been bouncing up and down more than 250 points. Sometimes, investors are happy and the very next week, they are sad. Crypto and NFT aficionados are hurting to the tune of 60%-70% losses. Day traders aren’t doing much better.
In the end, 2022 was a humbling experience and we should expect a slowdown in 2023. Luxury travel will be up as well as the Energy and Utilities Sectors. Translation, it’s going to get harder and way more painful in the short term.
Close your eyes and look for winning mid to late 2024.
Thanksgiving and Going International in November!
As for the TNFG household, November was a travel and splurge month. We clocked in almost $4,500 in expenses like it was easy.
Nope, the math isn’t wrong.
The remaining $2k won’t crush us until the first week of December.
Carte Blanche x2 meant that we traveled to Orlando, dropped our puppy off with the in-laws and spent like bees at restaurants.
Total travel costs for November hit $2,500. All prices are up from restaurants and gas. We were spending around $60 to fill up an economy class car. You definitely won’t find me in 2023. Well, until the Mexico Trip in August. The only way you offset this wild spending is by shifting cash flow quadrants and invest as soon as possible.
Just in case you are new to TNFG?
If you are new, this article is part of the Net Worth series. In this post, I’ll showcase the TNFG monthly Net Worth Breakdown for November 2022.
We are extremely transparent so we share the Highs and the Lows. Additionally, we drop financial gems in hopes that you can model. The goal is to encourage you to take action.
Too often on social media, people portray their valuation on being wealthy. Instead, I ask that you mind your time. It’s our only true depleting resource. You can either invest to save you taxes and increase your wealth or you can drop as little as $100 per week for 40 years in $VTI and retire with as much as $1.8 Million. The choice is yours.
Not doing anything is way more expensive.
Compounding Growth Meets Compounding Inflation in November
Groceries were up and no one blinked, but when Gas went up? Recession!
TNFG Wealth as of November 30, 2022
When the Fed decision came in, investors pulled a full reverse. Things started looking up for a bit.
US consumers had grown more optimistic about inflation in November, a New York Fed survey showed. The official November consumer price index hasn’t been released but traders are looking for signs. If inflation slows, expect a small Santa clause rally but be sure to learn to re-balance you investments.
This small boost in median net worth is an opportunity to learn and plan for 2023.
Over $783k of Net Worth Growth since December 2017
Sometimes it’s better to look at this data over the long term during low performing month. It’s an opportunity to reflect on how far we’ve come. When I met my wife, I had less than $150 in my checking account. I know have $185.
Funny but true story.
This why I recommend the Net/Max Financial plan since it incorporates Debt Pay Off + Investing by QTR. Year to date, we paid down over $104,110 in credit card expenses and invested $75,916. It’s the best of both worlds while reducing our tax liability.
Here’s the Quick Summary:
What Happens Next!
While we wait for good news, investment jumped. Try not to get too excited since we are all still down 18% or more. I guess we can still call it an overall win? +3.32%.
A cash value add of $25,551. I guess I can’t be too made since we are on trend to hit our +$100k net worth increase goal for FY2022.
Although, very rocky in 2022, the net max financial plan is holding firm.
What did Our November Expenses Look like?
Our travel costs lead the way
Travel is great however there were plenty of place where we could have made cuts.
How much cuts?
Well about $750. We even bought wet suits for the trip while over packing on non-essentials. Winter sounds like it could be cold but Lisbon winter is more Spring to Summer.
Was the trip all worth it? Yes but we could have made it easier for ourselves.
Either, we are more hyped to reach Generational FIRE – Financial Independence, Retire Early.
Our average Food and Dining (as a category) costs for the year stabilized at around $700/month. November is an outlier month since most food costs are generally travel related.
New Xmas and No gifts
At this point, my wife and I decided for a quieter Christmas while hosting. No gifts are necessary at this point but I did throw in about $500 since we have visitors staying with us. The net/max plan is still holding up and helping us reach our goals. The next big purchase won’t be the home but a new all electric car instead.
Our big YTD investment goal of $80k if 94% complete. While our YTD total debt repayments were $110k. We took no prisoners in 2022. It was hard but doable.
What is the Next Step for Us?
Beyond that here’s our overarching goals for 2023:
- Shifting from investing money goals to new car goal in 2023. “We put in work in 2022, time to focus on a much needed new car“
- Get to $50,000 in M1 Finance focusing on Growth and Dividend Income that generates at least $4,000 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 $30 for $30 referral if you need it (Limited Time) – https://m1.finance/SYdqDJ2SyADC.
- Shooting for a sustained investment rate with the push for $1 Million net worth in 2 Years. To help monitor your savings, cash flow, net worth, investments, retirement and more FREE with Personal Capital! Sign up with my link & get $20 Amazon gift card. *Terms apply. https://pcap.rocks/lawrencegonz
- Work on the Financial Griot Podcast content with my co-hosts to enrich the lives of our listeners. The wealth building community is growing.
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