Net Worth Update – July 2020

Here is my updated net worth for July 2020. I’ve hit another all-time high for net worth and by a relatively large margin. I had gains across every single account and they were substantial. I was even able to boost the emergency fund/cash accounts a significant amount this month.

Net Worth for July 2020:

Wow! Over 220k and a gain of $10,000 just within a month. It just shows you how powerful (or negative) the market can be compared to the amount of money you’re putting in.

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.

$2978 average spending last 12 Months * 12 Months = $35,736 spending in a year

$221,256 net worth / $35,736 spending per year = 6.19 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 $1052 a month for 30 years which is 35.3% of my average monthly spending.

Photo by Kym MacKinnon on Unsplash

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