2020 in review and looking forward to 2021

A pretty good year for us, at least financially! After various ups and downs over the course of the year, Net Worth increased (net) by over $179k for the year, and in July for the first time ever, we *officially* became millionaires 😀

This increase is lower than the increase of $231k in 2019 but a lot was different.

Like a godforsaken pandemic different.

We effectively going to a single income family different.

Since we started tracking and documenting our financial journey from beginning of 2017, we’re amazed how far we’ve come. In January 2017, our net worth stood at $458k. In 4 full years, we are at $1.135m. Incredible!

We made contributions to the following accounts:

  • 401(k) – $19.5k (only for W)
  • IRAs – $6.5k
  • Brokerage: $2.6k
  • 529: $2.15k

Liabilities rose due to us purchasing a car, financed at 0%, after selling off one of our old vehicles.

This year we also refinanced our old 30-year 3.875% fixed mortgage (which we were in year 5), to a 15-year 2.625% fixed. In the process, we decoupled the escrow for property tax, and our monthly mortgage payments now go only towards principal and interest, with the payment amount remaining almost same as before the refinance. To give you an idea of how much interest we were paying on the 30-year note: only 52% of the monthly PI payment was going towards principal, whereas now 68% of the monthly payment go towards principal.

Goals for 2021 will be soft. After the year that was 2020 we need a *normal* year – plain, old fashioned, boring – to calm things down.

We obviously have no control over how the markets behave. What we do have control over is how we invest our money and how disciplined we stay. To that end, these are the numbers we hope to hit (contributions to different accounts):

  • 401(k) – About $15k
  • IRA’s – $12k (this might be the stretch goal)
  • Taxable brokerage – $3k
  • 529: $2k

Non-financially, here are the few things we’d like to do this year.

  • Meet up with friends and family!
  • Go on at least one long road trip of 7 to 10 days
    • Have couple of more shorter ones
  • Enjoy the summer
    • Hopefully have a number of cookouts at our place and few more at friends’ places
    • Kayaking
  • Maybe one trip involving air travel
    • International perhaps ..

Here’s hoping to an amazing 2021 everyone! May your life, and journey towards FIRE, be a glorious one.

2 thoughts on “2020 in review and looking forward to 2021

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