Here is my updated net worth for March 2020. Things are continuing to go downhill quickly, and large sections of the economy are completely shut down. The market is reacting extremely negatively as expected, and my net worth has taken a major hit. Not much I can do about that and it sucks to see this downturn after so many positive months, but everyone’s health and safety are much more important.
Net Worth for March 2020:
I did manage to still save some money, so cash flow was good this month. I’d say that’s about the only positive across my accounts this month, but also the only thing I can really control when the market is down this much.
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.
$2958 average spending last 12 Months * 12 Months = $35,496 spending in a year
$171,010 net worth / $35,496 spending per year = 4.82 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 $813 a month for 30 years which is 27.5% of my average monthly spending.
Photo by Marek Piwnicki on Unsplash
Leave a Reply