We made it through December (Right).

We made it. It is with a collective sigh of relief that it is finally over. From big travel goals to canceled trips, job losses, business closures, massive protest, and stimulus checks that do not quite cut it, 2020 did not leave us with much else. For what it’s worth, we made it.

Table of Contents

Smooth Sailing Until… Stop the Steal (SMH)

Welcome back to TNFG’s monthly Breakdown, where I review our household’s December 2020 Net Worth with a dab of personal finance tips that you can use.

While November ended pretty well. Overall, the country decided on a new president, we got married, and we headed toward a Santa Clause rally. Let the good times roll.

Nope. I was wrong, dead wrong.

The last president, who will not be named, refuses to quit. With the Georgia, elections staunchly debated, an additional billion dollars was allocated to campaign ads that looked like movie trailers.

To clarify, it was a “S* show”, and what we used to call in the Marines, “a Cluster F*.” No rally but the market petered away at a win. There is still hope post January 20, 2021.

How to FIRE up Your Post Presidential Election Investment Strategy: 15 Stocks You Should Buy For the Next Bull Run 2020+

Votes Certified and Inauguration Approved?!

First 100 days

President Biden aka #46 is going aggressive for his first 100 days. Democrats now hold the majority so they will have to make due on some promises:

Repealing tax cuts: In order to pay for many of these wish list items, Biden said he would fight for the repeal of the 2017 tax cuts, which favored wealthy Americans.

CARES Act extensions: From rent moratoriums to student loans extensions, the American public is still hurting for results as we head toward reopening by fall 2021.

Don’t bank on student loan forgiveness in your lifetime. Closest you will get is the Public Student Loan Forgiveness.

Economic recovery: Initiate “Build Back Better” economic recovery plan in February, during a joint session of Congress. Released during the general election, the plan called for spending trillions on American-made products, health services and infrastructure updates.

20 U.S. market strategists reveal their 2021 predictions for the S&P 500

Above all, it is pandemonium. If you are not invested. Now is the time. The market slated to bring in an additional 8%-22% in 2021. If you have money stuck at Bank savings account making less than 1%, at this rate, it is simple arithmetic.

Your choices. Move forward, or Stay behind.
Lawrence Gonzalez, TNFG dEcember 2020

Starting Out on a High Note

For my household, the goal for 2021 is to hit $500,000 by March 2021. During that time, we will be facing our biggest hurdle yet. It is Debt Pay down year.

Over $50,000 of consumer-debt accumulated from the Wedding and Rental Real Estate renovations in about four months. It will take a miracle to lift the next boulder.

In December, we visited the rental property and struggle to get contractors. We did throw in a visit to New Orleans though. The high note is gratitude because no matter what things do improve in the world. We are confident that we can make it through. 2020 did not defeat us. You can pull through.

Try to duplicate our success by following:

5 Simple Ways to Jump Start Your Financial Independence Journey

Ugly Home Renovation Expenses!!!

“My wife said the space was ugly but at least now, she says it’s livable.”

To sum up, the Santa Claus month was different this year. We spent the time in the south so there were less chilly nights and much more family time. We were able to see both this year but I am guessing we might be skipping next year.

One of those little things that I do to save a bit more on taxes and to ease into the New Year, I prepay the mortgage(s) for January. It’s kinda nice to see more money in January but housing cost take a hit annually.

On top of renovations, prices everyone skyrocketed.

We had to remind ourselves that money is money but the time that we spend with those we love is priceless.

Family Matters

I spent time with my Goddaughter. She is growing up quick but I cannot shake the image of her as a baby or a toddler.

That is to say, I still remember carrying her around and picking her up but now, she is a blossoming 5’4. I also got a chance to bond with my Godson, who is an entire case study on his own. He is so serious and reminds me of me. He definitely hates to lose which should serve him well. We built a LEGO set, but I built it but he told me what to do. Those little moments are worth millions in my book.

The in-laws are dope as always. It’s incredible to learn their family chemistry from long nights playing Black Jack to just watching TV. It’s a joy. I married up for sure. lol

The Wife and I also did the Instagram thing and got matching pajamas. We were definitely ready this year. At least we have holiday movies. We also took a trip to New Orleans. So much food and Bon Temps. About $500 is not bad for traveling around Florida and staying in Louisiana for a weekend. Side note, the Air BnB was fire.

HGTV lied! It’s harder than 30 mins

Last tidbit, rental properties are harder than they look. So much repairs, expenditures to get them up, and going. I tapped into my electrical days, tweak all the outlets, and rewired lighting.

The wife built all the furniture. She is kinda scary when she gets in the zone. In addition, we added new ceiling fans and lighting fixtures. I am beginning to see why it is great to marry a person that is willing to build and work toward a future.

In short, we got sweat equity chemistry. Maybe in retirement, we will do more of these things. We opted not to do the painting since it reduced our workload and professional painters have better technique.

Furthermore, to support the local economy and put money into circulation, it was great to be a benefit for others especially during the holidays.

Grand Opening, Grand Closing

In the end, our net worth went up by a 5.41% whimper – a cash value of $23,000+. It is nothing to scoff at but it is far from the more exciting months when the market went into a frenzy.

There is a case for the existence of Two Americas. Some people were not positioned on the board to win in 2020 and the wave took many under. Others road the wave to soaring heights.

Positive Mindset

If you were not part of the latter, it is easy to be mad and I think rightfully so. However, I suggest channeling that into muscle memory so you do not forget how you feel. From there you have to choose to shift. That mentality worked for me.

I learned and I am learning to constantly adapt and prepare for the next opportunity.

1. Where were the bulk of the wins?

Investing definitely trumps savings of less than 1%. I wish I could yell that from the bleachers because it is an investors’ market. Understanding market flow does matter. If you are scared of investments, just keep learning and take the easy steps. I guarantee the outcomes earns you dividends and compounding interest over time.

Long term, high interest savings finally released for about $4,500. We also added more money back into our emergency savings so cash is looking robust for now.

2. Definitely taking on debt

We added at least $7,000 worth of renovations this month. The paint job and replacement doors came in at a hefty $4,000. We did a lot of the rest ourselves. We are still waiting on the $35,000 renovations to the bathrooms and kitchen to start in 2021.

One thing for sure, the next tenants will have an amazing space. We will have to do a great job vetting tenants. Look at the damage over $20,000 eesh. It is like rolling the dice.

Then, there were miscellaneous hits from dental to toll and traffic as well as holiday gift giving. Living on the road also increase our food costs dramatically.

If you want to know more about the costs associated with a wedding, read this For Richer or for Broke: How Millennial Newlyweds Get into $100,000+ Debt

3. What’s the Next Step for Us?

We are looking forward to 2021 (of course) – It cannot be worse than 2020. Therefore, it’s full debt pay down mode on top of our investments. Still working late.

Investing $1,666.67 in M1 Finance Brokerage focused on Growth and Dividend Income that generates at least $1,000 in passive dividend income in 2021. 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 – https://m1.finance/SYdqDJ2SyADC. Offer only available until February 28, 2021, when it will revert to $10 for $10.
Shooting for a sustained investment rate with the push for $500,000 net worth. 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
Build out Financial Literacy Workshops for 2021 – Setting new goals and pushing the community forward.
Work on blog consistency while adding eBooks and eCommerce. Pushing to build out for the next 3 years until we hit $1,000,000 net worth valuation.

Best Takeaways YTD

Set audacious goals and work on them constantly. Past failures are the down payments for future successes. Don’t be afraid to lose. If you want to know more about our technique, check out the Net Max Financial Plan for Couples.

Our Net Worth up +86% this year, a total value of $210,000.

All about wealth velocity in our household over debt freedom. We will likely the ½ Millionaire marker by March 2021. A far distance from struggle city of Negative $125,000 in 2014.

Now that we formed up like Voltron, we are working to build our version of home.

Aiming to prove that it is possible to normalize wealth for regular folks.

Click below for some of my favorite articles (below):