Happy Thanksgiving everyone! I scheduled this post for the day after Thanksgiving, so I hope you’re not spending all of your money chasing down Black Friday deals. Though I’d guess if you are reading this blog in the first place, you’re probably not. I actually do plan on checking out some deals as we still need a TV in the apartment along with a few other things. Major spending has died down and I think I’m happy with how the budget is settling (finally). I was a bit nervous but I really do think things are going to work out for me financially.
So here is my net worth for November 2016:
I’ve made some solid progress this month, though not particularly when it comes to actually saving money – most of the credit goes to the market this month! I did remember that I had an old CD account with around $350 in it that I kept forgetting to close out. It was barely receiving any interest anymore and seemed rather useless. When I first opened it I was receiving around 2% which was solid, but after it auto-renewed I was making less than a savings account. I’ve now moved that into my savings account to simplify everything.
My checking account essentially stayed the same from the last time I checked in, but both my Roth IRA and 401k made some big gains! It looked like the market was heading down hill a few weeks ago, but everything has been going up since then and that momentum shows in my accounts. I also made my standard car payment, so that increase was fairly normal. My pension hasn’t updated yet, so I’ll probably have a large increase there in December.
I also did most of spending this month in the second half, and this snapshot is from the middle of the month.
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.
$2526 spending in October 2016 * 12 Months = $30,312 spending in a year
$77,741 net worth / $30,312 spending per year = 2.56 years worth of spending
Big change when both your net worth increases and spending goes down! October spending was a lot less compared to September, and you can easily see the difference.
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 $370 a month which is 14% of my spending of the previous month. Much better than September’s numbers!
Image Source: Kalen Emsley @Unsplash