2019 was the first year that I had a decent percentage of my net income (8.8% to be exact) come from sources other than my work salary. Increasing this percentage while diversifying into multiple income streams will continue to be a chief financial goal for 2020 and beyond.

Net Income Allocation Breakdown

I consider Giving, Taxes, Medical Expenses, and 15% gross salary Retirement Contributions non-negotiable. Given this, I excluded these categories when reviewing both my 2019 net income and how I allocated my 2019 net income, as outlined by the pie chart below:

Key Takeaways

Savings. I didn’t meet my goal of a 50% savings rate for my net income. If I was a little less wasteful with expired groceries and other miscellaneous over-spends, I could have gotten there. With all that said, a 46% net income savings rate is still respectable.
Housing. Although I am a landlord and own out-of-state rental property, I am currently renting where I live. Housing prices in the San Francisco Bay Area are too high for me right now. When I decide to buy a property to reside in in the Bay Area, my goal is to not have the housing percentage of my net income exceed 30%.
Budgeting. Having a visual of how I allocated my net income throughout the year was a fun exercise. It would not have been possible without creating and consistently updating my budgeting. Whether it’s in Excel, GoogleSheets, or a free App like Dave Ramsey‘s EveryDollar, if you aren’t tracking your income and expenses, you should start!

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