I made a video on this…
How it Started:
Dec 8, 2019 Balances:
401K: $65,831
Roth IRA: $4,425
HSA: $633
Total: $70,889
Car Loan: $5,375
Car Warranty: $517
Credit Card: $1,557
Total Debt: $7,449
How It Ended:
Dec 31, 2020 Balances:
401K: $110,076
Roth IRA: $7,389
M1 Acct: $1,304
HSA: $507
Buffer Fund: $5,000
Total: $124,276
$0 Debt
My net worth is basically up $60k from last year. 2020 was a rocky year for me, for a while I wasn’t sure I was going to still have a job. I didn’t go into the year at full steam but didn’t backpedal when my investments took a huge dip in the Spring. I managed to put $19.500 in my 401k and on the path to hitting $6k for 2020 in my Roth IRA before the April 15th deadline. That’s exactly where I put every last dollar of my $600 stimulus check. Some might call it a dumb move but I like compounding and seeing my money grow.
I see others making poor financial decisions and the only thing I can do is step back and let them learn the lessons on their own. I could offer advice but it would fall on deaf ears. You can’t take it with you, but you can enjoy life while also planning for a future filled with abundance and joy.
What Are Financial My Goals for 2021?
- Max out my personal 401k contribution for 2021: $19,500
- Max out Roth IRA for 2021: $6,000
- Max out Roth IRA for 2020: $3,900 left
- Add to taxable investments: $5,000
- Double emergency fund / downpayment account: $5,000
- Max HSA Contribution: $3,600
Total: $43,000
I’ll admit these are some pretty aggressive goals for the year. If I can’t meet all of these goals I’m not going to beat myself up over them. Life happens, but paying attention to my investments and being super aggressive is more than what most people do.
I also want to find a new place to live after over 6 years in this apartment. Houses are way too expensive in this current market. Not to mention the competitive nature of the market. People with conventional loans getting preferential treatment over FHA, or making cash offers above asking price. Then you have taxes, maintenance, HOAs, utility costs 4x my apartment, pest control, PMI, closing costs, home security, etc. Not sure I want to sign up for that right now. I would be building equity up however. Lots to think about.
I have a couple non-money related goals but keeping them to myself for now. Talk is cheap until you’re actually out and doing the things you claim.
What are your goals for 2021?
Debt Free Alpha 
2 responses to “End of Year Update – $124k for 2020!”
Congrats on your net worth increase! I agree-I see so many people doing the stupidest things with their stimulus check. I didn’t get one this time around due to my income, but I can tell you I wouldn’t be purchasing new t.v.’s or other materials items with it!
Loving your goals! I’ve also set out some pretty aggressive financial goals for myself, but I won’t embarrass myself with the numbers. Though it is nice to chat with others who have the same mindset. I’m trying to play catchup with retirement since all of my income until 2019 went to paying off my $60K in student loans. I’m turning 30 in a little over two weeks, so I keep reminding myself that I have time to get caught up.
Thanks again for the words of support! I am on a few different Facebook groups and forums for people focused on investing. It really does help reinforce the right behaviors.
I read somewhere that the average American household is $16k in debt. To me that just didn’t sit right. Either through buying things they couldn’t afford or falling on hard times and needing to rely on the cards to survive… I just don’t get how things can get that bad.
You should get your goals down on paper, in a journal, blog, etc. Doesn’t matter if it’s $25 a month or $1000 a month, it’s the habit and behavior that is the most important. You see progress and get positive reinforcement.
The best time to act is now. 😀