There’s a lot of changes going on in my life right now, both personal and financially so I apologize for the delay between posts recently. It’s both a mix of good and bad news so at least there is some balance in there. I have a new job and plan on writing more about that next month, so things are temporarily a little crazy with my finances. There’s also the fact that it’s December and I know that I’ve spending a lot of money on the holidays, clothes, and a vacation at the end of the month. Most of that won’t be reflected in the net worth update since it’s a snapshot from the 15th of December, but I am throwing that information out there.
Here is what my net worth looks like in December:
Finally pushed past that $80,000 mark and it feels really good! I’m thinking with the new job I’ll be able to push towards six figures early in 2017, and I’m excited to be able to hit that mark. Saving should be that much easier with a large salary increase.
Both my 401k and pension still increased from my old job this month, as I do not start the new job until January. I will be receiving less pay during the month of December, though. I’m surprised that I was able to increase both my checking and savings account by over $800, I was expecting that to be lower. I’m thinking it will hit me when the January update comes because I’ll be dealing with more spending and the fact that I had less income during the second half of December.
My Roth IRA had a nice increase this month, in part thanks to the market and some dividend payouts for the fund that I am invested in. Before you know it, I’ll be making my 2017 contributions in a few weeks. That’s a strange feeling but I guess it’s fitting because 2016 has been a very strange year for all of us. My car loan continues to decrease at the same rate, and I’m still undecided if I’m going to be keeping the car. I will be decreasing the cost of insurance for sure!
So let’s see how far my assets would actually take me at this point in time. I’m going to use my total spending from the previous month to calculate this. I’ll then multiply that by 12 months to get the total spending for the year, and then divide my total net worth by that amount. That’s how long I’d be able to live off my savings at that point in time.
$2881 spending in November 2016 * 12 Months = $34,572 spending in a year
$81,030 net worth / $30,312 spending per year = 2.67 years worth of spending
My net worth did increase, but spending was higher in November compared to October. So I’ve got a slight boost with my years of spending. Previous months were still higher though and I still haven’t been able to cross that 3 year mark!
I also thought it would be cool to see the opposite, how much would I be able to withdraw each month? I set the rate of return at 4% as a conservative guess, and the retirement time period would be for 30 years. I’d be able to withdraw $385 a month for 30 years which is 13.3% of my spending of the previous month. This amount is lower than November’s, but the amount withdrawn is still increasing which is the important part.
Image Source: Thaddaeus Lim @ Unsplash