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.
|Mrs. RB40’s paychecks||2,814||2,618|
|Rental Net Income||789||945|
|Online Net Income||-296||1355|
|Dividend & Interest||1,191||443|
|Peer to Peer Lending||122||102|
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.
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.
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.
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.