PoP Balance Sheet – November 2014

Welcome to our November 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!

There wasn’t a ton of excitement on our  balance sheet this month.  We had a couple of high bills outside of our normal spending (property taxes for the investment properties) that had us only adding about $5K to our accounts this month.  We also adjusted the value of our car down using the most recent Kelly Blue Book estimate.  Honestly that’s getting to be such a small part of our asset base that I’ll probably take it off completely the next time we do an updated valuation on our other less liquid assets, ie the real estate.

All in all, it was a pretty boring month.  But I guess that’s not a bad thing most of the time!

So for the month of November:

  • Our total assets went up by $12.2K
  • Our total liabilities went down by $0.5K
  • Net worth rose by $12.7K
  • Total net worth as of the end of November is $815.0K, which represents a 1.58% increase this month.

And for the details…



Stock Accounts

  • 401K accounts: $217.1
  • Roth IRA accounts: $151.2
  • HSA account: $8.8
  • Taxable Brokerage Accounts: $62.3
  • Total Stock Accounts: $439.4

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: $8.4
  • Total Cars: $8.4

Cash Holdings

  • Checking Accounts: $15.5 – need to move another $4K into taxable
  • Savings/Money Market Accounts: $21.0
  • Total Cash Holdings: $36.5

Total Assets: $909.3 


Real Estate Loans

  • Primary Mortgage: $93.1
  • HELOC on Investment Duplex: $0.0 (re-advanceable)
  • Personal Loan – Used to Purchase $50K Duplex: $0.0
  • Total Real Estate Related Loans: $93.1

Revolving Credit

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

Total Liabilities: $94.3

Net Worth = Assets – Liabilities

Net Worth = $815.0, up 1.58% from October


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 164.5. 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

14.86/25 = COL Early Retirement Locale / 169.5

COL Early Retirement Locale = 100.77

… which gives us the choice between Monterrey, Mexico and Prague, Czech Republic.

While this time of year I’m sure we’d prefer Monterrey to Prague, a friend of ours just recently got back from a vacation to Prague and based on his recommendations, we’re going to have to continue our virtual tour of eastern Europe and choose Prague for our destination this month with the Early Retirement Locale Index.

According to our friend, Prague is just an amazing city – filled with culture, history, architecture – really everything that he could possibly want.  In fact, he started musing aloud to Mr PoP over Thanksgiving weekend about how amazing it would be to buy a condo there and live like a king in an lovely cosmopolitan city on just a fraction of what he is currently spending to live in the Bay Area.  All in all, this friend has nothing but high praise for Prague, and we hope we’ll be able to explore it someday.  Though maybe in the summertime instead of the winter.  =)

  • 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

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

19 comments to PoP Balance Sheet – November 2014

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