Here is my updated net worth for October 2019. It was a great month for me, with a huge rebound from last month. I’ve managed to hit an all-time high once again thanks to a great month in the market.
Net Worth for October 2019:
Like I said in the introduction, it was a great month overall. My cash accounts were basically flat, but everywhere else saw solid gains. Some of that was from contributions, but most was thanks to gains in the market. My spending was also kept in check which contributed to those gains.
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 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.
$2810 average spending last 12 Months * 12 Months = $33,720 spending in a year
$180,276 net worth / $33,720 spending per year = 5.35 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 $857 a month for 30 years which is 30.5% of my average monthly spending.
Photo by Stephen Leonardi on Unsplash
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