I am so excited right now because today I get to share our 2020 financial goals. Setting goals really gets me fired up because when you have a goal written down, it becomes a journey! 2019 was a great year for us and I do not doubt that this year is going to be even better.
First, before I start with our 2020 financial goals, let me start off by doing a brief 2019 overview (which I will write about in more detail on an upcoming post.)
Ryan and I were able to increase our income, pay off approximately $60,000 worth of debt and invested our money into some tax-advantaged accounts.
Additionally, we also took an unforgettable Western Caribbean cruise. Experiencing a new part of the world every year is one of our most important goals. Budgeting travel is very important to us. Last year, we experienced the beautiful island of Roatan, Honduras.
We didn’t reach all of our goals last year, but we came pretty close. Without a doubt, 2019 was a great year. We were focused, had a clear plan and kept each other accountable.
Now for 2020…
This year, our 2020 financial goals are even more focused. We have 4 specific goals in mind.
GOAL 1 –INCREASE INCOME
Our first goal is a goal that we always have. And that, of course, is to increase our income!
This happens naturally for most people over time but we are intentional about it. We aren’t just looking to work some overtime and get a few cents raise. We want to increase our income each year by several thousand dollars.
Also, we aim to have several streams of income. Each year, we try out new side hustles to make extra money. Side hustles are basically part-time jobs you work on the side.
Some of our side hustles are reselling, teaching classes, taking surveys, and stock trading. When we hear about a new way to earn money; we almost always try it out (Even if it is just a couple of dollars). Already this year, I’ve tried out a new side hustle that involves audits – and I love it.
GOAL 2 – INCREASE INVESTMENTS
Increasing our investments is going to be key to early retirement; so we needed to make sure we have a contribution plan included in our 2020 financial goals.
OPEN “SPOUSAL” IRA
Everyone knows that the majority of the income you make in life will be taken away by taxes in some form. So it makes sense to Ryan and I to invest our money into tax-advantaged accounts.
We used to think that as a work-at-home/stay-at-home mom, I wasn’t eligible for accounts like an IRA. After some research, I discovered that stay-at-home parents CAN QUALIFY for an IRA if their working spouse meets the requirements. It’s called a “Spousal IRA.”
So this year, we are going to open another IRA in my name. Then, we are going to max out these accounts and take advantage of the tax benefits.
MAX OUT HSA
A Health Savings Account is a tax-advantaged medical savings account. They are powerful tools for the FI Community.
These accounts are usually available to people who have a high-deductible health care plan through their employer. You can contribute pre-tax dollars into the account to use for medical purposes.
However, what most people don’t know is that you can actually invest that money. Any gains that you earn from your health savings account will not be taxed as long as you use the money for qualified medical purposes.
This year, we plan to max out our own HSA. The maximum amount you can contribute for 2020 is $7,100 for families and $3,550 for individuals.
CREATE RENTAL INCOME
Do you know that you can Make Extra Money Renting Out Your Stuff? I recently wrote about how you can rent out everything from your bicycle to your house.
We are planning to start renting out anything that we can. We don’t know if item rental will be popular in our area but we’ll never know until we try! Property rentals have also been on our minds – 2020 could be the year we purchase our first investment property.
GOAL 3 – PAY OFF DEBT
God willing, we will be debt-free by Spring! Once we hit this milestone, I’d like to invite everyone to our place for a big party. We will be serving Ramen Noodles and ice cold water!
GOAL 4 – MASTER TRAVEL HACKING
Have you ever heard of Travel Hacking? Basically, it’s where creditors offer people sign-up bonuses (like a free flight) for getting their credit cards. It’s a win-win for both the creditor and the cardholder.
When I first heard of Travel Hacking, I overlooked it as a fictional way to save money on travel. Meanwhile, while I’m paying for travel (still getting some good deals though,) other people are literally traveling for free.
I studied Travel Hacking in more detail last year and took out a couple of credit cards. Currently, I’m holding enough travel miles to fly my family of four anywhere in the world for almost free. I’ll just have to pay a few dollars in taxes.
I’m excited to blog about this upcoming trip. If you want to read about how I lined up the credit cards for this trip, you should read the post I wrote called, “How to Book Family Vacations for Free or Cheap.”
This method of travel made our list of 2020 financial goals because we could easily save thousands of dollars every year simply by travel hacking.
“Dream your own dreams, achieve your own goals. Your journey is your own and unique.”― Roy T. Bennett, The Light in the Heart
Some of the reasons why Ryan and I have achieved our goals is because we have had clear plans and we keep each other accountable. I have no doubt that we will reach our 2020 financial goals and that this is going to be a great year.
Lastly, I would like to encourage you to not only have goals but to plan them out in detail. You will be unstoppable if you have a clear plan and never give up. What will you accomplish this year?