The market was slightly down this month, so I’ve flipped the script since last month. I was able to reverse the trend in my cash accounts which provided the increase compared to investments being the cause in October. Overall, it was a good month for low spending and saving.
Net Worth for November 2021:
It was another solid month for me thanks to lower spending. I’m still slightly off the all-time high set back in August but hopefully, I’m on the way to set a new one.
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.
$3110 average spending last 12 Months * 12 Months = $37,320 spending in a year
$319,566 net worth / $37,320 spending per year = 8.56 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 $1520 a month for 30 years which is 48.9% of my average monthly spending.
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