Financial Goals for 2021

As the year 2020 ends, I sit back and think about where I am in my financial health and where I want to be at this time next year. It is time to set some goals and plan for my future!
2020 Financial Review
2020 was a year of getting back on my feet. I had been working really hard in the previous year to get back on my feet and to start building a savings. I was enjoying moderate success when I was told by a mechanic that my trusty 15 year old Honda Civic was ready for the junk yard as they couldn't find what was wrong with it. I had no choice but to purchase a new car. I had a good idea of where I wanted (needed) my car payment to be in order to remain comfortable within my financial means. That meant that I had to literally drain my savings account. I started the year 2020 with virtually no money in my savings. I spent the year 2020 regaining a footing financially and building that savings account to a more comfortable level.
Throughout this year I have gone back and forth with what would be the best route for my 'extra' money. At the beginning of the year I was totally focused on rebuilding that savings account. But as the year dwindled, I began to ponder another option. I began to think deeply about the car payment. The car loan was my only loan and I do not like being in debt! I wanted that gone. So I began to dump all of my extra money into the car payment. My reasoning was that I am paying a higher interest for the car than I am earning on my money in the savings account. I had attained 'magical' minimum amount that I feel comfortable with in my savings account and was ok with slowing down on the rebuilding of that account. It made and still does make financial sense to instead put every penny into the car loan and that is exactly what I did during the last months of the year 2020.
Looking financially forward to 2021 and beyond
We have been talking a lot lately about moving. We are currently renting an apartment and we cringe each month as we throw money down a drain..money that we will never see every again. Now don't get me wrong, we need shelter and a place to live. But every month we watch $1500 leave our bank account and each month we say "if we were paying a mortgage instead of rent at least we would be investing in something that we could recoup some of our money if we ever sold our house." Couple that desire to stop throwing our money down the rental pit is the need for a larger place to live. This apartment was perfect for us when we moved in. We were both starting over in life and we didn't have much in the way of furniture and household belongings. We moved in and had to buy a couch and tv stand that first weekend! We literally had a bedroom suit and that was it. Over the last 2.5 years we have accumulated furniture, belongings and an extra pet or two and we are not bursting at the seams. We know that our time at this apartment is nearing the end. That means that we need to be working on our plans for the future!
That plan includes seriously looking into buying a house! There are a few other non-financial things that need to fall into place before we take the leap, so we do have a bit of time. (Barring any unforeseen changes or life events that speed up that plan of course) And that time gives me the opportunity to work on our financial stability and readiness to purchase a house!
That brings me to my financial goals for the upcoming year! SAVE SAVE SAVE. While I shifted my focus at the end of 2020 to pay off the car, I am shifting back to throwing as much money into my savings account as possible. The more money we have in savings, the better off we will be when it comes time to move.
This thrust to save as much as possible comes with a multi faceted approach. It will include in depth reviews of my personal financial budget, an effort to build my side hustles (aka my weight loss blog and accompanying YouTube channel) and a conscious effort to curb spending and make wise money decisions. I don't have a set amount in my head of what I would like to save...a goal. I want to closely review my budget again and make a set plan on what will go into the savings each month without fail. But I will say that I would love to have my bank account increase by 5 to 10 thousand this year. (I would be happy if more....but if it is $5000 higher, I will also be happy).
I can do this. I have a mission. My future is dependent upon my success in this goal and quest to save money in 2021!
As the year 2020 ends, I sit back and think about where I am in my financial health and where I want to be at this time next year. It is time to set some goals and plan for my future!
2020 Financial Review
2020 was a year of getting back on my feet. I had been working really hard in the previous year to get back on my feet and to start building a savings. I was enjoying moderate success when I was told by a mechanic that my trusty 15 year old Honda Civic was ready for the junk yard as they couldn't find what was wrong with it. I had no choice but to purchase a new car. I had a good idea of where I wanted (needed) my car payment to be in order to remain comfortable within my financial means. That meant that I had to literally drain my savings account. I started the year 2020 with virtually no money in my savings. I spent the year 2020 regaining a footing financially and building that savings account to a more comfortable level.
Throughout this year I have gone back and forth with what would be the best route for my 'extra' money. At the beginning of the year I was totally focused on rebuilding that savings account. But as the year dwindled, I began to ponder another option. I began to think deeply about the car payment. The car loan was my only loan and I do not like being in debt! I wanted that gone. So I began to dump all of my extra money into the car payment. My reasoning was that I am paying a higher interest for the car than I am earning on my money in the savings account. I had attained 'magical' minimum amount that I feel comfortable with in my savings account and was ok with slowing down on the rebuilding of that account. It made and still does make financial sense to instead put every penny into the car loan and that is exactly what I did during the last months of the year 2020.
Looking financially forward to 2021 and beyond
We have been talking a lot lately about moving. We are currently renting an apartment and we cringe each month as we throw money down a drain..money that we will never see every again. Now don't get me wrong, we need shelter and a place to live. But every month we watch $1500 leave our bank account and each month we say "if we were paying a mortgage instead of rent at least we would be investing in something that we could recoup some of our money if we ever sold our house." Couple that desire to stop throwing our money down the rental pit is the need for a larger place to live. This apartment was perfect for us when we moved in. We were both starting over in life and we didn't have much in the way of furniture and household belongings. We moved in and had to buy a couch and tv stand that first weekend! We literally had a bedroom suit and that was it. Over the last 2.5 years we have accumulated furniture, belongings and an extra pet or two and we are not bursting at the seams. We know that our time at this apartment is nearing the end. That means that we need to be working on our plans for the future!
That plan includes seriously looking into buying a house! There are a few other non-financial things that need to fall into place before we take the leap, so we do have a bit of time. (Barring any unforeseen changes or life events that speed up that plan of course) And that time gives me the opportunity to work on our financial stability and readiness to purchase a house!
That brings me to my financial goals for the upcoming year! SAVE SAVE SAVE. While I shifted my focus at the end of 2020 to pay off the car, I am shifting back to throwing as much money into my savings account as possible. The more money we have in savings, the better off we will be when it comes time to move.
This thrust to save as much as possible comes with a multi faceted approach. It will include in depth reviews of my personal financial budget, an effort to build my side hustles (aka my weight loss blog and accompanying YouTube channel) and a conscious effort to curb spending and make wise money decisions. I don't have a set amount in my head of what I would like to save...a goal. I want to closely review my budget again and make a set plan on what will go into the savings each month without fail. But I will say that I would love to have my bank account increase by 5 to 10 thousand this year. (I would be happy if more....but if it is $5000 higher, I will also be happy).
I can do this. I have a mission. My future is dependent upon my success in this goal and quest to save money in 2021!