As opposed to last month when I went to do this analysis, I was super excited to see where things were going in August. I dropped my average expenses down in July, and my net worth was back on the way up and definitely trending in the right direction. The results from this report turned out to be true, with August estimates dropping across the board. Every single date is closer than it was last month and all previous months!
A reminder of the three ways I will tracking my progress:
- The first way will actually be with a simple excel calculator that I made. I’ll plug in my current monthly expenses, savings rate, and net worth. And the calculator will say just how long I have until retirement. Maybe it will say that I can retire tomorrow?
- The second way I’ll be calculating this is through an equation and the help of Wolfram Alpha.
- The third and final way I’ll be calculating my early retirement date is with the help of Mad Fientist Laboratory. I’ll input expenses, savings, and net worth and let his calculations do the rest of the work.
Retirement estimation based on 4% market growth:
Solid progress this month! Not only was I able to turn my net worth back into the positive, spending also decreased compared to the previous months of high spending. I was able to shave half a year off the 4% prediction, and about a third of a year when it comes to the 7% prediction. I’m wondering if by the end of 2018, the 7% prediction may even be in the single digits. These estimations will obviously start to level off at some point, but I don’t think it will be until next year.
Retirement estimation if I never save another dollar:
I continue to drop this number down, though I’m not quite able to retire early even with an increase in net worth. Once this average drops below 30 years is when I’ll officially say that I can retire early without ever saving another dollar. I’m thinking at the pace this is moving that it will happen sooner rather than later, but it does heavily depend on the market conditions.