Is A Black Financial Independence Journey out of reach? #FIRE
We only have a 6% Chance?
Just for context. The Global Wealth Report says that the total number of millionaires in US is 18.6 million. The United States also added 675,000 new millionaires from 2018 to 2019 alone.
There are 614 billionaires in the United States, and only 7 of them are Black. The big names include Tyler Perry, Oprah Winfrey, Jay-z, Kanye West, Michael Jordan, David Steward, and Robert F. Smith. The latter coming in at $5.2 Billion in Net worth.
Chances are, you likely won’t make it. However, making it to Millionaire status is highly doable. I’m halfway there.
It’s a Start, it’s not the End
Back in 2012, I couldn’t find a job to pay me an adequate salary. With three Grad school credits remaining; the $125,000 student loan debt was piling up. I didn’t know how to network. My public speaking skills were trash and admittedly my confidence was shot. 2012 was my 2020.
In that darkness, I started to think about ways to improve myself from getting adequate sleep, working out, running and setting goals. I started to read more. I wasn’t a book reader but news articles, clips, and blogs; just about anything would do. I had to learn to just start. Eventually, I landed a job making $23,000 before taxes.
That was my start.
So How’s the Debt Freedom Journey Coming?
Name: Lawrence Gonzalez
Also Known as: The Neighborhood Finance Guy
Location: Washington, DC
FIRE Number:
$3,000,000
Yep a whole $3 Million since the value of money decrease over time and you have to factor taxes.
FIRE Type:
Generational FIRE -> my own type. Working toward maximizing pension availability, save and invest, grow wealth and leave as much as possible along with businesses, properties for the next two generations.
Savings Rate:
(Current) 55% in 2020,
Roughly 65%-75% starting 2021
Growth Rate:
(Current YTD 2020) 72.89%
Roughly 80% starting 2021
Quick Financial Review
Yearly Expenses:
Approx. $40,000 as of 2020
Income Type:
DINK i.e. Dual Income, No Kids
Income Sources:
Salary Jobs, and Side hustles. In the future: Books, YouTube, Passive Income, Consultations, Rental Income, Teaching.
Questions & Answers:
What is your FIRE story and where are you headed?
I plan to pay off the remaining $90,000 through the Federal Public Student Loan Forgiveness Plan as of September 2025. The future look very bright.
What is the best lesson you have learned about money?
I learned that I was throwing away wealth by overeating. Back in college, along with my three other roommates, we were spending about $2,400 per month on average on food and drinks.
I had to cut back drastically which helped me physically and mentally. Money is holistic and pervasive. As we make better decisions, we improve the quality of our lives. Additionally, every good money decision is not binary. It often triggers additional benefits that starts to create even great wealth opportunities.
*I used Mint.com and Personal Capital to track my income and expenses over time. Both are absolutely free super financial tools.
What content do you like to share on IG?
On my IG page, I share money management ideas, theories, tips, investments, budgeting, and ownership.
It’s all about breaking the ice of financial literacy and closing the wealth gap.
I’ve help friends, family and complete strangers with their financial literacy. The journey also taught me the importance of creating a confident voice; in truth this money journey is a self finding mission.
I also share that it’s not all ramen noodles and beans. My fiancée and I were also able to travel to 17 countries. The big payoff is learning to be intentional about the life that I want to live instead of going with the flow.
Why should the FI community follow you?
There are less than 3,000 Black and Brown financial advisors to serve over 23 million minority Americans.
Suffice to say, there are not enough constructive voices as it relates to earning and growing wealth. The biggest obstacle is realizing how much the wealth inequality gap is and how lonely the journey would be.
People should follow me if they feel overwhelmed with the terms and concepts and want to learn more about creating multiple streams of wealth opportunities.
Nothing is better than understanding how to save taxes on at least $30,000 per year while becoming a millionaire in less than 10 years. Wealth velocity matters on the way to FI.
How are you using real estate investing to reach FIRE?
When I purchased my condo initially, I used House hacking to earn an additional $500 month that I used to pay down credit cards and travel. Furthermore, I own a unit with my mom to set her up for additional income in retire.
In the Black community, Boomers tend to be anchored to their kids to supplement their retirement income, I figured it would be faster to buy and rent and prepare for the future vs waiting until the end.
My wife and I will be renovating my condo and that unit in December 2020 and spring of 2021 so that we can rent out the primary and purchase a new one in 2022.
What resources are you using while working toward FIRE?
My favorite resource is still Personal Capital and my financial podcast playlist while I run. I often tune into Paychecks and Balances, Journey to Launch, the Money Guy show, Marriage Kids & Money, and His & Her money.
What are you planning to do in early retirement? Will life be any different?
In early retirement, my wife and I are planning to move to Brazil for starters.
We would like to purchase an Air BnB in Lisbon, Portugal. On top of that, create small businesses to foster job growth while investing in an events space tailored to lower income communities so that we can celebrate without breaking the bank.
Will life be different? Maybe. We just want to pay it forward and change the community around us. Likely also do some adoptions.
What advice do you have for someone just starting their FIRE journey?
The why is more important than the How.
The why is not the money but the opportunity for a new life that you can build. Be truly fruitful and pay it forward to other people, the rest is a function of time
It is not the money, you are seeking; it is purpose.
What advice do you have for people new to FIRE?
Do not let others define your path for you.
If that is the case, you may as well stay at a 9–5. Additionally be careful of getting out too soon without a long-term plan, aging sucks and it might be more costly than anticipated. Getting out early does not hinder your social security income so also plan to create a complimentary lifelong purpose.
Bonus: Here’s what my household is working toward?
- Working on investing an additional $500 to hit the total of $12,500 in M1 Finance Brokerage focused on Dividend Income that generates at least $1,000 in passive Income for starters in 2021. Check out the in real time. If you like the platform and want to start investing, I have the $20 for $20 referral if you need it — https://m1.finance/SYdqDJ2SyADC.
- Boosting back the EF savings with an additional $1,000. Keep tabs on your savings, cash flow, net worth, investments, retirement and more for absolutely FREE with Personal Capital! Sign up with my link & get $20 Amazon gift card. *Terms apply. https://pcap.rocks/lawrencegonz
- Getting back to shape — HIIT Mornings. Running, and biking just pushing out effort. I say it all the time but it’s still good. We did start HIIT workouts off of YouTube.
- Fixing our homes - December. Fixing the leak damages in our primary home and updating bathrooms in the rental. It’s going to suck but at least you get to see the before and after. The goal is to get back to fully operational by January 2021.
Originally published at https://theneighborhoodfinanceguy.com on November 27, 2020.
