2020 Review and New Goals for 2021!

2020 was overall a mixed year for me in terms of meeting my goals, as I shall explain.

A summary of all my goals since inception of this blog can be found under my Goals tab.

2020 Goals Revisited
I set 6 goals at the beginning of 2020 to meet by end of the year. The first four are financial and the last two to help me stay current and maintain a sharp mind. All of these goals are specific, measurable, achievable, realistic, and time-based (SMART).

1. Reach a net worth of $2,200,000.
2. Beat the S&P500TR.
3. Achieve total portfolio dividend yield at least 50 basis points below the S&P500.
4. Save 95% of my after-tax income.
5. Read 100 books.
6. Read the bible in one year.

Goal #1:
Reach a net worth of $2,200,000.

Achieved!

Here is the breakdown on the 139 books I read in 2020

 One of my goals for 2020 I set at the start of last year was to read 100 books, which while ambitious is also achievable due to extensive use of audiobooks. 

I am happy to report that I exceeded this goal by 39%!

This feat was mainly accomplished by relying on audiobooks, using the Overdrive app, a good way to listen to many interesting audiobooks from my library for free during my commutes. Audiobooks accounted for 86% of all books read in 2020.

Here is the list of all 139 books I read in 2020:

My Net Worth Update - End of 2020

 My net worth increased from $1,843,840.69 on 12/31/19 to $2,288,160.79 on 12/31/20. In 2020, my net cash inflow (from active income less expenses) was $99,719.84.

Organic growth = ($2,288,160.79 - $99,719.84) / $1,843,840.69 -1 = 18.69%.

Inorganic growth = $99,719.84 / $1,843,840.69 = 5.41%.

Total net worth growth = 18.69% + 5.41% = 24.10%.

Income & Expenses For December 2020 and Year End Summary

Since 2014, I have been tracking my monthly income and expenses. You can see a breakdown of every penny I earn and spend. For perspective, this budget is for a household of two in a small US city. 

By documenting my journey, I aim to demonstrate the feasibility of saving a significant portion of your income and provide some ideas and inspiration for your own budget.

Below are my income and expenses for December and full year 2020, as well as those of 2019 for comparison. You can see all my monthly budgets here.

Net Worth Update December 2020: $2,288,160.79 (+$94,640.04 +4.32%)

Welcome to my monthly net worth update! Here is how my assets, liabilities, and net worth have changed over the past month:

	Beginning balance on 12/1/2020	+ Cash inflow /(outflow)	+ $ P/L	= Ending Balance on 12/31/2020	% P/L	% Equity
ASSETS
Current assets
Cash	(28,161.85)	2,233.84	0.00	(25,928.01)	0.00%	-1.13%
Bonds	20,030.00	(2,251.81)	421.29	18,199.48	2.10%	0.80%
Stocks	1,717,932.88	338.76	76,044.45	1,794,316.09	4.43%	78.42%
Total current assets	1,709,801.03	320.79	76,465.74	1,786,587.56	4.47%	78.08%
Tax-deferred retirement account	305,900.50		8,738.54	314,639.04	2.86%	13.75%
Roth IRA	116,983.17		7,749.88	124,733.05	6.62%	5.45%
Home	46,014.00		546.00	46,560.00	1.19%	2.03%
Gold	19,558.32		883.14	20,441.46	4.52%	0.89%
Other non-current assets	906.53	40.00	(4.13)	942.40	-0.46%	0.04%
Total assets	2,199,163.55	360.79	94,379.17	2,293,903.51	4.29%	100.25%
LIABILITIES & EQUITY
Liabilities
Current liabilities	114.09	99.92	0.00	214.01		0.01%
Long-term liabilities
Student loan	5,528.71	0.00	0.00	5,528.71		0.24%
Other non-current liabilities	0.00	0.00	0.00	0.00		0.00%
Total liabilities	5,642.80	99.92	0.00	5,742.72		0.25%
Equity (net worth)	2,193,520.75	260.87	94,379.17	2,288,160.79	4.30%	100.00%

Net worth: Bottom line up front, my net worth increased by $94,649.04, +4.32% this month due to marked-to-market investment gains (+$94,379.17, +4.30%) and net cash inflow (+$260.87, +0.01%). 

Here is the breakdown of my balance sheet:

Portfolio Update December 2020: Bought 16 Stocks for $876.98, Sold None

 The time has come for my monthly portfolio update. At the end of every month, I will update my portfolio and comment on any changes. I do that for accountability and also so you may glean some ideas on how I allocate my capital. You have the opportunity to learn from what I do well so you can do the same, as well as what I do poorly, so you will not have to repeat my mistakes.

Follow my real-time portfolio here. Below is a snapshot of my portfolio as of 12/31/20:

Options Update: December 2020

Welcome to my monthly options update!

Here, I shall write monthly options update articles to keep track of options trades in my portfolio. Each options update serves as a status report on the open options and the obligations I have. A running tally of all my options trades and income to date are found on the Options page.

This was a quiet month for me, as I did trade any options.

Assigned Options

No option got assigned this month.