Net Worth Update – January 2022

It’s a new year, and I’m going to have a new post format for these net worth updates. Since buying a home, I haven’t been factoring that in my net worth calculation just yet. I figured this would be the perfect time to start fresh with a new format and be able to compare month-to-month as I track my progress throughout 2022. I’ll be breaking up the post based on one liquid net worth section, used for retirement purposes, and then a total net worth section that includes all assets.

Unfortunately, the month itself will not be a great start to the new year. The market was an absolute bloodbath and no amount of savings was going to balance that out. The only good news is that covid cases did start to bottom out at the end of the month after an extreme rise in December and January.

Liquid Net Worth:

As you can see above, it’s been a tough month but the losses were beyond my control in January. I don’t think we’ll see a quick turnaround here, but hoping the drop-off isn’t too drastic.

Total Net Worth:

Factoring in the estimated value of my house, I gain a little over $100,000 in total net worth after subtracting my current mortgage balance. Just like when I was paying off my student loans, I’ll have a small guaranteed increase in net worth each month as I pay the loan off.

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.

$3162 average spending last 12 Months * 12 Months = $37,944 spending in a year

$315,130 net worth / $37,776 spending per year = 8.34 years’ worth of spending

Header Photo by Oskar Kadaksoo on Unsplash

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