PoP Balance Sheet – March 2017

Welcome to our March 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 big change on the balance sheet this month is the car loan.  We mentioned that we were going to probably do this when we talked about the money aspects of Mr PoP’s NSX purchase, and we finalized the loan paperwork this month.  Opting for a loan against something that we could have paid cash for isn’t our traditional modus operandi, but the 1.49% interest rate on a 36 month loan from our credit union was tough to pass up.  Over the course of the loan we’ll pay in the neighborhood of $600 in interest total.

This feels pretty cheap in terms of allowing us to keep a little more liquidity – though it does come at the price of pretty high payments.  And by that I mean obscenely high.  Even when we had 2 car loan payments back in 2010, together they were not this high.  So this will be a new feeling.  However, we do get to delay that feeling for a month since the first payment isn’t due until April.  =P

Here are the numbers for March:

  • Our total assets up $46.6K
  • Our total liabilities went up by $26.3K 
  • Net worth went up by $20.3K 
  • Total net worth as of the end of March is $1,360.9K, which represents a 1.51% increase for the month

For the details…



Brokerage Accounts

  • 401K accounts: $369.4
  • Roth IRA accounts: $207.0
  • HSA account: $19.9
  • Taxable Brokerage Accounts: $199.6
  • Total Brokerage Accounts: $795.9 

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: $33.4 – need to move some to taxable
  • Savings/Money Market Accounts: $2.0
  • Total Cash Holdings: $35.4

Total Assets: $1,465.3


Real Estate Loans

  • Primary Mortgage: $77.6
  • HELOC on Investment Duplex: $0.0 (re-advanceable)
  • Personal Loan – Used to Purchase $50K Duplex: $0.0
  • Total Real Estate Related Loans: $77.6

Car Loan

  • Loan on NSX: $25.6
  • Total Car Loans: $25.6

Revolving Credit

  • Credit Card Balance: $1.2
  • Total Revolving Credit: $1.2

Total Liabilities: $104.4

Net Worth = Assets – Liabilities

Net Worth = $1,360.9, up 1.51% from February


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.

Right now the blue line is below the yellow one (though they have started to get significantly closer!)… ideally one would like that in reverse.  =P


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 188.0. 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

20.80/25 = COL Early Retirement Locale / 188.0

COL Early Retirement Locale = 156.42

… which gives us the city of Stuttgart, Germany!

Stuttgart, home of the Mercedes Benz AND Porsche headquarters.  If Mr PoP had done better in the German 101 class he took in college, he might be itching to start booking tickets there now!  And I probably wouldn’t be fighting him on it.  I had the pleasure of visiting Stuttgart more than half my lifetime ago when I was in high school (summer exchange-type program with my German class) and what I remember most vividly was visiting the Mercedes Benz museum.  Where even as a non-car geek, it was incredibly interesting to walk around learning about all of the cars and the history of Mercedes Benz!

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


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

8 comments to PoP Balance Sheet – March 2017

  • I’d recommend checking out the OnTrajectory website. They’re like a more detailed, flexible CfireSIM!
    Gwen @ Fiery Millennials recently posted..Monthly Status Report: March 2017My Profile

  • ktaylor

    Nice jumps in the retirement and after tax brokerage accounts month over month! What drove that? Mostly market gains? If so, what types of equities do you skew toward?

    • We have a lot of VTI (Vanguard Total Stock Market), as well as a lot of VTIVX (Vanguard Target Date 2045), but I think most of the gains this month weren’t from market gains, but rather from recognizing deposits that hadn’t cleared completely by the time I took the numbers last month. So there was a phantom large-ish deposit into Mr PoP’s 401K that probably wasn’t accounted for last month that helped push things along this month. That happens sometimes when the end of the month is a Friday or a weekend and I grab the numbers too soon.

  • Well, you know I operate on a different order of magnitude from the PoP family, but I’m happy with March. I received some a tax windfall plus a large healthcare refund and set them aside sensibly. (Emergency fund, Roth holding area, and with savings better covered, I upped my HSA payroll contributions.)

    • We didn’t always have this order of magnitude, for sure. We were talking last night about how the last decade has gone – in 2017, we were ~1 year out from college/grad school and our heads were above water, but we were both living in teeny apartments (with varying levels of decrepitude) a couple hours away from one another, spending a big chunk on gas to visit one another regularly, and happy if we were getting money into our Roth IRAs every year. (I think that first year neither of us had 401Ks.) =)

  • Nice!!!

    Hereabouts net worth has been going up primarily because of a) the stock market and b) irrational expansion of real estate values. Houses in the hood similar to mine are on the market for just about twice what I paid for mine.

    I’m scared to open the Fidelity statements that came a few days ago: figure what toes up in those precincts must come down.
    Funny about Money recently posted..Why You Need a Call BlockerMy Profile

  • Holy cow, that is one straight upward line in your networth, deep bow to you guys! Very impressive. Great to see that you guys are getting awfully close to being FI. Love the ERLI, very cool. Stuttgart would practically make you neighbors 😉
    Team CF recently posted..March 2017 Dividend UpdateMy Profile