PoP Balance Sheet – July 2013

Welcome to our July 2013 Balance Sheet!

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!

Okay, so fair warning that this month’s balance sheet update looks pretty ridiculous.  Assets dropping but net worth growing like mad (contrary to Mr PoP’s not-so-secret desire for our net worth to drop).  There are a few things going on…

First off, we paid off that $50K loan, which dropped our liabilities by a ton, but also our assets by the same amount, so while it was net worth neutral, it definitely increased the Asset/Liability ratio and changed the composition of our net worth.

Next, the market went gangbusters.  Whatever happened to “sell in May and go away”?  Our stock accounts showed a good bit of growth, but when it goes up that quickly I tend not to trust it and keep waiting for it to pull back.

Lastly, we finally updated the market value of our house.  I’d been postponing it for a few months waiting for “one more sale” then “one more sale” because the numbers just felt so high that I kept waiting for a sale to bring the average down.  It didn’t really happen.  So we booked a $29K increase in the market value of our house this month since the last time we updated it.

We’re going for accuracy in our reporting here (and to ourselves), so the update was due.  But in reality, it’s worth even less than a “paper gain”.  At this point in our lives we really have no intention of ever selling this house, and don’t consider it to be included in our “edible equity”, so it’s kindof moot what it’s worth on an open market.  (And our homestead exemption means it’s not going to affect our property taxes either.)  Nonetheless, expect a post soon on how we keep track of market comps and our home value more accurately than Zillow.

So for the month of July:

  • Our total assets went down (oops! wrong direction – but only b/c we used all that cash to pay off the loan) by ~$4.0K 
  • Our total liabilities went down by ~$49.8K.  
  • Net worth rose by about $45.8K this month.  
  • Total net worth as of the end of July is $564.1K, which represents an 8.8% increase this month.  

And for the details…

dyerware.com


dyerware.com


Why do we look at our assets and liabilities split up this way? For us, it’s an easy way to look across all the different categories of assets and see which ones we have equity in, and how much equity. If the Assets bar is taller than the Liabilities bar, that’s equity in that asset class.

Assets

Stock Accounts

  • 401K accounts: $128.2
  • Roth IRA accounts: $116.4
  • Non-Retirement Stock Accounts: $0.6
  • Total Stock Accounts: $245.2

Real Estate (based on current market comparable sales)

  • Primary Residence $215 (finally updated this value…)
  • Investment Duplex: $97
  • Investment Residential Land: $80
  • Total Real Estate: $392.0

Cars (values from Kelly Blue Book)

  • Car 1: $8.2
  • Car 2: $11.3
  • Total Cars: $19.5

Cash Holdings

  • Checking Accounts: $10.0
  • Savings/Money Market Accounts: $1.5
  • Total Cash Holdings: $11.5

Total Assets: $668.2

Liabilities

Real Estate Loans

Revolving Credit

  • Credit Card Balance: $2.6
  • Total Revolving Credit: $2.6 – I know, we let this get a little big this month, but it’ll still be paid off before any interest accrues

Total Liabilities: $104.1 

Net Worth = Assets – Liabilities

Net Worth = $564.1, up 8.8% from June

 

Anyone else see some some asset growth or make some progress in killing off liabilities this month?

22 comments to PoP Balance Sheet – July 2013

  • Everyone said get out of the market but I have stayed in as well and have been buying on the dips when possible. Making some decent returns so far so no worries. Great job on lowering those liabilities. Only 101k for real estate loans would be a nice place to be. Congrats on that and paying off the personal loan for the duplex.
    Thomas | Your Daily Finance recently posted..The First Step Toward Becoming a Real Estate Investor… It’s a DoozyMy Profile

    • Thanks, Thomas. The rest of the loans (really just the mortgage) are probably going to take a long time to be paid off because their interest rates are so low.

  • Nice work! Our net worth had a nice increase last month as well, mostly because of the recent market increase. Getting rid of the debt definitely makes the net worth more secure, even if the actual value doesn’t change. You guys are crushing it.
    Matt Becker recently posted..Is Peer-to-Peer Lending the Next Big Thing?My Profile

  • Property values are really going up in our area and I believe that our net worth has increased significantly due to that. However, I don’t track it as closely as you do!
    Holly@ClubThrifty recently posted..Club Thrifty August Budget BreakdownMy Profile

  • Lucas

    Your position with investments (market and homes) sure paid off this last couple months :-) You are right though that much of this is market based and will go up/down over time. However you are definitely on the right track for the long run.

    Our balance sheet is almost identical to yours so we got some of the same boasts. We have a little more tied up in our home (just paid off), so haven’t gotten as much of a stock market bump, but should be seeing more money sent that way soon.

    • Congrats on the mortgage payoff. How long ago did you guys do that?

      Our RE purchases were made when everything crashed really badly in FL, but so far the one that is lagging is the one we wanted to see the most appreciation in (our empty lot!). Ah well. Someday, hopefully!

      • Lucas

        Just recently (although we have a small personal loan with wife’s parents that we are working on now). We were blessed on timing on our home purchase as well – foreclosure in 2008 in DC. The property is up >25% since then (not as good as the stock market but i will still take it).

  • Meg

    The recent stock market run-up has made visiting Mint.com so much more fun. We booked $1,800 in investment appreciation in July alone, which is kind of nuts.

    I’m so envious of all your homeowners in the rest of the country. Every time I run the numbers for most parts of NYC, you’re better off renting, so we just keep socking the money into the stock market.
    Meg recently posted..Literary Saturday: Homeward Bound, Overbooked and Chosen by GodMy Profile

    • NYC housing prices are definitely pretty insane. But the part that boggles my mind is how much people accept in co-op and condo fees there! Those fees alone would be like a mortgage here and they NEVER go away… eeep. I don’t blame you for renting there. Do you think NYC is your forever place or just for now?

      • Agreed on the condo fees (and taxes ugg, don’t get me started on taxes). We pay more more in taxes and condo fees alone than many people pay for their mortgages. But it’s our choice to live here (well, bf’s, I’d like to move sooner than later). But the good news is the housing prices are going up significantly and we think our condo is worth at least $25k more than what we bought it for a year ago.
        KK @ Student Debt Survivor recently posted..Professors Deserve Respect!My Profile

  • Wow, sounds like you have had a good month. Congrats on paying off that loan. Thats great!
    Debt and the Girl recently posted..Using Humor To Get Through Life’s ObstaclesMy Profile

  • Nice work, as long as the stock market and housing prices continue to rise we’ll all get to continue to write pretty looking net worth updates :)
    The First Million is the Hardest recently posted..Knowing When To Sell An InvestmentMy Profile

  • Congrats on paying off that huge loan. Really nice work in July, even for you :) 8.8% net worth gains are hard to come by when you are already worth half a million. It looks like the recovering housing market along with the stock market at all time record highs has really benefited many American’s balance sheets 😀 I saw some of my assets grow too but I’m more exposed to the Canadian markets which didn’t do nearly as well. I’m a little nervous about the near future though. Will we see the S&P 500 continue going up or maybe a slight correction 😕 Hard to say.
    Liquid recently posted..Fiscal Update – July 2013 – Fictional WealthMy Profile

    • Thanks. =) I really discount a lot of the growth in our home price since it’s not something we really see ourselves capitalizing on at any point.

      I don’t really follow the Canadian markets, though I’ve heard rumblings that real estate there is getting quite frothy.

  • I’m like you….I never trust the market when we have nice big gains. It makes me even more defensive and laugh at that number of the paper. However, in the neighborhood of my rental home prices skyrocketed over the last year (it appears to have risen about 15%). That number, for whatever reason, seems stickier to me.
    AverageJoe recently posted..How To Grow Profits (and fun) – Focus on the CherriesMy Profile