Let’s make it three months in a row with a positive net worth change, something that hasn’t happened since late 2021. The great part about this streak is that it’s both my cash accounts and my retirement accounts driving this positive increase. It’s a good feeling to be able to control my spending and budgeting while getting a boost from the market.
May Liquid Net Worth:
A great month across the board here. I’ve been transferring money from my checking to a high yield savings account to try and combat inflation when it comes to my emergency fund. It was just too much money sitting around earning less than 1%, and now it’s making just over 5% in the savings account instead. I’ll continue balancing those out throughout the rest of the year.
May Total Net Worth:
I’m continuing to barrel towards the stretch goal of $550,000. At this point I might be able to achieve it several months before the end of the year.
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 multiply that result by 12 months to get the total spending for the year, and then divide my liquid net worth by that amount. That’s how long I’d be able to live off my savings at that point in time.
$3817 average spending last 12 Months * 12 Months = $45,804 spending in a year
$347,704 net worth / $45,804 spending per year = 7.6 years’ worth of spending