May Highlights and Lowlights
- Net worth – Our net worth is up 0.76% month to month. That’s pretty good considering I got a lot more conservative since late April. The stock market has been doing very well in 2013 and we haven’t had a negative month yet. We’ll see if this bullish trend can really hold for the rest of this year.
- Online Income – We had a great month in the online income category. The biggest positive contributing factor is Midlife Finance. It is finally starting to make some income and really help increase the overall online revenue.
- Rental Income is negative again this month due to the need to replace a sliding door. The 4 plex investment really isn’t going well at all. There are just too many repairs. The housing price is still trending up so I’m not going to stress out too much, but if things don’t get better soon, I’ll probably sell it off. REIT might be a better way to go for me.
- P2P income from Prosper is over the $100 threshold for the first time in a long while. We only had two defaults and the ROI is stabilizing at around 9%.
- Summer Vacation expenses – I booked our summer vacations and spent a ton of money this month. Our Seattle trip was pretty cheap at $144, but our 2 week trip to California will be much more expensive. Luckily, our online income was very nice this month, so we didn’t have to dip into our travel fund.
- Tax – Two more checks we sent for taxes got cashed in early May. We sent in $322 for Oregon state income tax and $70 for Portland Arts tax. I’ll just take out from our tax fund and not count them in the cash flow.
Net Worth (+8.1% YTD, 0.76% MTM)
The stock market did very well in May. I rebalanced toward more bonds at the end of April so I missed out on some of the run up, but I’m still happy with our net worth gain so far. I still think the stock market will slow down during the summer and pick back up later this year. Don’t listen to me too much though, I’m not an expert.
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My retirement accounts didn’t do very well VS the S&P 500 in May.
Saving (+$7,780 YTD)
The negative rental income put a damper on our income for the second month in a row. 🙁 Luckily, we had our best month of the year so far with our online income.
Our saving for March is only $1,343.
Piggy Bank 2013
- 529 fund: + $500 = $2,500. The market seems a bit frothy right now so I’m keeping this fund in our savings account. I will send it over when I see a good buying opportunity.
- Travel fund: +$500 = $1,800
- Fun money: +$40 = $840
- Investment/Slush Fund: +$303 = $2,640
- Local taxes: -$392 = $2,666. We are done with taxes until next April. I’ll just keep this amount to send in next year. I think we’ll have to send in around $1,000 next year, but I’d like to have a little margin of safety.
Income (target > $4,500)
On the income side, we did much better than April all because of the great online income this month. The dividend income and misc income help too.
- Rentals: 2013 continue to look pretty bad. After this month, we are at about negative $1,000 so far this year. That’s not good at all. I think we’ll probably have another negative year in 2013. I think I’ll give it until 2015 and if we can’t turn the 4 plex around by then, I’ll sell it off.
- P2P lending: Our ROI is stabilizing at 8.8%. That should translate to $75-$100/month, but some months are worse than others on the default front. We’ll see how it pan out at the end of the year. Here is an update I wrote recently – Peer to Peer lending isn’t as passive as I thought.
- Dividend and interest: We had a very good month on this front. A couple of stocks got sold on my 10% stop orders though so our dividend income will drop soon. I’ll have to look for good deals on dividend stocks in the coming months.
- Online income was awesome in May. There was one mistake though, one of our advertisers sent me $440 extra and this will be taken out of next month’s check. Things are going quite well on the online income front. Most of our income is now coming from affiliate referrals. 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 an interesting month here. We got $8 from a credit card settlement, $19 refund from Amazon AWS (web site service), $100 gift, $100 from my brother to help with grandma’s living expense, $30 in coins, and $10 bonus from Serve (AmEx.) A little bit here and there really added up.
Expense (target < $4,000, not including tax)
Our expense was higher than usual due to the summer vacation expenses. It was a long winter and we’re ready to get away for a bit.
Summer Fun and Vacation
- Went to Portland Aquarium – $26
- Seattle Trip – $144
- Booked a camp site for July – $27
- Booked a rental home for a week in Santa Barbara – $1,287
Wrap Up May
May could have been much worse if we didn’t get lucky with the online income. That seems to be the theme lately. Every month we’ll have one income that boosts us toward positive cash flow. We’ll see if we can stay lucky for the rest of this year.
How about you? Did you have a good month? Any progress on your New Year Goals and Resolutions?