And we have the y2021🎉. Sure corona made 2020 one of worst years, but for me it was one of the best as The big day has arrived #2!👨👩👦👦 Also I think I might add I got one of big lessons in life – Lesson learned – stick to your strategy💡. Another greater achievement this year – Milestone – 1.000 EUR in forward annual dividends!💰 with major new investments. So overall the year was a good one for us 😊 Sure I failed at Sport goals🏋️♂️👎 this year as well, but the result was better then in 2019 and im optimistic for 2021 in this filed.
In short 2020 Q4 was positive. Income declined to 6,3 kEUR and expenses to 6,1 kEUR leaving with +0,2kEUR or 3% saving rate. My income was only 4,1 kEUR as I received some advance at September. Wife income also declined to 1,8 kEUR as payments for 1st child ended. Well this is the new income norm from now on – 6 kEUR. Food was our main expenses – 1,9 kEUR or 633 EUR/mo too high, but with 2 kids pampers and stuff that the reality 😁 Other expenses – 1,3 kEUR mainly presents. Another 0,6 kEUR was for homerepair. Needed comfortable chair and table for remote work. Other cost were in line. Fixed cost were 4 kEUR or 64% way too much then the 50/30/20 rule. Flexible cost 2,1 kEUR – 34% slightly over the line as well.
Y2020 income was 33,5 (30,6) kEUR📥 or +2,9 kEUR / +9% if compared YoY. My salary increased not that much from 19,1 kEUR to 19,9 kEUR as it declined to level similar to previously and 2019 had also a annual bonus. Wife income boomed from 6,8 kEUR to 12,8 kEUR as for some time we received double payments for both kids. Then at last 2020 dividend income💰 – 0,9 kEUR or more then twice as much as in 2019 or 2,6% from our total income. Also a new record, biggest was 1,7% in 2017. With fewer income expected in 2021 and continued increase of dividend I expect this number to continue growing 😊
Expenses increased but at lower phase then income – 30,2 (29,1) kEUR📤 or +1,1 kEUR / +4% :
- Cost on home🏘 – 10,9 (7,5) kEUR was the main reason why this year cost was bit higher:
- Mortgage payments🏘 – 2,5 kEUR unchanged.
- Utilities🔌 – 1,8 (1,8) kEUR small increase.
- Home repair🛠 – 6,6 (2,9) kEUR was the main cause as Toilet and Bathroom repair cost bit more, but now we have new and nice ones for another 20y or so. Now there should be no major repairs in coming few years, unless we will get a 3rd child 😁 but that’s not happening at least on purpose 😉
- Food cost🥘 – 7,9 (7,3) kEUR. Not a big +0,6 kEUR jump (x2 pampers) I guess, but again look bit high and would like to have it bellow 7 kEUR.
- Transportation🚗 – 3,6 (3,4) kEUR. Similar to 2019 as leasing cost are fully paid.
- Holidays✈- 0,7 (2,0) kEUR. Covid lockdown effect. In general we had no normal vacation this year.
- Other cost🛒 – 7,2 (9,0) kEUR. Less then in 2019 as it was boosted by 2 kEUR cost for our daughter baptism. These cost breaks down to:
- Student loan🎓 – 0,2 (0,2) kEUR
- Health💊 – 1,0 (0,6) kEUR
- Clothes👕 – 1,7 (1,6) kEUR
- Other🛒 – 4,2 (6,8) kEUR
So the breakdown on fixed and flexible income. Fixed (Mortgage, Utilities, Food, Transport, Health) – 17,1 (15,6 kEUR or 51% of our income, which is almost in line with 50% goal. Then there are flexible cost (Home repair, Holidays, Clothes and Other) – 13,1 (13,5) kEUR or 39% of our income. Higher than aimed 30%, but actualy lower then in 2019 even with huge cost for toilet and bath repair. Not a great result, but a better one then in 2019.
And now the most importan the Net result was +3,3 (1,4) kEUR💰 or 10% saving rate. We failed on 20%, but done better then in 2019, when we saved only 5%. Another financial goal failed is cash accumulation as I invested to early and later put all spare cash to investments.
- Save 20% of income – Failed (Actual 10%)
- Accumulate 10 kEUR cash – Failed (Actual 2 kEUR)
Ok so 2020 was a better year then 2019 on a Budget level. Lets see how 2021 will go.