PoP Balance Sheet – March 2013

Welcome to our March 2013 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!

Assets rocked the house as we had some stock market growth, as well as some real estate appreciation on our primary residence that we booked.

Liabilities are pretty stable, and are going to be like that for a while as the next liability we’re attacking is the $50K loan from Mr. PoP’s parents that we used to buy our duplex.  We’d like to pay them in lump sums that correspond to when our semi-annual interest payments are due.  In the meantime, we’re hoarding cash like squirrels shoving acorns in their cheeks and might feel like we’re about to explode by the time the next payment is due.  But that’s off topic….

For the month of March:

  • Our total assets went up ~$25.9K, about 60% of that boost ($16K) was due to booking the appreciation on our primary residence.  I went through how we calculated the original value we posted on this site in the Determining A Home’s Value Series ages ago.  Do you guys want to see the updated calcs, or is it not worthwhile to post?  I’m never sure how much of my RE numbers obsession people actually like to read…  FWIW, this updated value is still pretty conservative.
  • Our total liabilities dropped by ~$0.5K.  This is how it’s going to be for a while as we save up to pay Mr. PoP’s parents back in a big lump sum.  Goal date for first (only?) lump sum payment – August 1 2013.  
  • Net worth rose by about $26.3K this month.  
  • Total net worth as of the end of February is $481.2K, which represents a 5.8% increase this month.  

And for the details…

dyerware.com


dyerware.com


Why do we look at our assets and liabilities split up this way? For us, it’s an easy way to look across all the different categories of assets and see which ones we have equity in, and how much equity. If the Assets bar is taller than the Liabilities bar, that’s equity in that asset class.

Assets

Stock Accounts

  • 401K accounts: $108.2
  • Roth IRA accounts: $110.3 – dropped $10K in for our 2012 contributions…
  • Non-Retirement Stock Accounts: $0.6
  • Total Stock Accounts: $219.1

Real Estate (based on current market comparable sales)

  • Primary Residence $186 – upward trend started in the fall, but I didn’t book it until it continued into the spring…
  • Investment Duplex: $97
  • Investment Residential Land: $80
  • Total Real Estate: $363.0

Cars (values from Kelly Blue Book)

  • Car 1: $8.7
  • Car 2: $11.6
  • Total Cars: $20.3

Cash Holdings

  • Checking Accounts: $10.1
  • Savings/Money Market Accounts: $23.0 – our 2012 Roth IRA contributions came out of here which is why it looks lighter…
  • Total Cash Holdings: $33.1

Total Assets: $635.5

Liabilities

Real Estate Loans

  • Primary Mortgage: $103.5
  • HELOC on Investment Duplex: $0.0
  • Personal Loan – Used to Purchase $50K Duplex: $50.0
  • Total Real Estate Related Loans: $153.5

Car Loans

  • Car 1: $0.0
  • Car 2: $0.0
  • Total Car Loans: $0.0 – Thinking of removing this as a category, but it’ll stay for one more month because the zeros makes me smile…

Revolving Credit

  • Credit Card Balance: $0.8
  • Total Revolving Credit: $0.8

Total Liabilities: $154.3 

Net Worth = Assets – Liabilities

Net Worth = $481.2, up 5.8% from February!

19 comments to PoP Balance Sheet – March 2013

  • Jonathan

    Nice! We’re wrestling with whether to “book” a paper asset increase as well. We were essentially gifted a property several years ago when it had 0 equity and was cash flow neutral. Now, through a rent increase, it’s cash flowing, and more importantly, through a refinance, there is equity – a lot of it. The reason I’m struggling is that everything else on our balance sheet is based on our own efforts and our own investments, and adding this new value utterly skews the progress metrics I follow. I know, I know, not the worst problem to have :)

    Anyway March was a good but not great month. As it happened, both our surprisingly large tax refund and my annual bonus didn’t come in until the first few days of April, so March was a “regular” month. Nearly all of the gain went into our HSAs which we funded for 2012. April’s going to look awesome though.

    • Yeah…its an odd thing. Our assets are far larger than our income and expenses; at this point we could be whipsawed by a market correction or a Real Estate devaluation. So do we book the increases, even if they become increasingly abstract? Regardless, the important thing is to keep the expenses down, and the income up…
      mr. pop recently posted..PoP Balance Sheet – March 2013My Profile

      • Jonathan

        Low expenses and high income solve pretty much any problem with the whims of the market. And cash-flow producing properties (even leveraged ones!) tend to make me look at potential “market corrections” as opportunities rather than things to fear.

  • Great job! I can’t wait till my net worth reaches those numbers :)
    SavvyFinancialLatina recently posted..Is It Time To Move On?My Profile

  • Looks like you’re doing great. Keep it up!
    My Financial Independence Journey recently posted..Portfolio Status: April 2013My Profile

  • It seems like you had another great month. Congrats!
    Debt and the Girl recently posted..Thinking of Retirement….No, Not MineMy Profile

  • Nice! I noticed that real estate related amounts are somewhat low, I bet you guys are not from the either coasts :)
    Retirement and PF recently posted..Top 10 Ways to Get RichMy Profile

    • We’re in Florida. We bought during the crash, so we’ve actually had some pretty big increases in value percentage wise on two of our properties.

  • Sounds like a good month. I’d be curious to see the update calculations on the house.
    KK @ Student Debt Survivor recently posted..One Woman’s Trash Is Another Woman’s TreasureMy Profile

  • Well done you two, that’s awesome! We didn’t touch the value of our home this year as we felt comfortable leaving it where it was at. I guess our reasoning was it was better to undervalue it a bit just in case something happens and it’s not that drastic of a hit. Keep up the hard work or shall I say, socking away the money like acorns lol.. too funny!! :-) looking forward to your next update!
    Canadianbudgetbinder recently posted..Saturday Weekend Review #14- Credit Card Surcharges, Would You Pay Them?My Profile

    • Thanks Mr. CBB. I held off on it for a long time until I was sure that it wasn’t just one fluke sale. And Mr. PoP reminded me, I wouldn’t have held off on booking a write down, so we shouldn’t stop ourselves from celebrating the paper gains a little. But, we do keep in mind that gains in value on something we don’t want to sell aren’t really going to help us reach early retirement. =)

  • You two are so impressive for being so young. Seriously, my role models. :)
    Cat@BudgetBlonde.com recently posted..Do You Hate Money?My Profile

  • Nice work on the increase! May I ask your reasoning for doing a ROTH vs a traditional? I’ve got a huge post detailing my stance against the ROTH, and one of the reasons is that very few people will make more money in retirement than during their working years.

    Thx
    Financial Samurai recently posted..Should I Convert My 401(k) Into A Rollover IRA?My Profile

    • Sure, basically it’s a hedge in our mind against future across the board tax increases. Right now our marginal rate is 25% (and in the past it has even been lower), so we’re willing to pay taxes on that money each year on the off chance that increasing entitlement spending will necessitate future across the board tax increases for ALL income brackets, not just the top 2%. We may not be right, but for now we feel like it’s a bet that isn’t going to hurt us a whole lot if we’re wrong but has the potential for a nice upside if we end up with much higher tax brackets in 30-50 years (which is the soonest we plan on touching the Roth money).