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September 2012 Cash Flow


It’s been a few months since I left my job and we are still doing fine in the cash flow department. It is essential to track your income and expenses before you make a big life changing decision like retirement or a career change. You can use Quicken, Personal Capital, or a plain old Excel spreadsheet, but don’t retire without figuring out your monthly cash flow first.

September 2012 Income cash flow September 2012 expense cash flow



Mrs. RB40’s paychecks2,8142,618
Rental Net Income789945
Online Net Income-2961355
Dividend & Interest1,191443
Peer to Peer Lending122102
Total Income4,6705,782
Cash Allowance-619-934
Total expense-3,056-3,270
Monthly Saving1,6142,093

Income (Target > $4,500)

Mrs. RB40’s paychecks: The usual.

Rental Income: This is pretty normal for the rental income. Next month we’ll see a huge hit here from painting the exterior of the 4 plex ($5,000.)

Online Revenue: -$296 Oh no! Our first negative month ever. Our online business had a lot of expenses in September and FinCon 12 pushed us over the edge. Hopefully we’ll get back on track in October.

  • Media.net (CPC ad network): $96. We actually made around $175, but accounting overpaid me earlier in the year so they took it out of this pay period. 🙁
  • Affiliate: $65 from commission junction.
  • Freelance: $570
  • Staff writers for new sites: -$280. New sites are just starting out and are a little rough around the edges. Midlife Finance and Ready To Quit My Job!
  • Domain renewals: -$122
  • New router and wifi card: -$71
  • Amazon CloudFront: -$2. CDN for the blog.
  • Attending FinCon12 in Denver: -$552 for hotel, transportation, and food.

Dividend & Interest: 

  • Dividend portfolio: $1,153. A big payout month from AFL, INTC, LLY, IBKR, MCD, RDS, BAC, VWO, and VPL.
  • Interest: $38. This should go up a bit soon because I’m transferring the $50,000 to the new CIT saving account. Their interest rate is 0.25% higher than ING so you might want to open an account at CIT if you have $25,000 or more to deposit.

P2P Lending: $122. Currently, I’m getting 12.32% interest from prosper.com. I’m seeing more late payments and defaults, but the ROI is still over 10% so I can’t complain.

Misc.: $50. Sold little RB40’s crib on Craigslist.

Expenses (Target < $4,000)

Cash Allowance: $619. This is about normal.

Transportation: $47. I only filled up the car only once in September.

Bills: $239.

Misc: $52. We spend quite a bit more than usual in the Misc category. It’s mostly from

  • $52 a few household items from Amazon (such as replacement paddles for a bread maker).

September Cash Flow

Overall, we did all right in September. Our online revenue was negative, but that’s due to business investment. I’m sure we’ll get back on track soon. Maybe not next month though because I just paid $500 for a ticket to the World Domination Summit. I’m pretty happy if we come out ahead by $1,000+ at the end of the month.

September saving so far 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.

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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, the job became too stressful and Joe retired from his engineering career to become a stay-at-home dad/blogger at 38. Today, he blogs about financial independence, early retirement, investing, and living a frugal lifestyle.

Passive income is the key to early retirement. This year, Joe is increasing his investment in real estate with CrowdStreet. He can invest in projects across the U.S. and diversify his real estate portfolio. There are many interesting projects available so sign up and check them out.

Joe also 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 DIY investors analyze their portfolio and plan for retirement.

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{ 24 comments… add one }
  • Brick by Brick Investing October 15, 2012, 10:52 am

    Thank you for being honest and transparent with your finances. I am one day looking to quit my 9-5 job and seeing this report gives me hope and insight to see how one manages. I also am looking to do my first real estate deal early next year.

    Keep up the good work.

    • retirebyforty October 15, 2012, 4:10 pm

      Thanks for coming by! Good luck with your real estate investment.

  • Martin October 9, 2012, 11:27 pm

    How random, you reminded me to renew a few domains.

    What are your plans to grow the blog in the future?

    • retirebyforty October 10, 2012, 4:53 pm

      I still have a huge to do list from FinCon. I’m concentrating on writing better content and that should pay off in the long run. I’ll also work on social media and try to get my name out on traditional media as well. How about you?

      • Martin October 11, 2012, 10:15 am

        More guest posts. Fixing up old articles to optimize them for search engines. More research. More controversial posts.

        • retirebyforty October 12, 2012, 8:22 am

          That’s a good plan. I want to fix up my old articles too, but I don’t have any time.

  • Joe October 9, 2012, 12:54 pm

    Have you done a post about your freelance work? I’d be interested to read more about it: what you do, how you get clients, how you set prices, etc. I’m a new-ish reader so apologies if you’ve already covered the topic.

  • Christa October 9, 2012, 12:35 pm

    Ah, sold Baby RB40’s crib, huh? Must be bittersweet — I can’t imagine my DD being that big yet! Great month, btw, even if all the site expenses hit at once.

    • retirebyforty October 10, 2012, 4:50 pm

      He never liked the crib. It was just taking up a lot of space in his room. 🙂 Thanks!

  • [email protected] retirement October 9, 2012, 8:13 am

    When did you start these 2 new blogs? Didn’t read about it in your posts.

    • retirebyforty October 9, 2012, 8:34 am

      I started late last year, but I couldn’t do much with them because I don’t have enough time to write. I decided to hire writers and concentrate on the back end for now.
      We’ll see if this investment pans out.

  • Kathleen @ Frugal Portland October 8, 2012, 4:37 pm

    I did too! But we should hang out at other non-expensive times, here in town, too!

  • krantcents October 8, 2012, 1:19 pm

    Your cash allowance is pretty high to not look at the details. Personally, I avoid cash because it is easier to spend on silly things. You know, grab a cookie and a drink at the mall. BTW, I used to accrue big expenses so it didn’t distort the expenses each month. In other words, I add to my reserve each month for an expenses I knew was coming up.

    • retirebyforty October 8, 2012, 2:39 pm

      Most of the cash goes to groceries and household items. I guess I should try to keep track for a couple of months. I know we spend more when we use credit cards though so I’m not too worried.

  • justpayitoff October 8, 2012, 1:07 pm

    dummy question: what is a dividend payout? im clueless about stocks and i wanted to get started but too scared since its a whole different world. so is this your monthly earnings from your investments and you pay it out? you dont reinvest it?

    • retirebyforty October 8, 2012, 2:38 pm

      Yes, that’s the monthly dividend earning from my investments. At this time, I just take the cash and then buy new stock if I find one that I like. You should probably start with a few Vanguard Index Funds to build your foundation.

  • 20's Finances October 8, 2012, 10:11 am

    Not a bad month at all. For the rental income, is that two properties? Your old house and the 4plex? It might be time to do an update on your rental investments, since I can’t remember the juicy details. 🙂 Do you think you will be positive in 2012 even with the upcoming costs?

    • retirebyforty October 8, 2012, 2:36 pm

      Yeah, that’s two properties. I’ll do an update soon. 🙂
      We should be positive for 2012.

  • [email protected]&More October 8, 2012, 9:41 am

    Just a technical issue but shouldn’t you list just the.online income in the income portion of your report and then list the online expenses in the expense portion of your report rather than netting them together? I would think that would give you a better overall picture. Regardless great job in keeping your cash flow positive!

    • retirebyforty October 8, 2012, 2:36 pm

      I just want to put the online portion in one line. It’s easier for me that way because that’s business revenue/expense. All the other expenses are personal.

  • Mike October 8, 2012, 6:30 am

    You forgot to mention a free alternative to Quicken-Money Manager EX. It’s just as good! But it’s good to see that you are doing well with the projects that you are working on! Maybe you could add a few apps to that as well! Or you could have me do them for you!

    • retirebyforty October 8, 2012, 2:34 pm

      I haven’t tried Money Manager EX. I’ll try it out soon and see if it’s good. 🙂

  • The Stoic October 8, 2012, 5:03 am

    Looks like a nice month. I’m looking at adding a quadraplex to my investments as well. I’m going to have to dig around some more and see what you have written about the experience in the past.


    • retirebyforty October 8, 2012, 2:34 pm

      Just search for 4 plex on the side bar. Most of them should come up. Good luck with the investment!

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