This post is coming to you a little later than normal (again – sorry!), October was an extremely busy month for me. I had actually prepared all the numbers and had a post outline all done and ready to publish, but I just didn’t get around to publishing it. I’m really trying to push towards the end of the year and hoping that I will be able to hit an $80,000 net worth, so we will see how that goes. I’m going to try stepping up my savings and letting the market give me a needed boost. I hope that everyone had a very spooky Halloween, but no tricks when it comes to personal finances.
Here’s my net worth update for October:
It’s crazy how much a few weeks of the market trending upwards can really change how a month ends up looking. I barely increased my checking and savings account, but everything else was on the upward trend! Both my 401k and pension made huge increases, and we’ve come back roaring after September’s decline. After having a month of high spending it feels good to see my net worth back up into the positive.
I know that since I’ve calculated these increases the market has been trending down, but for now I’ll enjoy this little boost. Been having some rough times financially and in general, so I’ll take what I can get at this point.
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.
$3200 spending in September 2016 * 12 Months = $38,400 spending in a year
$75,990 net worth / $38,400 spending per year = 1.97 years worth of spending
Net worth might have increased this month, but all the extra spending in September really caught up to me with this calculation.
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 $361 a month which is only 11% of my spending of the previous month. Down on this calculation too, let’s see if we can turn that around in November.