Here is my updated net worth for September 2019. It was a tough month for me, with some big expenses. But I was able to increase across several of my accounts, and reign in my spending elsewhere to compensate for it.
Net Worth for September 2019:
It was a tough month, with a large drop in my checking account. Unfortunately, I had to have a minor surgery recently, and some of that expense was having to pay off the remaining balance of that. Luckily, everything is okay and everything went smoothly as well. I also had to contribute to a down payment towards an event, so that was a large expense. If you remove those two things, my spending for this month was actually very low. I’m happy with that for long-term trends, as these were both one-time expenses.
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.
$2764 average spending last 12 Months * 12 Months = $33,168 spending in a year
$174,824 net worth / $33,168 spending per year = 5.27 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 $832 a month for 30 years which is 30.1% of my average monthly spending.