Here is my updated net worth for January 2019. It was definitely a good month which was nice to buck the trend of the past few months.
Net Worth for January 2019:
Huge overall increases across the board this month, with only two negatives, and those were small ones. Overall with my savings and checkings accounts, I’m only down $400 and the increases in the market more than makeup for it this month. I’ve also hit a new all-time high net worth, just barely passing September’s mark so that is a great feeling. I’m hoping that this trend can continue – especially with my cash on hand too.
So let’s see how far my assets would actually take me at this point in time. I’m going to calculate that using my average spending over the last 12 months. I’ll then multiply that 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.
$2684 average spending last 12 Months * 12 Months = $32,208 spending in a year
$146,580 net worth / $32,184 spending per year = 4.56 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 $697 a month for 30 years which is 26.0% of my average monthly spending.