September was a tough month across the board. I had some medical expenses come up, and the market is headed back in the wrong direction. I had to transfer some money from my savings to my checking account to cover those expenses, and all my investments are down for the month. It was a bit of a double whammy, as usually I’m at least saving some money under these circumstances.
Net Worth for September 2021:
As you can see, it wasn’t a terrible month if you consider half of the drop was from a poorly performing market. I’ll just consider this a time when I’m getting more stocks at a discount.
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 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.
$3052 average spending last 12 Months * 12 Months = $36,624 spending in a year
$315,244 net worth / $36,624 spending per year = 8.61 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 $1499 a month for 30 years which is 49.1% of my average monthly spending.
Photo by Francesco Ungaro on Unsplash
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