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!
|Mrs. RB40’s paycheck||2,622||2,622|
|dividend and interest||75||277|
|rental debt service||0||-1367|
|baby *not counting daycare||-51||-274|
|bills (electric, insurance, internet)||-250||-252|
|misc (gardening, home appraisal,website logo)||-25||-633|
|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. 🙁
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.