Sunday, June 13, 2010

Savings Impact of Trip & Laptop

We spent a lot last month in particular on flight tickets to Europe and a new laptop computer. At least half of those expenditures are business expenditures much of which will be refunded at some point. Anyway, they still had an impact on savings:

The blue line tracks savings in non-retirement accounts minus the effect of investment returns. You can see that last month's spending did have a noticeable impact, but it is much less than the savings we accumulated in the last year. Retirement savings continue to accumulate in the meantime (the pink line). To get total retirement wealth add the pink and green lines. To get non-retirement wealth add the blue and brown lines. All four together are equal to net worth. I find this breakdown to be very useful.

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