Net Worth Update – December 2020

Here is my updated net worth for December 2020. Big gains in both checking and savings to start replenishing my cash and the market continues to boost all my retirement accounts. Definitely in a great place to close out this crazy year, and not what I was expecting after how Spring started out. Let’s just hope we can get rid of covid next year for even better news.

Net Worth for December 2020:

Another massive increase after a small bump in the road. This is the fastest increase in net worth since I’ve been tracking it, shortly after the steepest decline back in February and March.

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.

$2904 average spending last 12 Months * 12 Months = $34,848 spending in a year

$270,138 net worth / $34,848 spending per year = 7.75 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 $1285 a month for 30 years which is 44.2% of my average monthly spending.

Photo by Philipp on Unsplash

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