PoP Balance Sheet – July 2017

Welcome to our July 2017 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 stock market was up, and we put a normal-ish (for us) amount into savings and investments this month.  Not a whole lot to say beyond that for the balance sheet, though our ERLI index put us in a pretty fun location this month!

But on to the numbers for July:

  • Our total assets up $27.6K
  • Our total liabilities went down by $1.7K 
  • Net worth went up by $29.3K 
  • Total net worth as of the end of July is $1,455.1K, which represents a 2.05% increase for the month

For the details…



Brokerage Accounts

  • 401K accounts: $413.8 
  • Roth IRA accounts: $221.4
  • HSA account: $21.9
  • Taxable Brokerage Accounts: $229.4
  • Total Brokerage Accounts: $886.4 

Real Estate (based on current market comparable sales)

  • Primary Residence: $269.0
  • Investment Duplex: $175.0
  • Investment Residential Land: $160.0
  • Total Real Estate: $604.0 

Cars (based on “fire sale” pricing per Mr PoP’s research)

Cash Holdings

  • Checking Accounts: $26.4 – need to move some to taxable…
  • Savings/Money Market Accounts: $7.0
  • Total Cash Holdings: $33.4

Total Assets: $1,553.7


Real Estate Loans

  • Primary Mortgage: $75.2
  • HELOC on Investment Duplex: $0.0 (re-advanceable)
  • Personal Loan – Used to Purchase $50K Duplex: $0.0
  • Total Real Estate Related Loans: $75.2

Car Loan

  • Loan on NSX: $22.8  – the interest rate is so low on this, almost all of the $727 payment went towards principal
  • Total Car Loans: $22.8

Revolving Credit

  • Credit Card Balance: $0.6
  • Total Revolving Credit: $0.6

Total Liabilities: $98.6 

Net Worth = Assets – Liabilities

Net Worth = $1,455.1, up 2.05% from June


How Close Are We Getting to FIRE?

New this year is a graph that Mr PoP and I are still trying to figure out how useful it is to us.

In this one, we’re tracking month-by-month, two lines.  The blue one is an approximation of FIRE income – it is the sum of the last twelve months of net real estate income plus 4% of the most recent brokerage account balances.   The yellow one is an approximation of our FIRE spending, for which I’m using the last twelve months of what I’m thinking of as our “recurring spend”.  Bu that I mean our spending, net of all the crazy shenanigans we’ve been up to the last couple of years with remodeling and “fun car” spending.  The main reason we’re netting these out, is that we definitely won’t be pulling the plug with any big line items like this hanging over us.

Yellow line holding steady under the blue line for now… =)


We’re still chewing on this visualization a little bit, because while it’s nice and succinct, it still omits some important information from our portfolio and spending patterns, specifically our empty lot (worth ~$160K) that instead of generating income is currently costing us ~$1,500/year, as well as the ever decreasing lifespan of our mortgage.  We also spend ~$9400/year on the principal and interest payment of our mortgage, so paying that off (and the value of the lot would pay it off and then some!) would decrease our outflow needs significantly, and even if we pay it off according to schedule it’ll be gone in 2026.

Do you take any future changes into account in your visualizations?


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.


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 159.0. 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

21.28/25 = COL Early Retirement Locale / 159.0

COL Early Retirement Locale = 135.36

… which gives us the city of Liverpool, UK!

Our other option was London, Ontario (Canada), but when one option is a city that managed to create 4 amazing mop-headed musicians… well, is there really another choice?  (Sorry London, Ontario!)
My favorite Beatles song is probably this one (though I love the version on the Let It Be Naked album – it’s much better!):

But then I also love this one, especially in German!  But sadly, it won’t let me embed it, so click through to listen to Komm Gib Mir Deine Hand (aka I Wanna Hold Your Hand).
ooof, or maybe there’s Hey Jude, which is one of the first songs I ever danced with a boy to…  Yay for Bar Mitzvahs!

 And here is someone who has ranked every Beatles song from worst to best
 What’s your favorite Beatles song?

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
  • August 2016 – Gurgaon, India
  • September 2016 – Grand Cayman, Cayman Islands
  • October 2016 – Las Vegas, Nevada
  • November 2016 – Oakland, California
  • December 2016 – Hartford, Connecticut
  • January 2017 – Montevideo, Uruguay
  • February 2017 – Noweheresville – or maybe we can just live in the car?
  • March 2017 – Stuttgart, Germany
  • April 2017 – Bologna, Italy
  • May 2017 – Brasilia, Brazil
  • June 2017 – Nairobi, Kenya
  • July 2017 – Liverpool, United Kingdom


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

9 comments to PoP Balance Sheet – July 2017

  • … we honeymooned in London, Ontario. (You made the right choice.)
    Nicoleandmaggie recently posted..In which #1 and #2 discuss Billy the BookcaseMy Profile

  • Ashley

    Congratulations on holding under the blue line! Quite the achievement – those lines are sadly still reversed in our household :)

    So between work and a move, I did not ever see your thoughtful responses to my questions last month. I gather from Mr POP’s response that I was asking for more detail than you guys need to answer! I am sorry for putting you on the defense – it was thoughtless of me.

    One thing we are figuring out now is how to account for those unpredictably predictable purchases Leigh mentioned in that post’s comments, which is a different thing than once-in-a-lifetime dream purchases. I was extrapolating from my unpredictably predictable purchases -> unpredictably predictable dreams. But dreams are often better for the planning, and Mr POP is correct that another once-in-a-lifetime dream can be easily financed post-retirement with a skill-building hobby that pays $$$ – which makes sense! I loved his idea of a “goal with interesting boundaries.”

    Anyways, it is great to follow along and be inspired by your success – pointing to your blog was one of my winning arguments with hubby about the benefits of adding paper assets to our mostly real-estate retirement portfolio.

  • Ha! I remember looking through my mom’s record collection as a kid and finding an odd Beatles album that had “Komm Gib Mir Deine Hand” on the b-side. I thought it was the funniest thing ever. It’s still funny.
    Norm recently posted..Who Needs a DRIP Fund?My Profile

  • Mr PoP laughs whenever I sing it – so typically German, he thinks, to change the request/statement of “I wanna hold your hand” to “Come, Give me your hand” =)

    Oh du… bist so shoen! Schoen wie ein Diamant! Ich will… mit dir gehen. Comm gib mir deine Hand!
    Love that song! =)

  • You guys are straight killing it. I remember when we were just a little behind you.

    We’ve managed to get roughly where you are with liquid assets, but did so by selling a couple of our properties and reducing our equity. Still have two houses (a rental and our new primary residence) but are way behind you guys in overall net worth.

    Personally, we find it motivating to have someone ahead of us. Give us something to reach towards, so thanks for the transparency as always!

    • Mr PoP

      Thanks DBF! Glad you like seeing the NW numbers, but they’re only half of the equation…it looks like your yearly spending is a good bit lower than ours-nice work.