It’s the first month that I’ve had to make a mortgage payment, but my finances are continuing to do well. I got a nice boost from the market this month and also increased my cash to build back up the emergency fund. Probably even more critical now when owning a house!
Net Worth for March 2021:
I was able to surpass December’s all-time high net worth to push these numbers even higher. It feels good to see it after spending a big chunk on a downpayment.
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.
$2910 average spending last 12 Months * 12 Months = $34,920 spending in a year
$280,278 net worth / $34,920 spending per year = 8.03 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 $1333 a month for 30 years which is 45.8% of my average monthly spending.