2020 In Numbers – 85,2% Savings Rate!

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2020 is soon history.

The year has been extremely good looking from a financial perspective.

My savings rate for the year has been 85,26%, which I’m incredibly proud of.

Let’s reflect on that a bit. An 85% savings rate means that I’m actually only living on 15% of my income. When I write it like that I feel proud.

Even if I’m not financially 100% independent yet, a savings rate of 85% over a long period of time indicates that I have the right mindset for success.

This year I’ve spent approx. $14,976. An amount that is much lower than I originally thought was possible. To compare I spent $17,817 in 2019.

My expenses were in other words 16% lower in 2020 (COVID-19 ?).

The average expenses were $1,232. According to this, I could surely survive on an FI-number of 369.600 ($1,232 x 12 x 25).

My income after taxes last year was $66,000. I had no idea how I’d raise that number up to $101K this year, but somehow I made it!

That’s a 54% salary increase in 1 year!

When Things Go Faster Than You Can Imagine

It feels strange to say this, but somehow it feels like I’m cheating by investing.

My friends don’t understand how I am able to earn that much money from both my job, from the internet, and through investing. And since they don’t understand it, and don’t want to know anything about it (they deny it), I’m getting less and less close to my friends. It’s sad to say this, but after all the saying is true: “birds of a feather flock together“.

I’ve only talked to a few friends about my investment journey, and I’m not telling anything unless people ask me. This is also the reason I’ve started to spend more and more time online because this is the place where I can talk to people who are pushing for the same goals as me. They are really non-existent in real life, so if you’re reading this and want to start yourself, the competition is low.  

With that said, it can be a lonely journey sometimes. So be extremely careful if you go all-in for financial independence as I did, it can cost you friendships. Your worldview can be turned upside down, you can get greedy. To be honest I’ve seen sides of myself that I don’t like. As Gordon Gekko in the movie “Wall Street” says: “Greed is good”. He went on to make the point that greed is a clean drive that “captures the essence of the evolutionary spirit. Greed, in all of its forms; greed for life, for money, for love, for knowledge has marked the upward surge of mankind.”

But is greed always good? This is a question I’m pondering on. What are your thoughts about it?  

My Financial Goals System For 2021

As you’ve already read my savings rate in 2020 ended at 85%.

Honestly, I think I will have a hard time beating this, but let’s try!

My savings goal for 2020 was at least $47,000 into index funds. Obviously, I crushed that number pretty hard. This year I saved $86,626. $83,000 of them went straight into my index funds. Actually, it’s 77% more than my goal.

But as I’ve laid out in another blog post, I’m not so fan of goals, but rather systems instead. 

So I’m not going to pump out another goal of how much I’m going to save and invest in 2021. Because I’ve made saving and investing a hobby of mine, and what I want to do is to save as much as I possibly can month after month. I don’t need a goal telling me to save $ x in 2021, because this now lies in my nature after 3 years of intense saving and investing.

I’m always seeking to push my limits, and I’m sure I’ll find a way to increase my income and ways to invest more in 2021 as well.

Personal milestones I’d like to reach within 2021 is:

-$700,000 invested in index funds (currently I’m swinging around $470K – $500K)
-buy my first rental apartment

$700,000 invested in the stock market is not a goal, because I can’t control the behavior of the stock market. What I can control is how much I invest, my emotions, and when I invest.

Buying the first rental apartment also depends on how much loan we’re able to get, if we find the right apartment and if this feels like the right decision compared to loading up more in stocks.


What are your goals for 2021? Comment below or send me a DM on Twitter

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Have questions, comments, or suggestions? I would love to help you with your FI-journey.

Feel free to reach out directly at @Route2FI on Twitter or email me at post@route2FI.com


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