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December 2011 Cash Flow

{ 49 comments }

Happy New Year Everyone!

I think 2012 will be a great year. I can feel the economy improving and there was a lot of positive energy in the air this holiday season. I hope you made some great New Year goals and resolutions this year and will follow through on them.

My financial resolution this year is to save 100% of my paycheck (after tax and deductions) and live on only Mrs. RB40’s paycheck and our side income. We ended 2011 on a good note and we will continue to work on the cash flow in 2012.

I’m adding some charts this month to give the cash flow posts some visual interest. What do you think about these charts? Should I go with a pie chart instead?

december 2011 cash flow

Like the charts?

Income December November
Mrs. RB40’s paycheck 2738 3987
rental income -363 -1283
side income 2716 1492
dividend & interest 884 187
Total income 5975 4383
Expense
Housing -2,299 -2299
cash allowance (groceries, food, clothes, etc…) -856 -790
transportation -98 -111
pet 0 -21
baby* -141 -42
bills -309 -245
medical -9 -163
entertainment -10.00 0
misc 0.00 -136
Total expense -3,721 -3807
saving (Income – Expense) 2,254 577

 

*There is a bit of fuzzy accounting here because I don’t count the cost of baby daycare. We pay $1165 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 leave my day job.

Income (Target > $5,000)

Mrs. RB40 is paid biweekly. We had an extra paycheck to help achieve positive cash flow in November, but we are back to normal in December.

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

The rental income looks much better than in November, but we are still in the red. There were some back charges and those were enough to push us into the negative territory. I’m confident we’ll be positive in January barring any big surprises.

Side Income

Retire By 40 had $2,716 net income this month! I think that is incredible and I doubt it will continue at this level. My guess is the advertisers wanted to use up their budget for the year so they made many deals.

I also received the first media.net payout. The payout structure is similar to Google Adsense and you get paid when your total goes over $100. The pay is similar so I can’t complain and it definitely helps with the bottom line.

We also had some expenses this month. I purchased Thesis, a wordpress theme, and changed the look and feel of the blog a little bit. I also purchased photography equipment that I will use to take photos for the site. All in all, it was our best month yet and we will keep improving the site in 2012. Thanks readers!

Dividend, Interest, and P2P lending

Dividend – $843. Wow! December was a huge dividend month. Some of my mutual fund holdings only payout once a year so this month’s dividend is a bit skewed. I would love it if every month looks like this. We’ll keep working at it.

Interest – $31

P2P – $10. I have $1,000 invested.

Expenses (Target < $4,000)

Housing – The housing expense is very high, but it’s stable at this point. Living in this location allows us to cut expenses in transportation and bills. The property tax is baked in.

Food and Cash Allowance – I think about 90% of the cash allowance goes toward food and groceries. We also went “after Christmas” shopping and purchased some clothes so this month is a bit high. We didn’t eat out much so I’m not sure if this category can be reduced.

Transportation – This is all for gasoline. It is holding steady at around $100.

Baby – We purchased a play yard for the little guy. It was on sale for $99 (+$35 shipping) from Amazon. This one is a lot bigger than our old folding playpen and will keep him a bit safer now that he is crawling around. I like it a lot because I can sit in there and play with him. Not looking like a dog cage is also a huge positive for us because it is in the middle of the living room right now. 🙂

Bills – The heating is costing us about $50 extra per month. This is not too bad.

Entertainment – I got an XBOX game on sale for $10 from Best Buy. 🙂

Misc – Nothing notable this month. The only big Christmas purchase we had was the play yard above. Other than than, we purchased a few small items with cash. The grandparents sent a bunch of presents to baby RB40 so we didn’t need to buy anything. All the presents  under the tree were for baby RB40. It was a low key Christmas and next year we’ll probably spend a bit more.

December Cash Flow

We had a great December. Any month with an extra $2k is a great month. I’ll start keeping a running tally of the total savings in January so we can see how much extra we have by the end of the 2012.

How about you? Did you have a good December? I’m very positive about 2012 and I’m sure we can keep a positive cash flow most months.

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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{ 49 comments… add one }
  • Funancials January 2, 2012, 9:04 am

    Congrats on a great blogging month! 2700 is quite good. My December earnings peaked as well. As you stated, I’m not sure how sustainable this will be going forward but it was nice closing so many deals. I’m hoping January will be equally as good and then we’ll see a downturn.

    • retirebyforty January 2, 2012, 1:18 pm

      2700 is amazing! Hopefully we can continue, but I really would be very happy with 1k/month. 🙂

  • Jeff @ Sustainable Life Blog January 2, 2012, 9:26 am

    Great cash flow this month joe! Glad that things are back on track for you with the rental and it sure will be nice when it goes cash flow positive in jan! best of luck in 2012 and I hope you have more months like these!

    • retirebyforty January 2, 2012, 1:19 pm

      Thanks Jeff! The 4 plex is taking longer than I thought, but I guess that’s the way it goes.

  • Corey @ Passive Income to Retire January 2, 2012, 10:42 am

    That is a huge income from the site this month! Great work! It is no surprise to me – you are doing a great job. Keep up the great work!

    • retirebyforty January 2, 2012, 1:20 pm

      Thanks Corey. It’s pretty crazy and I hope we can keep it up to at least 1k/month. Of course more is good, but I try not to get my hope up too high. 🙂

  • Forest January 2, 2012, 11:11 am

    Really cool to see everything laid out like this, I am an awful accountant!!! Your blog had an awesome month.

    Here’s to many more 🙂

    • retirebyforty January 2, 2012, 1:20 pm

      Thanks Forest. It took me a long time to tally up the month too. I kept thinking I should start at mid month, but it always get put off until the end. :

  • My Own Advisor January 2, 2012, 11:54 am

    Wow, great stuff, especially the online, side income!

    I hope you have a great 2012!

    • retirebyforty January 2, 2012, 1:21 pm

      Thanks! Hope you have a great 2012 too.

  • Jeffrey Trull January 2, 2012, 12:52 pm

    Awesome blog income, and great report overall! I had a good December with the most exciting news that I finished paying off my debt. Happy New Year!

    • retirebyforty January 2, 2012, 1:23 pm

      Congratulation! Great job paying off your debt. That’s a huge stepping stone toward becoming a freelance. 😉

  • Untemplater January 2, 2012, 2:49 pm

    Being able to save 100% of your paycheck sounds like a super cool goal. Nice job keeping your pet expenses low btw. My mother spends way too much money on her dogs each month because they are picky eaters and always going to the vet for something or another. -Sydney

    • retirebyforty January 2, 2012, 3:43 pm

      I forgot about the tax and other deductions. It will probably be closer to 60%. 🙁
      We have 2 cats and they are pretty cheap to maintain in general.

  • Aloysa January 2, 2012, 3:53 pm

    Wow! What a great blog income! Don’t say it might slow down because you don’t know. It might pick up! I hope it does!
    I like pie charts. I am a big sucker for pie charts. 😉

    • retirebyforty January 2, 2012, 10:22 pm

      It would be great if the advertising picks up, 2012 is suppose to be a big year for online advertising according to Sam. 🙂

  • Financial Samurai January 2, 2012, 4:23 pm

    Joe HNY!

    I like the design, and am thinking of going the 3 column route as well for more real estate.

    Do you reveal what your income is? If so, what is it, as I assume that is what you save 100% of as you say.

    Sam

    • retirebyforty January 2, 2012, 10:24 pm

      Thanks Sam. I don’t reveal my income, but I can tell you it’s more than Mrs. RB40. 🙂
      I like our 3 columns look. the first column is perfect for small banners and ads.

  • Simple Rich Living January 2, 2012, 4:46 pm

    I like the new design! Also, I prefer the current lay vice pie charts. (Pie charts are boring)

    • retirebyforty January 2, 2012, 10:24 pm

      Thanks for your feedback. I like the current charts too.

  • marissa January 2, 2012, 7:59 pm

    $2700 is huge and hopefully will stay that way.

    What type of camera equipment did you get?

    • retirebyforty January 2, 2012, 10:26 pm

      I really doubt it will stay at that level. I closed a few annual deals in December so we got a few big payments. Hopefully 2012 will be good too. I got a new lens. 🙂

  • Buck Inspire January 2, 2012, 8:49 pm

    Wow, what an amazing month. Congrats! The charts add a nice touch. Do you eventually plan to be a full time blogger? Have an even better 2012!

    • retirebyforty January 2, 2012, 10:27 pm

      Thanks Buck! I don’t think I can be a full time blogger. I like blogging part time, it’s more fun. 😀

  • Super Frugalette January 2, 2012, 9:38 pm

    I love the way you track things. By the way, have you seen a “jump-a-roo”. It was extremely entertaining for our little one and it allowed me to get stuff done.

    • retirebyforty January 2, 2012, 10:28 pm

      We have a saucer, but he doesn’t like it anymore. He wants to move around now.
      Thanks for the compliment.

  • 101 Centavos January 3, 2012, 3:33 am

    Also like the new design. Pumped to hear about media.net. I went and looked up the reports after reading your blog post, and the income crept up a little in December. I was thinking of booting them, but I now may give them a little break.

    • retirebyforty January 3, 2012, 9:40 am

      Media.net is working ok for me. I still wish Googld adsense didn’t ban me though. I’ll have to figure out how to get back on.

  • cashflowmantra January 3, 2012, 5:24 am

    Awesome blogging income in December. Plus the rental loss being less helped out that bottom line immensely. Looks like you should rock 2012.

    • retirebyforty January 3, 2012, 9:41 am

      I’m very optimistic about 2012. Thanks!

  • Shaun @ Money Cactus January 3, 2012, 5:28 am

    Nice work on that side income Joe, really impressive! It might have been a bit of a peak as you said, but I’m sure it won’t take much for you to be posting those figures consistently even if it does drop a little to begin with. Have a great 2012!

    • retirebyforty January 3, 2012, 9:41 am

      Thanks Shaun. I suspect we’ll see some slowdown at the beginning of 2012 and then it should pick back up. Happy New Year!

  • Everyday Tips January 3, 2012, 6:39 am

    Like the 3 column layout and love your blog income. You are on fire, and 2012 will be even better. You will be home with the little guy in no time!

    • retirebyforty January 3, 2012, 9:42 am

      Thanks! I’m looking forward to being a stay at home dad. 😉

  • Roshawn @ Watson Inc January 3, 2012, 8:12 am

    Looking good!!! I can understand the bar graphs fine, but pie would be okay too. I have no preference between those two. I think your RB40 income is awesome. I’m also happy you had such a great dividend month too (got to love those semi-annual and annual payments)! I’m glad the rental income is getting less negative. Congrats on a fantastic December overall!

    • retirebyforty January 3, 2012, 9:43 am

      Thanks Roshawn. I don’t really like the annual dividend payout. I’d rather have it be quarterly so my monthly income is a bit more stable.

  • PKamp3 January 3, 2012, 8:24 am

    $2,700 – solid income! Let’s hope it wasn’t a peak but the beginning of a trend…

    Also, add me to the team that likes the theme. Good stuff!

    • retirebyforty January 3, 2012, 9:44 am

      Thanks! Let me know if you have any criticism for the theme. I’ll keep improving it incrementally.

  • Miss T @ Prairie Eco-Thrifter January 3, 2012, 10:16 am

    Congrats to you. That is awesome. December was a good month. I hope this is start of something great for you guys. I am really hoping to start getting a steady stream from my side hustles too.

  • MoneyCone January 3, 2012, 12:33 pm

    Congratulations on the awesome cash flow Joe!

  • SB @ One Cent At A Time January 4, 2012, 5:48 pm

    Congrats on the cash flow! thats good side income, hope you continue

  • youngandthrifty January 5, 2012, 8:51 pm

    Wow $2700 is awesome!! From like $100 to $2700 in a few short months.
    Congrats!
    I found that a lot of advertisers were knocking on the door too in December 🙂 I guess they had extra advertising $ lying around.

  • MyMoneyDesign January 6, 2012, 6:58 pm

    Not only am I impressed by your blog income, but $843 in dividends??? That’s pretty great! I think I’m going to need you to help me pick out a few good paying funds 🙂

    • retirebyforty January 7, 2012, 8:52 pm

      The dividend is skewed by funds that pay out only once per year. The monthly dividends averages closer to $200. 🙁
      I’ll work on beefing up the dividend portfolio over the next few years. Thanks for coming by and sharing your thoughts.

  • John @ Married (with Debt) January 9, 2012, 10:55 am

    December/January is always rough for cash flow with Christmas. I was able to manage it (so far) without missing any of my debt payoff targets. Looks like things are going well for you. I’ll bet you hit your RB40 goal.

    • retirebyforty January 9, 2012, 4:11 pm

      Keep up your debt payoff plan. It will be gone soon!

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