October 2011 shall be known henceforth as the month that the levee broke. In September, we had about $2,000 positive cash flow, but we gave it all back this month and then some.
|Mrs. RB40’s paycheck||2622||2984|
|dividend, interest, P2P lending, stock||568||278|
|baby* (not counting daycare)||-144||-42|
|bills (electric, insurance, internet)||-257||-246|
|saving (Income – Expense)||–3,582||2,081|
*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.
Income (Target > $5,000)
Rental Income – I changed the accounting method here and I’m now showing all income – expense. The property tax is also baked in now.
We sent in $3,000 to repair the roof, chimney chases, and the crawl space. These repairs were deferred maintenance from the previous owner and they were expected. We also had 2 plumbing calls and a stove replacement costing about $700. Cleaning fee, year end yard work, and the leasing fee wiped out the rest of the rental income.
All in all, we came in at -$3,104 in October. It was not a good month, but things are looking up for November. All 4 units are now rented out. The section 8 payment from the city came though at the end of October, but didn’t make it into the October statement. We’ve been seeing the rents from only 2 units because the section 8 renter arrived in the middle of September and the first section 8 payment takes extra time to process (according to the property manager.) We should see positive cash flow here in November and onward.
Side Income – Took a step backward, but this is not unexpected because online income is not stable.
We actually made about $1,000 online in October. However, I purchased a laptop, phone, flash for the camera, and helped out with two giveaways. I haven’t withheld any tax this year and I want to minimize tax by buying any business related equipment in 2011. October was probably not the right month to do this, though.
A bit more detail as requested.
We ended up with a net of $360 after the purchases. ($1,030 – $670)
The income this month all came from direct advertising.
We got banned from Google Adsense and they stiffed us our check for the last two months – $130. Thanks Google. I knew this was common after the first check from Google, but I was hoping it wouldn’t happen to us. I’m trying to get the ban remove, but I don’t have high hope. We had a bad malware attack in August and that probably led to some bad clicking. I’m trying media.net instead and it’s not doing that well so I will investigate other avenue. Yes, I’m bummed out, but life goes on.
Dividend, Interest, P2P lending, and Stock – The total for this one looks deceptively large.
Dividend – $12
Interest – $18
P2P – $17
Stock profit taking – $521
Took profit on some stocks.
Expense (Target < $4,000)
Housing – The housing expense is very high, but it’s stable at this point.
Food and Cash Allowance – I think about 90% of the cash allowance goes toward food, specifically groceries and eating out. My parents are visiting until the end of November so the food bill is going to be higher for a while.
Transportation – Kept it under $100 this month. I’m happy with this.
Baby – We purchased a bigger car seat for him. Diaper and food rounded out the rest.
Bills – stable.
Entertainment – This one is a bit high in October. Mrs. RB40 sent in her Toastmaster membership fee (she belongs to two clubs) and I spent $45 on 3 used XBOX games.
Misc – We got a new closet from IKEA. You can read all about it on the $440 baby gate post if you missed it. This category should go down next month.
October Cash Flow
All I can say is I’m glad October is gone. Our income falls way short of the target, but at least the expense was in the ball park. I don’t have a good feeling about November and December though. These are high expenditure months and I hope we can minimize the spending somewhat.
How about you? Did you have a good October? Did you know Halloween is the 2nd most expensive holiday now because everyone spends so much money on costumes?
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.