2020 you guys, such a year! With everything going on though in the world I think it's a good time to reflect on all of the goals I set for myself, and my hopes and my dreams looking into 2021. Some things went really well, better than anticipated, and some things honestly fell flat. I think having the grace to move forward and reflect back on what was and wasn't working in the end makes me a stronger and better person.
I'm excited to share with you the goals that I set for myself, what I did, what I accomplished, and what goals I have looking forward in the future!
1. Get a contract in the Bay Area
My first goal of 2020 was to find a contract up in the bay area. I have been living in Los Angeles for the last 10 years. I really wanted to be able to be closer to family and also get to experience San Francisco. I was really excited to try living up here and it wasn't until March that I was actually able to get a contract. I was freelancing for the first three months of the year and I wasn't sure if anything would pan out. Fortunately something did...and then the pandemic hit. Now I work completely from home. On the downside I never got to experience what it was like living in San Francisco. Here we are in month eight of this quarantine. So yes, I obtained my goal of finding a contract in the bay area, unfortunately it's not quite the experience that I anticipated.
2. Work in fintech tech
My second goal for 2020 was working in fintech. What I want to achieve is financial independence so earning more money is obviously a way to help you get to financial independence quicker. I knew I wanted to be in fintech because it would merge the tech money with my love of finances. I was thinking about something like Credit Karma, Wealthfront, or Robinhood— all brands that I really love. Unfortunately, I did not get a job in the fintech space. I did end up finding a contract and job in the tech space. My second goal I did achieve, but only part way.
3. Savings rate at 60% 77%
My third goal of 2020 was to save 60%. Actually for this goal I ended up saving quite a bit more. My 2020 savings rate this year is somewhere in the range of 77%. There are a couple of factors that contributed to this unanticipated bump in savings rate. Speaking to my last point, I ended up with a contract in the bay area and in the tech space. Fortunately for me my job has been pretty secure throughout this year. There weren't any major layoffs and they continued with my contract, so that was one factor.
The second factor is that I am still living with my parents. I am 29 now and living with my parents, which I never really anticipated. When I moved up to the bay area, I thought I would only be here for a few months while I figured out where I wanted to live in the city of San Francisco and find a spot to really be integrated in the bay area life. However, that did not pan out and I am still at home. Because of that I am able to save a lot on rent.
Then the third factor is I'm always inside. I used to go out with my friends. We used to go to brunch, go out to bars on the weekends and that used to be a pretty big chunk of my monthly expenses. Because of the pandemic, I haven't been able to do any of that. My goal of saving 60% has definitely been hugely impacted for me from the pandemic.
4. No spend year
The fourth goal of 2020 was to do another no spend year. I had done a no-spend year a couple years ago and it went really, really well. It is honestly the main contributing factor to jumpstart my life into personal finance and figure out investing. Because of that I was thinking in 2020 that I would do another no-spend year, but I did not accomplish that goal. The other day I bought a pair of fluffy slippers at the thrift store, which I don't really know where I'm gonna wear them to, but they were only $6 and I need some joy in my life right now. 2020 was not a no spend year, it was a very, very low-buy year. I think I only got like five new items of clothes. Overall I spent probably less than $200 in total on all my clothes. I also tried to buy secondhand.
That being said, give yourself grace if you don't reach your goal. I know we're not perfect but I do try to keep my spending to a minimum. I think as long as you're trying and doing your best I think that's the best we can do.
5. Host a clothing swap
Building on top of that, my next goal was to host a clothing swap. I love hosting a clothing swap. I love being able to bring a bunch of people together to find joy in getting rid of their old stuff and also feel like they're getting like new stuff. It's a great way for me and my friends to all hang out and get together and “shop.” Whatever didn't get swapped got donated. It's rewarding and fulfilling being able to pass things on and give something a new life.
6. Rebalance my portfolio
For 2020 I knew I really wanted to learn how to rebalance my own portfolio myself. For this goal I built a rebalancing spreadsheet, which you can download for free, that would help me rebalance my portfolio. My portfolio is modeled after the Bogleheads three fund portfolio. Basically I invest in three index funds—a total U.S. stock market index fund, a total international stock market fund, and a total U.S. bond market index fund. With those three funds I allocate a percentage of my portfolio to each.
Whenever I go to add more money to my accounts I'll put that dollar amount into my rebalancing spreadsheet and it will tell me how much of that dollar amount to buy or if I'm truly rebalancing I sell some of my assets, usually in my tax-sheltered accounts to reallocate some of it. If I'm over-indexed in stocks, I will go buy more bonds. I like to rebalance on a quarterly basis but I think it's also okay to do it on a half-yearly basis.
8. Max out 401K and IRA
In 2020 for the very, very first time in my entire life I was finally able to max out my 401k and my IRA. I've been able to max out the $6,000 in my Roth IRA for the past three years and finally this year in 2020 I was able to contribute the full $19,500 to my 401k portfolio. That was a huge accomplishment. As soon as I got my contract in March I knew that that was something I wanted to do. After taking a look at all my expenses and deciding to stay with my parents, I knew that that was a goal of mine that I could for sure accomplish.
I'm a big believer in front loading your portfolio. My initial percentage for my 401k came out of my paycheck at 40% to really front load it and get it over with ASAP. I didn't even see that money.
8. Start Millennial Money Honey podcast/Youtube/blog
Lastly I had some big goals for Millennial Money Honey. I went full into millennial money honey in September 2019. I bought the domain, bought the website, and finally decided that I'm gonna do this. My goal for 2020 was to start a podcast and that actually evolved into this, which is my youtube channel. I also decided to blog more frequently. Initially my goal was two posts per month, but I went quiet for a little bit and instead decided to release a blog post for every video that I launched. With the launch of this youtube channel, I've been able to blog promoting the video content simultaneously. I try to be extremely efficient with how I work and operate and use content for Millennial Money Honey and it has been much more streamlined.
I'm still getting into the groove, but I think I'm slowly, slowly finding it. Those were my goals for 2020...some of them wild success, some of them less of a success, but I'm looking forward to taking my learnings from my failures and successes of 2020 and looking forward to 2021.
1. Extend design contract
My first goal of 2021 is to extend my current design contract. I really, really love where I'm at. I'm happy with my team and the work that we're doing and it's really fun. I am also hoping we find a cure for this pandemic and I actually get to experience the bay area because that's what I came here for and that's what I'm most looking forward to. Hoping in 2021 I'll finally be able to experience that.
2. Savings rate >80%
Because of my decision to continue living with my parents through 2021 my savings rate goal is 80% now. That is extremely high, way higher than my goal last year. I think I will be able to accomplish that given the situation that I put myself in.
3. No “brand new” clothes. Get rid of clothes if I buy something “new.”
My third goal is instead of a no spend year, I want to do a no new clothes year. I don't mean no clothes, I mean clothes that are secondhand. It's new to me but it's not brand new. If I do buy a new to me article of clothing, then I will have to reevaluate my closet and give up a piece of clothing that I own. I already have a ton of things and I really don't need more, but I love things so I'm trying to be better about that. As I buy new things I'm going to let some things go.
4. Max out my 401K and IRA
Next year for 2021 I also want to continue the trend of being able to max out my 401k and my IRA. I am again planning on front-loading my accounts. I'm saving up $6,000 so on January 1st or within the first month of the year, I can boom send the $6,000 and max out my IRA. I am also going to try and front load my 401K. Right now I'm not contributing anything to my 401k because I maxed it out, but I'm going to increase that back up to maybe around 30-40%, whatever I feel comfortable with.
5. Post 1 Youtube video per week
I think my financial goals don't really scare me at this point. I'm like I know I can do that. I'm confident in myself. The thing I'm less confident in is growing this business, to be honest. My next goal is to make one Youtube video per week. Since I've launched this channel, I have been extremely consistent about posting one a week, but I also launched in October, which means there were only I think nine weeks left of the year. It's been really fun and really easy but I'm also scared I'm not going to be consistent. (Hold me accountable!) Along with that, I want to be super transparent with you, my goal is eventually to monetize this channel...like a side goal. My main goal is more to put out stuff that's interesting and fun and watchable things that you want to see.
6. Formalize MMH business
And then building upon that I really want to establish Millennial Money Honey as a business. Right now it is all mixed up with my personal stuff and I think I need to get my shiz together. That for me is looking into opening a SEP IRA, opening a business checking, and a business credit card. I want to keep all of my finances separate from my regular life. That is a big huge goal for 2021—to figure out the business side of my brand.
7. Gross $100K income
And then finally my goal for 2021 is to gross $100k. Actually last year in 2020 I was able to achieve that and I want to maintain that same momentum. I'm not really looking to go over that because I did a lot of design freelance work. While I really enjoy design, it is a huge time suck when I'm working 9 to 5 and doing design work throughout the entire day and then after work I also have to do more freelance design work. I really do not want to do that in 2021. All of my income will hopefully be from this brand and from my 9-5 contract job.
I hope you guys are inspired by my goals. Send me a DM, leave me a comment, shoot me an email and let me know if you guys have great ideas for financial, personal, business goals for 2021. I would love to hear them! One of the main reasons I'm putting this out there is to hold myself accountable. If you see me throughout the year and it’s like, “Hey Catie, that's not looking too good!” Shout me out, call me out because I'm here for it. This is why I overshare!
I really appreciate all of your love and support and if you liked what you saw hit the like button subscribe hit the notification bell to get notified when I drop my next video or if you're tuning in on the podcast subscribe wherever you listen to your podcast and I'll talk to you guys soon.
