Here is my updated net worth for January 2020. I’m continuing right where I left off at the end of 2019, with a big increase in net worth once again! It might not be as impressive of a gain as the past three months, but still higher than average. And hey, any positive progress is good progress, right?
Net Worth for January 2020:
Pretty much every account was positive this month, with the only exception being my IRA. Spending was a lot lower in January compared to December, so that’s also why you see larger gains in my cash accounts. That definitely helped to buffer the fact that the market was slightly down as reflected in my IRA, as contributions kept my 401k and Roth on the positive side of things. I’m also inching closer and closer to the 200k mark!
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 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.
$2940 average spending last 12 Months * 12 Months = $35,282 spending in a year
$195,471 net worth / $35,282 spending per year = 5.54 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 $930 a month for 30 years which is 31.6% of my average monthly spending.
Photo by Joe Straker on Unsplash
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