Net Worth Update – February 2021

So I didn’t realize that during the first month of owning a house, you actually don’t make your first mortgage payment until the following month. I believe the payment is already made during closing or something like that. Either way, I was able to save up some cash this month before reality sets in next month. There are no major issues that need addressing with the house at this point in time, so my emergency fund will be saved for just that.

Net Worth for February 2021:

This was a pretty solid bounce-back month. I’m not back to the high point of December, but I should be able to get back there in the next few months. The market was also a big help in bringing my total up with significant increases in all my investment accounts.

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.

$2871 average spending last 12 Months * 12 Months = $34,452 spending in a year

$264,531 net worth / $34,452 spending per year = 7.68 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 $1258 a month for 30 years which is 43.8% of my average monthly spending.

Photo by Karthik Sreenivas on Unsplash

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