Net Worth Update – February 2017

Welcome back to another net worth update, I hope that everyone else is taking advantage of the increases in the stock market with their investments. The S&P 500 has only gone up this month, and that’s reflected across all of my investment accounts. I’m really busy with personal life, but I am still 100% dedicated towards achieving my financial goals and I’m not going to stop tracking towards those goals. I haven’t found the motivation to write as often, but I absolutely look forward to sharing these net worth updates with you and seeing the progress that I’ve made. I also love checking out how everyone else is doing and reading all the other personal finance blogs.

Here is my net worth for February:

I was able to save a decent amount this month, almost $700 after expenses. I continue to make my monthly Roth IRA contribution of $458 and doubled that this month with the way the market has moved! Still making steady progress on the car loan, and with recent changes it looks like I will continue to be a car owner at this point in time.

The 401k from my old job continues to chug along, and I’m still procrastinating moving the money into a personal IRA. It’s not super important at this point in time though, because my Pension is stuck there until I’m older. It’s also through Charles Schwab which essentially has the same expense ratios for a target fund compared to Vanguard. I could save a little more by manually selecting Admiral shares in Vanguard, but it’s not critical at this point in time. It will get done though!

My new 401k is a growing a bit slower, with my contributions being the bulk of that growth. I also think that the online interface wasn’t updated to include the most recent paycheck – so it just means a slightly larger increase when I go to do the March update 🙂

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.

$2283 spending in January 2017 * 12 Months = $27,396 spending in a year

$88,546 net worth / $27,396 spending per year = 3.23 years worth of spending

Big net worth increase again this month and a big decrease in spending leads to my largest ever number here! Surpassing 3 years worth of spending! While it will probably be a short-lived milestone at this point in time, it’s still cool to be able to see that. I think I’d like to try to get that number closer to 5 years worth of spending by the end of this year.

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 $421 a month for 30 years which is 18.4% of my spending of the previous month. Another big increase, and almost hitting 20% after January’s super low spending! Same thing as before, hoping that this trend continues to move in a positive direction with each update.

Image Source: Sophie Higginbottom @ Unsplash

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