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Early Retirement Preview Month 3 – June Cash Flow

4th of July portland fireworks

Hope everyone had a great Independence Day!

Retirement Preview – 3rd and final month

As some of you may know, I took 3 months off to be a stay-at-home dad and to preview early retirement. I took this opportunity to track all income and expenses to see if we can live on one paycheck. June was my final month and I am back at work now, but I think I’ll keep tracking my cash flow as if we only had one pay check. It will prepare us mentally for one-paycheck living.

Here are the numbers from June:


Income June May
Mrs. RB40’s paycheck 2622 2622
rental income 1450 1700
side income 558 52
dividend and interest 277 98
irregular – won $25 GC, refinance money 1470 17
Total income 6377 4489
Housing -1,992 -1992
rental debt service -1,367 -1367
cash allowance (groceries, baby formula, clothes, discretionary, etc…) -700 -600
transportation -40 -36
pet -59 -20
baby -274 -54
bills (electric, insurance, internet) -252 -261
medical 0 -115
misc (gardening, rental home appraisal, website improvement) -633 -46
Total expense -5,317 -4491
saving (Income – Expenses) +1,060 -2

Woo hoo! We have a positive month! There are some irregularities though and I’ll go over them.


Our rental income went down from $1,700 to $1,450. Last month was an anomaly because we received some of our operating funds from the fired management company. The rental income should be pretty stable at $1,450 from now. Side income is much bigger this month. If I can keep this up, I would feel really good about early retirement. The side income is unstable though, and will go up and down.

Irregular income – we refinanced the rental property and received $1,445 back. We went back and forth on refinancing, but we decided to do it to take advantage of the lower rate. I’ll write more about this in a later post.


Our expenses also went up this month. I made a mistake and withdrew $100 extra for our allowance. It turned out we needed it for groceries anyway so… We also spent a bit in the baby expense category, the biggest bill here was the $175 registration fee to the daycare. 🙁 Baby RB40 will start daycare next week, so sad. All other expenses were more or less in line with expectations except one irregularity.

The irregularity came from the appraisal/inspection for the rental home refinance – $475. We got some money back though so it canceled out the fee and gave us a big positive this month.

Anyway, if we remove the refinance fee and money back from the equation, we would have about $100 positive. This is very encouraging, but we had a pretty big dividend and side income month. We’ll see what happens in July.

The final goal is to have about $5,000 income and about $4,500 expense. You can also read the May cash flow if you want to compare. How about you? Did you have a good June? I’m sure most if not all readers are very responsible with money and had a great month.


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{ 23 comments… add one }
  • Niki July 6, 2011, 6:07 am

    You guys are doing fantastic.

  • cashflowmantra July 6, 2011, 6:12 am

    June wasn’t all that great. Had to replace the AC which you already knew. I am worried about the washing machine next. Glad you had a good month.

  • Jeff @ Sustainable life blog July 6, 2011, 12:12 pm

    I had an OK June – I was able to pay down quite a bit of debt, so that was good – all in all, my expenses are staying low and my paycheck is covering them and then some so I’m doing good – what i’d really like is wedding season to be over so I can pay down more to debt instead of spending my debt money on traveling to weddings!

    • retirebyforty July 7, 2011, 9:25 am

      Pretty soon all your friends will be married off. 😉
      Enjoy your time with them and have fun at the weddings!

  • Christa July 6, 2011, 3:06 pm

    Great job on your June!
    My June was pretty good. Stayed on top of the expenses, even with a few surprises and a vacation thrown in!

  • Financial Samurai July 6, 2011, 9:51 pm

    I like how the blog income went up 10 fold!

    I just wrote my mid-year review. It’s damn long… hmmmm. Going up this Friday.


    • retirebyforty July 7, 2011, 9:25 am

      June was the best month yet for the blog income. Thanks in part to the Yakezie Network! Yakezie really is an invaluable resource for PF bloggers.
      I’m looking forward to your mid-year review. 🙂

  • 101 Centavos July 7, 2011, 4:46 am

    June was a decent month. I like your spending categories. Just curious, what’s the monthly grocery bill for a new family of three?

    • retirebyforty July 7, 2011, 9:23 am

      We don’t have a category for groceries because we always pay with cash. I think we spent more for groceries in June because of all the great produce at the farmer markets. I estimate we spent about $400-$500 on groceries, baby formula, and produce last month.

  • Squirrelers July 7, 2011, 10:02 am

    Great work! Seems as though even if you factor out the side income, you did well.

    Enjoy your time with the little one. These are the moments to savor.

  • Buck Inspire July 7, 2011, 3:19 pm

    Are you an accountant? It’s awesome how you track all your numbers. Keep it up. Wow, little one off to daycare? Time sure flies.

  • youngandthrifty July 7, 2011, 11:11 pm

    Yeahhh! Good job on the side income for June! That’s great, you guys are doing a great job with the cash flow.

    Are you investing that cash flow into anything?

    • retirebyforty July 8, 2011, 9:13 am

      Thanks! The side income was great in June and I hope we can keep it up. The extra cash goes into the saving account for now while we are working on a 4 plex deal.

  • DanEastSide July 8, 2011, 4:15 pm

    hi guys, cool to see that you are doing well, i typed in retire by 40 into google and your site came up. great advise, thank’s for the info.

  • Evan July 8, 2011, 9:36 pm

    Is your dividend income going to go back down in July? Was that like a quarterly payout?

    • retirebyforty July 9, 2011, 9:56 am

      You got it. I’ll have to wait 3 more months for the bigger dividend check.

  • Marissa July 9, 2011, 1:12 pm

    Awesome job with the blog income! Any month with that much positive cash flow is great.

  • Freddie @ Invest With Passion July 10, 2011, 9:59 am

    Seems you are on the right path. Love the detail you are using to track your money.

    I agree with the commentors about blog income increasing. Making money in the internet is just amazing to me, but what I love about it most is it can be done from just about anywhere on the planet.

    Much future success to you.

  • Ginger July 10, 2011, 6:16 pm

    Congrats on your increase income, and your decrease in expenses with the refi. I hope you get that 4-flex and increase your income some more.

    • retirebyforty July 10, 2011, 10:39 pm

      Thanks! I hope I can make about $250/month online on average. That would be a great start. Next year, I’ll increase the expectation. 🙂

  • Brave New Life July 26, 2011, 3:54 pm

    I’m curious, how are you making money on the blog? You don’t have a lot of ads, is it affiliate links?

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