I’m not expecting too much from this analysis for March with the fact that my net worth actually decreased in February. But I do think it’s important to keep doing this to see the long-term trends and flat areas, like over the past three months. As long as I continue to save the same percentage of my income, the market should return at a positive rate over a longer time period. Obviously these things are not guaranteed, but growth is necessary for an early retirement.
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:
Both calculations saw a slight increase in time until I actually am able to retire, about .1 or a 1-2 month increase. When you consider that my average spending went up last month and my net worth went down by a bit, it’s really not that big of a drop compared to what I might have expected.
I’m now planning on bumping my savings rate up a bit starting next month. That will be in the form of increasing my 401k contributions, so I should see a slight uptick with these calculations next month, even if the market remains flat. The increased savings rate should at least provide a tiny boost!
Retirement estimation if I never save another dollar:
Since this calculation doesn’t take into effect any savings rate, it saw the largest increase in time period. I’m still sitting under 36 years for the time being. The goal is to have this number under 30 years by the end of 2018, and I still believe that is within reach. Hopefully next month’s update will be more positive!