Physician In Numbers

As I noted in my post about my net worth at the end of 2023, said net worth went up quite a bit since the beginning of 2023. Actually, it went up by a lot.

I’m still thinking about my annual spending for 2023, but it’s clear that my net worth is more than 25 times that amount. My net worth is even more than 25 times my expected spending, i.e. my current spending, plus extra spending to cover health insurance costs, increased travel, anticipated large costs in the future (a new car, a new roof, etc.)

According to guidelines suggested by the Trinity study, if I have assets (liquid assets, no less) of 25 times my spending needs–such that I can live off of a 4% return–I ought to be able to live on my investments for the next 30 years. With a good chance of having lots left over for my heirs when I die.

So, am I FI (financially independent)?

Continue reading “Am I FI?”

Every year, for over 20 years, I take time at the end of the year to look at my finances. (Now “our finances,” but considering who does most of the number crunching, I will continue in the first person for this post.)

I calculate my liquid worth, I review my spending in the year just past, and then take a look at my savings goals for the coming year.

I think these exercises have been helpful over the years, and not just because they tend to keep me off the roads around a dangerous holiday. They keep me honest about my debts and spending, and force me to prioritize financial goals over the coming year.

I will go through the net worth and savings goals for 2023 below; a review of the yearly spending takes longer, and should show up within the next month, if all goes well.

(Just to be clear: I am not posting my net worth on the Internet. Even though this is supposed to be an anonymous blog, I have been asked by Mr. PiN not to put our real numbers out there.)

Continue reading “Updating My Net Worth For 2023”