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.
|Mrs. RB40’s paycheck||2694||2693|
*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.
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 – $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.
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.