Kicking off a new year on the right foot, January 2023 starts the year with a massive increase in net worth. A lot of the losses that happened towards the end of 2022 were cancelled out very quickly this month. My goal this year will be to close out 2023 with a total net worth of at least $500,000 with a stretch goal of hitting $550,000. I think with some luck and smart budgeting that both goals are doable.
January Liquid Net Worth:
While January as a whole was a huge positive for my net worth, I did have an expensive home repair to kick of the new year. The temperatures plummeted from 50F to 10F overnight and an outside pipe burst and had to be dug up and repaired. Luckily the price wasn’t too crazy, but it still made a big dent for the month. Inflation has also been a killer when it comes to grocery shopping these past few months.
January Total Net Worth:
I’ve now surpassed the all time high net worth that I had back in June of last year, and it feels really good to be able to say that again. Fall of 2022 was rough with the market, and while the end of 2022 made a slight recovery it’s been a while for actual forward progress.
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.
$3764 average spending last 12 Months * 12 Months = $45,168 spending in a year
$320,343 net worth / $45,168 spending per year = 7.1 years’ worth of spending