Much like tracking our spending, knowing our net worth is a helpful measure of our progress toward financial independence. We will be drawing from our investments in early retirement to cover our spending, so tracking the rate at which we are increasing our total assets allows us to predict when we will be able to declare financial independence.
Tracking our investment asset allocation gives us a big picture of our overall finances. This page summarizes the overall health of our portfolio and finances.
Updated through: July 2017
Net Worth: $81,875
FI Progress: 6%
Here’s how I calculate our progress:
- Sum the previous 12 months’ spending ($41,763)
- Divide the total spending by 3.25% (our planned withdrawal rate). This calculates our target net worth ($1,285,032).
- Divide our current net worth by the target net worth.
YTD Savings: $33,729
YTD Spending: $29,960
YTD Savings Rate: 53%