Here is my updated net worth for September 2020. The market has finally slowed down with fears that covid is going to continue to get worse. It seems that we may be entering another “wave” as we head into cooler temperatures in the Fall. There are also supply chain issues that are not really improving.
Net Worth for September 2020:
I was able to slightly increase my net worth this month thanks to lower spending, even though the markets were sending my balances in the other direction.
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.
$2953 average spending last 12 Months * 12 Months = $35,436 spending in a year
$237,386 net worth / $35,436 spending per year = 6.70 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 $1129 a month for 30 years which is 38.2% of my average monthly spending.