Here is my updated net worth for December 2019. Another great month to close out the year, making it three in a row to finish it off. With that, it also makes for another record high for my net worth as well.
Net Worth for December 2019:
Gains across pretty much every account this month, with the checking balance essentially staying the same. Savings were able to grow and then the market definitely pulled its weight too. Spending was higher this month for Christmas, but that was probably the only “negative” on the budget for now.
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.
$2920 average spending last 12 Months * 12 Months = $35,046 spending in a year
$192,002 net worth / $35,046 spending per year = 5.48 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 $913 a month for 30 years which is 31.3% of my average monthly spending.
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