April Safe Withdrawal Rate 39.23%

I didn’t put any money into savings in April and I did not take any money out of savings in April leaving me with a 0% savings rate for April. I could have made a token contribution to savings in April, but since my future income is uncertain I decided not to add to my long-term savings. It makes more sense to keep the money in my checking account now and I can transfer it over once I have a steady source of income again. I don’t want to transfer money to savings and then have to take it right back out again.

My SWR rate for April was basically unchanged at 39.23% compared to 39.05% the month before. My goal is to get the SWR down to 4% so the lower my SWR is the better. That goal is probably many years from being met. The 4% SWR translates into having 25x your annual expenses in savings or 300 months of expenses in savings. Once I reach that point I will consider myself financially independent.

I have 30.59 months of living expenses saved which is basically unchanged from the 30.72 months of living expenses I had saved last month. I calculate my safe withdrawal rate by dividing the average of my trailing twelve months of expenses by my total money saved. When I don’t add any money to my savings the only changes to my SWR and months of living expenses saved are from my investment performance and the average of my trailing twelve month’s of expenses going up or down. My investments stayed about the same in April, but my monthly expenses were a little higher than usual causing the average of my trailing twelve month’s of expenses to go up. That average going up caused my numbers to be slightly worse than the month before.

I won’t be adding any money to my savings in May either because I still don’t have a stable source of income. I’m hoping that my investments perform well and I can keep my monthly expenses fairly low so I can improve my numbers even though I’m not adding to my savings. To make significant improvements though I’ll need a steady stream of income so I can put more in my savings. I’m hoping I will get another job this month or early next month.

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