I had some housing expenses like furniture, minor repairs, and painting which brought down my checking account this month. Luckily it wasn’t anything too expensive so it’s just a temporary setback, and the market made sure to cancel out those minor losses this month.
Net Worth for May 2021:
Finally made it past the $300,000 mark for the first time! If my expenses are lower next month I should be able to push that number even higher.
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.
$3021 average spending last 12 Months * 12 Months = $36,252 spending in a year
$300,423 net worth / $36,252 spending per year = 8.29 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 $1429 a month for 30 years which is 47.3% of my average monthly spending.
Photo by Erik Adair on Unsplash
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