Net Worth Update – October 2023

October was a much better month from a personal expense standpoint, as things were back to normal. There was a negative cash flow though, as I pretty much put any expense possible on my credit cards to gain points and cashbacks. With that, there was a lag as some of the statement balances were paid off this month, and those balances were high. With inflation, it also feels like you blink and you’re spending money which isn’t helping to reduce expenses. The market also put me back in the wrong direction, as it’s still heading down.

October Liquid Net Worth:

Big drop in net worth, but cash accounts trending back towards the positive direction. I’m also hoping that the market heading back up in the last few days will lead to good news in November.

October Total Net Worth:

Obviously not where I wanted to be this month, but a much needed improvement over last month. That $550,000 stretch goal that seemed inevitable back in July is feeling impossible at this point in time.

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.

$3995 average spending last 12 Months * 12 Months = $47,940 spending in a year

$339,474 net worth / $47,940 spending per year = 7.1 years’ worth of spending

Photo by Tobias Reich on Unsplash

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