We use the structure of a monthly income statement and balance sheet in tandem to make sure we are keeping our expenses low and planting our pennies wisely. If you’re not already tracking your finances using these two methods, go to mint.com and get started today! If you have any questions about how we do this just post a comment and we’ll be sure to help!
April was pretty boring as we mostly just added a little to our 401Ks, held on to a little bit of cash leftover at the end of the month, and just rode the waves of Mr Market, which ended the month with a nice little boost.
So for the month of April:
- Our total assets went up by $17.9
- Our total liabilities went up by $1.2
- Net worth rose by $16.7K
- Total net worth as of the end of March is $887.2K, which represents a 1.92% increase this month.
And for the details…
Is it just me or has this graph gotten eerily smooth of late?
- 401K accounts: $247.8
- Roth IRA accounts: $164.7
- HSA account: $10.9
- Taxable Brokerage Accounts: $80.6
- Total Stock Accounts: $507.0 – just modest growth, plus our normal 401K deposits
Real Estate (based on current market comparable sales)
- Primary Residence $239
- Investment Duplex: $130 – a little out of date, but we’ll update this once the new roof is on this place in May
- Investment Residential Land: $80
- Total Real Estate: $449.0
Cars (values from Kelly Blue Book)
- Car 2: $8.4
- Total Cars: $8.4
- Checking Accounts: $10.0
- Savings/Money Market Accounts: $6.2
- Total Cash Holdings: $16.2
Total Assets: $980.6
Real Estate Loans
- Primary Mortgage: $90.4
- HELOC on Investment Duplex: $0.0 (re-advanceable)
- Personal Loan – Used to Purchase $50K Duplex: $0.0
- Total Real Estate Related Loans: $90.4
- Credit Card Balance: $3.0
- Total Revolving Credit: $3.0 – I put $2K on these right at the end of the month which is why they’re a little higher than usual. No worries, they’ll be paid off before any interest accrues.
Total Liabilities: $93.4
Net Worth = Assets – Liabilities
Net Worth = $887.2, up 1.92% from March
Tracking Investable Asset Growth
This first graph shows the growth of our investable assets (net of any liabilities against them), and shows the distribution of the various equity classes we hold. Pretty self explanatory.
How Many Years Of Spending Do We Have Saved?
Here I’ve taken the total of our investable assets for each month and divided it by the expenses (excluding our investment property expenses) for that month. The idea being that this shows how many years we could live off of those assets at that rate and gives us a better idea of what lifestyle inflation (or intentional deflation) can do to the relative value of our savings.
Early Retirement Locale Index
Mr PoP wanted one more way to understand more viscerally how much we have in “investable assets”, so we’ve come up with what we’re calling our Early Retirement Locale Index. The basic idea is that we know how many years of savings we have at our disposal if we were to continue living in south Florida. (That’s the chart above.) But using the “magical” 25 years of savings necessary for early retirement, where would we have to move so that our current investable assets would cover 25x our COL adjusted current spending? (Note, this is purely for fun, we’re not intending to move. Don’t worry Mama & Papa PoP!) If you want to follow along, we’re using this Cost of Living Index from Expatistan, and using the average of the two big cities in south Florida on the list (Miami and Tampa) as our current COL index, which gets us 196. Our city isn’t on their full list, hence the average – but maybe yours is. Then we’re solving this equation:
Current Years Saved/ 25 = COL Early Retirement Locale / COL S. FL
9.28/25 = COL Early Retirement Locale / 196.0
COL Early Retirement Locale = 72.76
… which brings us to Bangalore, India!
This is now the second time that we ended up in Bangalore, and it’s a bit disappointing, since it didn’t seem to tickle our fancies all that much the first time we landed here with the ERLI in July 2014. Ah well. Here’s to next month bringing somewhere more appealing to us!
Here’s our journey through the ERLI so far…
- January 2014 – Delhi, India
- February 2014 – Quito, Ecuador
- March 2014 – Kiev, Ukraine
- April 2014 – Chiang Mai, Thailand
- May 2014 – Madras/Chennai, India
- June 2014 – Colombo, Sri Lanka
- July 2014 – Bangalore, India
- August 2014 – Yerevan, Armenia
- September 2014 – Skopje, Macedonia
- October 2014 – Brasov, Romania
- November 2014 – Prague, Czech Republic
- December 2014 – Mexico City, Mexico
- January 2015 – Zadar, Croatia
- February 2015 – Kiev, Ukraine
- March 2015 – Cairo, Egypt
- April 2015 – Bangalore, India
How was your balance sheet in April? Where would your savings land you today?