We had a great February and our cash flow worked out very nicely.
We are planning to save 100% of my paycheck in 2012 and will only live on Mrs. RB40’s paycheck and our side income. This month we had a surplus of $1,892! This was much better than the $399 we had in January.
|Mrs. RB40’s paycheck||2694||3069|
Total saving in 2012: $2291
*There is a bit of fuzzy accounting here because I don’t count the cost of baby daycare. We pay $1,035 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 Go It Alone.
Income (Target > $5,000)
Mrs. RB40 is paid biweekly and the amount shown here is the take home pay, after her 401(k) contribution. Last month was a bit bigger than usual due to a little reward bonus.
Rental Income – I’m showing all income minus expense. The property taxes are also baked in now.
Another good month on the rental front. We’ll need a few more good months because the 4-plex will get an exterior paint job this summer.
Retire By 40 had $1495 net income this month. I’m very happy with this and just need to continue to work hard on this site.
Dividend, Interest, and P2P lending
Dividend portfolio – $156. Not too shabby, but it’s still way short of the targeted $500/month.
P2P – $14. One of my loans went into default. There goes $25. I think this -$25 will show up in a month or two at Prosper. I’m thinking about slowly increasing my investment here to around $5,000. That will give me the proper diversification. I have about $2,000 invested at this time.
I made $220 by selling a couple of things on Craigslist. It was a nice boost to income, but non regular.
Chase gave me a $150 bonus for opening an online checking account. I’ll keep my eyes open for more of these kinds of deals.
Serve, a competition to PayPal from Amex, gave me $10 for signing up. They sent me a card and it actually worked. I used it to pay the parking meter today. 🙂
Also got a $19 Costco/Amex refund. It was a pretty good month for miscellaneous income.
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 and HOA dues are baked in.
Food and Cash Allowance – I think about 90% of the cash allowance goes toward food and groceries. Mrs. RB40 also received her 10% editor pay in cash.
Transportation – This is for gasoline and public transportation. We kept it under $100; that’s going to difficult this summer when the gas price goes up.
Baby – Diapers and formula. He’s transitioning to whole milk with no problems, so we won’t be buying any more formula. Yay!
Bills – I purchased some minutes for my Tracfone and the rest of the bills are holding steady. This category should go back down under $300 next month.
Medical – $10 deductible for my annual physical exam. I got a referral to physical therapy for my shoulders. They are a mess from sitting in front of the computer all day every day. PT is really helping, but if I continue to work in this job, the problem will come back very soon.
Entertainment – Didn’t do much in February. We skipped Valentines this year.
February Cash Flow
February turned out great for our finances. If we can keep adding to our savings at this rate, then I won’t have much qualms about quitting my day job. We didn’t have many unexpected expenses this month and that made a big difference.
How about you? Did you have a good February? Valentines Day is getting to be an expensive holiday, but we celebrated baby RB40’s birthday instead, so it wasn’t too expensive.
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.
For 2018, Joe plans to diversify his passive income by investing in US heartland real estate through RealtyShares. He has 3 rental units in Portland and he believes the local market is getting overpriced.
Joe highly recommends Personal Capital for DIY investors. He logs on to Personal Capital almost daily to check his cash flow and net worth. They have many useful tools that will help every investor analyze their portfolio and plan for retirement.