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!
Not too much exciting happening on our balance sheet this month. The S&P500 was down slightly for the month, but we invested enough into our 401Ks and our taxable accounts that we were able to counteract that and still end up with a bump on our net worth to get us to a new high water mark!
Anyhow, here are our numbers for February!
- Our total assets up by $22.3
- Our total liabilities went down by $1.4K
- Net worth went up by $23.7K
- Total net worth as of the end of February is $956.5K, which represents a 2.54% increase this month.
For the details…
- 401K accounts: $258.1
- Roth IRA accounts: $160.5
- HSA account: $13.0
- Taxable Brokerage Accounts: $115.0
- Total Stock Accounts: $546.6
Real Estate (based on current market comparable sales)
- Primary Residence $239
- Investment Duplex: $140
- Investment Residential Land: $80
- Total Real Estate: $459.0
Cars (values from Kelly Blue Book)
- Car 2: $6.0
- Total Cars: $6.0
- Checking Accounts: $15.4 – need to move some over to taxable
- Savings/Money Market Accounts: $15.0
- Total Cash Holdings: $30.4
Total Assets: $1,042.0
Real Estate Loans
- Primary Mortgage: $84.9
- HELOC on Investment Duplex: $0.0 (re-advanceable)
- Personal Loan – Used to Purchase $50K Duplex: $0.0
- Total Real Estate Related Loans: $84.9
- Credit Card Balance: $0.6
- Total Revolving Credit: $0.6
Total Liabilities: $85.5
Net Worth = Assets – Liabilities
Net Worth = $956.5, up 2.54% from January
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 186. 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
17.67/25 = COL Early Retirement Locale / 186
COL Early Retirement Locale = 131.46
… Palermo in Italy, Lisbon in Portugal, or Athens in Greece. Our choices are in 3 out of the 5 little PIIGS!
I’ve already visited Athens, though it was more than ten years ago. And having heard horror stories from coworkers of crazy Italian bureaucracies and laws, I’ve officially been discouraged from the idea of ever actually living there long term. So, kindof by process of elimination – this month we’ll choose Lisbon. And really, it looks like a pretty good choice. It’s a modern city with a climate similar to what we’re used to (though even better with a bit less rain and a little cooler temperatures) and the architecture just looks lovely! If I remember right, Mama PoP even visited Portugal not too long ago and spoke highly of it!
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
- May 2015 – Niteroi, Brazil
- June 2015 – Nowhere!
- July 2015 – Skopje, Macedonia
- August 2015 – Recife, Brazil
- September 2015 – Ankara, Turkey
- October 2015 – Lisbon, Portugal / Santo Domingo, Dominican Republic
- November 2015 – Debrecen, Hungary
- December 2015 – Tbilisi, Georgia
- January 2016 – San Antonio, Texas or Louisville, KY – readers pick!
- February 2016 – Lisbon, Portugal
How was your balance sheet in January? Where would your savings land you today? Which ERLI would you pick – San Antonio or Louisville?