Here is my updated net worth for June 2020. My net worth continues to grow even as the pandemic seems to be pushing on with so many businesses shut down and hospitals overwhelmed. It’s definitely a strange time but it seems like traders are optimistic we will come out of this with a strong economy.
Net Worth for June 2020:
I hit another all-time high net worth, this time a nearly $6000 increase from last month. That’s now two months in a row with huge gains and I’m definitely on a roll now.
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.
$2985 average spending last 12 Months * 12 Months = $35,820 spending in a year
$208,711 net worth / $35,820 spending per year = 5.83 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 $993 a month for 30 years which is 33.3% of my average monthly spending.