May was another good month for me, both in terms of cash flow and investment performance. My expenses were average for the month, with medical expenses still taking up the bulk of my additional spending – both physical and mental health. A big expense this month was paying upfront for a yearly supply of contact lenses, but that also enables me to get a bigger rebate – so I’m saving more in the long run. It’s also amazing how much my grocery budget has really increased over time with inflation. I was spending closer to ~$400 a month for groceries prior to the pandemic and now it has slowly moved towards an average of ~$500 a month.
May Liquid Net Worth:
May was a huge rebound month, completely erasing the negative of April and building my liquid net worth up even higher.
May Total Net Worth:
I was able to crush the $600,000 target that I had set for last month, and I’m almost back on pace for my yearly goal. I think it will be down to the wire and it will require some heavy lifting from the market as well.
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.
$4228 average spending last 12 Months * 12 Months = $50,744 spending in a year
$429,693 net worth / $50,744 spending per year = 8.5 years’ worth of spending
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