August was another good month for me, with average spending – though a little higher than last month. I have been trying to keep more money in my savings account as well, to at least earn a few pennies in interest compared to zero in my checking account. The market had another great month as the recovery from covid continues. We will see if that momentum carries into the Fall, and also whether there is another rebound in cases as well.
Net Worth for August 2021:
Cash is basically even this month, down in my checking account but up in my savings account. Big gains in all of my investment accounts though led to another all-time high net worth.
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 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.
$3020 average spending last 12 Months * 12 Months = $36,240 spending in a year
$323,175 net worth / $36,240 spending per year = 8.92 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 $1537 a month for 30 years which is 50.9% of my average monthly spending.