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November 2011 Cash Flow


First off, the good news – we are in the positive territory again! After a -$3,583 October, it’s a relief to be in positive territory once again. The bad news? The rental income continues to be in the red for the 2nd consecutive month.

Income November October
Mrs. RB40’s paycheck 3987 2622
rental income -1,283 -3104
side income 1492 360
dividend, interest, stock 187 568
Total income 4284 446
Housing -2,299 -1992
food -350 -177
cash allowance -440 -560
transportation -111 -72
pet -21 -54
baby* don’t count daycare -42 -144
bills (electric, insurance, internet) -245 -257
medical -163 0
entertainment 0 -132
misc (space heater, furnace service) -136 -641
Total expense -3,708 -4,029
saving (Income – Expense) 577 -3,583

*There is a bit of fuzzy accounting here because I didn’t count the cost of baby daycare. We paid $1165 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 leave my day job.

extra income

Some extra income this month.

Income (Target > $5,000)

Mrs. RB40 is paid biweekly and this is one of those months with an extra paycheck in it. Yippee! We’ll take it.

Rental Income – I changed the accounting method here and I’m now showing all income – expense. The property taxes are also baked in now.

I wrote up the first 3 months report on the 4-plex investment. Basically, we are not making any income from the 4-plex at the moment. That should change soon because most of the deferred maintenance projects are finished.

When it rains, it pours. Our rental home also needed the dishwasher replaced this month – to the tune of $320 total. All in all, a bad month for the rental business, but at least it was better than October.

Side Income

Retire By 40 made $1,674 online this month! I’m always amazed when the online income goes above $1,000.

We had $220 in expense this month due to our one year anniversary giveaway and a couple of miscellaneous expenses. I should check with our winner to see how he likes the Kindle Fire.

The online income this month all came from direct advertising. I really need to branch out with affiliate marketing and other money making ventures.

Extra income this month! I received an $18.04 check from a tort lawsuit. This has something to do with the credit card charging too much when converting foreign currency. It’s not much, but every little bit helps. I don’t mind sending my private information to the tort lawyers, but it’s better to keep your privacy private. Then you can stop worrying about thieves, scam’s, and marketer’s.

Also I found a shiny new liberty dollar coin on the floor near the vending machine at work. Score! 

Dividend, Interest, and P2P lending

Dividend – $153

Interest – $25

P2P – $9 (One borrower was 2 weeks late this month. That made me really nervous and perhaps I’m not cut out to be a P2P lender after all. I have $1,000 invested.)

Expenses (Target < $4,000)

Housing – The housing expense is very high, but it’s stable at this point. I baked in the property tax so this month is up a bit.

Food and Cash Allowance – I think about 90% of the cash allowance goes toward food, specifically groceries and eating out. My parents were visiting and it jacked up our food bill a bit. It was great having them to help out with baby RB40.

Transportation – I drove a bit more than usual and the gas bill reflected that. It’s still around $100 so I’m not worried.

Baby – I think just diapers this month. The medical bill is also his.

Bills – Stable.

Entertainment – We went out to eat, but I counted those under food.

Misc – I got a space heater because our furnace quit working. So far the space heater and our Kotatsu table are doing the job.

November Cash Flow

I’m pretty happy with $500 extra toward saving and investing this month. I afraid we were going to be in the negative again because I knew the rentals didn’t do well and we had a high expense month. Mrs. RB40’s extra paycheck did the trick though. I feel a bit like we are cheating, but we’ll be happy with the small victory.

How about you? Did you have a good November? I think December will be much better for us. We are not planning to buy a lot of gifts and our expenses should be a bit lower.

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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{ 38 comments… add one }
  • Roshawn @ Watson Inc December 7, 2011, 7:12 am

    I’m happy Novemember was positive. Take any victory you can get. Hopefully, December won’t be as bad as you suspect.
    As always, I enjoy these types of posts, as they are a wealth of information and show progress 🙂

    • retirebyforty December 7, 2011, 9:36 am

      Thanks! I’m happy with the positive cash flow too since I was expecting worse. Next year I’ll make graphs to track my progress and show the accumulated saving.

  • MoneyCone December 7, 2011, 8:33 am

    A victory no matter how small is still a victory! Happy for you Joe!

    • retirebyforty December 7, 2011, 9:36 am

      I’ll take the small victory this month. 🙂 Thanks!

  • Jeffrey Trull December 7, 2011, 10:05 am

    Even if only a small victory this month, it seems you have a lot in the works for future months.

    If you can manage to round up a few hundred more $18 claim checks, you should be in great shape 🙂

    • retirebyforty December 7, 2011, 4:16 pm

      Haha, that would be awesome, but I only get these checks about once every 5 years or so. 🙁

  • Jeff @ Sustainable life blog December 7, 2011, 12:28 pm

    Congrats on the escape from november with the positive number joe! I did pretty good this november, finally got a student loan paid off, but had huge wedding related expenses.

  • Andy Hough December 7, 2011, 12:35 pm

    It is always good to have a positive month. I hope they continue and the rental property starts making money.

    • retirebyforty December 7, 2011, 4:16 pm

      Thanks! I only hope we can catch up to your online earning soon. 😉

  • Aloysa December 7, 2011, 12:52 pm

    Living on one paycheck is great. I wish we could do that. Your cat is quite cheap! 🙂 $21 expense was it for the food? It is not bad!

    • retirebyforty December 7, 2011, 4:17 pm

      That was just kitty litters. We have plenty of food left from previous months. One of our cat passed away. She was 16 years old. 🙁

  • krantcents December 7, 2011, 5:29 pm

    Good job! Save the $500, you may need it to cover something. In a few months, you will look back and realize the stuff you have in the beginning!

    • retirebyforty December 8, 2011, 8:53 am

      That $500 went straight into the saving account. We need liquidity until the rental stabilize.

  • Darwin's Money December 7, 2011, 7:56 pm

    Haha, we must have the same credit card, I’m still waiting for my $18 !

    • retirebyforty December 8, 2011, 8:53 am

      I love extra money. 😉

  • My University Money December 7, 2011, 8:48 pm

    I’m a big fan of this in-depth look at your 4-plex investment. Thanks for not sugar-coating everything. There are a lot of personal finance sites that make it seem like owning and operating property is easy money, and this basically shows the reality of the situation. I am more and more certain it is not my style, but very interesting nonetheless.

    • retirebyforty December 8, 2011, 8:54 am

      Like many readers said, it tough at the beginning, but I think in the long term it should pay off. That’s why I like renting out our old house better. I know it much better and can fix a few things myself.

  • youngandthrifty December 7, 2011, 9:40 pm

    Wow that’s great!! The online income sounds like it’s helping out a lot.

    I don’t think I’ve ever made $1600 online in a month. Hopefully one day I will be 😉

    • retirebyforty December 8, 2011, 9:01 am

      Really? I thought Y&T would be making a lot of money now. You have a great reader base.

  • Untemplater December 7, 2011, 11:11 pm

    I had to buy some plan tickets so my expenses were on the high side. Rental property repairs can get expensive fast especially when one thing gets fixed and another breaks. I’m glad you’ve made a lot of progress though – nice job! -Sydney

    • retirebyforty December 8, 2011, 9:01 am

      Thanks! Next month should continue the trend and looks much better.

  • 101 Centavos December 8, 2011, 5:04 am

    A whole dollar? Sweet!
    Number One Son goes so far to peer *under* vending machines. Always good for a bit of “silver”.

    • retirebyforty December 8, 2011, 9:02 am

      I was like Yeah! I got in early that day and there wasn’t anyone around. I used to check in the coin return slots when I was young, but I think I only found a coin once… 🙂

  • Corey @ Passive Income to Retire December 8, 2011, 7:33 am

    I always enjoy the extra paycheck month. 🙂 I always budget on 2 bi-weekly paychecks, so that means that there are two months where it seems like I got a fat bonus. 🙂

    • retirebyforty December 8, 2011, 9:03 am

      That’s what we do as well. The extra paycheck always come in really handy. 😀

  • PKamp3 December 8, 2011, 7:39 am

    It looks better than October – but if it wasn’t for the extra paycheck you would have been negative, right? How is the rental property looking for next month (I know, sometimes it’s impossible to estimate)? It’s been volatile lately.

    • retirebyforty December 8, 2011, 9:04 am

      Yes, that’s right. The rental is looking better in December, but we’ll see when the month is over. I think 2012 should be much better for the rentals now that all the units are filled.

  • Miss T @ Prairie EcoThrifter December 8, 2011, 9:44 am

    Congrats on a great month. Our November was decent too. We got caught up.

    • retirebyforty December 9, 2011, 9:43 am

      Thank you! Once the rental turn around, we should be in a much better shape.

  • Hunter - Financially Consumed December 8, 2011, 1:47 pm

    Thanks for sharing again Joe, I like following your progress. Your side (online) income is substantial. You are very active in the blog community, I honestly don’t know how you do it with a full-time job and Little RB40. Super blogger.

    • retirebyforty December 9, 2011, 9:43 am

      The side income is up and down. I’m exhausted and need a vacation. 🙂

  • YFS December 8, 2011, 8:41 pm

    Looks like we both are getting creamed on rental expenses. Section 8 does a annual inspection and always finds something. It will all turn around though. Good job on getting positive this month

    • retirebyforty December 9, 2011, 9:42 am

      I’m still very bullish on the long term out look. Rents are definitely going up in the area so in a few years, the numbers will look much better.

  • Squirrelers December 8, 2011, 8:55 pm

    Nice month. Have to like online income, right?

    • retirebyforty December 9, 2011, 9:41 am

      Online income is a life saver. 🙂

  • Smarty December 22, 2011, 4:17 am

    It looks like nice monthly income for one blog. And exactly, online income is really life saver. I’m doing some money online as second income and I would say, the life is much easier and better and I really enjoy it.
    Good luck and happy holidays.

    • retirebyforty December 23, 2011, 10:30 am

      Happy Holidays! Online income is really a windfall for us. It is a lot of work, but I like the growth potential. 🙂

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