PoP Balance Sheet – May 2014

Welcome to our May 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!

The high income month from selling the Jeep, combined with a solid 2+% gain in the S&P500 last month led to some strong asset growth on our balance sheet, and giving us the biggest net worth increase we’ve seen since January.

But for the month of May:

  • Our total assets went up by $27.5K
  • Our total liabilities went down by $0.1K
  • Net worth rose by $27.6K
  • Total net worth as of the end of May is $743.6K, which represents a 3.9% increase this month.

And for the details…



Stock Accounts

  • 401K accounts: $191.2
  • Roth IRA accounts: $144.8
  • HSA account: $6.9
  • Taxable Brokerage Accounts: $34.9
  • Total Stock Accounts: $377.8

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: $9.2
  • Total Cars: $9.2

Cash Holdings

  • Checking Accounts: $14.4 – a little high since we need to move some more to the taxable brokerage
  • Savings/Money Market Accounts: $15.0
  • Total Cash Holdings: $29.4

Total Assets: $841.4


Real Estate Loans

  • Primary Mortgage: $96.3
  • HELOC on Investment Duplex: $0.0 (re-advanceable)
  • Personal Loan – Used to Purchase $50K Duplex: $0.0
  • Total Real Estate Related Loans: $96.3

Revolving Credit

  • Credit Card Balance: $1.5
  • Total Revolving Credit: $1.5

Total Liabilities: $97.8

Net Worth = Assets – Liabilities

Net Worth = $743.6, up 3.9% from April


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), 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

9.86/25 = COL Early Retirement Locale / 152

COL Early Retirement Locale = 60.0

… and we move down to Madras, India (which is actually technically named Chennai).

Surprisingly, moving downward on the list this month looks like a move in a positive direction from a political standpoint.  From our last update a month ago, Thailand (Chiang Mai, Thailand was PoP’s Early Retirement Locale for April) has undergone a political coup, and seems to be on its way to a military autocracy with limited political and journalistic freedoms.  =/

On the other hand, in the last month, India has confirmed its place as the world’s largest democracy and successfully transferred power from one political party to another peacefully.  And there’s something to be said for that, in our opinions.

That said, we’re not convinced that Chennai/Madras is our “forever place”.  At first glance there are some aspects that make it sound fairly idyllic (at least from the wikipedia description) .  It sits on the Bay of Bengal on the Eastern coast of India, with two major rivers flowing through it to the bay, and is a “major centre for music, art, and culture in India”.  However, the environment seems to have some serious issues.  The local rivers are among the most polluted (from both “domestic” and industrial waste) in southern India and serve as potential health hazards to people and the estuary they empty into.  I can’t see myself reasonably being able to enjoy water sports in Chennai.

So we’ll just have to keep saving up and see where next month’s update finds us!

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

  • January 2014 – Delhi, India
  • February 2014 – Quito, Ecuador
  • March 2014 – Kiev, Ukraine
  • April 2014 – Chiang Mai, Thailand
  • May 2014 – Madras/Chennai, India


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

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