Here is my updated net worth for May 2020. The market turnaround continues even though the situation with covid hasn’t improved much in real life. Every single account category had an increase and it’s one of my largest one-month increases in general because of the strength of the stock market.
Net Worth for May 2020:
I’ve moved up into another all-time high! It’s also the first time that I’ve crossed the $200,000 mark which feels awesome. It’s kind of odd that it’s happening in the middle of a pandemic, so who knows if this will last if the pandemic drags on any longer. But with all the bad news these days, I’ll take this as a personal victory.
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.
$2976 average spending last 12 Months * 12 Months = $35,712 spending in a year
$202,800 net worth / $35,712 spending per year = 5.68 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 $965 a month for 30 years which is 32.4% of my average monthly spending.
Photo by Xhulio Selenica on Unsplash
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