Happy New Year and Reflections on 2019

Happy New Year and Reflections on 2019

Happy New Year to all readers of Grokking Money!

It’s been over 3 months since I published an article on this blog. It has been quite hectic on the work front and I have hardly managed to catch some sleep, let alone find time to blog. I just returned from a vacation to India. It was a much needed break!

As we head into 2020, I didn’t want to miss this opportunity to reflect on 2019 and share how it went. Also use this opportunity to gather some thoughts on how to make the most out of 2020!

How was 2019?

For those of you who have been closely following my blog, you might be aware that I really started working on my finance from early 2018. I have blogged about it as a 2 part series here and here. If I look back at 2019 and assess how it’s been, I would say, I am extremely happy with all the progress I’ve made so far.

Let me break down the different things I was able to accomplish this year to put things into perspective.

  • Total Household Income 2019 – ~ $275,000
  • Maxed out my 401(K) and my wife did her’s too
  • On my way to max out my HSA account
  • Managed to remain debt free through out the year.
  • Managed to save $77,396.33. Although my target was to hit $96K by then end of 2019, I did run into some unexpected expenses and didn’t really meet the target.
  • My overall net worth as of 2019 is at $252,585.
    • Cash Holdings $96,786.35 which includes
      • Emergency Fund – $15,000
      • House Down Payment Fund – $77,396.33
      • Misc Cash – $4390.02
    • Retirement Accounts
      • My 401(K) – $107,019.93
      • Wife’s 401(K) – $22,991.05
      • My Roth IRA – $13,321.43
    • My Son’s 529 Account – $4,248.46
    • 2 Cars – $13,500
  • My overall net worth went up from $129,255.67 to $252,914. I am glad it almost doubled 🙂
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Overall my biggest goals for 2019

  • Stay out of debt.
  • Max out my retirement accounts (unfortunately couldn’t allocate funds to my Roth IRA this year) but my wife and I did manage to max out our 401(K) accounts with a decent match from our employers. Together we managed to put away $43,991.05 this year!
  • I was able to hit ~80% of my target savings goal for House Down Payment fund.

To that end, I would consider 2019 to be a very successful year for us in terms of our finances.

What’s next for 2020?

Our next biggest goal is home ownership by end of 2020. So we are planning to save approximately $150,000 and targeting a home worth ~$800,000 – $850,000. It would require us sticking to our savings goals and keeping the expenses to a minimum.

Also, I would love to resume maxing out our Roth IRA accounts and continue maxing out our 401(K) accounts, once we are done with a home purchase. Also I wish to increase contributions towards my son’s 529 plan by another $100 each month. Currently I am doing $250 per month.

Non Financial Goals

  • I want to take some swim lessons since I really can’t stick to a gym and hardly get any exercise outside of evening strolls. I want to focus on keeping myself fit.
  • I wish to add more programming skills that would give me an opportunity especially I would like to try my hand at new programming languages like Kotlin, python and some other web frameworks. Generally acquire new skills to help me expand my area of expertise and eventually help land a higher paying job.
  • I would also like to spend more time reading non-fiction books that I haven’t been able to get to this year. Hopefully, I will get to read more books!

How was your 2019? What goals did you manage to knock off? What are you plans for 2020? I would love to hear from you all.

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