2020 MONEY WINS from fellow Happy Savers!
20 Dec, 2020
In a year where COVID-19 caused chaos, none of us remained unaffected, yet so many of us still managed to make progress despite the odds being stacked against that happening. There were so many unknowns as the year got underway but so many people took it in their stride, reacted to an unexpected position that they found themselves in, or activated an emergency plan that had long since sat waiting for a time like this. And many of you privately shared your journey with me, something I’m always grateful for.
I recently asked subscribers of my blog to share their money wins for 2020 so you could get some insight into what fellow Kiwis did on a personal level to navigate 2020.
It has been particularly awesome to hear from people during 2020 who had sorted themselves out financially either before, during or after Covid-19 came along and they are each now looking to the future feeling empowered and in control. And that’s all I want for people, whatever your situation, as long as you understand it and it’s working for you, I’m happy for you. But if you are struggling along, uncertain and worried I am here to tell you that you can make progress extremely fast, IF you commit to doing so.
Every single time I hear from someone who has turned a corner and worked something out or made a commitment to something I give them a virtual high five because I am just always wowed by the fast progress people can make with their money once they decide to get moving. I know full well that there are people struggling out there but the peace of mind that comes from gaining control is incredible and it always comes through when people get in touch to share with me that they have moved from a really tough place, into a better position. Whether you managed to successfully move from two incomes to one, picked up extra work over and above your usual job, budgeted and got your costs under control for the very first time, purchased your first home, paid off your mortgage or hit the first $100,000 invested in the share market, or even become a millionaire in 2020, each milestone was unique and personal and I’m always delighted to be a part of the celebration.
Thanks to all of those who shared their wins below - it’s just a small snapshot of the great stuff happening in Aotearoa - keep the momentum going and take note of where you are today so that in 12 months time you can look back and see just how far you have come and just how much closer to your goals you are.
And please know that if you are sitting at your computer with questions on your mind, there are many others out there doing exactly the same thing. I am so fortunate to receive daily emails from people who have questions they need an answer to, when they lack someone to ask, they turn to me. I’m always happy to oblige. Increasingly people are telling me that they are beginning to have conversations about money with those around them and are finding out what others are up to so they can apply that information to their own journey. I really encourage this curiosity and openness and I hope that we can each continue to encourage each other to be financially fit enough to face whatever challenges might be coming our way in 2021.
I’m taking a break for a couple of weeks but will be back in early January to pick up where I left off. Jonny and I wish you a wonderful festive season, enjoy the freedom that comes with living in New Zealand, but please do stay vigilant so that we can continue to keep our country Covid free and our economy working as best it can.
Stay safe. Be kind. Spend wisely. Meri Kirihimete X
Happy Christmas!
Ruth
2020 Money Wins
This year, despite reduced income (5 months of reduced salary!), we’re on track to finally have an Emergency Fund of six months expenses by Christmas Eve! This is the first time we’ve had such a good financial safety net and we feel proud that despite our lower income this year we’ve been able to reduce our costs and keep saving.
- Penelope
Dear Ruth,
I thought I’d share my little win for the year because you were one of the championing voices (in my head) when I took a big financial leap a few weeks ago. At the end of last month, I signed a sale and purchase agreement for a beautiful one-bedroom apartment in Auckland (I’ve been trying to buy for years!).
I’ve financially done this on my own, but have been helped by the common-sense advice of many, your advice being “keep your KiwiSaver for your retirement”, so I have! All the while sticking to a purchase price I can afford. My deposit has been paid without the aid of my KiwiSaver.
Keep singing this advice Ruth and know that while it has become standard practice for your house deposit to come from your KiwiSaver, there are a few of us out here that take the advice you’ve given as best practice.
Thank you kindly,
From me now & my future self.
- Sarah
Invested my life savings of $50k in an index fund, instead of investing in property (like everyone was telling me to). This was the result of taking the time to work out my long and short term financial goals for the first time, before making a move. I’m proud of myself for doing what was right for me, rather than what is right for everyone else.
Also, I started saving for a first home in the formidable Auckland market (will take four years for my partner and I to hit our goal of a 20% deposit on a $1 million home). If we can diligently save every week towards such a monumental goal on well below-average incomes, we'll have proven to ourselves that we can pay off a mortgage every week.
- Dean
Money Wins: Started investing in individual stocks, finally branching away from ETFs, so far I have netted 40% returns over the last 6 months.
- Jason
My money win is only small, but it's something. I became a self-employed travel agent in April 2019. Then became a new mum in September 2019 and went back to work in February 2020. A month later, the borders closed and I lost my entire income. My business I'd worked for a decade to create and grow was now horrible and soul-destroying, I spent my time just cancelling all my hard work for the last year, and I also had a baby that demanded all my attention making me feel a bit trapped (honestly, even though it's awful to say).
BUT by being dedicated and focusing on our budget, we've come out of it with no extra debt, even though my husband’s income doesn't cover our bills. I was just lucky to get all the wage subsidies, and made them last! Finding you, and listening to all your podcasts, has kept me unwavering in our goals. I start a part-time job this week, and I'm excited to make small gains in the right direction!
- Mandy
After a large spending spree on my credit card after lockdown restrictions eased I realised that I couldn’t continue with this behaviour if I wanted my husband and I to retire in a comfortable position. I set goals and made plans, shared these with my husband and since then we have paid off all our consumer debt and are currently building up our emergency fund. We have also increased our retirement contributions and the next step will be increasing our mortgage repayments. Peace of mind, being in control and having clear plans for the future is an amazing feeling! Bring on 2021!
- Shelley
Starting this year I had very little knowledge of personal finance, had no budget written up, only $200 in savings, with my KiwiSaver doing its “thing” in a high fees ANZ fund. During COVID lockdown I took the opportunity to learn a new skill - personal finance and the share market. After immersing myself in The Happy Saver, Mary Holm, Frances Cook, Money King, MoneyHub, Barefoot Investor, JL Collins, Dave Ramsey to name a few. I set my goals, budgets and investments. Two months ago my car gave up and needed $5,000 spent to get it going again or write it off and buy another. Due to me having an emergency fund from learning above I paid cash on the repairs and was back on the road that week - no debt gained. Also with having an emergency fund I’m no longer stressed about money like I used to. So, it’s a double win.
- Jason
Our money win for 2020 was getting rid of our rental property that was like a monkey on our back 24/7. We were lucky that the rental had increased over the 5 years we owned it thanks to the crazy housing market but the stress we felt every day from having $620k in debt just for the rental property, not to mention the mortgage on our own house, was exhausting. Sold up in September and we are almost debt free on our own home, we have saved up the money to do renovations, which is something we would not have done before going on this journey, we would have just ‘put it on the mortgage’. 2020 has been a revelation for us that debt is dumb!! Feels great to have minimal debt which will be paid off in a couple of years, then we will tackle the investing gig to save for our retirement. Roll on 2021!!
- Rachael
We spent so much less during the lockdown that we were able to save enough cash for an e-bike. We've since biked enough commuting hours to pay off half that cost in reduced vehicle costs.
- Paul
I bought my first house earlier this year - YAY!! It comes with a body corporate and fees of $4,500 each year. I said to myself that “I must put money away for that and also my rates so I can pay them when they come due during the year”. I set up an automatic payment to save up for them (a sinking fund), and didn’t dip into the fund all year. It was such a relief to easily pay the invoices as they’ve come in, as I’ve heard from so many other homeowners that they find it hard to do so.
- Lena
We saved $3,000 in an emergency fund.
We have paid off about $4,000 extra on our car repayments.
We have resisted all consumer debt.
- Julia
For the first time in history: a global pandemic! Everyone is going through the same thing at the same time. But don’t discard 2020 as it’s strengthened our resilience in so many ways. Sure no one has come through unscathed, we’ve all felt pain, suffering and massive financial setbacks/loses but it's been a truly unifying experience. On reflection, I feel 2020 has been a meaningful and prosperous year where I’ve improved my work life balance, fortified by financial foundation, developed meaningful goals to work towards, whilst deepening our romantic relationship. My partner and I are on the same page financially heading in the same direction, we’ve discovered FIRE, built our emergency funds, transferred our KiwiSavers, invested in Kernel ETF’s all whilst looking for new jobs and restructuring our business!!! Yeah, how can you know where you're going if you don’t know where you’ve been?
- Chris
Thanks everyone for contributing! If you would like to leave your own money win, you can do so in the comment section below.
THANKS SO MUCH.
