June finally brought in Summer weather and sunny skies, but it didn’t do the same for my finances. This will actually be the first month that I report a decrease in net worth, or at least a substantial decrease. I did have a few months in a row from November to January that were extremely flat, but not quite like this. Although it makes the calculations and numbers not as fun, it’s only a blip on the radar. My savings rate continued at the same exact pace, so I’m not worried. That is the benefit of having everything done automatically, I can’t even touch that money before it’s put away into savings.
Here is my net worth after June:
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.
$2602 average spending last 12 Months * 12 Months = $31,224 spending in a year
$138,541 net worth / $31,224 spending per year = 4.44 years worth of spending
This actually remained relatively flat versus last time, which is expected. My net worth didn’t take a huge drop or anything, it was just a temporary dip.
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 $659 a month for 30 years which is 25.3% of my average monthly spending.
Here’s to hoping that next month I can reverse this loss.