Retirement Preview – 2nd 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 big of a shortfall we have.
Here are the numbers from May
|Mrs. RB40’s paycheck (after tax and 401k)||2622||2622|
|dividend and interest||98||59|
|irregular – $2 Nielson survey, won $15 GC||17||60|
|rental debt service||-1367||-1367|
|bills (electric, insurance, internet)||-261||-293|
|misc (USPS, cable splitter)||-46||-142|
|saving (Income – Expense)||-2||-194|
All right, we are moving in the right direction!
Our income went up a bit because I fired our property management company (they were very unresponsive.) The monthly rental income went up from $1,334 to $1,450. We also received our $250 operating fund back so that inflated the rental income up to $1,700.
The side income went down a bit because we didn’t make a big sale on the blog. We also received $25 income from Google Adsense and another $45 that hasn’t been paid yet so those will be booked in future months. Assuming we get paid, the online income is around $120. That met my goal for now.
On the expense side, the cash allowance went up from $400 to $600 because there were 5 Mondays in May and we got allowance every other week. Realistically, $50 per week isn’t really enough for us. We spend most of that on groceries and can’t really save much for other things. We’ll go back to $100 when I return to work.
Baby RB40 didn’t spend much money in May, just diapers and a few other small things. All in all, our total expense stayed under $5,000 and met my goal.
Plan for improvement
I started my dividend portfolio with some investment in AT&T. I’ll keep working on this portfolio with a target income of $400 to $500 per month.
We are also working on acquiring a 4 plex and it looks like the deal might work out. That income will be pretty unstable depending on repairs and maintenance, but it should contribute to the positive cash flow every month. It’ll probably start off at a few hundred dollars in the first few years.
Online income. My target is only $100/month and it looks like we are meeting that goal. For 2012, I’ll raise my expectation to a few hundred dollars a month. 🙂 See my detailed post on Retire By 40’s May Blog Statistic and Income.
Our goal is to have $5,000 income/month.
On the expense side, it looks like we won’t go much below $4,500/month. May was also a good month and we didn’t have too many unexpected expenses. The one big bill that’s missing is the property tax. I’ll have to budget it in…
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.