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June 2014 Goals and Financial Update


Whew, another zany month is over at the RB40 household. We closed on our rental home and that kept us very busy. I found out we had to replace all the smoke and CO alarms the day before it closed. Of course, I didn’t have a ladder that would reach the 20 ft tall vaulted ceiling in the master bedroom because we sold all our stuff when we moved 7 years ago. Luckily, our sweetheart of a realtor went beyond the call of duty to purchase a ladder and let us borrow it. If anyone is looking for a realtor in Portland, I would highly recommend Andi.

It’s July, summer finally arrived in Portland, and we’re gearing up to go camping this weekend! After a few wet experiences, we decided to put camping off until after Independence Day and I think we made the right decision this year. There were a few downpours last week and I was really glad we weren’t sleeping in a tent. Anyway, I already did a Midyear review of my 2014 New Year resolutions in detail recently, so I’ll just put a short recap this month.

2014 New Year Goals

Invest $50,000 in tax advantaged accounts

  • We saved $34,582 so far and we’re at about 70% for 2014.

Generate $10,000 in passive income – NA.

  • We sold our rental so that messes up our passive income plan. We’ll start over next year.

Get Leaner – currently 19%

  • My goal is 17% and it’s not going well.

Travel – Done!

  • We had a big family trip to Hawaii and it was a blast.

Blog Goal – Done!

  • We surpassed my goal of 120,000 pageviews/month in March and continue to improve.

Net Worth (+4.1% YTD, +2.3% MTM)

Our net worth had a nice increase in June due to the stock market and sale of the rentals. I undervalued the rentals a bit in my net worth sheet so now I have a more accurate picture of our net worth. The stock market also did quite well so that’s helpful.

For the year, I’d like to see 8-10% increase in our net worth, but I don’t think that’s going to happen. We’ll see how the rest of 2014 goes.

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If you need help keeping track of your finances, try using Personal Capital to manage your cash flow and net worth. It’s a free site that will help you get a handle on your finance. Personal Capital is geared for investors and has many great investment tools as well. See my review of Personal Capital and how they helped me reduce what I’m paying in investment fees.

Cash Flow

June cash flow income expense personal capitalTake Home Income (target > $5,000)

We had a nice month on the income side. The rentals are closing out and I think this will be it on the rental income front for a while.

  • Mrs. RB40’s Paychecks: She got a few FSA refunds so that’s nice.
  • Online income: My take home was a bit low this month at $402. I guess the summer slowdown is here. That’s excluding tax withholding, retirement saving, and 529 saving. I will break down the online income in our monthly newsletter so if you’re curious, sign up with our email list.
  • Dividend and interest: $1,388. I love the last month of the quarter! Our dividend portfolio paid out quite well in June.
  • P2P lending: Not good at -$4. Our current ROI declined from 7.7% to 7.6%. I’m starting to think about how to exit this investment before the economy heads south. See how we did with Peer to Peer Lending in 2013.
  • Rentals: The rental home is closed and all the payments should be wrapped up in June. This category will take a leave of absence until we find a new rental property.
  • Misc income: $58. Not exactly sure where this came from.

Expense (target < $4,500)

All right! Our expense is under control this month. April and May were rough because we took a vacation to Hawaii.

This month I used Personal Capital to track our expense and it worked pretty well except the housing expense. We pay property taxes once a year, but I want to show it on our monthly housing budget so I manually add that in.

  • Housing: $2,163. Mortgage, HOA, and 1/12 property tax.

personal capital cash flow spending keep track

  • Allowance: $400. We get $100/week cash to spend on whatever we want.
  • Child/Dependent: $360. This is for preschool and summer day camps.
  • Healthcare/Medical: $358. My mom had some dental care expense so it’s more than usual this month.
  • Groceries: $331.June was a pretty good month for groceries. Here is a detailed look at our grocery spending.
  • Insurance: $191. Auto, home, and life insurance.
  • Utilities: $51. Our electric bill seems to be creeping up. We haven’t used any AC, so I’m not sure why it’s this high.
  • Entertainment: $46. This is my gym membership and childcare at the gym.
  • Gasoline: $36. We only filled up once last month. Nice!

Surplus (+$49,440 YTD)

The surplus is really skewed due to the profit from the 4-plex sale.

Our saving this month is +$2,725.

Piggy Bank 2014

  • Travel fund: $0. We’re done traveling long distance this year.
  • Roth IRA fund: $0. We maxed out both our Roth IRA for the year.
  • Slush Fund:  $36,520. We’ll probably use most of this as a down payment on another investment property.

How about you? Did you have a good month? Have a great Independence Day weekend!!!

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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.
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{ 11 comments… add one }
  • Clarisse July 2, 2014, 1:10 am

    Good job on achieving most of your goals for last month, especially on your blog goal! I had a very expensive month of June, my in-laws visited us and I got sick also, luckily my health insurance covered all the expenses.

    • retirebyforty July 2, 2014, 9:46 pm

      Hope you feel better! Yeah, those visits can get expensive if you’re taking them around town.

  • Michelle July 2, 2014, 3:04 am

    Sounds like you had a great June! Last month was good for us as well, and we recently analyzed our budget and found some different ways that we could do better.

    Have fun camping! 🙂

  • Karen Burgess July 2, 2014, 6:00 am

    Just wanted to say Thank You for your website. I live in Kansas and have always believed in monthly budgets. I think that the main problem in society today is that the vast majority of people don’t bother with using one. Then they wonder why they run out of money at end of month or have no reserves for that “Rainy Day”. I appreciate that you are so open about your income, needs and wants. And I appreciate that you make your budget easy for people to see how its done. Its not hard, just figure how much you have coming in each month and how much you need to go out. I have been reading you for some time, and my hope that if website just makes a few people each month realize the important of living within ones means, then you have did a great service. Hope the rest of the summer is fun for you and your family.

    • retirebyforty July 2, 2014, 9:52 pm

      Thank you for the encouragement! It’s not hard at all. Everyone really need to track their spending so they can see where the money is going. Before I start tracking our expense, I’d wonder where all the money goes. There are so many leakages that can be stop with such a simple task. It does take a little time, though.

  • Maverick July 2, 2014, 6:49 am

    With the S&P up ~6.8% YTD I’m surprised your net worth isn’t up more. You must be very conservatively invested. (I’m up 9% YTD but I don’t count RE or vehicles.)

    • retirebyforty July 2, 2014, 9:57 pm

      I count everything so that’s part of the lower ROI. Rental RE is a big part of our net worth. Congratulation on 9%. That’s pretty awesome. I’m quite a bit more conservative now that I’m 40.

  • EL July 2, 2014, 7:42 am

    Seems like your smashing all your goals. Good Job and keep us updated. The 58 dollar bonus, sounds nice, I would probably buy some new sneakers with it. What are you going to do with it?

  • John July 2, 2014, 7:46 am

    Looks like you had a good month overall Joe! June was good for us, especially on the business side of things. We have a few trips coming up in the fall so that’ll likely impact our income some then so it’s nice to have an increase so we can bank the extra in the event we need to smooth out the fall some.

  • Stefanie July 2, 2014, 9:12 am

    My vacation to Mexico last week definitely threw some of the June expenses out of whack, but no “real” damage and totally worth it. Glad to hear you had a blast in Hawaii.

  • Dividend Mantra July 2, 2014, 9:39 am


    Sounds like you had a really solid month, all considered.

    I had a great month, saving more than 70% of my net income and hitting near $700 in passive dividend income. All while not working at the day job any longer. I’m excited!!

    Best wishes.

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