Another month with average spending, and I’m starting to get a feel for what my expenses will be with a mortgage. Still figuring out the utilities side of things, as I only had a few months of winter for heating and now learning what my electricity bill will be like with the air conditioning running in the Summer. I’m able to continue to build my net worth back up after making the down payment, and the market is certainly helping as well.
Net Worth for July 2021:
Another big month for me, with a $10,000 increase in net worth in a single month. I posted gains across the board in all my accounts.
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 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.
$3023 average spending last 12 Months * 12 Months = $36,276 spending in a year
$316,291 net worth / $36,408 spending per year = 8.69 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 $1504 a month for 30 years which is 49.8% of my average monthly spending.
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