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:
|Mrs. RB40’s paycheck||2622||2622|
|dividend and interest||277||98|
|irregular – won $25 GC, refinance money||1470||17|
|rental debt service||-1,367||-1367|
|cash allowance (groceries, baby formula, clothes, discretionary, etc…)||-700||-600|
|bills (electric, insurance, internet)||-252||-261|
|misc (gardening, rental home appraisal, website improvement)||-633||-46|
|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.