Happy New Year! We were blessed with a financially great 2020 and hope to keep the trend going. Below are our 2021 financial goals:
1) Pass our 2024 Net Worth Goal
We ended 2020 with a net worth of $1,252,846, over 7 years ahead the net worth goal schedule we made back in 2007. We would like to maintain this lead and end 2021 with a net worth over $1,320K (our 2028 net worth goal).
2) Give to church
We attend a small church that our good friends started a couple of years ago. Since Covid-19, every service has been done via Zoom. To support our church, we would like to give $3,600 in 2021.
3)Pay home mortgage down to under $200K
In November 2020, our mortgage balance was $169K but we refinanced for a better rate (2.375% vs 2.875%) and to pull cash out to pay off our $43K boat loan that was at 5.24%. As a result, we are starting 2021 with a $213K mortgage balance. We hope to reduce that to under $200K through regular monthly payments and additional payments.
4) Contribute $4,000 to 529 Plans ($2,000 for each child)
This is one of our top goals each year and in 2021, we plan to increase our contribution by $500 per child ($2,000 each). Our son is currently 9-years-old with a 529 Plan balance of $37,958.69 and our daughter is 6-years-old with a 529 Plan balance of $23,361.36.
5) Building savings account balance to $30,000
We ended 2020 with $30,361.39 in savings so this goal might seem like a gimmie but there are three reasons it is not. 1) We have to pull $8,200 from savings to pay for property tax, 2) We have to pull $1,725 from savings to pay for the balance due on setting up our living trust, 3) I am not currently working so we are living solely on my wife’s income and possibly some savings.