Save 50k single 100k couple in 2020

[McStache]

Hello,

I've been watching this thread the last few months as I currently organize my living situation to position myself to make an attempt at saving 50k in 2021. Will you all be continuing this thread into next year, or will a new thread be organized? Keep up the good work, you have one month left!!

Thanks! Typically there's a new thread for each year, so that will probably be created December or January sometime.

[TyGuy]

Hello,

I've been watching this thread the last few months as I currently organize my living situation to position myself to make an attempt at saving 50k in 2021. Will you all be continuing this thread into next year, or will a new thread be organized? Keep up the good work, you have one month left!!

Thanks! Typically there's a new thread for each year, so that will probably be created December or January sometime.

Great, I look forward to joining!

[SaucyAussie]

Hello,

I've been watching this thread the last few months as I currently organize my living situation to position myself to make an attempt at saving 50k in 2021. Will you all be continuing this thread into next year, or will a new thread be organized? Keep up the good work, you have one month left!!

A new thread will start next year!   Looking forward to it!!

[alcon835]

Also will be joining the 2021 thread! Looking forward to it :D

[BigIslandGuy]

I'm in. Single here. I went from NW of 47k to 98k in 2019 year (just getting started) and my goal is to get to 150k this year, so +52k in 2020.

Update  so its not quite Christmas, and its been a good year despite me being very "spendy"  I was feeling trapped and stagnant living in Dallas area with no family here, so I decided to become a digital nomad and work from the road anywhere anytime I want. I bought a used travel trailer for $4300 and then threw another $10,000 at it to make it livable, with a solar system, battery bank, and everything to have the comforts of home, while boondocking. It took 6 months to build, but now anytime I want I can go anywhere, work offgrid, and see the National Park (since we cant really leave the USA due to Covid).  Thankfully my day job in cybersecurity allows me to work remotely!

But to compensate for the spending, I took on a copywriting side hustle that offered cash upfront + 12 months future royalties on sales, so that has generated an extra 2-4k for the last few months.
Same client offered me another similar writing project, so I've taken that on too, which hopefully will generate an extra 20-30k for me in 2021.
Ive also bought alot of camera gear for my Youtube channel, but I am close to being able to monetize my channel, so that will return the camera investments soon.
I also bought my GF a cheap motorcycle (also cash) so... yeah, spendy but the cashflow has been good and I am prioritizing my sanity and freedom over cash in the bank!

I invested what for me is a considerable amount in Bitcoin. I am a true believer in crypto. I dont trust the Fed. I believe hyperinflation or really bad inflation is coming some day. I dont trust the stock market either. I guess I am a speculator at heart, but so far MY BTC this year is up over 100% and if I had a retirement plan, BTC going to 500k is probably it. My gold and silver holdings have also done very well this year.
 
As things stand now, my net worth grew from 98k at the end of last year to about 168k right now, and with some more income coming in, and paying off my only credit card (I used the CC to buy stuff for the cargo trailer) I think I will close out around 172k, and then have a good size bonus from my day job coming in on 2/1/21, so I think I will be able to push towards 250k by the end of 2021!  Yay!  So basically I handily met my goal, and I hope you did too!

Also, in keeping with the "savings not market gains" angle of this thread, I will admit that I spent investable cash on physical assets, and from that perspective I did not save $50k. But as soon as I have year end numbers, I will post them. My guess is I saved about half of that, or 25k. 

[SotI]

Updating for both Nov and Dec, final figures overall but some rebalancibg possibly before yearend.

Target:                                                                  Actual
tax exempt:                             5,351                       7,268    (135.8%)
Accrual/EF liquid saving:  15,000                      23,745  (158.3%)
Brokerage:                            39,730                     37,880   (95.3%)
Total:                                     60,081                    68,894   (114.7%)

[rebel_quietude]

Hey guys!

I think I failed to post goals this year - or posted on the 2019 thread instead - but regardless, this challenge is complete!

I went from saving 62k in 2019 to 51k in 2020.

I made a little less this year, but (lifestyle inflation confession): the majority of this difference was a result of my puppy, who came with associated medical / daycare costs. No regrets, one of the best decisions I made this year.

Savings Allocation 2020:   

401k:           $23,466 (including employer contribution)
IRA:             $6,000
Brokerage:   $22,300
Cash:           ($600) (Yes, that is a negative - I still haven't completed topping up my emergency fund after puppy expenses.)

Congrats to all who knocked this year out of the park, and here's to another successful challenge in 2021!

[shillingb2012]

Hey guys!

I think I failed to post goals this year - or posted on the 2019 thread instead - but regardless, this challenge is complete!

I went from saving 62k in 2019 to 51k in 2020.

I made a little less this year, but (lifestyle inflation confession): the majority of this difference was a result of my puppy, who came with associated medical / daycare costs. No regrets, one of the best decisions I made this year.

Savings Allocation 2020:   

401k:           $23,466 (including employer contribution)
IRA:             $6,000
Brokerage:   $22,300
Cash:           ($600) (Yes, that is a negative - I still haven't completed topping up my emergency fund after puppy expenses.)

Congrats to all who knocked this year out of the park, and here's to another successful challenge in 2021!

First off, nice work on the savings!
I am in a similar boat and wanted to hear more details on the brokerage account. After the 401k and IRA are maxed, have you looked into the backdoor roth option instead of the individual brokerage account? https://forum.mrmoneymustache.com/investor-alley/investment-order/msg1333153/#msg1333153

Just curious as to your decision regarding why you do the individual brokerage, since I am trying to navigate a similar situation myself and trying to make my money the most tax advantaged possible.

Once again, great work in 2020! Best of luck going forward into 2021!

[Arbitrage]

First off, nice work on the savings!
I am in a similar boat and wanted to hear more details on the brokerage account. After the 401k and IRA are maxed, have you looked into the backdoor roth option instead of the individual brokerage account? https://forum.mrmoneymustache.com/investor-alley/investment-order/msg1333153/#msg1333153

Just curious as to your decision regarding why you do the individual brokerage, since I am trying to navigate a similar situation myself and trying to make my money the most tax advantaged possible.

Once again, great work in 2020! Best of luck going forward into 2021!

To clarify, it would have to be a Mega Backdoor Roth, not the normal Backdoor Roth IRA.  The Backdoor Roth IRA shares the same limit as Traditional/Roth IRA contributions, because it is done through a Traditional IRA contribution. 

The Mega Backdoor Roth is subject to a different limit (employee + employer combined 401(k) limit of $57000).  However, it's only available to those who have plans that allow it.  If the poster has that option, it's worth looking into. 

[rebel_quietude]

Hi, @shillingb2012 !

Sorry, I wasn't very specific in the previous post. The IRA is actually a Roth IRA, as I'm well within the income limit threshold. If things go to plan, I may have a higher income post retirement; I'm trying to hedge my bets by maxing both my 401k (TSP, technically, but they're mostly the same) and my Roth IRA.

Thanks for the note, it prompted a nice little tax review on my part as I haven't looked at it in a while. I'm sorry it's not likely helpful for you, but with that link you're definitely headed in the right direction.

Good luck, hope to see you in the 2021 thread!

[BiscuitsForBreakfast]

I'm a lurker around these parts, but I've been keeping my eye on this particular goal this year, and will have achieved it with my final paycheck at the end of the month! As always, I am so grateful to this community, and y'all are really the only ones I can tell.

Work Savings plan: 16,444 (not including employer contribution, which is tied to profits, not my contributions)
Roth IRA:                   6,000
VTSAX:                     28,900
------------------------------------
                                51,344

 

[McStache]

December Update:
Bucket         Current / Goal
401k          $ 19,500 / $ 19,500  <-- DONE
401k Match    $  6,580 / $  6,500  <-- DONE
Roth IRA      $  6,000 / $  6,000  <-- DONE
HSA           $  3,550 / $  3,550  <-- DONE
Brokerage     $ 26,246 / $ 24,450  <-- DONE
------------------------------------
Total         $ 61,876 / $ 60,000  <-- DONE
Savings Rate    76.3%

January       $  5,006    8.3%
February      $ 10,397   17.3%
March         $ 14,816   24.7%
April         $ 19,979   33.3%
May           $ 26,196   43.7%
June          $ 31,373   52.3%
July          $ 36,688   61.1%
August        $ 41,403   69.0%
September     $ 46,139   76.9%
October       $ 50,961   84.9%
November      $ 54,865   91.4%
December      $ 61,876  103.1%


Made it!  And hit my savings rate goal too!  This year was a bit less spendy due to pandemic restrictions, so I don't know if I'll hit it again next year, but hopefully I won't be too far off.

Congrats everyone!

[SaucyAussie]

Just snuck in with my last paycheck of the year.  This thread really helped me keep focused, looking forward to doing it again in 2021!

401k            19,500.0     19,500.0   100.0
Catchup          6,500.0      6,500.0   100.0
Match           11,503.0     11,500.0   100.0
401k after tax  12,783.0     12,500.0   102.3
Taxable         14,000.0     13,000.0   107.7
Roth             7,000.0      7,000.0   100.0
Mtg Principal    4,300.0      5,000.0    86.0
H.S.A.              -            -        -
Cash                -            -        -
Total           75,586.0     75,000.0   100.8

--------------------------------------------

Q1              12,018.0     75,000.0    16.0
Q2              41,603.0     75,000.0    55.5
Q3              62,008.0     75,000.0    82.7
Q4              75,586.0     75,000.0   100.8

[zeli2033]

December update

401k 1: $19,488 / $19,500
Match: $3,432 / $3,200
401k 2: $18,997 / $19,500
Match: $348 / $1,500
HSA: $7,100 / $7,100
2019 Roths: $12,000 / $12,000
2020 Roths: $0 / $12,000
Cash (Efund/House DP): $40,010 / $37,200
============================
Total: $101,375 / $112,000 (90%)

We missed our goal this year but still saved over $100k which is awesome. Job juggling this year messed up our ability to max one of our 401ks by just a bit and the other one was missed by $12 which is just a dumb clerical error on our part. We are holding off on the 2020 Roths in case we hit the income max this year so we expect to figure that out in spring 2021. All in all, very happy with our progress.

[Need2Save]

End of Year Update:

December Progress Vs. Our 2020 Goals (couple):
$  19,500  /    $ 19,500-Mrs. 401k contributions
$  19,500  /    $ 19,500-Mr. 401k contributions
$    4,040  /    $   4,040-Mrs. HSA contributions
$       750  /    $      750-Mr. HSA contributions
$126,820  /    $100,000-Taxable Investments/Savings
$    6,300  /    $   6,000-Other mid-term savings
$176,909 /  $149,790 subtotal

$   8,768  /    $    8,700-Mrs. 401k match
$   8,989  /    $    5,800-Mr. 401k match with profit sharing
$   1,560  /    $    1,560-Mrs. HSA employer contributions
$      750  /    $       750-Mr. HSA employer contributions
$ 20,067 /   $ 16,810 subtotal

$196,977/   $166,600 GRAND TOTAL
118% of Annual Goals

So close to $200k.  I have participated in this thread I think 4 or 5 years now.  Sadly (but really not) this will be my last 50k/100k challenge because DH is retiring on April 30! And I am following shortly after but not sure if it's in 2021 or 2022 at this moment (TBD).  So our savings is going WAY down in 2021 but for all the right reasons. We may be able to save $100k in 2021 but it may also be close because we also have to start funding our lives instead of counting on a paycheck.  It's doubtful DH will get a bonus before he leaves.

Congrats to everyone who came very close or exceeded your 2020 goals and good luck to everyone in the 2021 thread!  I'm cheering for you.

[Arbitrage]

End of Year Update:

December Progress Vs. Our 2020 Goals (couple):
$  19,500  /    $ 19,500-Mrs. 401k contributions
$  19,500  /    $ 19,500-Mr. 401k contributions
$    4,040  /    $   4,040-Mrs. HSA contributions
$       750  /    $      750-Mr. HSA contributions
$106,300  /    $100,000-Taxable Investments/Savings
$    6,300  /    $   6,000-Other mid-term savings
$176,909 /  $149,790 subtotal

$   8,768  /    $    8,700-Mrs. 401k match
$   8,989  /    $    5,800-Mr. 401k match with profit sharing
$   1,560  /    $    1,560-Mrs. HSA employer contributions
$      750  /    $       750-Mr. HSA employer contributions
$ 20,067 /   $ 16,810 subtotal

$196,977/   $166,600 GRAND TOTAL
118% of Annual Goals

So close to $200k.  I have participated in this thread I think 4 or 5 years now.  Sadly (but really not) this will be my last 50k/100k challenge because DH is retiring on April 30! And I am following shortly after but not sure if it's in 2021 or 2022 at this moment (TBD).  So our savings is going WAY down in 2021 but for all the right reasons. We may be able to save $100k in 2021 but it may also be close because we also have to start funding our lives instead of counting on a paycheck.  It's doubtful DH will get a bonus before he leaves.

Congrats to everyone who came very close or exceeded your 2020 goals and good luck to everyone in the 2021 thread!  I'm cheering for you.

Congrats!  I'll probably be in a similar situation; planning on taking the plunge in 2021 as well, though I may still be working part-time (remotely) while DW is off work.  If all goes according to plan, we might get close, but 100k is likely too lofty of a goal. 

[Arbitrage]

2020 Goals (for couple): $135k; $154k 155k including normal debt paydown (revised after mortgage refinance and switching more of our savings to taxable brokerage).

As of 12/31/2020

401k: $19500 / $19500
401k match: $17396 / $16500
SIMPLE IRA: $13500 / $13500
SIMPLE Match: $3213 / $3000
HSA: $5496 / $5600
HSA Match: $1500 / $1500
Backdoor Roth IRA: $6000 / $6000
Mega Backdoor Roth: $18888 / $16500
Taxable Brokerage: $79900 / $51700
529 #1: $600 / $600
529 #2: $600 / $600
Extra mortgage principal: $700 / 0

Total: $167293 / $135000    123.9%
Regular mortgage principal and low-interest college debt principal paydown: $12700
Overall goal: $179993 / $155000 116.1%

Goal met and surpassed!  Savings rate was up due to pandemic (working from home and no longer paying for day care), and income was up a bit more than anticipated due to a surprise raise and some extra paid time at work. 

[philli14]

                  |   401k    |    tIRA   |    HSA    | Brokerage |  Savings  |   TOTAL   |
GOAL              | $  19,500 | $   6,000 | $   3,550 | $  20,950 | $       0 | $  50,000 |  PROGRESS |

JAN               | $   1,500 | $   6,000 | $   3,550 | $   1,400 | $  -8,850 | $   3,600 |  %    7.2 |
FEB               | $   1,500 | $       0 | $       0 | $   1,700 | $     900 | $   4,100 |  %    8.2 |
MAR               | $   1,500 | $       0 | $       0 | $   2,400 | $       0 | $   3,900 |  %    7.8 |
APR               | $   1,304 | $       0 | $       0 | $   3,300 | $       0 | $   4,604 |  %    9.2 |
MAY               | $   1,885 | $       0 | $       0 | $   3,500 | $       0 | $   5,335 |  %   10.6 |
JUN               | $   1,175 | $       0 | $       0 | $   1,500 | $       0 | $   2,175 |  %    4.4 |
JUL               | $   1,313 | $       0 | $       0 | $   2,000 | $       0 | $   3,313 |  %    6.6 |
AUG               | $   1,273 | $       0 | $       0 | $       0 | $   1,400 | $   2,673 |  %    5.3 |
SEP               | $   2,125 | $       0 | $       0 | $       0 | $   3,300 | $   5,425 |  %   10.9 |
OCT               | $   2,250 | $       0 | $       0 | $       0 | $   3,300 | $   5,550 |  %   11.1 |
NOV               | $   1,530 | $       0 | $       0 | $       0 | $   2,400 | $   3,930 |  %    7.9 |
DEC               | $   1,617 | $       0 | $       0 | $       0 | $   1,600 | $   3,217 |  %    6.4 |

FINAL             | $  18,961 | $   6,000 | $   3,550 | $  17,200 | $   2,650 | $  47,822 |  %   95.6 |

So close!! Still a hell of an effort considering I grossed 75k this year. Love the challenge and will try again next year!

[alcon835]

I couldn't wait to start the new thread, so here ya go!

https://forum.mrmoneymustache.com/throw-down-the-gauntlet/save-50k-single-100k-couple-in-2021/

[ToughMother]

Year end numbers

Bucket         Goal | Actual
TSP        $ 19,500 | $ 19,500
457        $ 26,000 | $  8,961
Pension    $ 15,000 | $ 14,666
Roth 1     $  6,000 | $  6,000
Roth 2     $  7,000 | $  7,000
-----------------------------------------
Total      $ 73,500 | $ 56,127
Progress            | % 76.9


Didn't hit goal due to house remodel. Held back on 457 contributions due to cash flow needs. Pension contribution was lower than projected because of 3 months of furlough. (Thanks pandemic!)