The turnaround from last month and earlier this month seems to be short lived, even I was able to personally increase my cash accounts. About halfway through August it looked like the market was going to continue the rally from July, but it came crashing down to reality the second half of the month. It honestly seems like that will the pattern that closes out 2022 as well, but we’ll see how things go.
August Liquid Net Worth:
Overall not a complete disaster this month, but the investment accounts definitely dragged everything down even more.
August Total Net Worth:
Big drop here too, with the home value estimate also contributing the decrease.
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.
$3520 average spending last 12 Months * 12 Months = $42,240 spending in a year
$302,082 net worth / $42,240 spending per year = 7.2 years’ worth of spending