Here is my updated net worth for May 2019. This was a huge month for me across the board!
Net Worth for May 2019:
Huge increase this month and it was in every single account! I received my yearly bonus at the end of April and it deposits into my account the first paycheck of May and that was absolutely the biggest portion of my increase. Since I bumped up my 401k contribution last month, that also led to a large portion of that bonus going straight into there. It definitely helped that the markets were up too. I was expecting a good month of reporting, but not to the extent that actually happened and I was very pleasantly surprised. Just check out how steep that graph below is from April to May!
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.
$2755 average spending last 12 Months * 12 Months = $33,060 spending in a year
$171,036 net worth / $32,678 spending per year = 5.17 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 $814 a month for 30 years which is 29.5% of my average monthly spending.