September Highlights and Lowlights
Summer is officially over. We had two huge storm systems rolling by this weekend and we didn’t even leave our building on Sunday. It’s time to hunker down and catch up on our shows (via the library, of course.)
- New Year’s Resolutions – I gave an update earlier this week. I just need to take care of a few important things and then I’ll call it done for the year.
- Online Income - We had another great month in September. I’m beginning to think this online income thing might be sustainable after all. It feels like I’m setting myself up for a heartbreak though, so I’ll just keep my expectations low for now. I will break down the online income in our monthly newsletter so if you’re curious, sign up with our email list.
- Rental Income - Woohoo! We have another positive month! (+$842) At this rate, we’ll have a small positive cash flow by the end of the year. Hopefully we don’t have any big repairs until 2014.
- P2P income from Prosper was terrible in September. I actually lost money this month (-$14.) This is a huge contrast to last month’s gain of $172. The ROI is currently at 8.56% and we should be seeing around $80/month on average. I guess the average is spot on for these last 2 months.
- Dividend and interest income – We had a big dividend month at $1331. It would be really nice to see this kind of payment every month. I’m reinvesting most of the dividend and we’ll get there someday.
Net Worth (+17% YTD, +2.5% MTM)
The stock market has been up and down in September and the S&P500 ended up about +3%. I’m quite happy with the progress of our net worth at +17% for the year. That’s beyond all expectations and I would be ecstatic if this continues for 12 more years (Mrs. RB40 retirement target).
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Personal Capital wants me to put more into stocks. I’m pretty happy where I am though, so I’ll probably stay put for now.
2013 Surplus (+$16,771 YTD)
Our expense was high again in September, but our income was very good as well so it worked out.
Our saving this month is +$3,651.
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: $1,000
- Investment/Slush Fund: +$3,651 = $8,972. All of this will go into my solo 401(k) soon.
- 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)
- Rentals: Things are running a little more smoothly with the rentals. We had a couple of maintenance jobs, but that’s expected. I feel like we’re turning the corner, but we probably have to wait another year to see if that’s true.
- P2P lending: Our ROI dropped to 8.56%. There were a ton of defaults and it killed our P2P cash flow. At least it’s very passive now. See my last update - Peer to Peer Lending Is A Pretty Good Passive Investment.
- Dividend and interest: As expected, September was a great dividend month. We received dividend from
- Online income was great in September (+$3,136.) 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 got $100 from my brother to help out with my parents visiting costs.
Expense (target < $4,000, not including tax)
We went $4 over $4,000 this month. The $505 check we sent to preschool pushed us over the limit. We’re getting a refund because RB40 Jr. only lasted a week and now we won’t have to worry about that until next year.
Cash and groceries: We did pretty well at $533 this month. I’m happy if we can keep this under $600.
Transportation: Filled up twice in September. I drove a bit more than usual.
RB40 Junior: $505 for preschool in September. We’ll get most of that back soon though.
Entertainment: $76. We went to a winery and stocked up on some Frizzante.
Misc: $301. I’m heading down to the Bay Area with RB40 Jr. for a short visit next month and purchased two tickets. A gift, Toastmasters fee (will get reimbursed for this), and a small donation to a good cause rounded out the rest.
Wrap Up September
We did pretty well in September because our income was higher than usual. I still would like to bring our expense down under $4,000 though. It should be a bit easier in October because we don’t have any big expenses, especially the big preschool bill, to deal with.
How about you? Did you have a good month? I think October will be pretty good for us and the holidays will hit. We are not planning to spend a lot of money this holiday season, but you never know.