We’re coming in on the home stretch of Summer, so I hope you have all been able to enjoy these past few months of warm weather. I’ve had excellent progress thanks to the market, so even with higher spending on vacation progress has still been in the right direction. I’ve also added a new account this past month, a HSA account. My company automatically puts in $100, than another $50 for getting a physical, and $300 if you complete an online assessment along with the physical and blood work. I’m hoping that I’ll be able to get that $300 bonus either this month or next. I have it set up that my contributions will max the account out, and once I have a balance of $3000 I’ll be able to choose where to invest it.
So here is my net worth after July, new HSA account plus everything:
I finally did it! I’ve broken into the six figure club and even passed it by $2000 this month. As I was adding everything into the chart, I was super excited as I realized that I’d finally been able to break through that plateau. I know it’s just an arbitrary target, but it feels good to finally be able to surpass that amount. The growth the past three has been steeper than last year! That’s a combination of increased savings and the market helping me out.
So let’s see how far my assets would actually take me at this point in time. I’m going to calculate that using my average spending over the last 12 months. 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.
$2742 average spending last 12 Months * 12 Months = $32,908 spending in a year
$102,074 net worth / $32,908 spending per year = 3.10 years worth of spending
Spending was high last month, as I had to pay off the credit card bill from my vacation at the end of June! I also finally bought a new phone and prepaid my phone bill to try to hit a credit card spending bonus, so as the months go on that expense will spread out. But for now it looks like a spike in spending. The other big expense was ordering new contacts, also a year’s worth. So without those two expenses, things were pretty much in line. But for now my years of spending essentially stays flat.
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 $486 a month for 30 years which is 17.7% of my average monthly spending. I’m hoping that by the end of the year I’ll be able to cover around 20% of my spending. There’s quite a few variables that will have to right, but I’m confident that I’ll be able to reach that goal.
Image Source: Me