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

  • Great month, guys! I think you need to keep saving. Bangalore doesn’t sound like an ideal place to retire! =)
    Holly@ClubThrifty recently posted..My Upcoming Trips with Credit Card Rewards, Part OneMy Profile

  • Hello! I am also in Bangalore this month – we can be neighbors :) I have a couple years’ fewer expenses saved than you guys. July was an expensive month for me as I had to pay the annual insurance bill!
    Leigh recently posted..Reflections on Home Ownership: 2 Years InMy Profile

  • Just working through our own monthly net worth calculations and some of your ideas gives me ideas to incorporate into mine! I especially like the graph on investable assets – very cool! Also really find the years of savings graph really cool. All things I’ll look into incorporating into my array of graphs. Thanks for the awesome ideas :)
    Kapitalust recently posted..The Investment Policy StatementMy Profile

  • First rule of money club, don’t lose money, Second rule of money club, see rule #1, so congrats all the way around despite Argentina.
    Even Steven recently posted..What I Learned on Vacation in NicaraguaMy Profile

  • haha, Mr PoP loves that movie. But eventually we’ll get whipsawed by the market… just the way the cookie crumbles. =)

  • Bangalore? Uhm…

    Actually, Frugal Scholar pointed out that some parts of the south of France are almost as cheap as Mexico, and they’re one heckuva lot more livable.

    Costa Rica is an expat haven, if you living with Americans abroad is your pleasure. They say Panama is also a desirable place to live with very low costs. And some people have suggested, with what looks like a straight place, that Colombia is pleasant for expats.

    Parts of central Mexico used to be quite nice, for those who could move there with the American dollar at their back. Once away from the stresses of living along the border, the Mexican people are among the nicest and most pleasant in the world, and you can live like the Queen of Sheba on not very many US dollars. Unfortunately, the drug trade put that country out of bounds — it’s just too dangerous now.

    But if you don’t mind living in a cultural desert run by Teabaggers, Arizona is pretty cheap. And you don’t even need a passport…yet. 😉
    Funny about Money recently posted..CopingMy Profile

    • oops! that’s “straight face”!
      Funny about Money recently posted..CopingMy Profile

    • The COL index is more of a game right now than anything else and a fun way to track savings rather than an actual plan to move.

      That said, if we excluded the purchase of Sunny this month, that game would have put us in Albequerque of all places. So the difference between retiring us in the southwest and retiring in India is buying yourself a 40+ year old car every month. =)

      I’m not particularly nuts about the southwest, having really grown fond of having large natural bodies of water and humidity in my life, but Mr PoP has a secret dream to move to Bisbee someday and hopes it’s not ruined by the time he gets to make that a reality.

  • Bangalore is a bit nicer than Madras/Chennai, but still not a place I’d want to live unless I had a lot of money! I’ve visited once, and had friends from there meet us in Chennai while we were there – according to our friends, Chennai is a better place to shop (they’re Indian, from Bangalore, so take that as you will!)
    Mom @ Three is Plenty recently posted..July 2014 Early Retirement ProgressMy Profile

    • Chennai sounded nicer mostly because it was on the water, Bangalore being inland but still pretty hot didn’t have a whole lot of appeal in my mind.

  • Nope, I pay my own property taxes and insurance. Condo insurance is also pretty cheap – about $150 for the year – so it isn’t really worth escrowing. Property taxes are a good chunk, but my county does them in two payments, which makes it not quite as bad. I actually chose to self-escrow. I remember the notary being surprised that the mortgage company would let me do it as a first time home buyer!

  • I love your Early Retirement Locale Index–very clever. Thanks for sharing how your month went!
    Mrs. Frugalwoods recently posted..July 2014 ExpendituresMy Profile

  • The answer on our end is still “the poorhouse”! But we’re getting there. The big question is can we keep in the black now that my husband has a new job… which does not come with free housing like his old job.

    I’m sure you were happy to see that it still went up a little. Even a small gain is psychologically so much better than a drop!
    Frugal Paragon recently posted..Lifestyle Inflation: Potty Training EditionMy Profile

    • Psychologically, I think I want to experience a few small drops before getting hit with a big one all at once.

      What new job did your husband switc

  • You’re inching up closer to the next blogger on the list! Keep going!! :)

    http://rockstarfinance.com/blogger-net-worths/
    J. Money recently posted..My Massive Ultimate Guide to Making MoneyMy Profile

  • India seems to be a popular place! I agree with not being sure with wanting to live there… visit would be more like it.
    anna recently posted..Pregnancy Notes: The Good, The Bad, and The FunnyMy Profile

    • Well, most of the Indian cities are at the bottom of the COL Index list at Expatistan, and we’re starting from the bottom and keep bouncing around from month to month. =)

  • Nice month guys, thanks for the update; a gain is a gain. I really like the years of spending graph – that’s something I keep track of myself. To smooth the process a bit I also look at trailing twelve month numbers. As mentioned above the COL index is pretty clever. Keep at it!
    Eli Inkrot recently posted..If I Can’t Figure It Out In A Decade…My Profile

  • I really like that cost of living index to see where you can retire today! Although I am not sure if a single months expenses is the best comparison (you won’t be buying sunny each month), so maybe a rolling average of the last 12 months would be a better idea?
    Kipp recently posted..Income and Expense for July 2014My Profile

    • We’ll do a 12 month average in December, but for now we like the immediacy of “seeing” how high and low spending months (and making habits of them) can impact our plans.