First We Build Wealth and Then We Travel
Since high inflation is here to stay, my wife and I travel instead while stocks surge in November.
Every November in conjunction with Thanksgiving, our wedding anniversary, and my birthday, our family books a flight. This time we hit the high mileage for the Marine Corps Marathon in DC and ventured north to Boston for a Friendsgiving. All that’s left is our annual international trip. Our next destinations are Argentina for Christmas and Brazil for New Year. We will see if it can top 2022’s Portugal and Spain. But let’s be real, Portugal is the GOAT!!!
When it comes to financial freedom, we invest to enjoy more of the world.
Table of Contents
At this point, what’s next?
The annual inflation rate in the United States increased by 9.1 percent in 2022 (August), however, it seems to have peaked for now.
The federal rate hikes seem to have worked although we are far from the 2 percent target. As I stated before, we will likely never get back to that number. This is truly the new normal. As such, the stock market is pretty happy with the 3.2 percent as of October 2023.
In response, the market had its best rally since October 2022. A total value of $3 trillion in wealth for investors that held the line.
Continue to stay vigilant, since retail investors are fickle. One week exuberance, the other manic sadness. Even Bitcoin is having a resurgence, as in some disastrous cryptocurrency trials. Bitcoin climbed 4.1 percent to $41,649- its highest since April 2022.
In the end, 2023 was another wild lesson with a lackluster 2024 ahead. Nothing too bad, so far Energy and Utilities sectors are lagging a bit. Close your eyes and look toward late 2024 into 2025, if I had to take a wild guess.
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 2023. 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 of being wealthy. Instead, I ask that you mind your time. It’s our only true depleting resource. You can either invest to save your taxes and increase your wealth or you can drop as little as $100 per week for 40 years in $VOO and retire with as much as $1.8 Million.
The choice is yours. Not doing anything is way more expensive.
TNFG Wealth as of November 30, 2023
When the Fed decided to hold rates as is, investors pulled a full reverse and started pouring in from bonds to equities. Things are looking up, BUT!!
2023 retail spending on Black Friday was $9.8 billion, which was a 7.5 percent increase from the previous year. This was driven by a new demand for sales and impulse purchases. US consumers had grown more optimistic about inflation in November, a New York Fed survey showed. It is unlikely that inflation is slowing.
The rules are the same. Decrease your spending so you don’t fall victim to going with the crowd. Our household spent zero on Black Friday this year. At some point in your 30s, you will have everything you need. And you save 100 percent on the sale when you don’t frivolously buy.
With savings going doing and household debt going up, expect to come to a hard stop when it comes to a Santa Clause rally. The S&P 500 should close at 4,500 for the year and most households will feel the pain in 2024.
5-Year Look Back – Over $1M since November 2018
Sometimes it’s better to look at this data over the long term during low-performing months. 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 now have $185.
Funny but true story. While social media is filled with sad stories about why income is meeting expectations, it’s likely to make your expectations meet your income. We started where we were and adjusted as needed.
This is why I recommend the Net/Max Financial plan since it incorporates Debt payoff + Investing by QTR. Year to date, we paid down over $94,086 in credit card expenses and invested $73,783. It’s the best of both worlds while reducing our tax liability. On top of that, we also received a student loan forgiveness of nearly $89,000.
Here’s the Quick Summary:
What Happens Next!
We are up 8.46 percent for November from our investments with an overall win of 5.99 percent. A cash value add of $64,790. That’s a lot of money. We recoup a lot of losses from 2022. I guess I can’t be too mad since we are on trend to hit our +$360k net worth increase goal for FY2023.
No matter if the year is smooth or not, the net max financial plan holds firm.
What Did Our November Expenses Look Like?
Our auto costs lead the way
We were robbed of our tires and rims for the second time this year. Turns out new Toyota cars are not equipped with adequate alarms. Thus, they are exploited by thieves. As such, we spent nearly $4,000 this year.
We are making adjustments to mitigate this. However, we are still fighting the dealership and their crummy repairs. Which includes sending Diesel south for an aftermarket super alarm upgrade.
After that, we spent $2,000 on travel which includes Thanksgiving in Boston. Food prices came in a little lower as we started to make adjustments to our food waste and snacking.
Death by a thousand cuts?
Most people’s finances perish due to a lack of budget or awareness of what they are spending. Although Mint is going away, I look forward to seeing how we can showcase this information in 2024. The platform is being integrated with Intuit’s more famous siblings Credit Karma and Turbotax.
New Xmas and No gifts
At this point, my wife and I decided on quieter Christmas seasons until we had kids.
No gifts are necessary at this point just closing out the year with an extra $3,500 for the trip.
Our big YTD investment goal of $82k is 94% complete. While our YTD total debt repayments were $203.5k.
We took no prisoners in 2023. It was hard but doable.
What is the Next Step for Us?
Beyond that here are our overarching goals for 2024:
- Balancing from investments and renovation goals in 2024.
- Get to $100,000 in M1 Finance focusing on Growth and Dividend Income that generates at least $7,500 in passive income in 2025. Check out the portfolio in real time. If you like the platform and want to start investing, put in a $100 referral if you need it (Limited Time) – https://m1.finance/SYdqDJ2SyADC.
- Shooting for a sustained investment rate with the push for $2 Million net worth in 2.5 Years. 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
- 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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