Sorry! The cash flow report is a bit late this month. We just got back from the Hawai’i on Monday and we have been recovering from the vacation. Our flight left Sunday at 10:40 pm and had a stopover in Seattle. We finally got home Monday around 11 am so that was a long travel day. The Big Island was great, though. I didn’t want to come back at all. It’s definitely on my list of retirement destinations after RB40 Jr. is out of the house.
April was a bit crazy for us financially. Our rental home was vacant and we spent a bunch of money getting it ready for sale. Our cash flow is negative because of this but we should have a big infusion of cash once the deals are done. We’ll see how it goes.
Let’s go over our 2014 New Year resolutions first. Going over them at the beginning of every month will enable me to see how we’re doing and keep the momentum strong.
2014 New Year Goals
Invest $50,000 in tax advantaged accounts
We added $4,294 in April. Mrs. RB40 had a 3 paychecks month so that was awesome.
For 2014, we saved $22,746 so far and we are about 45% toward our goal. We are ahead here and just need to keep the momentum up for the rest of 2014.
- Mrs. RB40 401k: +$2,444
- My solo 401k: +$1,450 I will break down the business income and expense in our monthly newsletter so if you’re curious, sign up with our email list.
- RB40 Jr’s 529: +$400
Generate $12,000 in passive income
We had a terrible passive income month and lost $1,582 in February. As I mentioned in the opening, our rental home is vacant and we’re paying for all sort of repairs. The passive income will look terrible until all the transactions are done. I probably need to reset this goal to account for the rentals sale.
For 2014, we made $2,293 so far and we are at about 19% toward our goal.
I’m trying to get back in shape after 18 months away from the gym and reduce my body fat percentage from 20% down to 17%. I’m going to skip reporting this month… We ate a ton of food in Hawaii and I haven’t worked out for about 10 days. I’ll get back to the gym in May.
Travel – Done!
We had a big family trip to Hawaii and it was great. We went snorkeling, saw some lava, took a helicopter ride, and had a very relaxing time. I need to sit down and figure out how much it cost in total, though.
Blog Goal – Done!
My goal this year is to exceed 120,000 pageviews/month. In March, we had about 160,000 pageviews. Yes! Thank you everyone for helping me reach this goal.
Net Worth (+1.8% YTD, +0.4% MTM)
I haven’t paid much attention to our net worth in April. I was just too busy last month. The stock market didn’t seem to move much. We’ll also have a much more accurate picture once the rental properties are sold. There is nothing like cash in the bank.
For 2014, I’d like to see 8-10% increase in our net worth. It’s been a slow year so far, but as long as we don’t slide into the negative side, I’m pretty happy.
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 just came out with a new Financial Sustainability Index. It’s supposed to show how much monthly income you’ll get for the rest of your life starting at your retirement. I really need to dig into how they calculate the FSI. It’s not supposed to be affected by market fluctuations, but why is it dropping along with the stock market?
Take Home Income (target > $5,000)
Our take home income beat our $5,000 target this month. The rentals are killing us, but we had an extra paycheck from Mrs. RB40’s employer and a refund check from the IRS. RB40. It’s going to be tough for a few months in the RB40 household…
Mrs. RB40’s Paychecks: Woohoo! I love those 3 paychecks months.
Online income: My take home was quite good this month at $2,027. That’s already excluding tax withholding, retirement saving, and 529 saving. I will break down the online income in our monthly newsletter so if you’re curious, sign up with our email list.
Dividend and interest: $672. Not a bad month from the Dividend portfolio.
P2P lending: Another slow month at +$50. Activities have picked up at Prospers, though. All our funds have been invested now. Last month we had over $1,500 sitting around. Our current ROI is 7.9%. That’s a little lower than last month. See how we did with Peer to Peer Lending in 2013.
Rentals: We are hurting this month with our rentals. It’s tough when a unit is vacant. All the repairs are also tough on our bank account. It’s a good thing we have some cash reserves to carry us through these next few months. The 4 plex sales should be done in May. Hopefully, the rental should be sold by July. We’ll roll everything over to another rental home in a 1031 exchange. We might not be able to find the right home, though. If that’s the case, then we’ll just bite the bullet and pay the tax on the gains.
Misc income: $40 from the credit card reward. We also got $880 refund from the IRS.
Expense (target < $4,500)
Unfortunately, we also had a high expense month at -$6,394. Our trip to Hawaii cost quite a bit of money. It was worth it, though. We won’t spend a lot the rest of the year so it should average out.
This month I used Personal Capital to track our expense and it worked pretty well except the housing expense. We pay property taxes once a year, but I want to show it on our monthly housing budget so I manually add that in.
Housing: $2,163. Mortgage, HOA, and 1/12 property tax.
Travel: $2,207. This is 4 tickets to Hawaii and some food during the first half of the trip. The home rental, helicopter ride, and more food will show up in next month’s expense. We probably spent about $3,000 on this trip.
RB40 Junior and grandma: $335 for preschool this month.
Groceries: $285. Not too bad even with eating more organic food in 2014. This is quite low for 3 adults and 1 kid. I saved all our receipts so I’ll write more about this in detail next time. We also left on vacation on April 27th so we cleaned up the refrigerator. This probably lowered our grocery bill a bit.
Taxes: $270. This is the local tax payment to the city and county.
Clothing/shoes: Mrs. RB40 needed some new clothes and shoes.
Cash allowance: $200 for discretionary spending.
Insurance: $192. That’s auto, home, and my life insurance.
Surplus (+$5,649 YTD)
We took a step back this month, but that’s expected with our vacation and rentals situation. It really won’t look much better until the rentals are sold. We’ll just have to gut it out until then.
Our saving this month is -$885
Piggy Bank 2013
- Travel fund: +$1,034. I’ll use this to help pay for the Hawaii trip and zero it out.
- Roth IRA fund: $0. Maxed out 1 Roth IRA so far and will work on the other one when we have a little more cash.
- Slush Fund: $0
How about you? Did you have a good April?