Even with the increased spending in January, February still turned out be a great month thanks to my investment accounts. There’s also the lag on paying off some of the credit cards, so that might actually show up more in March compared to February. I always pay off my entire balances, but it all depends on when the statement date is. Medical expenses still are a bit on the high side, with mental health taking up the bulk of those expenses this month. One last thing that will be increasing my spending over the next months and year is that I’ve decided to go back to school, so tuition will create a higher baseline of spending.
February Liquid Net Worth:
Even with the increased expenses in January and February, my checking account balance really wasn’t all that bad. Only down $700 for the month, and the investment accounts more than make up that difference, even just from my contributions for the month.
February Total Net Worth:
So it begins the slow march to my goal of $700,000 by December. We start off February on the right foot and now we’ll see where the rest of the year takes me.
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.
$4160 average spending last 12 Months * 12 Months = $49,920 spending in a year
$401,892 net worth / $49,920 spending per year = 8.1 years’ worth of spending
Photo by Yves Cedric Schulze on Unsplash
Leave a Reply