Net Worth Update – October 2020

Here is my updated net worth for October 2020. Net worth took a hit this month as I shifted some money around accounts. I closed a checking account that I only had for the bonus and moved that back into a savings account to at least get some interest on it. The other reason for my checking account going down was a positive one, as I made an earnest money deposit for a house. We’ll see how things go but fingers crossed I will no longer be renting in the near future!

Net Worth for October 2020:

Even with making the deposit, just a small decrease in net worth this month. Without that, I think my net worth would have been basically flat.

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.

$2965 average spending last 12 Months * 12 Months = $35,580 spending in a year

$233,754 net worth / $35,580 spending per year = 6.57 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 $1112 a month for 30 years which is 37.5% of my average monthly spending.

Photo by Abhishek Tiwari on Unsplash

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