Net Worth Update – August 2019

Here is my updated net worth for August 2019. It was a good month for me, mostly gains across the board.

Net Worth for August 2019:

I had another good month, even better than last month. No big purchases or payments to make, and you can see that reflected in my checking and saving account balances. The market was down towards the end of the month, which is why the IRA and the HSA are both down. My Roth IRA and 401k were able to counter those losses with contributions.

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.

$2798 average spending last 12 Months * 12 Months = $33,576 spending in a year

$178,583 net worth / $33,576 spending per year = 5.32 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 $849 a month for 30 years which is 30.3% of my average monthly spending.

Photo by Tobias Rademacher on Unsplash

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