PoP Balance Sheet – November 2015

Welcome to our November 2015 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!

Our balance sheet isn’t too exciting this month.  Markets were pretty flat, though we did still manage to have some funds leftover at the end of the month to direct toward investments, despite all that high spending.  We made one adjustment to our physical assets, marking the car down (I do this every six months) to its current value per Kelley Blue Book.

On with the numbers for the month!

  • Our total assets up by $6.7
  • Our total liabilities went up by $1.2 (merely a function of when we pay the cc bill…)
  • Net worth went up by $5.4K 
  • Total net worth as of the end of November is $952.6K, which represents a 0.57% increase this month.

And for the details…

dyerware.com


Assets

Brokerage Accounts

  • 401K accounts: $261.2
  • Roth IRA accounts: $161.2
  • HSA account: $12.4
  • Taxable Brokerage Accounts: $104.5
  • Total Stock Accounts: $539.3 

Real Estate (based on current market comparable sales)

  • Primary Residence $239
  • Investment Duplex: $140 – increased by $10K
  • Investment Residential Land: $80
  • Total Real Estate: $459.0 

Cars (values from Kelly Blue Book)

  • Car 2: $6.0
  • Total Cars: $6.0

Cash Holdings

  • Checking Accounts: $17.6 – need to move some over to taxable
  • Savings/Money Market Accounts: $20.0
  • Total Cash Holdings: $37.6

Total Assets: $1,041.9 

Liabilities

Real Estate Loans

  • Primary Mortgage: $86.6
  • HELOC on Investment Duplex: $0.0 (re-advanceable)
  • Personal Loan – Used to Purchase $50K Duplex: $0.0
  • Total Real Estate Related Loans: $86.6

Revolving Credit

  • Credit Card Balance: $2.7
  • Total Revolving Credit: $2.7 

Total Liabilities: $89.3

Net Worth = Assets – Liabilities

Net Worth = $952.6, up 0.57% 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.

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 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 204. 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

10.00/25 = COL Early Retirement Locale / 204

COL Early Retirement Locale = 81.59

… which gives us Debrecen, Hungary!

I’ve got a bit of a soft spot for Hungary after spending some time in the country while in college.  I never made it to Debrecen during that trip, so I wouldn’t complain about a visit .  Realistically, though Hungary as a whole is a little too cold and land-locked – though Lake Balaton is lovely! – for me to want to live there forever.

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

 

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

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