Net Worth Update – December 2021

This is a great way to close out 2021 as December saw huge increases across the board in all my accounts, especially my investment accounts. It’s been an up-and-down year with medical expenses, a house purchase, and covid still being prevalent. The market closed out the year on a high note this year, even as covid cases are currently skyrocketing. I don’t think we’ll see any major shutdowns again, but I could see travel and related spending go back down yet again. We’ll see what 2022 brings, but overall 2021 was a solid year for me.

Net Worth for December 2021:

An amazing month overall. Cash accounts were basically flat and all my investment accounts had a great month leading to an almost $9000 in my net worth this month. It’s also an all-time high record again!

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.

$3148 average spending last 12 Months * 12 Months = $37,776 spending in a year

$328,560 net worth / $37,776 spending per year = 8.70 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 $1563 a month for 30 years which is 49.7% of my average monthly spending.

Photo by Nisarg Patel on Unsplash

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