# Net Worth Update – October 2018

Here is my October 2018 net worth update.

Net Worth:

Not a great month for my finances, as spending was higher than usual and the market was down again. That brought down both my IRAs and the 401k.

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 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.

\$2612 average spending last 12 Months * 12 Months = \$31,344 spending in a year

\$140,102 net worth / \$31,344 spending per year = 4.45 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 \$667 a month for 30 years which is 25.5% of my average monthly spending.