Mr. MaiFI here with our 2020 goals!

Ms. MaiFI and I have an ambitious goal to save $67,000 this year on our teaching salaries!

Our combined annual income, before taxes and pension withdrawals, is $123,500.

How will we manage to save that much? 

Well, for one, we will be contributing to two pre-tax retirement accounts, the 457(b) and 403(b). That means the money we’ll be contributing hasn’t yet been taxed. It will, of course, be taxed later upon withdrawal. 

The second reason is that Ms. MaiFI and I have established a few side hustles which generate a significant amount of income. That means we use our side hustle money to pay for our expenses before touching our teaching income. That means we eat less into our teaching income than we otherwise would have.

Here is the breakdown of where we plan to save our $67,000.

Investment VehicleMr. MaiFIMs.MaiFI
Roth IRA$6,000$6,000
2020 Projected Savings = $67,000

The order in which we will fill our accounts goes like this: Roth IRA, 457(b), and then the 403(b).

If at all possible, we might also through a little change into our taxable accounts too, as we want to have some balance between pre and post tax accounts. 

In order to accomplish saving $67,000 this year, Ms. MaiFI and I will each need to save a certain amount of money per month, excluding July (we are paid 11 months out of the year).

Here’s how that breakdown would look: 

Mr. MaiFI’s monthly savings:

Per month: $1,772 into 457(b)

Per month: $909 into 403(b)

Per month: $545 into Roth IRA

Ms. MaiFI’s monthly savings:

Per month: $1,772 into 457(b)

Per month: $545 into 403(b)

Per month: Already Completed (Ms. MaiFI frontloaded)

So there it is. Our 2020 financial goal to save $67,000! Will we succeed or will we fail? Only time will tell — but we got a great feeling about it!

What are your 2020 financial goals?