Here is my updated net worth for April 2019. A solid month for sure, I saw gains across the board and also some big financial news from my end.
Net Worth for March 2019:
I was able to increase my cash this month while also having the market on my side to increase my investments. I decided to pay off my car loan completely as well, even though it was only a few months away from being paid off. I just felt like I had the extra cash in my account sitting there doing nothing, and why not lower expenses a little bit if possible? The rate was only around 2%, but it still felt good to get rid of that debt.
With my cash piling up in recent months, I’ve also elected to increase the contribution to my 401k again. I think if my spending were to increase I might change that, but for now, I’d rather have more of that money in the market to work for me.
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 result 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.
$2723 average spending last 12 Months * 12 Months = $32,678 spending in a year
$157,363 net worth / $32,678 spending per year = 4.82 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 $748 a month for 30 years which is 27.5% of my average monthly spending.