April was a good month for me when it comes to cashflow, as my income outweighed my expenses and I had a positive gain in my cash accounts. I shifted some more money into my main checking account, and also more into a high yield savings account so now all of my emergency fund is earning 5% interest. The market didn’t really cooperate towards the end of the month though, so my retirement accounts took a large hit. I got a larger than expected tax refund too, which I’m trying to correct this year to be more even – I’d rather just get that money throghout the year in my paycheck instead!
April Liquid Net Worth:
It’s the first month in a while with a negative change in net worth, but it was bound to happen eventually this year.
April Total Net Worth:
I fell short of my $600,000 target for this month, but I still have two months to make it there, and then hope the back end of the year pushes me towards $700,000. My cash accounts and mortgage payment weren’t enough to counter the market decline.
So let’s see how far my assets would take me at this point. I will calculate that using my average spending over the last 12 months. I’ll multiply that result by 12 months to get the total spending for the year, and then divide my liquid net worth by that amount. That’s how long I’d be able to live off my savings at that point in time.
$4198 average spending last 12 Months * 12 Months = $50,376 spending in a year
$411,083 net worth / $50,376 spending per year = 8.2 years’ worth of spending
Photo by Catalin serban on Unsplash
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