PoP Balance Sheet – June 2017 – Happy Anniversary!

Welcome to our June 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 balance sheet didn’t see a crazy amount of action this month.  The stock market was up just slightly, we put a little bit more money into our various savings/investing outlets, and paid down a little more debt.  Slow and steady.

Perhaps because it was so boring, I figure I’d mention that today is our 8th wedding anniversary.  (See Mr PoP – I didn’t forget!)  It’s been eight years since that fateful 7-6-09 when we took a lovely boat ride and eloped.  And it’s been quite a ride ever since – but luckily one with no regrets.  Scratch that, I have one regret – that we didn’t postpone getting married for 2 days s we could end up with a wedding date that is a punchline to a joke I have loved for way too long.

“Why was six afraid of seven?”  “Because seven-eight-nine!”  =)

With eight years under our belt, baby – here’s to eighty more!  And hoping that I still love that joke (and you love my weirdness for loving it) when we’re 114-years-old.

But on to the numbers for June:

  • Our total assets up $15.3K
  • Our total liabilities went down by $1.4K 
  • Net worth went up by $16.7K 
  • Total net worth as of the end of June is $1,425.8K, which represents a 1.19% increase for the month

For the details…



Brokerage Accounts

  • 401K accounts: $399.6 – soooo close to having 401K in our 401Ks!  
  • Roth IRA accounts: $215.8
  • HSA account: $21.2
  • Taxable Brokerage Accounts: $220.9
  • Total Brokerage Accounts: $857.5 

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: $28.6 – in the midst of moving $ into our taxable account to get this lower
  • Savings/Money Market Accounts: $6.0
  • Total Cash Holdings: $34.6

Total Assets: $1,526.1


Real Estate Loans

  • Primary Mortgage: $75.8
  • HELOC on Investment Duplex: $0.0 (re-advanceable)
  • Personal Loan – Used to Purchase $50K Duplex: $0.0
  • Total Real Estate Related Loans: $75.8

Car Loan

  • Loan on NSX: $23.5  – the interest rate is so low on this, almost all of the $727 payment went towards principal
  • Total Car Loans: $23.5

Revolving Credit

  • Credit Card Balance: $1.0
  • Total Revolving Credit: $1.0

Total Liabilities: $100.3 

Net Worth = Assets – Liabilities

Net Worth = $1,425.8, up 1.19% from May


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 168.0. 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

16.59/25 = COL Early Retirement Locale / 168.0

COL Early Retirement Locale = 111.47

… which gives us the city of Nairobi, Kenya!

I really would love to visit Africa someday, and Nairobi with its temperate weather seems like a pretty decent place to start.  But Mr PoP should be aware that if we take a day or two to stay at Giraffe Manor, he may have a hard time getting me to leave.

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


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

14 comments to PoP Balance Sheet – June 2017 – Happy Anniversary!

  • At the moment, my savings would be enough to pay the interest on my line of credit and my monthly utility bills. So I won’t be pulling the FIRE plug anytime soon! Very impressed with your healthy net worth, especially at such a young age.

  • Ashley

    “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.”

    Can I ask why you net the fun spending out? I’d imagine that you’d want to renovate a portion of your house/yard or make a big “fun” purchase at least once every 5-10 years once you’ve retired. Plus, early retirement leaves a lot of time for new passions and hobbies, some of which may cost more than you currently imagine (I’m picturing more elaborate scuba trips for Mr POP, or more driving for Mrs. POP, for instance).

    I guess what these questions lead me to is: How do you visualize your early retirement life? Like, day-in-day-out, travel, priorities, etc. How do you picture spending your time once you are no longer working 8-10 hours per day, and how do you think that will translate to your spending? Perhaps this is worth a post! 😉

    • You’re asking some really good questions.

      I think the short answer to the first part is that we took on the house renovation to the tune of $30K and the car to the tune of ~$40K(ish) within a span of 3 calendar years. These were “big dream” kinds of purchases that we wanted to do and knew we would only do them while we had steady streams of income. Quite honestly, it’s difficult for us to imagine ways to spend that much money on a regular basis into perpetuity, so it makes sense to back them out since they won’t be repeated.

      That isn’t to say there won’t be plenty of money for fun. Without his daily work commute and spending at the company cafe, Mr PoP could drive to the Keys once a week and go on an inexpensive group scuba trip while keeping spending and wear and tear on the car roughly the same, not to mention all the scuba spots that are even closer to our house that he has yet to explore. So there’s a good bit of wiggle room in there.

      But you did kindof hit the nail on the head that I’m not sure we have a day-to-day plan. We thought we did – one that involved a lot of travel – but some recent things have changed that and we’re still trying to figure that out.

    • The FIRE community is great at judging others, OK at accumulating assets, and terrible at naming things. Just substitute “fun money” for “stupidly expensive one time purchases that were so painful we’ll never do it again” and “retirement” for “flexible work situation” and those types of questions kinda evaporate. If you’re new to FI, it’s easy to get tangled up in this stuff because you’re calling things by the wrong name.

      Questions like this were really interesting for us…3-4 years ago. What we’re struggling with now is what community to join/big project to do after we’re done accumulating FU money. I’m not convinced mapping out a day-to-day plan is the way forward; having a goal with interesting boundaries is probably a better idea. I.E. “Learn a new skill that pays XX per hour that can be done with an internet connection from a cabin off the grid in Canada” or “Learn how to sail and bum around the Caribbean for 2 years for no more than 10k per year.”

      Does that make sense?
      Mr PoP @ Planting Our Pennies recently posted..PoP Balance Sheet – June 2017 – Happy Anniversary!My Profile

  • Happy anniversary, you two! :)

    So close to $400k in your 401(k)s! That’s incredible. We will hit $300k this year if I find another 401(k) job. They sure grow so much faster once they surpass six figures!

    I leave all of this “fun spending” in like our wedding reception costs this year, the living room upgrade costs last year, or any large travel expenses, because I assume that these events will continue to occasionally happen. Maybe not that exact event, but something of similar magnitude will happen. For example, eventually, it will be time to replace our car. I have no idea when that will happen, but that is definitely a reasonable expense, while unpredictable. I did, however, remove the mortgage payment from my spending numbers starting in January 2017 as my husband is paying it out of his separate income. I would re-calculate numbers if we planned to move some day.
    Leigh recently posted..Managing my clothing spending with a whitelistMy Profile

    • I think what it comes down to is that it feels like there is a big difference between “occasionally” and “we intentionally shoved two huge dream purchases into a 3 year period” since we didn’t want to NOT do them while we had plenty of cash flow and then regret it later. But these were literally items that we had been dreaming about for nearly a decade each and even then we really had a hard time mentally pulling the trigger to spend the money even though we’ve had plenty of income the past few years. Seriously, Mr PoP had to kindof continually nurse me through being okay with spending plenty of money on the kitchen renovation fanciness and I don’t think he would have gotten the NSX unless I told him that I honestly wanted him to. Counterintuitively, the purchases themselves were hardest for each of us that wanted them more. So we just don’t see that kind of magnitude recurring regularly.

      And if we do find we want all these fancy things and more down the line, well, maybe we’d have to go back to j-o-b-s or start a business or do something else to earn more income to greatly inflate the long-term lifestyle. Not really the end of the world.

  • Happy anniversary!
    It looks like another great month for you. I like the thought of $401K in your 401K, so close! I don’t think we will make it there this year, but next year for sure.
    FIbythecommonguy recently posted..Net Worth Update #3 – June ’17My Profile

  • ITs great to see so much improvement since the last time I read the blog. Good line by the way, 401 thousand in 401Ks. LOL. Slow and steady sure wins the race. I think you can retire anywhere, and don’t really need the local index. You will adapt and adjust to the money you have, that’s what’s called being frugal. Take care.
    EL @ MoneyWatch101 recently posted..Life and GoalsMy Profile

  • GYM

    Happy anniversary! Looks like you guys are doing great! I like the Early Retirement Locale Index, Nairobi, that would be fun! I’m surprised Chiang Mai is earlier on the list :)