July Highlights and Lowlights
- Vacation! – Summer is great, isn’t it? We went for a weekend camping trip to the Oregon coast. We all had a ton of fun and it didn’t cost that much at all, though our gasoline expense is high this month as a result.
- Online Income – We had pretty good revenue in July, but also a lot of expenses so our net income is a bit low this month. It’s still pretty good though. I broke down the online income in our monthly newsletter so if you’re curious, sign up with our email list.
- Rental Income – Yet another negative (-$834) month on the rental property side. We fixed a fireplace in the 4 plex and replaced all 4 chimney caps. August isn’t going to be that great either. On the rental home, I need to fix a fence post, remove moss from the roof, and get an estimate for the exterior paint.
- P2P income from Prosper was quite good in July at $95. The ROI is currently at 8.66% and we should be seeing around $75/month on average.
- Life Insurance – I’m getting a physical exam on Friday and the policy will be effective soon after. I just got a $250,000 policy with a 20 year term. It’s not a huge amount, but I think that’s just enough for the family to be comfortable until RB40 Junior turns 18.
Net Worth (+16% YTD, 3% MTM)
The stock market did very well in July (SP500 +6%) and boosted our net worth quite a bit though bond funds were dropping because of the interest rate rising. Overall, I’m pretty happy with our progress this month. Actually, I’m not that worried about the month to month progress because it will always be a bit volatile. I like looking at the +16% YTD much more.
If you need help keeping track of your finances, try using Personal Capital to manage your budget and net worth. It can help you keep track of your income, expenses, and net worth, all in one place. Personal Capital is geared for investors and has many great tools. See my review of Personal Capital and how they helped me reduce what I’m paying in investment fees.
Personal Capital can help you keep track of how much fees you are paying.
Saving (+$10,741 YTD)
Whew! We barely pulled out a positive month in July. Our expense is a bit higher that I’d like, but we’ll have to get used to it soon due to preschool. We’ll keep trying to pull the rabbit out of the hat every month.
Our saving this month is +$309.
Piggy Bank 2013
- earmarked for the 529: $0. We contributed $10,000 to RB40 Junior’s 529 fund so we’re done with this one for the year.
- Travel fund: $0. We are pretty much done with our travel this year.
- Fun money: $840
- Investment/Slush Fund: +$309 = $3,102
- Taxes: $2,666. We are done with taxes until next April. From my estimate, we probably need to send in around $1,000 next year.
Income (target > $4,500)
On the income side, we had a big drop off from June. It’s not pretty, but here goes.
- Rentals: On the 4 plex, we spent about $2,000 on the fireplace repair and cap replacement. I think that’s all the big repairs for the year though. I’m looking forward to at least 6 months of no repairs. On the other hand, the rental house is doing better. Our tenant paid part of the back rent and will catch up the rest in August. We have some repairs to do on the house in August. Being a landlord isn’t all about collecting the rent….
- P2P lending: Our ROI popped back up a bit from 8.43% to 8.66%. Hopefully this will keep increasing to around 9% or so. I probably need to write another update soon. Here is the last update – Peer to Peer lending isn’t as passive as I thought.
- Dividend and interest: July is a slow dividend month. I’m pretty sure we’ll pick back up in August.
- Online income was not bad in July. My goal was to make $18,000 online in 2013. After 7 months, we netted $16,373. I’m very happy with our progress and hopefully we’ll cross the threshold in August. Thank you for supporting us and signing up for products I wrote about. I will break down the income in the monthly Retire By 40 Newsletter, so sign up now if you haven’t yet (at the top of this post.)
- Misc income: We had a lot of extra income this month. Mrs. RB40 got some travel refund from work which was a nice little boost for us.
Expense (target < $4,000, not including tax)
RB40 Junior will start preschool soon so we’ll have an extra $500/month expense to deal with. It will be more difficult to keep our expense below $4,000, but we’ll try.
Transportation: We filled up quite a bit this month and spent $136 on our car in July. We had a couple of summer road trips and they were a lot of fun. We’ll drive a lot less in the Fall so I don’t think this is a big deal.
RB40 Junior: We paid $200 to register him at a preschool. Once school starts in September, we’ll shell out $500/month. That’s not cheap, but it’s worth my sanity.
Wrap Up July
July was a close call. We barely pulled out a positive cash flow month, but we did it. Let’s just keep moving forward and see what the rest of the year brings. I think we spend a bit more money in the summer because the weather is so nice and there are so many things to do. Once it starts raining, we’ll hunker down again.
How about you? Did you have a good month? Any progress on your New Year Goals and Resolutions?