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2020 Annual Report for my Family's Personal Finance
2020 Highlight Numbers
Revenue declined -7.6% YoY
Net Worth grew +166% YoY
Savings grew +31.6% YoY
Savings margin +38.9% vs 27.3% in 2019
Full Details below:
2020 Highlight Numbers
Revenue declined -7.6% YoY
Net Worth grew +166% YoY
Savings grew +31.6% YoY
Savings margin +38.9% vs 27.3% in 2019
Full Details below:
INCOME STATEMENT:
Total Revenue: -7.6%
Positively impacted by a raise and promotion, more than offset by wife dropping to part-time to be home with the baby.
Total Rev. represents our combined gross salary.
Total Revenue: -7.6%
Positively impacted by a raise and promotion, more than offset by wife dropping to part-time to be home with the baby.
Total Rev. represents our combined gross salary.
Total Expenses: -6.6%
Driven by decreased spending in auto -50%, restaurant/bar -12%, and home -22% which was partially offset by increased spending in groceries +49%, gifts/donations +84%, personal care +51% and shopping +55%.
Driven by decreased spending in auto -50%, restaurant/bar -12%, and home -22% which was partially offset by increased spending in groceries +49%, gifts/donations +84%, personal care +51% and shopping +55%.
Income: -45.5%
Income represents take-home paychecks less total expenses.
Profit Margin: +13.5% vs 21.1% in 2019
Income represents take-home paychecks less total expenses.
Profit Margin: +13.5% vs 21.1% in 2019
CASH FLOW STATEMENT
FCF grew +232%
FCF margin = +39.5% vs -27.8% in 2019
FCF represents the change in cash balance plus contributions to all retirement/investment accounts plus earned interest.
FCF grew +232%
FCF margin = +39.5% vs -27.8% in 2019
FCF represents the change in cash balance plus contributions to all retirement/investment accounts plus earned interest.
FCF was positively impacted by a +7.6% increase in dividends, +42% HSA contributions and +6.9% 401k contributions partially offset by -80% earned interest.
FCF in 2019 was negative due to large down payment for house & suspension of extra mortgage payments. In 2020 our house...
FCF in 2019 was negative due to large down payment for house & suspension of extra mortgage payments. In 2020 our house...
...was refinanced from 4.375% 30yr to 2.875% 15yr. We have no intentions of paying this down sooner as we intend to earn more than 2.875% with that capital.
Earned interest fell -80%, neg impacted by savings acct interest reducing from 2% to 0.5% & money moved to $NOW $ADSK $MKL $BTC and MogulREIT II (a public non-traded REIT)
Savings grew +31.6%
Savings Rate: +38.9% vs +27.3% in 2019
Savings, compared to FCF, backs out extra mortgage payments and earned interest and dividends
Savings Rate: +38.9% vs +27.3% in 2019
Savings, compared to FCF, backs out extra mortgage payments and earned interest and dividends
BALANCE SHEET
Net Worth: +166%
Total Assets: +44.5%
Driven by strong growth in all investment accounts, partially offset by reduction in car asset values.
Asset growth by account:
Net Worth: +166%
Total Assets: +44.5%
Driven by strong growth in all investment accounts, partially offset by reduction in car asset values.
Asset growth by account:
Current Assets (Cash accounts): -43%
Brokerage/Bitcoin/MogulREIT: +245%
401k1: +94%
401k2: +77%
Roth IRA1: +141%
Roth IRA2: +136%
HSA1: +155%
HSA2: +47%
House: 0% (assumed)
Car1: -13% according to KBB
Car2: +5% according to KBB
Brokerage/Bitcoin/MogulREIT: +245%
401k1: +94%
401k2: +77%
Roth IRA1: +141%
Roth IRA2: +136%
HSA1: +155%
HSA2: +47%
House: 0% (assumed)
Car1: -13% according to KBB
Car2: +5% according to KBB
Total Liabilities: -28.1%
Current Liabilties: +30.9%
Driven increase in medical bills and 0% interest loan for attic insulation, more than offset by reduction in mortgage debt.
Note medical bills are all not due within 1 year, so current liabilities # is artifically higher
Current Liabilties: +30.9%
Driven increase in medical bills and 0% interest loan for attic insulation, more than offset by reduction in mortgage debt.
Note medical bills are all not due within 1 year, so current liabilities # is artifically higher
KEY METRICS
Current Ratio: 0.62
Liquidity Ratio: 9 months
Liquidity Cash Ratio: 3 months
Investment returns: +90.8%
Relative Wealth: 1.87
Wealth Accumulator: 0.66
More details below:
Current Ratio: 0.62
Liquidity Ratio: 9 months
Liquidity Cash Ratio: 3 months
Investment returns: +90.8%
Relative Wealth: 1.87
Wealth Accumulator: 0.66
More details below:
Current Ratio 0.62 vs goal of 1
Defined as current assets (cash), divided by current liabilities. Given our strong cash flow generation, historically low interest rates, we feel comfortable below 1 at this time. We expect current ratio to stay below 1 for most of 2021
Defined as current assets (cash), divided by current liabilities. Given our strong cash flow generation, historically low interest rates, we feel comfortable below 1 at this time. We expect current ratio to stay below 1 for most of 2021
Liquidity Ratio: 9 months
Liquidity Cash Ratio: 3 months vs 3-6 month goal
Liquidity Ratio is defined as total cash + 50% of non-retirement investment accounts divided by average monthly expenses.
Liquidity Cash ratio considers cash only.
Liquidity Cash Ratio: 3 months vs 3-6 month goal
Liquidity Ratio is defined as total cash + 50% of non-retirement investment accounts divided by average monthly expenses.
Liquidity Cash ratio considers cash only.
Investment Returns +90.8%
Driven by a very strong market, largest $$ gains in $MELI $TTD $SHOP $ROKU $BTC $SQ $MTCH $TWLO $FSLY $OKTA $SE $CRSP $NVTA
Driven by a very strong market, largest $$ gains in $MELI $TTD $SHOP $ROKU $BTC $SQ $MTCH $TWLO $FSLY $OKTA $SE $CRSP $NVTA
Relative Wealth 1.87 vs 0.70 at the end of 2019
Defined as Net Worth divided by total value of house and cars.
Goal is to continue to grow this over time.
Defined as Net Worth divided by total value of house and cars.
Goal is to continue to grow this over time.
Wealth Accumulator 0.66 vs 1.96 at the end of 2019
Defined as (Salary x Age x 10%) / Net Worth.
Goal is to be below 1
Defined as (Salary x Age x 10%) / Net Worth.
Goal is to be below 1
FINAL NOTES:
2021 Forecast:
Revenue growth +3-6%
Savings Rate 25%
Cont. to aggressively fund retirement accounts, invest stimulus checks into Bitcoin $BTC, fund new 529 & custodial accts for my daughter, hopefully make a sibling for her :), & learn/have fun along the way
2021 Forecast:
Revenue growth +3-6%
Savings Rate 25%
Cont. to aggressively fund retirement accounts, invest stimulus checks into Bitcoin $BTC, fund new 529 & custodial accts for my daughter, hopefully make a sibling for her :), & learn/have fun along the way
