FIRE Personal Finance

Taking stock: 2021 Financial Goals

Boy, what a year 2020 has been.

And hello, we meet again. My relationship with this blog certainly has been different to that of my previous blog(s). It is often one of guilt, mixed in with regret, hope and love. And sometimes, I wonder if this is a reflection of my own relationship with money?

But I digress.

I’ve pretty much written off my financial goals for 2020. At the start of this year, I had a few financial goals.

  1. To double the share portfolio to $20k
  2. To reduce our annual expenses (from $60k)
  3. To build our emergency fund to $10k

Doubling the share portfolio sounds like such a lofty goal, but in reality it meant going from $10,000 to $20,000. Of course, the share market hasn’t really helped this year, so I’ve had to rely on cold, hard cash. Right now, my dividend incomes from this teensy portfolio means my husband and I will be able to eat a Mcdonald’s meal once a month, including dessert. What a life. So I did achieve this one.

As for reducing our annual expenses, that didn’t happen. I’m going to blame Covid for this one, because we started the year with great intentions. But when Covid hit and the lockdowns began rolling out, we were faced with a dilemma. Supporting local businesses or reduce our expenses? We chose to support local businesses because it’s taken Adelaide so, so long to build up to where it is now, I just can’t bear to see some of my favourites close down due to the Pandemic. So as much as we could, we supported the local hospitality businesses.

But habits grow quickly, and with the mental stress of a pandemic weighing down on us, these soon spiral into bad habits. Along with the eating out budget blowing out, our entertainment budget also blew out as we embraced new hobbies and a few thousand dollars later, I am fairly guilty over my spend but also acknowledge the importance of keeping our mental health balanced.

Building the emergency fund did happen, for that I am thankful. So I guess 2 out of 3 ain’t bad, especially given the pandemic.

So, about next year…

I have ambitious goals for next year. Given we aren’t travelling (Thanks C-19), I am emptying my savings into a massive kitchen renovation which means I basically have to start from scratch again. Therefore:

  1. Emergency Fund of $15,000
  2. Share Portfolio of $46,400
  3. Cutting that annual expenses by almost half to $33k.

1 is not hard to achieve, 2 is only achievable if I also achieve 3. But go hard or go home, right?

Bring on 2021, I’m ready to do this!

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