Here is my updated net worth for July 2019. It was a relatively flat month to June, but there was still some progress made.
Net Worth for July 2019:
It was a solid month, I can’t really complain as I had another large credit card balance to pay off – this time for the reservation. So all the large expenses related to vacation have been paid off, and I think that sets me up for a good run for the rest of the year. As you can see from the above, I increased the balance of the rest of my accounts so I’m still making progress where it counts.
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.
$2750 average spending last 12 Months * 12 Months = $33,001 spending in a year
$175,854 net worth / $33,001 spending per year = 5.33 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 $836 a month for 30 years which is 30.4% of my average monthly spending.