Retirement Preview – 1st month
As some of you may know, I am taking 3 months off to be a stay-at-home dad and preview early retirement. I’ll take this opportunity to track all income and expenses to see if we can live on one paycheck. I know one income won’t cover all our expenses and we need to see how much of a shortfall we have.
Here are the numbers from April
|Mrs. RB40’s paycheck||2622|
|rental debt service||-1367|
|bills (electric, insurance, internet)||-293|
|misc (H&R block, repair, charity)||-142|
|saving (Income – Expense)||-253|
As you can see, we dipped into savings a little bit in April. This was actually much better than I expected. I thought we would be short by at least $500.
The blog income was a pleasant surprise and I hope we can continue to make at least $100/month. The $60 rebate was also a windfall that we won’t see next month.
This month’s expenses are not too bad. You can see that our housing expense is the biggest piece of the pie. That’s because we pay quite a bit for HOA and we live downtown. Living downtown enables us to share one car and to spend very little on transportation. Thank goodness because gas prices are going up up and away! We also reduced our cash allowance to 50% while I’m off. It worked this month, but we’ll have to see if we can keep it up. Another big expense this month was baby RB40. We purchased a baby carrier and an activity mat. Hopefully, we are pretty much done with extra baby expenses for a while.
Plan for improvement
The rental income will go up to $1,450 because I fired the property manager and will manage the rental home myself. I’ll also start working on my dividend portfolio to supplement our monthly income, but that will take quite a while to complete. Mrs. RB40 maxed out her 401k contribution so we can reduce her contribution if we really need extra income. We are also working on acquiring a 4 plex, but that will also take a lot of time and it won’t pay off right away either.
On the expense side, I don’t think we’ll go much below $4,500/month. April was actually a very good month for expenses. There were not a lot of surprises or emergencies so it worked out well. There is one more expense that didn’t show up on the monthly cash flow and it’s property tax. We pay property tax once a year and usually we’ll save up a few months in advance before it’s due.
Well, what do you think? If you have any suggestions, let us know?