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April 2012 Cash Flow

April 2012 cash flow

Ugh! A negative month.

Oh no! We are in the negative territory for the first time in 2012. Our income is lower than usual and that was enough to turn April negative.

Income April March
Mrs. RB40’s paycheck 2694 2693
rental income 580 559
side income 100 185
dividend, interest 194 588
p2p 20 20
misc 50 74
Total income 3638 4120
Housing -2097 -877
cash allowance -820 -697
transportation -112 -73
pet -69 0
baby* -19 -177
bills -309 -282
medical -241 35
entertainment 0 0
misc 0 -25
Total expense -3667 -2096
Saving  -29 2025
2012 surplus 4,287

*There is a bit of fuzzy accounting here because I don’t count the cost of baby daycare. We pay $1,200 a month, but it is covered with DCAP from my paycheck. It is already deducted pre-tax and we wouldn’t have seen it anyway. Also, once I quit work, then I’ll be home to take care of the little guy so I think we can zero it out as we look forward to the future.

** I don’t count my paycheck here because we are trying to live on one paycheck. We are preparing for the day that I Go It Alone.

Income (Target > $5,000)

Our income this month is much lower than the $5,000 target. We really need to make at least $4,000/month to keep ahead.

Mrs. RB40 is paid biweekly and the amount shown here is the take home pay, after her 401(k) contribution. No surprises here this month.

Rental Income – I’m showing all income minus expense. The property taxes are also baked in now.

The rental income is turning out to be around $600/month. This is not very high, but it should go up in the long term.

Side Income

Retire By 40 is transitioning to PPC (pay per click) and affiliate marketing advertising so our online income is freefalling. Actually we made a little more than $100, but quite a few accounts are under the payout threshold so we will see those payments in the future. May is looking a lot better and a few checks already came in.

My target is to eventually hit $500/month consistently.

Dividend & Interest

Dividend portfolio – $194. This is another big drop from the previous month. I will probably need to diversify my dividend portfolio more so the payout is spread out more evenly throughout the year.  Again, May will be much better.

Interest – $44. My $50,000 is still with ING. I’ve been too busy to do much with it. We want to keep some liquidity to deal with any unexpected changes.

P2P Lending

P2P – $20. I’m putting P2P lending into it’s own category because I’m planning to ramp this up in the next few month. Currently, I have about $5,000 invested here and  the plan is to increase it to $10,000 in a few months. This will increase the P2P income to about $100/month. My target is 12% return, a bit ahead of the projected 10.69% Returns With Prosper.


I got $50 bonus for opening a Sharebuilder brokerage account with ING. If anyone wants a $50 bonus, let me know and I’ll send you an invite.

Expenses (Target < $4,000)

Housing – We refinanced in March and are paying a bit less per month. This should be stable from now.

Food and Cash Allowance – About 90% of the cash allowance goes toward food and groceries. Mrs. RB40 also received her 10% editor pay in cash. We spent a bit more on food and beverages this month. I went to Uwajimaya, an Asian grocery store a couple of times and spent a bit too much money. We also ran out of wine and went to Cost Plus World Market to restock.

Transportation – This is for gasoline and public transportation. This category also went over my $100 target. Gasoline price went up and I went to get a car wash.

Baby – The little guy only spent $20 this month. We paid cash for milk and diapers.

Bills – The monthly bills are stable. Our electricity bill should start to decrease now that the weather is getting warmer.

Medical – I got my eyes checked and got a new pair of prescription sunglasses. That took up the bulk of this category. We also purchased a few over the counter medicines and paid for a doctor visit.

Entertainment – We had a quiet April and didn’t spend too much money on entertainment. We went out to eat a few times and paid with cash. Baby sitting costs $40 for a “parents night out” so we rarely go out these days.

Misc – Nothing this month.

April Cash Flow

All in all, April is our low point so far this year. I spent an hour going over every little detail to make sure I didn’t miss anything, but still came up $29 short. Oh well, it was bound to happen. We probably will have a better picture at the end of the year when we average out everything.

Here is our saving so far in 2012 (not including retirement funds.) Hopefully we’ll be back on the upswing next month.


April 2012 cash flow saving

And it was going so well before April…

How about you? Did you have a good April.

If you need some help keeping track of your finances, you should try using Personal Capital to manage your budget. It’s a great free budgeting tool. You can keep track of your income, expenses, and net worth, all in one place. Personal Capital is geared for investors and have many great tools. See my review of Personal Capital and how they helped me reduce what I’m paying in investment fees.


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{ 16 comments… add one }
  • Corey @ Passive Income to Retire May 4, 2012, 7:12 am

    If a bad month is over-spending by a few bucks, I’d say that’s alright in my books. We did fairly well. I’d also like to get my CPC ads up to about $500 – although, I’m just hoping for that on all my sites, not just one.

    • retirebyforty May 4, 2012, 10:13 am

      I really need to get moving on more sites…

  • Financial Samurai May 4, 2012, 8:53 am

    Joe, good thing your income is HUGE and not being counted for 🙂 Don’t quit by 40 man!

    I’m excited about P2P lending as well. I’ll be meeting with the guys from Prosper next week. They are all in SF.

    Which is your main CPC source?

    • retirebyforty May 4, 2012, 10:15 am

      That income is not that HUGE and it’ll be going away sooner than later.
      Have fun with P2P. Let us know how it turns out.
      My main CPC is media.net. I have a campaign with a retirement planning company, but that’s wrapping up. Other than that, I’m working on more affiliate advertising like the prosper.com link you see in this post.

  • Julie @ Freedom 48 May 4, 2012, 2:15 pm

    We had a hard time with gaining ground this month too. BUT it’s the exception, not the norm. Next month is a clean slate… with opportunity for growth!

    • retirebyforty May 5, 2012, 10:10 pm

      I’m sure May will be better for us too. 😉

  • Roshawn @ Watson Inc May 4, 2012, 4:30 pm

    Oh no! I m glad the housing expense will stabilize. I know you’ll be back on track next month!

    • retirebyforty May 5, 2012, 10:14 pm

      I need to ramp my online income back to at least $500/month. It will take a while though. 🙁

  • Cherleen @ Barbara Friedberg Personal Finance May 5, 2012, 12:06 am

    It seems that April is indeed a slow month. Though the ratio of our income vs. expenses is not on the negative range, the income is lower as compared to the previous months.

  • Jai Catalano May 5, 2012, 7:45 am

    I have a feeling the market is going to drop again on Monday. I would say let’s get ready to put our toe in the water as some dividend paying funds/bonds are going to go on sale.

    • retirebyforty May 5, 2012, 10:14 pm

      I sold a bit last week and hope we see more decline next week. I can use more dividend income. 🙂

  • SB @ One Cent at a time May 5, 2012, 11:47 am

    MyApril was better than March in terms blog income. But not every month I’d secure a side bar deal. I’ll go with Sam don’t quit at 40

  • YFS May 6, 2012, 3:07 am

    In order to live on 1 income comfortably you have to make a bit more than 5k per month. If I’m using your current numbers, your housing expenses account for 57% of your net income. That’s just too high. Your housing expenses need to be in a range of 20-30% to make the 1 income household work without dipping into savings.

    Secondly, did you account for taxes on your real estate earnings? I understand that real estate falls into the passive activity column, but there might be a day in time when you’re in the black and you might have to pay federal taxes on that income.

    • retirebyforty May 7, 2012, 8:58 am

      We make more than 5k/month before tax and 401(k) contribution. How’s that? 🙂
      Our housing cost is high, but as we it should get closer to 30% of our income as we continue. The housing cost is stable and we are aiming for 5k/month take home. If we really can’t deal with the finance, then we could move into one of our rental home. So yes, the housing cost is high, but I do have a back up plan.
      The depreciation is helping us avoid rental property tax at the moment.

  • Jeff @ Sustainable Life Blog May 7, 2012, 11:52 am

    That sucks you had a bit of a downdraft this month, but keep up the hard work. building more dividend positions will certainly help!

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