August Highlights and Lowlights
Summer is almost over.
- No new clothing challenge – Oh no! I purchased a new pair of sneakers from the Adidas employee store. It’s for next year after my current pair wears out though, so I don’t feel too bad about it.
- Online Income - We had a great month in August. I will break down the online income in our monthly newsletter so if you’re curious, sign up with our email list.
- Rental Income - Finally a positive month! (+$1,304) We had 4 negative months in a row and we still have a lot of ground to make up. Hopefully, we’ll be able to continue the positive cash flow until at least the end of 2013.
- P2P income from Prosper was very good in August at $172. The ROI is currently at 9.45% and we should be seeing around $80/month on average.
- Dividend and interest income – Came in pretty low at $171. September should be a lot better just because of the payout schedule.
Net Worth (+15% YTD, -1% MTM)
The stock market went down quite a bit in August (SP500 -4%.) Our net worth took a hit along with the stock market and we are down for the first time in 2013. It’s just -1% month to month though so it’s not so bad. I’m quite happy with our YTD progress so far and hopefully we can maintain at least 15% for 2013.
If you need help keeping track of your finances, try using Personal Capital to manage your budget and net worth. It can help you keep track of your income, expenses, and net worth, all in one place. Personal Capital is geared for investors and has many great tools. See my review of Personal Capital and how they helped me reduce what I’m paying in investment fees.
Personal Capital can help you keep track of how your investment is doing VS the indexes.
Saving (+$13,120 YTD)
Our expense was high in August, but our income was very good as well so it worked out.
Our saving this month is +$2,379.
Piggy Bank 2013
- Earmarked for the 529: $0. We contributed $10,000 to RB40 Junior’s 529 fund, so we’re done with this one for the year.
- Travel fund: $0. We are pretty much done with our travel this year.
- Fun money: +$160 = $1,000
- Investment/Slush Fund: +$2,219 = $5,321
- Taxes: $2,666. We are done with taxes until next April. From my estimate, we probably need to send in around $1,000 next year.
Income (target > $4,500)
On the income side, we had a great month. The big difference is the rental income. If we could have more positive rental income months, we’d be set.
- Rentals: Finally, we had a month with minimal repair and maintenance. I spent $54 to fix a broken fence post and that was it. September will be more expensive because I’m doing more exterior maintenance work.
- P2P lending: Our ROI rise to 9.45% last month. We didn’t see any defaults in that period (July)! That’s amazing and I know it won’t last. It would be great if we could rake in $172 every month. I think the next statement could be bad, though. There have been more defaults recently. Here is the last update - Peer to Peer Lending Is A Pretty Good Passive Investment.
- Dividend and interest: August was a very slow dividend month. September should be much better.
- Online income was great in August. My goal was to make $18,000 online in 2013. After 8 months, we netted about $19,300. Woohoo! The rest of the year is just gravy. Thank you for supporting us and signing up for products I wrote about. I will break down the income in the monthly Retire By 40 Newsletter, so sign up now if you haven’t yet (at the top of this post.)
- Misc income: Pretty quiet this month. I just got $100 from my brother to help out with my parents visiting costs.
Expense (target < $4,000, not including tax)
We went over $4,000 this month and RB40 Jr. didn’t even start school yet. It’s time to figure out how to get our expense under control again. We did have a couple of surprises. Mrs. RB40 spent $255 to attend a memorial service in CA. I paid $150 for a prescription for my mom.
Cash and groceries: This is quite high for August. I made a mistake and gave us an extra $100 allowance, and Mrs. RB40 didn’t mention it. We also spent a lot on food because my parents are visiting. We’ll try to get it down to around $800 in September.
Transportation: We filled up just once in August for $40. At least this is under control.
RB40 Junior: No expense this month! Amazing! No diapers, no wipes, no toys, no clothes, no shoes, no extra hospital bills, and no daycare/preschool. This is it though. Next month, we’ll have $505 for preschool here. We also need to get him a raincoat.
Medical: My mom was prescribed a super expensive eye drop at $150. Man, that’s expensive for 2 oz.
Entertainment: $46.5 for sushi. I ran out of allowance and had to use the credit card.
Misc: Mrs. RB40 flew to CA to attend a memorial service. I spent $40 on the pair of running shoes.
Wrap Up August
Our expense was higher than usual this August, but luckily our income was high, too. I’ll work on our expense in September and hopefully we’ll get back under $4,000.
How about you? Did you have a good month? Any progress on your New Year Goals and Resolutions?