Personal Finance

My 2020 reflection and 2021 goals

Hello everyone!

Welcome to my very first blog post! I am so excited to finally share my journey with you. First of all, I want to wish you all a happy new year. The year 2020 was really tough, so I hope that 2021 will be a better year for all of us.

Since it is the beginning of the year, it only feels right to start with a reflection of 2020 and then to share my financial goals for 2021.

So, let’s go back to 2020. 

2020

My financial journey started at the end of 2019/ the beginning of 2020. I started this journey because I wanted to get rid of my debt and I wanted to keep my hard-earned money for myself.

In 2020 I started my first big girl job in finance. Before I started this position I actually was already working a temporary job in this company but in another department. When they found out my project ended, they offered me a job that happened to be the job I was looking for. Until this day I am so grateful that they gave me this opportunity, especially during the circumstances we are living in right now, and also because I had zero experience. 

In 2020 I had an income throughout the whole year. My main goal for that year was to save €10.000, which I reached on November 23rd. I was so happy and so proud of this accomplishment. I had never seen so much money in my bank account, so this was really big for me. In total, I saved €10.700. 

A second goal that I had was to pay off 20% of my student loan debt. The total amount of my debt was €6.475,80, so 20% is equal to approximately €1.300. I reached my goal on October 4th. To be honest, when I reached that goal I was not happy. I came to the realization that I could have paid way more than 20%. In October I decided to get more serious and to throw as much money towards my student loan debt as possible. I ended up paying off €3.255,80, which is equal to 50,3%. You don’t understand how happy I am! I made the last payment on December the 31st. This last payment of €200 helped me reach this milestone. I am halfway there and I am so excited to pay off the other half in 2021. In the table below you can see what my debt payment looked like in 2020.

2021 

So, what are my financial goals for 2021?

My main goal is to pay off my whole student loan debt, which is €3.220 at this moment. This means that I will have to pay off at least €269 each month to reach my goal, but I want to pay at least €300 per month. At this moment my debt-free date will be in November 2021, but of course, I will do my best to pay it off as soon as possible and to surprise you with my debt free date. 

Besides my main goal, I also have some other goals:

  • Saving €520 each month, which will be €6.240 in total.
  • Investing small amounts of money in the stock market
  • Creating sinking funds

I know that my savings could go towards my debt but at this point, saving is really important to me, because of the current events. 

Before I break down my expected income and expenses for 2021, there is one important thing that I have to mention. My current contract at my job will end in October. I really hope that they will renew it because I really like my job. Everything is going great so far and they are really happy with me as an employee, but I am so scared that they will have to get rid of me because of Covid. I know that they would do everything to keep me in the company, but sometimes you have to make those painful choices. I just hope and pray that I can stay.

For my income, I only counted for the months until the end of my contract. In 2021 I expect my net income to be €19.000. I will also receive a Healthcare allowance of €720 for the whole year. My expenses will be approximately €12.000, but I will do everything to bring this number down. Like I mentioned earlier I have a student loan debt of €3.220  left. Each month I will invest €20 in the stock market to get the feel of it.  I put zero for my sinking fund because it really depends on the money that is left at the end of the month. After everything is paid I will be left with €4.380, which will go to my savings. As you can see according to my calculation I will be left with less than €6.240 to save. This means that I will have to cut some costs, which I am sure I can do.

Expected
Net income€19.000,00
Health care allowance€720,00
Expenses€12.000,00
Debt€3.220,00
Investment€120,00 
Sinking funds€0,00
Savings€4.380  

This is all I have for today. Thank you for taking the time to read my first blog post. 

In the next posts, I will be going more in depth about everything. I am so excited to be sharing so much more of my journey.

See you next time,

Bye!

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s