Well we wave goodbye now to 2020. A rather ‘lack luster’ year in terms of holidays / exploring etc. Of course, the thing that really shadows it all is the coronavirus pandemic, of which we hope and cross our fingers that in 2021 all will eventually turn back to normal with a mass roll-out of a vaccine.
It’s been tough – the stresses of running the business, keep heads above water and calming client nerves certainly has taken its toll. However I am still in a very fortunate position and grateful that the business hasn’t been affected too much, bar from the additional pressure, in the short term.
I’ve recently published an update on my goals, some of which are more of the ‘softer’ side instead of hard finances. Below is an overview of the year and to sum up:
December 2020 | Investment
How are those investments looking?
Really my investments barely look like they’ve even been affected by coronavirus. I’m continuing to report fantastic growth across my ISA and General Investment accounts. My total pot in November was £171,288 and in December now sitting at £178,966. I certainly can’t complain at that!
How are those figures looking?
Total Income: £4,868.00
Total Saved (?): £3,000.00
Total Expenses: £1,868.00
Savings (%): 62%
Continuing to hit the 60%+ that I had assigned myself at the beginning of 2020. Given Christmas naturally results in a few little extras in terms of presents for family and loved ones, I’m quite proud that I’m still managing to save £3,000 per month of my total income.
However, over the course of the coming months, just like last year (particularly in January 2020) my savings rate dropped to 24%. This is due to the self assessment / HMRC various tax bills that directors have to submit and pay in February. Fortunately I’ve already tucked a chunk away in preparation but final accounts are being processed by the accountant.
And how about year on year figures?
Well I started this journey ‘officially’ back in January 2019.
In 2019 I saved £73,637 in total.
In 2020 I saved £66,975 in total.
However my investments have grown from;
End of Year 2019: £88,870
End of Year 2020: £181,134
So even though I saved £6,662 less in 2020 compared to 2019, my investments grew by £25,289 in 2020. Absolutely bonkers! I hope I don’t get used to this sort of return in the future :D. This is the glorious power of compound interest in my own eyes! Can finally see the effects of it.
A look to the future…
Genuinely hoping 2021 is going to be another leap forward on the financial independence side. I’ve raised the bar to try and reach £250,000 in the year. This is somewhat of a hard push but I’m very much focusing on achieving it. The usual process of filling up the ISA along with additional pension contributions is also a must for me.
Wishing you all a happy new year for 2021!