Wow! 2020 was really a doozy. 2020 was so taxing on me that I’m getting to this recap the third week of January. As crazy as the year was, I learned and gained so much. I had to deal with a lot of changes, curveballs, and disappointments, but financially I still accomplished more than I ever have. Let’s jump into this yearly review!
Overall Recap
- Settled into my new Oakland apartment
- Last day in office was March 9, 2020
- Sold my house in May
- Turned 30 alone
- Left Oakland in June for cheaper rent and more space
- Traveled to Playa Del Carmen in early October
- Hit my 1-year mark at my job and got a raise in November
- Slipped into a bout of depression during the holiday season
2020 Goals
I surprisingly achieved all but two of my goals. Instead of saving a 3-month emergency fund, I saved 6 months because of the unprecedented unemployment in this country. I was able to go on a staycation to Santa Cruz and rented a treehouse for a weekend, plus the Playa del Carmen trip I discussed here.
I had initially planned on catching up on my 2019 Roth IRA, but I decided to save instead. I sadly didn’t choose one charity partner to work with because there were so many organizations in need, maybe 2021 will be better so I can focus on 1 or 2 groups.
2020 Net Worth
One of the saddest parts of a divorce financially is the reduction of your net worth. The home you loved has to be sold and the proceeds split. The household items have to be divided and the savings are halved. For my divorce, I decided to not ask for any financial assistance or to seek a portion of my ex’s retirement accounts. I left with my small Roth IRA and a few thousand from our joint EF which was drained due to moving expenses.
As you can see below, I’m well on my way to catching up to my married net worth. I’m looking forward to reaching six figures (again) in 2021!
2020 Savings
I really can’t believe that I was able to save my last salary ($60k), as a single woman. I cash flowed a lot of things in 2020 and this number doesn’t account for that.
Where did my money go?
- 6 month emergency fund
- Maxing our 2020 Roth IRA
- Traditional 401k
- Taxable brokerage account
To look back on all of the years I had only pennies left every month and to now be in the wealth-building period is something I’ll never take for granted. Even if it isn’t God’s plan for me to be a wife or mother, I’ll have the means to take care of myself when I’m older and that brings me peace.
My Goals for 2021
Before my divorce and the pandemic, I was a huge planner. I could see the future I wanted and map out how I was going to get there. Now, I just want to be happy with minimal stress, and my goals reflect that.
Money Goals
I’ve decided to switch up a few things for 2021. First, I will be maxing out my 401k instead of only contributing up to the match. Second, I will not be contributing to my Roth IRA because I may hit the income limit and I don’t want to deal with the drama. I will contribute to an IRA at the end of the year if eligible.
Here is the breakdown of my goals:
Maxed out 401k – $19,500
Vacation fund – $3,000
Lasik – $3,500
Brokerage – $15,000
Life Goals
Unlike most people, I’m in quarantine completely alone. I couldn’t see family even if I wanted to since I live on the opposite end of the country. Being isolated has weighed on my mental health, so prioritizing my well being is important to me now more than ever.
- Self-care day every week
- Working out 3x a week
- Research rental properties (I may buy a rental this year)
- Donate 10% of income
- Read more fiction books
- Make new friends
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I’m still looking forward to what this year will bring. Having financial stability provides me with the freedom to focus on the other areas of my life that require nurturing. Excited to be back posting on here and Instagram more consistently. Hope you’re well!
Stay Wealthy Fam!
-Dannie
Yeah to Read more Fiction! I find it such a stress reliever.