Welcome to our April 2016 Income Statement!
Mr. PoP and I put these income statements together for two reasons. First, we want to be transparent about our finances because we’re trying to be role models for other people who are trying to plant their own pennies (and end up with dollars someday!). Second, we do this to make sure we’re on track to meet our own long-term goals. If you’re not tracking your income statement and balance sheet, we highly recommend you start using a program like Mint to keep track of it all.
I increased our income tax withholding quite a bit after paying our taxes this year, and this is the first month that shows the full effect of that. With rental income, variable and non-cash compensation, and tax credits that we have been lucky to take advantage of, we tend to need to change our withholdings quite a bit from year to year and this year I expect we’ll need to pay a good amount more than in 2015. The changes I made in March based on the IRS calculator may have overshot the mark in how much we will owe in taxes at the end of the year, so I’ll try and address this again after we’ve filled our 401Ks for the year which should happen sometime in the summer.
Speaking of taxes, paying our tax-man was one of the largest line items this month, but he continues to be worth every penny.
The other big line item this month was travel, which shouldn’t be a huge surprise considering we were away from home for nearly 50% of the month. The $2,332 in travel expenses here has about 13 days of travel incidentals in it (which we aim to keep at or below $100/day – we stayed well below), payment for our rental in Omaha, and about $1,000 in expenses for the trip to Ecuador that I’ll be taking in November. Travel spending has definitely been front loaded in March and April this year, and while these two months definitely represent the bulk of our 2016 travel spending, there will still be a bit more to come in the second half of the year as 2016 is really proving to be our year of travel.
The Bottom Line
- Earnings before principal paydowns and savings allocations of $3,707.
And the details…
- Wages and Salaries (after taxes, 401K deposits, HSA allocations, etc.): $6,778
- Rental Income: $1,600
- Miscellaneous Income (rebates, reimbursements, etc.): $900
- Total Income: $9,278
- Groceries: $325
- Eating Out: $245
- Total Food: $570
- Mortgage: $1,150
- Home Maintenance and Repairs: $76
- Kitchen Renovations: $297 – most of this is for table legs that we ordered for the table we’re building to match our new kitchen
- Bills/Utilities for Primary Residence: $77 – I accidentally forgot to pay the water bill before going to Omaha, so next month will have 2 water bills =P
- Total Home: $ 1,600
- Gas: $120
- Total Transportation: $120
- General Shopping: $432 – most of which is actually a pair of shoes for Mr PoP… hopefully he’ll write about them (and his decision process on buying them) soon!
- Pet Supplies / Care: $0
- Total Shopping: $432
- Gym / Fitness: $53
- Medical Treatment/Visit: $46
- Media Subscriptions: $8
- Media/Entertainment Non-Subscription: $1 – Mr PoP bought a Prince song =(
- Total Health/Fitness/Entertainment: $108
- Travel: $2,332 – Hawaii + Omaha + ~$1K in expenses for my Ecuador trip later this year
- Tax Guy: $530
- Total Miscellaneous: $2,862
- Total “Personal Expenditures”: $5,692
- Investment Properties: $410
- Total Investment Expenses: $410
- EBPPS = $9,278 – $5,692 – $410 = $3,176
Principal Paydowns / Savings Allocations
- Transfer to Holding Account for Sunny Restoration: $1,500
- Transfer to Holding Account for 2016 Roth IRAs: $1,000
- Transfer to Taxable Investment Account: $500
- Total Principal Paydowns / Savings Allocations: $3,000
- $3,176 – $3,000 = $176 = Net Income
How was your income and spending this month?