≡ Menu

August 2012 Cash Flow


left my job in July and August is my first full month of retirement. We did pretty well this month and I can stay retired for now. 🙂

August income cash flow

august expense


Income August July
Mrs. RB40’s paycheck 2,618 2,693
rental income 1,064 357
online income 208 144
dividend, interest 443 263
P2P 102 49
freelance 1,147 695
misc 200 31
Total income 5,782 4,233
Housing -2,097 -2,097
cash allowance -934 -621
transportation -141 -45
pet -10 -5
baby 0 0
bills -333 -274
medical 0 -15
entertainment -54 0
misc 0 0
Total expense -3,570 -3,057
Saving 2,212 1,176

Income (Target > $4,500)

Mrs. RB40’s paychecks: Baby RB40 and I signed up with Mrs. RB40’s employer sponsored health insurance. It will cost $150 per month extra, but that’s really not bad at all. Health insurance is a huge problem for early retirees who are not qualified for Medicare yet.

Rental Income: This is the best month so far with the rentals. I would love to see this every month, but I know that’s not going to be the case for a while. We need to paint the 4 plex and fix a drainage issue to the tune of around $6,000 before the rainy season starts.

Side Income: Retire By 40 did quite well in August. We won’t see the payment for August until the end of September.

  • media.net (CPC ad network): $208. This is the payment for June and July.
  • affiliate: $0 from commission junction. We actually made $65, but CJ will pay out in September.
  • Amazon CloudFront: -$1. CDN for the blog.

Dividend & Interest: 

  • Dividend portfolio: $403. AT&T and ABT paid out this month.
  • Interest: $40. Pretty pathetic, but it’s better than nothing.

P2P Lending: $102. Currently, I’m getting 11.75% interest from prosper.com. This is the first month we broke $100. I like it, but I know it will be up and down for a while because of the defaults. Currently, I have 4 loans that are over 30 days late and are likely to be charged off.

Freelance: $1,147. Now that I’m not working full time anymore, I am able to freelance for a little extra income.

Misc.: $200. Gift from Mrs. RB40’s dad. This will go toward baby RB40’s 529 plan.

Expenses (Target < $4,000)

Cash Allowance: $934. Our cash allowance is a bit high this month because we had a lot of Fridays (that’s when we get our weekly allowance.) Mrs. RB40 also gets extra cash for being a chief editor and was paid for both July and August in this cycle.

Transportation: $141. I only filled up the car once in August, but I shelled out $105 for the street car annual pass. The free public transit zone will disappear on September 1st and I need at least the street car to get around the city.

Bills: $333. I got more minutes for our tracfones and we should be good for around 3 months. This category should go back down to around $275 next month.

Entertainment: $54. Mrs. RB40’s friend won the Toastmasters International speech contest (World Champion of Public Speaking) so she wanted to get the DVD ($30.) I spent $24 on baby RB40’s pictures and a photobook from Shutterfly.

July Cash Flow

Overall, we did very well in August. Our expense category was a bit high, but the income was good so I’m not going to worry too much. We should see the expense go down a bit next month even with our trip to Denver for FinCon.

August surplus saving

Things are going well so far in 2012.

How about you? Did you have a good month?

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.

The following two tabs change content below.
Joe started Retire by 40 in 2010 to figure out how to retire early. He spent 16 years working in computer design and enjoyed the technical work immensely. However, he hated the corporate BS. He left his engineering career behind to become a stay-at-home dad/blogger at 38. At Retire by 40, Joe focuses on financial independence, early retirement, investing, saving, and passive income.

For 2018, Joe plans to diversify his passive income by investing in US heartland real estate through RealtyShares. He has 3 rental units in Portland and he believes the local market is getting overpriced.

Joe highly recommends Personal Capital for DIY investors. He logs on to Personal Capital almost daily to check his cash flow and net worth. They have many useful tools that will help every investor analyze their portfolio and plan for retirement.
Get update via email:
Sign up to receive new articles via email
We hate spam just as much as you
{ 46 comments… add one }
  • Steve August 31, 2012, 1:00 am

    August was a bit worse for me than July, but only because of a very slow start to the month freelancing wise. The month finished strong and September is starting just as strongly, so that’s positive. We are on a pretty well set budget and our expenses fluctuate less than $100 per month.

    • retirebyforty August 31, 2012, 8:44 am

      That’s great to hear. You should do an updated cash flow post so I can see how you guys are doing in Thailand. You moved and have less expense now right?

      • Steve August 31, 2012, 9:53 pm

        Yes and no. We moved so our expenses for rent and some other things went down, however Golf went back to school and we also bought a car. Expenses are lower than they were, but not by as much as they could be.

  • Michelle August 31, 2012, 5:33 am

    Glad things are going well! It’s nice seeing all of this detail in your reports. Hopefully I can retire before 40 as well 🙂

    • retirebyforty August 31, 2012, 8:46 am

      Thanks! If things keep going this way, then I think I can stay in retirement. 🙂

  • Michelle @ See Debt Run August 31, 2012, 6:42 am

    It seems like your baby category is always either really low or zero. How is that? Is he potty trained? Are you using cloth exclusively? Do you have a mom that buys your son all his clothes? My baby is still pretty expensive! Tell me your secrets?

    • retirebyforty August 31, 2012, 8:50 am

      That’s because his diapers and milk are part of our groceries. We pay for those with cash from our allowance so they don’t show up in the baby category. We probably spend around $40/month on the little guy. He eats the same thing we eat now so that’s not an extra expense. We haven’t purchased clothes in a while, but we usually go to a baby swap meet(?) and use our allowance for that too. The only thing that really show up here are toys…

      • Financial Samurai September 5, 2012, 3:53 am

        I’m pretty sure you’re not supposed to feed your baby filet mignon and lobster every day Joe! Garlic mashed potatoes yes, but not all the other yummy stuff! 🙂

        It is great to see 0$ costs attributed to the baby. You should consider writing a baby expense post how it’s much cheaper to have a baby then everybody thinks with your examples.


  • SavvyFinancialLatina August 31, 2012, 6:51 am

    Love seeing your journey!!! Like Michelle I hope I can “retire” by forty and pursue other passions 🙂

    • retirebyforty August 31, 2012, 8:51 am

      Thanks! You have a lot of time and you are starting off right so I’m sure you can do it. 🙂

  • krantcents August 31, 2012, 7:04 am

    Looks real good! The journey is just starting, you get to choose what you do next.

    • retirebyforty August 31, 2012, 8:52 am

      It’s great to be able to choose how I spend my time. Thanks.

  • Kurt @ Money Counselor August 31, 2012, 7:36 am

    So far, so good Joe, congrats. I like this: “Now that I’m not working full time anymore, I am able to freelance for a little extra income.” My re-interpretation: Now that you’re not killing yourself mainly to make someone else wealthy(ier), you can work for yourself, make as much as you choose, and be your own boss!

    • retirebyforty August 31, 2012, 8:53 am

      That’s a great interpretation. It’s great to be self employed. I can choose how to spend my time and prioritize our kid over working if I need to.

  • Edward Antrobus August 31, 2012, 8:26 am

    It seems that if you can keep up the freelancing, then that and the Mrs’ income will cover all of your expenses and the passive income can go straight to savings. Congrats!

    • retirebyforty August 31, 2012, 8:53 am

      Thanks! It was a good month for income, but it will be up and down.

  • Kim August 31, 2012, 8:38 am

    Does your freelancing come from engineering work? How do you find jobs for this? I’m glad you get to stay retired. It would suck if you couldn’t at month one!

    • retirebyforty August 31, 2012, 11:41 pm

      No, it’s mostly writing and advertising. You are right about the month one. 🙂

  • [email protected]&More August 31, 2012, 10:23 am

    August was a decent month for me but I finished prepaying for my vacations we will take and have taken this year. Feels good to know I have the money to pay for them in advance.

    • retirebyforty August 31, 2012, 11:34 pm

      That’s great. We don’t have a vacation fund and it just comes out of our general expense. Our vacation should be pretty cheap for the next few years since our kid is still young. When he’s older, we’ll travel internationally again.

  • Miss T @ Prairie Eco-Thrifter August 31, 2012, 12:00 pm

    I am really glad to hear that things didn’t crumble after quitting your job. It just goes to show that you planned it out right and new how to manage things going forward.

    Good job on the freelancing. I am trying to start to get my name out there but it is a slow process. Good luck.

    • retirebyforty August 31, 2012, 11:36 pm

      Thanks. I’ll just have to keep it up for a few years until our kid goes off to school. Then I’ll have more time to work on other ideas. 🙂

  • BNL August 31, 2012, 1:26 pm

    Hey RB40,
    You might have covered this before, so I apologize in advance. What freelance work are you doing?

  • Kathleen @ Frugal Portland August 31, 2012, 2:44 pm

    That’s great freelance income! What are you doing? Freelance engineer?

    • retirebyforty August 31, 2012, 11:43 pm

      I’m doing some writing, referral, and advertising. No, not engineering for now.
      It’s good this month, but it will be up and down.

  • Financial Penguin August 31, 2012, 6:04 pm

    Can’t say enough about how great it is that you’ve taken that leap to retirement. I hope everything goes well for you, wish you the best. Been reading for awhile, I enjoy what you write, keep up the good work, if you get a chance swing by http://www.financialpenguin.com 🙂 I just started and all encouragement is welcome!

    • retirebyforty August 31, 2012, 11:44 pm

      Thanks for reading. I’ll head over now. 🙂

  • Roshawn @ Watson Inc August 31, 2012, 7:41 pm

    You are doing well, particularly in the freelancing area. UR a machine! Hooray

  • Financial Samurai August 31, 2012, 11:12 pm

    Good stuff Joe! What type of freelance stuff are you doing more of now?

    • retirebyforty August 31, 2012, 11:50 pm

      More writing and advertising referrals. August was a good month, but it will be up and down. I’m working on your book review. Sorry it’s taking so long!…

  • jamesm September 1, 2012, 10:16 am

    Can you be a little more specific about your freelancing, if you don’t mind. I’m a journalist by trade and have thought about retiring, but would like to see what kinda freelance opportunities are out there. Specifics about what you freelance and maybe sites that look and pay for freelance would be useful. Also, do you have thoughts about amazon mechanical turk jobs? PS, i think it’s SWAP meet, not SWAMP! I enjoy your site.

    • retirebyforty September 2, 2012, 8:13 am

      I’ll PM you with a bit more detail.

  • Crystal @ Broke-Ass Mommy September 1, 2012, 9:20 pm

    Congrats on a great month! Freelancing is a nice benefit of working from home. 🙂 Hope September is even better!

  • Slackerjo September 2, 2012, 4:03 am

    I am curious about housing costs. It’s just under $2100. Is that mortgage? Hydro? Taxes? I see rental property as a income stream. Does the $2100 include more than one mortgage. And how much house does $2100 buy you?

    You can probably figure it out, I rent. I live in Canada where we did not have a mortgage meltdown so I am always surprised at the prices of houses in other countries.

    My August was pretty dull. Saved for a rainy day which is ironic cause we are in the middle of a drought.

    • retirebyforty September 2, 2012, 8:23 am

      That’s mortgage, property tax, and HOA. Our HOA cost is pretty high, but that’s the price we pay to live in the city. The $2,100 is only for our primary resident. The rental property is cash flow positive this month and the mortgages and tax are all accounted for in that row.
      Our condo is only 1,000 sq ft, but it’s in downtown Portland. It’s not a good comparison to the rest of the country.

      • Tim September 19, 2013, 9:11 pm

        I am going to retire in Lake Oswego at age 42.
        I wonder why you chose downtown Portland with kids…
        Nowhere for kids to play.

        • retirebyforty September 19, 2013, 10:02 pm

          There are a ton of places for kids to play in downtown. We love it here.

  • Elizabeth @ Broke Professionals September 2, 2012, 10:15 am

    How much time are you spending freelancing now that you’ve retired? I tend to make about the same amount as you reported here on a monthly basis, and I’m always curious if I’m being as productive with my time as I can be.

    • retirebyforty September 3, 2012, 5:58 pm

      I spend 2-4 hours/day. Some of that is advertising on this site too so the rate is higher than normal freelance writing.

  • Christine September 3, 2012, 7:37 am

    I just started reading your blog and just wondered how long your wife will be working now that you’re retired. Was the goal just for you to retire? Just curious.

    • retirebyforty September 3, 2012, 6:15 pm

      She likes her job and is not planning to retire yet. It’s just me that didn’t like being in the work force. I’ll still be self employed and I don’t plan to stop working completely.

  • Alot September 3, 2012, 4:00 pm

    Yahoo finance led me to your website . Thanks so much for how honest you are being with your finances! It is so refreshing to see this kind of openness ! I really do wish you and your family all the best. I was curious, what are your “allowances”? Is that like a salary that you pay yourself ?

    I am a senior engineer, mid 30’s, looking to invest my savings. I have about 200 K in CD’s . I am single and have 0 prospects of marriage (horrendous break up !). With my demanding career, I do not have the time to be a landlord. I will not use p2p lending, I have traumatic experiences with lending money even to trusted friends and family. What do you think I should invest in?

    • retirebyforty September 3, 2012, 6:28 pm

      The allowance is spending money for us. We use cash to buy groceries so that’s where we spend most of the allowance.
      That’s a tough question. You should probably invest in the stock market. You can start with Vanguard index funds. Maybe invest 25% this year and keep averaging in over the next few years. You can also try US government bond if you are more conservative. A good place to start is the I Saving Bond. You need to figure out your risk tolerance first to see if you can deal with the up and down of the stock market.
      Good luck!

  • Sher-b-ware September 3, 2012, 6:26 pm

    Hi there!
    I came across your blog and thought, “how nice of him to let us into his private circle.” I am already forty and my husband and I just bought our first home last year, it is a duplex so we have a rental next door. I have an associate’s degree in accounting and I’ve been thinking about going back to school to pursue my bachelors. I hear stories all the time about student loans but I also know that my paycheck doesn’t seem to be moving up; like they say, “you can’t get paper without that paper.” We don’t have anything in the way of savings we’re basically living paycheck to paycheck.
    I don’t know why I felt the need to go into detail. I do want to say congratulations you, Mrs. RB40, and baby RB40. You are a good example…

  • Survivor Mike September 4, 2012, 6:43 am

    RB40 – this is a great site and quite inspiring. All the best with your plans.

  • nicoleandmaggie September 9, 2012, 10:15 am

    Boy do we spend a lot of money. I guess without the childcare/private school we could live closer to your target income. We’ve inflated a long way from the days of living on 3K/month (with almost half of that going to rent in an expensive city).

Leave a Comment