After crunching the numbers, I’ve saved around 30% of my 2020 income, and I’m elated. Why you ask? I was furloughed for 3 months this past year, and received no unemployment during that time. I’m surprised I did so well when it felt like I was turning my wheels.
The Break Down — Gross Income
In 2020, my gross income was $33,753.04; not bad. This annual income is a tad higher than normal. During the past year, I picked up some overtime in the few months before March, along with getting a raise when I transferred to a new position. If I had stayed at my original position, my gross income would’ve been closer to $28,000. I’m quite happy how those minor changes helped boost my earnings.
Out of the gross income, I payed the following to amounts in these categories:
- $2,278.34 — My 6% mandatory 401K match (work matches 6%, too! :D)
- $5,854.16 — Taxes
- $2,162.38 — All my insurance (health, dental, etc). I probably buy more than I need as a single person, but my job has really great insurance, so I don’t mind. 😀
The Break Down — Take Home Income
After all the deductions, my take home income was $23,458.16. I did surprisingly well with the resources that were available to me. Not only did I cash flow 3 months of furlough time, I also cash flowed a new-to-me used car and a major dental procedure involving top dentures.
While I’m excited that my end of the year net worth was $15,957.84, I knew that this included everything, and didn’t reflect my actual 2020 savings percentage. In order to find out how much I truly saved from my take home income, I broke down my net worth first, and went from there.
- $2,278.34 — my 6% 401K match — (pre take home pay)
- $2,683.37 — work 6% 401K match — (not included in gross or take home income)
- $3,500.00 — approximately what I had in checking/savings on Jan 1st, 2020, so not including it in my 2020 breakdown. 🙂
After these are deducted from my 2020 net worth of $15,957.84 – $8,461.71; my savings from my 2020 take home income is $7,496.13. 😀
The Break Down — Living Expenses
In case you’re curious, my total 2020 living expenses was $15,962.03 or $1,330.17 per month. After calculating different things I cash flowed, I had the potential of saving 4,771.82 more for the year. However, I have no regrets. These things, experiences, and health related expenses were 100% worth it. Here is the partial break down of how I spent my 2020 living expenses.
- $7,860.00 — Rent — 1 bedroom, water and heat included
- $1,850.00 — Car — Bought used beater car from a friend
- $210.00 — Car insurance for 6 months
- $1,274.10 — Dental work — top dentures, extractions, etc
- $659.88 — Internet
- $574.32 — Cell phone
- $600.00 — Electricity — Not the true amount. It’s probably lower. I just did $50 x 12 to get this total.
- $250.00 — Xmas — presents for the family
- $286.06 — Big Agnes Copper Spur HV UL2 tent — normally around $450, but used a gift card and cash back rewards to bring down the price. 🙂
- $73.85 — Marmot rain pants — much needed for bike commuting to work and hiking.
- $125.00 — Bicycle repairs — I have an older bike that needed some upgrades
- ???? — Food — Thousands. I spend a lot more than I should on food, both groceries and take out. I’m doing a better job of controlling it so far this year. I haven’t calculated this yet since it will take multiple days.
2021 — Save 40%-50% Of My Income
My goal for 2021 is to increase my overall savings rate to at least 40%, but preferably 50%. In all brutal honesty with myself, if I want to achieve the financial goals and life I’m aspiring to in the next 3-5 years, I’ll need to develop or acquire a second source of income. My current income is pretty much to the point where I can’t cut anymore to find more savings. I’m excited to learn new skills and see where they take me.
How did you do in 2020 with your savings? What are your 2021 savings goals?