Here is my updated net worth for August 2020. This is five months in a row of a massive bull market that has led to multiple all-time high net worths. August has surpassed my previous net worth record by over $15,000 and there doesn’t seem to be any sign of stopping! The other good thing is that while covid is still going on, cases here in the Northeast have really bottomed out this Summer. It also allows for a lot more outdoor gatherings with the nicer weather.
Net Worth for August 2020:
I’m now sitting with a net worth of over 230k and it looks like at the current pace I’ll be over $250,000 by the end of the year, but it does really depend on where the market takes us. Things are still volatile and many businesses are still shut down.
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.
$2985 average spending last 12 Months * 12 Months = $35,820 spending in a year
$236,260 net worth / $35,820 spending per year = 6.60 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 $1124 a month for 30 years which is 37.7% of my average monthly spending.