Here is my retirement estimate for January 2020, based on December’s net worth progress. It’s a new year, and my progress to close out 2019 was great. December was another net worth all-time high but also was a high spending month for me. I’m expecting the retirement tracker numbers to stay mostly flat this month because of that.
A reminder of the three ways I will track my progress:
- The first way will actually be with a simple excel calculator that I made. I’ll plug in my current monthly expenses, savings rate, and net worth. And the calculator will say just how long I have until retirement. Maybe it will say that I can retire tomorrow?
- The second way I’ll be calculating this is through an equation and the help of Wolfram Alpha.
- The third and final way I’ll be calculating my early retirement date is with the help of Mad Fientist Laboratory. I’ll input expenses, savings, and net worth and let his calculations do the rest of the work.
Retirement estimation based on 4% market growth:
Retirement estimation based on 7% market growth:
As expected, the numbers decreased ever so slightly with the Excel and simple calculation. The Mad Fientist calculation went up because of the higher spending, as it’s just straight taking my current spending numbers into an average. I find it important to have that in there to balance things out though, as even though I expect my retirement spending to be lower, it does factor a bit more current reality into the numbers.
Retirement estimation if I never save another dollar:
This will continue to drop as long as my net worth goes up. A nearly 7-year drop when compared to last January which is huge! Let’s keep this trending in the right direction, even if my spending does increase I know I’m still saving enough to make a difference.
Photo by May Johnson on Unsplash
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