How We Hit Our Financial Goals Every Time
Table of Contents
With September Out the Way, Back to to Pumpkin Spice Fall
Our Next Goal: How to top the Business Insider Feature.
To start, “September was a whole mess.” The United States almost hit the debt ceiling again but that got delayed until December 3rd 2021. Post April to December 2020 spoiled me. I began to think that most months would be winners automatically. As September 2021 proves, you just need to be happy that you aren’t losing.
Something is happening in China again and effecting the world, again. To make a long story short, a big sell-off in Chinese Real Estate stocks caused a worldwide market slump. Desperate low tier investors are nearing panic selling mode. Here’s a rule of thumb stop trend investing -> Stop panic selling, you will be richer for it.
Reaching financial disaster is easy. You just have to make a few bad moves. The average person would be better served learning how to manage their own day-to-day lives and emotions in a healthy way while decreasing unnecessary expenses, increasing their income and investing in a home (first) and passive income (second).
As such being wealthy is pretty easy. With that said, let’s get into this month’s details.
Just in case you are new here
If you are new to my content, this is the TNFG monthly Net Worth Breakdown for September 2021. My wife and I are a millennial couple living in the DMV. That’s the Tri-State area comprised of Washington, DC, Maryland and Virginia.
We track our net worth monthly to prove that even an average 9-5 couple can make it work and reach early retirement. In addition, there are always usable financial nuggets and aha moments that might help you along the way.
Our goal is to make money make more sense.
I’ve also been known to be the most transparent financial literacy person on social media, you can even peep our household’s Debt-Free payoff plan below:
Embracing the Automatic Millionaire Lifestyle in September
To Spend or Not to Spend? Being Intentional Matters
Not sure where the millionaire lifestyle misconception started. Might have been with the broadcast of “Lifestyle of the Rich and Famous” followed by a decade of “MTV’s Cribs” to HGTV, society now equates wealth with a constant need to spend of luxury good, exclusive travel, expensive clothes, etc.
Here are 5 Lessons from the Millionaire Next Door:
- There is a no such thing as an overnight success. What you are seeing are years of sacrifice. Some of the sacrifice was generational.
- Everyone budgets. Budgeting doesn’t mean you are counting pennies. It means you are active in managing how your money moves. If you spend, you are very aware of it.
- Buy and Hold. Millionaires aren’t chronically chasing the next new car to replace the one they have nor are they looking for the next new home. These are just things. They are off the hedonic treadmill. They are often centered people.
- Form and Discipline over Substance. The average millionaire isn’t chasing the trill of a high. They are process information. They are knowledgeable and actionable.
- The biggest lesson is the lessons themselves. Life is never without challenges.
September for my wife and I was challenging since we’ve been on the workout kick. There were time that the work pushed us and the deadlines piled up. It happens. And you know what? We kept going.
Being a Millionaire is a lifestyle that most are unwilling to embrace. Many want the status of being rich and looking rich to others without the sacrifices and work to get there. Check Book Insight for a great review on the book.
Net Worth Loses Steam in September 2021
The Market Gives and Takes Away
As you can see above, our household net worth took it’s first dive since March 2020. While that drop was almost $22k, this was a mild $2k.
If you noticed the discrepancy, M1 Finance (our after tax brokerage) made a small change in their platform and I think Personal Capital is picking up the wrong numbers. In this case, they are likely pulling the basis vs the market value (see below).
We also prepaid our November 2021 anniversary travel and lodging as well as next year’s wedding lodging for the bridesmaids. September definitely didn’t go as planned but we are riding the wave.
Here’s the Quick Overview Summary of September:
Time to Wrap Up QTR 3!
A decrease in September of 0.36%. Completely unexpected. I was hoping to hit the $600,000 milestone sooner but I guess we will have to wait until early November or late December for a rally. The true cash value of the loss was $2,125.
The S&P was supposed to add another 7% for the year. The negative pandemic effects, lock downs and austerity measures are being tested. Resources and product shortages are driving up prices. All that being said, the 4th qtr should launch the economy into a healthier 2022 Stock Market. No matter how this pans out, life is going back to normal in 2022.
We might be living with COVID indefinitely and some countries are OK with the risk. At least, The TNFG household has a great foundational financial plan. Check it out if you need one for your family.
What did Our September Expenses Look like?
From insurances to Amazon, all our vendors wanted their cut of the check to close out their books for the year.
Unprecedented but we dealt with it. Some times you have to lose to win in the long run. It’s the long term 100 year War that you need to be concerned with.
The net/max plan stays clutch but I need to ramp up productivity and sell products for cash flow to sustain the website and support the new podcast.
Big lesson we learned is that ordering for pick up might not be the best version of a meal. You might be better off going on a date.
Our YTD investments for the last 9 months at $60,985 while our total debt repayments were $79,161.
We have more work to do. Our goals to reach, Debt RPYMT of $104,965 and total investments of $82,100. But at least, we will be credit card debt free and then we can shift toward increasing investments in 2022 and extra mortgage payments.
Actionable Lessons and Takeaways for September
Grow Up – Shift How You Spend Money (see graphics below)
I’ve been poor and middle class. The struggle is real. I understand them completely but the rules are as static as gravity.
If you spend directly, you lose in the game of wealth. You have to scratch to get the extra dollar or dollars to start working for you and not again.
For middle class people, it’s doubly taxed. People who consider themselves middle class, end up paying too much for their education only to work and spend to survive.
There are better ways to play the game of life that don’t land you in the game of unending debts.
Learn to Play the Game like the Rich instead.
What is the Next Step for Us?
We dropped the Financial Griot Podcast and finally onward to e-Books or other items for the website.
Beyond that here’s our overarching goals for 2021:
- Keeping our expenses where they should be. “So stop equating happiness and social acceptance based on the money you spend.“
- Get to $35,000 in M1 Finance focusing on Growth and Dividend Income that generates at least $2,500 in passive income in 2022. 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
- Kick off Paid content on the website and write a book. You aren’t important unless you have a book.
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