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July 2011 Cash Flow


I went back to work full time in July after 3 months off to preview early retirement. We decided to continue to live on one paycheck and save the other one so we can ease the transition into my real retirement. This month looks really great overall because we finished refinancing the rental home and didn’t have to pay mortgage for one month. I can’t wait until the rental mortgage is paid off, it’ll be like this every month!

Income         July      June
Mrs. RB40’s paycheck 2,622 2,622
rental income 1,450 1,450
side income 697 558
dividend and interest 75 277
irregular 1470
Total income 4,844 6,377
Housing -1,992 -1992
rental debt service 0 -1367
cash allowance -400 -700
transportation -80 -40
pet -16 -59
baby *not counting daycare -51 -274
bills (electric, insurance, internet) -250 -252
medical 0 0
misc (gardening, home appraisal,website logo) -25 -633
Total expense -2,814 -5,317
saving (Income – Expense) 2,030 1,060

*There is a bit of fuzzy accounting here because I didn’t count the cost of baby daycare. We paid $874 in July (prorated), 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.


Our income went down from June to July, but that is expected. The irregular income in June wasn’t recurring and June was a big dividend month for us. No big surprises here. The side income is also within the same range as June and I’m quite happy about that.


As I mentioned earlier, we had a break from the rental mortgage payment for a month and it was really nice. We also decided to reign in our cash allowance a bit and target $500/month instead of $800/month for groceries, clothes, shoes, and other discretionary spending.

The miscellaneous category is very low this month because we were all sick for 3 weeks and didn’t go anywhere or do anything fun. 🙁

Google Offers 60% hair cut

I finally found a deal on Google Offers that I can use – 3 haircuts at a man salon for $25. The haircut was much better than Great Clips! I hope I don’t get addicted to expensive hair cuts though. The regular price for a hair cut here is $21. Google Offers gave me quite a big discount.


Overall a great month! We lived on one paycheck and had extra savings left. I banked my paycheck and didn’t show it here. I’m getting more and more confident that I can really quit my job before I’m 40.

How was your July? Were you able to save some money? It’s tough when the weather is nice and everyone is out and spending money, isn’t it? I’m pretty sure our expenses will go up in August now that we have all recovered and ready to go out and have some fun.

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.


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{ 40 comments… add one }
  • LifeAndMyFinances August 5, 2011, 4:15 am

    Congrats on the great July RB40! It was a great one for me too. It would be awesome to see you retire by 40. Maybe since I know that’s possible, I’ll shoot for retirement by 30. 🙂

    • retirebyforty August 5, 2011, 9:42 am

      Wow, that’s really ambitious! It’ll be great if you can do it.

    • Jon -- Free Money Wisdom August 5, 2011, 6:36 pm

      I echo that–congrats! I would love to retire by 30 as well….pipe dream, but a dream nonetheless. Ha, wouldn’t we all? Keep up the good work!

  • Niki August 5, 2011, 4:39 am

    You guys are doing an amazing job. That would be fantastic if you could really retire before forty.

    Might have to change your blog name though:)

  • LLF August 5, 2011, 5:31 am

    You guys are doing so well. Once you start living off one paycheck, the reserves starts building up fast.

    Also, once you retire, you can save money on hair cuts by having MrsRB40 could give you hair cuts with a clipper. This way, you can save money on baby RB40’s hair cuts as well.

    • retirebyforty August 5, 2011, 10:05 am

      Mrs. RB40 is terrible with the clipper. I guess she needs more practice. I just get short buzz haircut anyway so I hate paying a lot of money for it.

  • Kellen August 5, 2011, 8:16 am

    The side income is building up nicely. Can we expect to see that increasing much, or just a sort of steady growth for now? (Not sure where all of it comes from.)

    • retirebyforty August 5, 2011, 10:07 am

      I’ll be happy with around $500/month. Mostly come from blogging. I want to start more sites, but I just don’t have any time left.

  • Hunter @ Financially Consumed August 5, 2011, 8:47 am

    Awesome stuff. I have no doubt that you will realize your retirement dreams. Inspirational.

  • Jeff @ Sustainable life blog August 5, 2011, 8:47 am

    Great work joe – looks like you’re on your way to retirement in no time!

  • FinanceProfessor August 5, 2011, 12:49 pm

    This is such great inspiration! Awesome savings for July – I find that July is usually the month I spend the most. Besides the fact that it’s usually the month I take a vacation, power bill increases and higher gas prices really put a damper on my savings this past month. Oh well, time to tighten back up. Glad to hear you’re feeling better.

  • krantcents August 5, 2011, 1:33 pm

    July looks good! July for me was the last of additional income because I was teaching an auxiliary (extra class) last year. I don’t think I will have that this year. It was a nice extra!

  • Buck Inspire August 5, 2011, 1:40 pm

    Amazing month as always. Mind boggling how you keep your expenses so low. Do you even use credit cards or do you just cover everything with your cash allowance? Keep it up!

  • Little House August 5, 2011, 2:00 pm

    That’s awesome that you can live off one paycheck. That rental income and surely helps. Keep up the great work!

  • SB (One Cent At A Time) August 5, 2011, 3:05 pm

    Your expenses, sans the housing payment, is really low. very commendable job!

    • retirebyforty August 5, 2011, 3:10 pm

      The housing cost is a huge percentage our our expenses. It enable us to save in other areas like transportation and the other bills though. I don’t know. I guess if we really need to reduce expense more, we could move. 🙁

  • Laura August 5, 2011, 11:07 pm

    Great going on the side income and the low expenses, although I’m sorry you all got sick.

  • Darwin's Money August 6, 2011, 10:09 am

    That 3 month retirement preview idea is so awesome. So many people don’t know what they’re getting into until the retirement decision is made for them – and you’re trying it out so early! Awesome.

    So, in no time flat, you’ll probably also be making over $1000 online – it’s totally achievable! Just keep up the hard work and you’ll be there soon…

  • Financial Samurai August 6, 2011, 1:16 pm

    Joe, remind me again… is the month of July when you were on your 3 month sabbatical, so you didn’t have income and your next report for August will now have your income?


    • retirebyforty August 6, 2011, 6:34 pm

      I went back to work full time in July. We’ll continue to live on one pay check so I can leave work as soon as possible. 🙂

      • SB @ One Cent At A Time August 7, 2011, 4:43 pm

        If you’re earning, why not show the income in your report. Am I missing anything?

        • retirebyforty August 7, 2011, 9:34 pm

          We are looking at to the future so I’d rather not list my income which will disappear at some point. It’s better off to get used to having only one income.

  • youngandthrifty August 6, 2011, 1:21 pm

    Fantastic! Wayyy positive cash flow. Keep up the great work 🙂

  • cashflowmantra August 6, 2011, 3:50 pm

    Absolutely great month. It won’t take long at that rate to pay off the rental, then use those savings to build up for another or more dividend stocks.

    • retirebyforty August 6, 2011, 6:37 pm

      Do you make extra payment on the rentals? It seems most real estate people don’t like to do that. We’ll keep paying extra on the rental as long as we have two paychecks. Once I leave my corporate job, we’ll probably stop making extra payments.

  • Moneycone August 7, 2011, 5:14 am

    Looks like you are well on your way to your retirement! Hey, what happens to this blog’s name once you do retire?!! 🙂

    • retirebyforty August 7, 2011, 9:37 pm

      I can still keep the blog name right? Or maybe change it to Retired by 40. 🙂

  • Everyday Tips August 7, 2011, 7:43 am

    You are doing such a fantastic job. I hope you can attain your goal. I loved being home with the kids, and you are doing so good blogging that you will have extra money that I didn’t have back when my kiddos were young.

  • Dining Out Challenge August 7, 2011, 8:29 am

    Congratulations! I know you may have wrote this before, but what are you planning to do after you retire? Will you be primarily blogging and taking care of the little one or something else?

    • retirebyforty August 7, 2011, 9:36 pm

      Yes, I will mostly be a stay-at-home dad and do some online work. If I can get some help from grandma to take care of the kid, then I will look for more entrepreneurial opportunities.

  • Evan August 7, 2011, 6:02 pm

    Does your Wife want to work still?

    • retirebyforty August 7, 2011, 9:33 pm

      She is getting unsatisfied with her job and is looking around a bit. She said she couldn’t be a full time stay-at-home mom though. She is not very patient and you have to be really patient with a baby, right? 🙂

  • Super Frugalette August 7, 2011, 9:04 pm

    Even if you are home, you probably will need some sort of help if you plan on doing any sort of work. My husband quickly learned that it is hard to get things done with a baby at home. When he spend 6 hours a day watching our son when he was in grad school.

    • retirebyforty August 7, 2011, 9:27 pm

      I couldn’t get much done at home when he was younger. The little guy demands constant attention and he only took short naps. Now he is taking longer naps so I can do more with the blog. Hopefully, my mom can come stay with us for a few years and then it will be much easier!

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