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in a similar vein, for my own personal accounting I use an M number:
[market value of all liquid assets]/12M-rolling monthly expenses.
Basically says something pretty similar... how many months of my life can I spend out of liquid/available assets right now?
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Love this, the same instinct, different unit. Months feels more visceral somehow.
Do you factor in asset growth rate, or keep it as a pure burn-rate snapshot?
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No, it's just a snapshot that I take regularly... don't make it a projection.
(Or well, by implications I aaam bc my assets are liquid)
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Thanks, if you have some ideas on how to improve it, what you might be missing etc. all feedback is very welcome.