PoP Balance Sheet – March 2014

Welcome to our March 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!

March was mostly pretty boring on our balance sheet except for one notable occurrence.  One of our retirement accounts (we have 4 of them…) officially crossed into 6 figures for the first time!  Sure, it’s just bookkeeping since our combined accounts crossed over the $100K mark quite a while ago, but it still felt like a victory.

But for the month of March:

  • Our total assets went up by $12.1K
  • Our total liabilities went down by $0.8K
  • Net worth rose by $12.9K
  • Total net worth as of the end of March is $705.6K, which represents a 1.9% increase this month.  

And for the details…

dyerware.com



Assets

Stock Accounts

  • 401K accounts: $178.0
  • Roth IRA accounts: $141.3
  • HSA account: $6.2
  • Taxable Brokerage Accounts: $19.8
  • Total Stock Accounts: $345.3

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: $9.7
  • Total Cars: $9.7 

Cash Holdings

  • Checking Accounts: $10.9
  • Savings/Money Market Accounts: $13.0
  • Total Cash Holdings: $23.9

Total Assets: $803.9

Liabilities

Real Estate Loans

  • Primary Mortgage: $97.3
  • HELOC on Investment Duplex: $0.0 (re-advanceable)
  • Personal Loan – Used to Purchase $50K Duplex: $0.0  
  • Total Real Estate Related Loans: $97.3

Revolving Credit

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

Total Liabilities: $98.3

Net Worth = Assets – Liabilities

Net Worth = $705.6, up 1.9% from February

 

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 152.  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

11.67/25 = COL Early Retirement Locale / 152

COL Early Retirement Locale = 70.9

… which puts us in Kiev, Ukraine.

While I’m sure Kiev is a beautiful city and Ukrainians a lovely and friendly people, given the political instability in Crimea lately (does it belong to Russia, does it belong to Ukraine?), we’re pretty okay with not using that locale as an early retirement plan at the moment.

Here’s our progress using the COL Early Retirement Locale Index.

  • January 2014 – Delhi, India
  • February 2014 – Quito, Ecuador
  • March 2014 – Kiev, Ukraine

 

How was your balance sheet in March?  

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