December 2020 Savings Report

A look back at saving and investment performance up to December 2020

December 2020 Savings Report

Welcome to our December Savings Report.

Happy New Year!

I hope you had a great holiday. We certainly did.

I can’t believe 2020 is over. I also can’t believe what a terrible start 2021 has been for most of us.

We’re back in full national lockdown and there’s been a riot at of the seat of power in America.

To make matters worse, I’ve also had a bit of a health scare. I won’t go into details yet - but it’s certainly been a bad start to the year.

Health troubles are always something I hate. You can have all the wealth in the world but health woes put everything into perspective.

December 2020 rounded out a surprisingly good year for us.

As is now tradition, I’ll also be writing up a Plans for 2021 post over the coming couple of weeks.

Anyway, let’s see how the Money Mage household Saving and Investment performance was during December 2020. You can get all Savings Reports at the best of Money Mage.

December 2020 Savings Rates

Date SR SRp
December 2020 64.7% 73.5%
November 2020 70.5% 88.7%
October 2020 75.1% 81.4%

December is always slightly above normal spend for us, like most of you I expect. Additional spend for Christmas food and the odd gift for family.

The other-MM received an additional bonus for Christmas which helped a little.

But all in all, December was another average month financially for us, rounding out an average savings rate of 80% (including pension contribs) across the year.

Towards Financial Independence

In November 2020 we hit our FIh number - which means we are Financially Independent if you include our primary residence.

But that isn’t the full story…

This table shows the number of years to achieve Financial Independence in various cases.

Date FIh FIp FI
December 2020 0.0 7.5 14.3
November 2020 0.0 8.1 14.5
October 2020 1.1 9.4 15.3

We’re now working towards getting our FIp and FI numbers down so we can retire early if we choose.

December 2020

So Christmas came.

And lockdowns were lifted.

People enjoyed their Festive Bubbles (not us - we didn’t see a soul)

Then vaccines and 2021 arriving convinced everyone life will be back to normal.

Oh wait: we’re now all in a full lockdown again. With the NHS in Scotland predicted to be overwhelmed in 3 weeks.

Who could have predicted that?

A Black swan event.

Boris doing the schools open schools closed hokey cokey. Honestly.

Then Donald encouraged his supporters to march on Capitol Hill. Who could have predicted that? Another Black swan event…

Can we factory reset the first week of 2021?

Anyway: despite the chaos, we had a great Christmas at home together. The other-MM and I, and the dog. One of those holidays where you kick back and do very little. The occasional dog walk, curling up watching films, good food, and copious computer games.

We don’t do huge Christmas gifts, but the other-MM bought the dog a soft toy for some destruction fun. The landing is now covered in stuffing and the dog is well happy.

I spent a little more time talking to my cousins than usual and bought a couple of wee presents for my nieces.

In work news: I’ve had an offer of promotion which I’ve been debating whether to accept. It’s been coming for months. My health has tipped the balance and I’m postponing it.

But overshadowing the end of December has been my health.

Year over Year

Year on Year is up a very healthy 35%, which is one of our best years, and our best year in absolute terms.

Type MoM% YoY%

Asset Allocations

Here you can see asset allocations this month compared to December 2019.

The rebalancing of our assets out of cash into investments is continuing apace.

You can see from the above table, we have quite a significant change this year. With a 5,190% YoY increase in asset allocation in non-retirement locked investments.

This doesn’t reflect growth but our rebalancing towards non-retirement accounts for FI planning.

Importantly, cash is down to 8% of our holdings now.


This chart shows our net worth growth since the other-MM started work and I graduated.

You can see our net worth has recovered from the bottom of the COVID crisis and then some.

We’re mortgage free and on the path to take Early Retirement in our early to mid 40s. If we want to. Subscribe now and follow me on Twitter @moneymagery. I hope you like the charts, I am a fan of Tufte*.

How is your journey to FI going?

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