Here is my updated net worth for June 2019. It was a solid month of gains in total, and almost across all my accounts.
Net Worth for June 2019:
Another great month, and while it was nothing compared to the record-breaking month of May, I’m always happy with any type of increase. My checking account is negative this month after paying off a larger than normal credit card balance because of a vacation, but all of my investment accounts saw great gains. That’s a combination of both my contributions and the markets going up again this past month.
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.
$2806 average spending last 12 Months * 12 Months = $33,672 spending in a year
$175,371 net worth / $33,672 spending per year = 5.21 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 $834 a month for 30 years which is 29.7% of my average monthly spending.