I thought that I would be able to have a solid ending to 2022, but that wasn’t the case with the market heading in the wrong direction once again. I was able to boost my cash accounts, but it wasn’t enough to overcome the losses in my investment accounts.
December Liquid Net Worth:
As I stated earlier, I finished December with a decrease in my liquid net worth.
December Total Net Worth:
With the drop in both my retirement accounts and the home value estimation, I did finish the year on a negative note. The positive side of things is that it was a very small decrease, and I increased my cash accounts which I have control of.
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.
$3706 average spending last 12 Months * 12 Months = $44,472 spending in a year
$305,846 net worth / $44,472 spending per year = 6.9 years’ worth of spending