2021 is finally here. We can only hope it is better than 2020, right?
We are growing the 20 in 2020 challenge for 2021…slightly… by 5%
It’s simple but not easy: save 21% of your income in 2021.
If saving 21% of your income is easy for you (or if your income is over 100K) - please use the alternative 21 in 2021 Challenge: Save $21,000. Both get the same sticker, but the threads will have people at similar income/challenge levels.
Here’s all the 21 in 2021 Challenges:
- $21 Challenge - save $21 per week or per month
- Save 21% of your income in 2021 (this one)
- Save $21,000 in 2021
- 2021 BINGO – A choose-your-own-goals challenge
- The goal is to save 21% of your pre-tax income in 2021. If you make $40,000 per year, that’s $8,400 or $700 per month.
- You can combine any type of savings: emergency fund, 401K, Super, IRA, taxable investments, buffer, house down payment fund, student loan payments - to reach your goal.
- You can choose household or individual salary, whichever you prefer.
- Debt repayment counts towards your savings rate!
- Mortgage principal (but not interest or escrow) counts.
- Only savings that occurs between 1/1/2021 and 12/31/2021 count.
- You can use tax refund or any other windfall money towards your savings percentage, but you then must count that windfall towards your overall income.
- You can choose to count your income and savings jointly with a partner or separately - up to you!
What do you get:
- Support on this thread as you go along - post monthly or quarterly check-ins as appropriate
- A forum badge when you are halfway - at your 11.5% goal - for the year
- A forum badge when you complete your 21% goal for the year
- A sticker mailed to you for the 21% goal for the year
- A shoutout on the podcast for reaching your goal