Retire By 40 has been nominated for the Plutus Awards! The Plutus Awards celebrate the best financial blogs by bloggers unaffiliated with any mainstream media or commercial products. Head on over and vote for Retire By 40 in the Best Personal Finance Blog for Retirement. Thank you readers for a great 2011!
Now on to the August 2011 cash flow. I’ve been back at work full time for 2 months now and we have decided to live on one paycheck (Mrs. RB40’s) to prepare for my early retirement.We put my paycheck straight into the saving, investment, or 529 accounts.
|Mrs. RB40’s paycheck||2622||2622|
|dividend and interest||115||75|
|rental debt service + annual HOA||-1,182||0|
|baby* not counting daycare||-84||-51|
|bills (electric, insurance, internet, cell phone)||-333||-250|
|saving (Income – Expense)||+895||+2,030|
*There is a bit of fuzzy accounting here because I didn’t count the cost of baby daycare. We paid $1165 in August, 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.
Income (target > $5,000)
We did pretty well with side income this month. I sold a few things on Craigslist. Retire By 40 crossed the $100 Adsense threshold and we received our first check from Google. I won a few contests and also got a check from the reward credit card. All in all, a very good month for side income. I need a few more side job ideas to increase my side income though.
As for dividend, AT&T and a couple other stocks paid out in August and we collected some interest from the savings account. That interest will be a lot smaller next month though because we finally closed on the 4 plex and spent a lot of liquidity on the down payment. Next month, we’ll see less interest, but higher rental income. Eventually, I would like to see about $500/month from dividend and interest.
Expenses (target < $4,500)
The rental mortgage shows up again after taking a month off due to refinancing. The annual HOA bill also came due and it’s not too bad @ $275. Our cash allowance went back up to $600. I think $500 – $600 is the sweet spot for us right now. $400 is not enough for groceries, and all the other cash spending.
Transportation cost also crept up a bit. I drove to work more often now because I wanted to get home earlier. As long as it’s under $100, I’m OK with that. Entertainment: we had some visitors from out of town and we went out and charged it on the credit card. Medical: baby had fever and I had a prescription refill. Costco: 75% of this is baby formula, but I didn’t keep super careful track this month so it is swept to misc.
August was not a good month for expenses. It seems like a bunch of things happened and we spent more than usual. We’ll tighten it down in September and shoot for under $4500. We still came out positive overall though so I’m on track for early retirement!
Have a great Labor Day weekend everyone!
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