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December 2020 Net Worth update: $155,880
The end of 2020 has come, and now it is time to see how our Net Worth did in the month of December. We gained an additional +$10,050 for the month of December. In 2020, our investments have gone up 29%. It has been a good year.
December has been a wild and crazy month. It always is. There are parties, events, Christmas, New Years, and even my birthday. The events that are happening can really wear down someone. People are out enjoying life with celebrations and mass gatherings.
This is how December usually would look like. Most of the places around the world are still dealing with the pandemic. December can be quite the opposite, but there are still glimers of hope as we progress to have a vaccine to help us get back to the life of travel, parties with people, and being able to go to church without a mask.
The good news is that since my wife and I live in Taiwan, we have been very fortunate to have less cases, and the opportunities to gather with many people.
Now, with Christmas being on a Friday the festivities were all compacted on a short weekend that can really tire most people out.
We hosted a party on the 26th for those that had to work on the 25th, and it seemed like our tiny house now can have the capacity to fit close to 50 people at one time. Even though it was cooler outside, we still needed to turn the A/C on to let it cool off in the hottest rooms of the house.
I am not trying to brag, but it was great to celebrate Christmas with so many friends.
The December Budget and Savings Rate:
Our spendings was up just a bit more for December than it was in November. It is all ok, since we still had a savings rate of 61%.
Keeping our savings rates up higher is good for investment and savings goals. We have been trying to save more than 50% of our income for this year alone and we have been averaging over 60% for the last 3-4 months.
Here is a break down of our spendings
The Christmas Season:
It has been a lovely season to celebrate with friends and family. My family is not close to me geographically, so we were all able to facetime with my parents and in-laws during Christmas and the weekend. It is nice being able to see their faces, wish them well, and enjoy the season with loved ones.
As I get older, I realize how much more important the time being spent with family and friends is such a luxury and how it is of great importance. As people age, loved ones pass away, and the time you spend with them now is all worth it.
Besides Christmas, Mrs. FE and myself celebrated my birthday a few days early due to a friend’s engagement party. We were able to have dinner with friends, and enjoy time together.
New Year’s Eve is also a part of the Christmas season. It is a great time to celebrate the end of the year, and we celebrated by going camping at a friend’s farm.
We had about 16 of us friends there to celebrate and enjoy the good outdoors. Sometimes, you have to take some time away to recharge, enjoy life, and relax.
It is time to break down that Net Worth:
Net Worth Breakdown
Here is the breakdown for December 2020 Net Worth:
Cash Savings: (+$3,512)
We have had another great month of cash savings. We have saved 61% of our income so being able to have enough cash to go out and buy more assets and investments to help our Net Worth grow is a good thing. Being able to work right now is a plus. We are very fortunate.
Our goal is to invest some of our cash right now. We already have an emergency fund set up so any extra cash will be pushed towards our investments.
Taxable Brokerage Account: (+$4,154)
We have had another good month for our investments. The taxable account that we have has increased to $4,154. It is getting close to reaching that $100,000 mark. Once it does that it will just compound even faster.
Roth IRA: (+$161)
Since my Roth IRA does not have much money in it, it does not grow as fast as the taxable account. Positive growth is great! You just have to keep letting the compounding happen.
My Wife's Super: (+$2,258)
One of the greatest moves of our financial journey was moving my wife’s super into our control. Since switching it, we have increased the value almost every month. It is sitting in Index funds that have gone up 9.58% in 2020. December was another great month. It keeps on increasing in value.
Liabilities (-$85 )
Our liabilities have been quite low the last couple of months. We are sitting on $180 due for our credit usage in the month of December. So we are just $85 higher than we were in November. It is still low. We usually use our credit cards for travel.
Goals for 2021 Net Worth
In 2020, it was our first time tracking out Net Worth. So every month it seemed like our goals would change because our Net Worth started to skyrocket.
At the end of the year, we had determined that it would be great to hit $150,000 Net Worth. It may surprise you, but we hit $155,880 for the year of 2020. Our investments went up 29%, and so therefore our investments added an additional $17,000 over that last year.
That will not happen every year. I am usually quite conservative on these numbers. I thought 7% would be a good year. So the new goal for 2021, would be $197,000 USD.
We will try to put in around $30,000 USD into investments and hope for a 7% return. It would be nice to hit $200,000, but we shall see. Anything can happen in 2021.
How was your 2020?
I’m Steve. I’m an English Teacher, traveler, and an avid outdoorsman. If you’d like to comment, ask a question, or simply say hi, leave me a message here, on Twitter (@thefrugalexpat1). Many of my posts have been written to help those in their journey to financial independence. I am on my journey, and as I learn more I hope to share more. And as always, thanks for reading The Frugal Expat.