Welcome to Fall, even if it is increasingly just becoming an extension of Summer at this point. September was a decent month financially, spending was fairly average and I continue to save at the same pace. I had some larger credit card bills leftover from August, so there was a decrease in my checking account. There was also the fact that the market has been relatively flat to down this entire month, erasing most of the gains I was seeing during the Summer months.
Here is my net worth:
I was able to come out positive again in September, even if it was just barely. Based on the current market conditions, I am not complaining about it though. The checking account decrease is only temporary, and it always seems like I have too much cash laying around anyways. I’d rather that money continues to be funneled into my retirement accounts as much as possible.
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.
$2610 average spending last 12 Months * 12 Months = $31,320 spending in a year
$145,708 net worth / $31,321 spending per year = 4.65 years worth of spending
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 $693 a month for 30 years which is 26.6% of my average monthly spending.
Looks like progress has stalled on my goal of 30% spending by year end, but net worth is increasing – even if slowly. It’ll be tough, but I have three months to gain 1% each month. Still might be doable.
Image source: Pexels