PoP Balance Sheet – July 2016

Welcome to our July 2016 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!

The S&P 500 climbed over 3% last month, and our brokerage accounts were happily along for the ride, climbing nearly $30K this month between deposits and increases in share value.  

The real estate values here are getting fairly long in the tooth and are overdue to be updated.  What’s holding me back are two pending sales that I am waiting to close (two closed last month, but two more are outstanding) before I re-run those calculations and update them here.  When the changes happen they’ll likely be pretty significant, so I want to make sure we’re not getting ahead of ourselves with booking these values.

Here are the numbers for July:

  • Our total assets went up by $32.9K 
  • Our total liabilities went down by $0.9K 
  • Net worth went up by $33.7K 
  • Total net worth as of the end of July is $1,071.0K, which represents a 3.25% increase this month.

For the details…

dyerware.com


Assets

Brokerage Accounts

  • 401K accounts: $317.0
  • Roth IRA accounts: $181.2
  • HSA account: $15.7
  • Taxable Brokerage Accounts: $141.7
  • Total Stock Accounts: $655.6 

Real Estate (based on current market comparable sales)

  • Primary Residence $239
  • Investment Duplex: $140
  • Investment Residential Land: $80
  • Total Real Estate: $459.0 

Cash Holdings

  • Checking Accounts: $12.3 – need to move some to taxable…
  • Savings/Money Market Accounts: $27.5
  • Total Cash Holdings: $39.2

Total Assets: $1,153.8

Liabilities

Real Estate Loans

  • Primary Mortgage: $82.1
  • HELOC on Investment Duplex: $0.0 (re-advanceable)
  • Personal Loan – Used to Purchase $50K Duplex: $0.0
  • Total Real Estate Related Loans: $82.1

Revolving Credit

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

Total Liabilities: $82.8

Net Worth = Assets – Liabilities

Net Worth = $1,071.0, up 3.25% 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 and February 2015 when we spent a bunch installing solar panels), 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 180.0. 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

17.46/25 = COL Early Retirement Locale / 178.0

COL Early Retirement Locale = 124.35

… which gives us the city of Thessaloniki, Greece!

Many years ago, I spent a brief layover hanging out outside of Thessaloniki’s train station.  There an old Greek woman at a small roadside stand, confused about why I wouldn’t eat meat, fed me a perfectly ripe tomato with a wonderful mix of sea salt and spices sprinkled on top.  I’ve tried many years to recreate that same experience and haven’t been able to.  While that isn’t quite enough to make us want to drop everything and move to Greece, it’s still nice to remember.  =)

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
  • March 2016 – Brno, Czech Republic
  • April 2016 – Vitoria, Brazil
  • May 2016 – Santiago, Chile
  • June 2016 – Johannesburg, South Africa
  • July 2016 – Thessaloniki, Greece

 

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

8 comments to PoP Balance Sheet – July 2016

  • Hm, now you’ve got me thinking. I’ve started charting our net worth progress from month to month visually and that’s awesome but to translate that into your equation requires some thinking here.

    Mentally subtracting property values from our net worth, which are about 40% of the total, we don’t have that much in investable assets. I think we have about 7-8 years of living expenses, and that’s maybe 0.3 in the COL Early Retirement Locale O_O Here I thought we were doing well. We’ve got more work to do!

    In absolute numbers, we saw an increase this month but clearly we need much greater growth.
    Revanche @ A Gai Shan Life recently posted..Just a little (link) love: foggy week editionMy Profile

  • I really like the way you guys think about your assets & early retirement planning. We copied your stacked bar graph format for our own net worth charting (adding in a negative category for our real estate liabilities…which technically is already baked into our equity figures, but this is just another layer of what figures into that equity).

    I think we might steal your “years of spending” metric, too, which is a nice way of measuring the assets we have, and how well we might have done in a particular month.

    Great stuff, as always.
    Done by Forty recently posted..To PepperMy Profile

    • steal away! I think the charts that you use from Mad Fientist (which I think originated with Your Money Or Your Life) are pretty excellent, too!

  • I thought about you two the other day, and amazed to see you’re trending incredibly upwards as always (though not surprised). I hope all is well with both of you, and that’s incredible about the locales – the newer ones I actually recognize now! :)

    • It’s definitely neat that we’re getting to places on the list where we’ve been before. =)

      How have you been lately? Your little dude must be getting pretty big now, right?

  • Yes, 19 months and rambunctious! We are also expecting a little girl this month. :) I remember you were still thinking of possibly moving to Hawaii – is that still a possibility?
    Anna recently posted..Hello world!My Profile

    • haha, Hawaii was probably 97% April Fool’s joke, 3% wishful thinking while on vacation. =)

      Congrats on the impending arrival – sounds like you’ll definitely have your hands full!