PoP Balance Sheet – July 2014

Welcome to our July 2014 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!

On the evening on July 31, after seeing how Argentina’s default led to a market drop of 2%, and waiting for the prices on our mutual funds to update and our 401K shares to be purchased we both took a guess as to where our net worth would be for the month end.  Between the market drop and our high spending month buying Sunny, Mr PoP guessed it might be our first down month since recording these updates on the blog (it’s gotta happen eventually!), and I guessed that we’d be within $1,500 up or down of our June update.  Turned out we were both wrong and we squeaked out a little gain this month.  Not much, but we’ll take it.  So for the month of July:

  • Our total assets went up by $3.3K
  • Our total liabilities went down by $0.4K
  • Net worth rose by $3.7K
  • Total net worth as of the end of July is $763.9K, which represents a 0.5% increase this month.

And for the details…

dyerware.com


Assets

Stock Accounts

  • 401K accounts: $201.0
  • Roth IRA accounts: $145.4
  • HSA account: $7.4
  • Taxable Brokerage Accounts: $44.0
  • Total Stock Accounts: $397.8

Real Estate (based on current market comparable sales)

  • Primary Residence $215
  • Investment Duplex: $130
  • Investment Residential Land: $80
  • Total Real Estate: $425.0

Cars (values from Kelly Blue Book)

  • Car 2: $9.2
  • Total Cars: $9.2

Cash Holdings

  • Checking Accounts: $10.8 – need to move some into taxable, so a little high at the moment
  • Savings/Money Market Accounts: $17.0
  • Total Cash Holdings: $27.8

Total Assets: $859.8

Liabilities

Real Estate Loans

  • Primary Mortgage: $95.2
  • HELOC on Investment Duplex: $0.0 (re-advanceable)
  • Personal Loan – Used to Purchase $50K Duplex: $0.0
  • Total Real Estate Related Loans: $95.2

Revolving Credit

  • Credit Card Balance: $0.7
  • Total Revolving Credit: $0.7

Total Liabilities: $95.9

Net Worth = Assets – Liabilities

Net Worth = $763.9, up 0.5% from June

 

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.

dyerware.com


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.

dyerware.com


It fluctuates in a much bigger range, because in high spending months (like February 2013 when we spent almost $7K paying off our car completely), the denominator is so much bigger. Because of that, it’s the overall trend we’re looking for.

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 156.5. 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

10.26/25 = COL Early Retirement Locale / 156.5

COL Early Retirement Locale = 64.23

… which puts us back in India, specifically in Bangalore.  Bangalore seems okay, but the number of slums and crime rate seem a bit higher than we aim for.  Though maybe Sunny would fit in there… Any of you ever been to Bangalore?  =)

  • 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

How was your balance sheet in June? Where would your savings land you today?

25 comments to PoP Balance Sheet – July 2014

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