PoP Income Statement – August 2014

Welcome to our August 2014 Income Statement!

Wasn't sure if this little guy was dead, so he went back to bobbing in the ocean after a quick picture.  But what a treat to see washed up on shore!

Wasn’t sure if this little guy was dead, so he went back to bobbing in the ocean after a quick picture. But what a treat to see washed up on shore!


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.

Speaking of Mint, we were profiled on the Mint blog last week – check it out!

Another month come and gone, and we can hardly believe that summer is coming to an end.  It’s been a hot one down here, with temperatures running a bit higher than normal, so I won’t mind when the temperature starts to drop a bit.

Expenses this month were right around where we need to be from now until the end of the year if we’re to hit our goal of spending no more than $50K this year, which is a good feeling considering it was still a pretty luxurious month.  Well, not buying a a 41-year-old car luxurious, but pretty nice.  =)

The biggest expense (besides the mortgage) this month came from getting Mr PoP his SCUBA certification (~$800, though he’s got an as-of-yet unused credit for some equipment in there, too).  He’s talked about wanting to get certified for a while and a friend of ours who is a former SCUBA instructor came over and gave us a lesson in the pool earlier in the summer.  But, he finally bit the bullet and did it.  We hope this turns into something where we make more of an effort to go to different locations not too far from home a few times a year for a nice weekend in and around the water.

The other big expense was renewing our Truly Nolen bug service.  I have mixed feelings about this one… it’s expensive, but I’m really NOT okay with bugs being in the house.  The yearly service would be over $400 if we didn’t get a 5% discount for paying for a year all at once.  Mr PoP has talked about learning about the various things that they do and trying to DIY this for a year.  While I definitely wouldn’t be opposed to not spending this kind of money, I think this is the kind of thing that (especially in FL!!), you really need to stay on top of and we couldn’t let a busy month or quarter become an excuse not to treat the property.  Does anyone DIY their own pest control in an area like Florida?  Any recommendations?

The Bottom Line

  • Earnings before principal paydowns and savings allocations of $4,964.

And here are the details…

Income

  • Wages and Salaries (after taxes, 401K deposits, HSA allocations, etc.): $7,504
  • Rental Income: $1,550
  • Miscellaneous Income (rebates, reimbursements, etc.): $0 – I really need to deposit some checks and file reimbursements…
  • Total Income: $9,054

Expenditures

  • Groceries: $340
  • Eating Out: $185
  • Total Food: $525 – under the $600 goal, so yay!
  • Gas: $300
  • Auto Repairs / Maintenance: $20
  • License Renewal: $48
  • Total Transportation: $368
  • General Shopping: $945 – most of this is 2 purchases, getting Mr PoP his SCUBA certification, and new Kevlar tires for my bike!
  • Pet Supplies / Care: $0
  • Total Shopping: $945
  • Gym / Fitness: $53
  • Medical Treatment/Visit: $135 – new glasses since my eyesight got worse… darned computers!
  • Media Subscriptions: $8
  • Media/Entertainment Non-Subscription: $0
  • Total Health/Fitness/Entertainment: $196
  • Total “Personal Expenditures”: $3,996  
  • Investment Properties: $94
  • Total Investment Expenses: $94
Earnings Before Principal Paydowns / Savings Allocations (EBPPS)
  • EBPPS = $9,054 – $3,996 – $94 = $4,964

Principal Paydowns / Savings Allocations

  • Holding Acct For Roth 2014 IRAs: $1,000
  • Transfer to Taxable Investment Account: $4,000
  • Total Principal Paydowns / Savings Allocations: $5,000

Net Income = EBPPS – (Principal Paydowns + Savings Allocations)

  • $4,964 – $5,000 = – $36 = Net Income

How was your income and spending this month?

 

21 comments to PoP Income Statement – August 2014

  • I don’t blame you one bit for using a pest control service. I am a hater of bugs. Especially when they’re under my roof. We’re really fortunate up here in the Northeast that bugs rarely enter our home (most of them freeze over the winter). Good luck with your bug mitigation!
    Mrs. Frugalwoods recently posted..August 2014 ExpendituresMy Profile

  • Another good month in the PoP house. I echo Mrs. FW,… Pest control is a very valid expense. That’s really cool about SCUBA certification, though I’d be terrified.

  • Don’t you need special equipment and training to handle the pest control chemicals? I wonder if the general public can even buy the stuff that they use. Not something I would try to DIY! When we lived in south Georgia, we just shelled out for it.
    Frugal Paragon recently posted..August ReviewMy Profile

    • I don’t know how different the stuff the pros use is from what you can buy at Home Depot – maybe it’s the same stuff, but in a different concentration or applied more often than most homeowners do if they don’t have a service?

  • Jonathan

    I think you guys do a great job saving.

    But what about cable, electric, internet, cellphone, medical, water/sewer, insurance, property taxes?

    I do not see any line items for these……

    • Hi Jonathan-we don’t have a tv, but internet, electric, water are all in “bills/utilities for primary residence.” Insurance for the home is bundled into the mortgage payment, and car insurance and property taxes are paid when the bills come in.
      Mr PoP recently posted..PoP Income Statement – August 2014My Profile

      • To follow up on Mr PoP… We have Hulu (filed under subscription media above) in lieu of cable because I do watch some shows on the iPad. And our homeowners insurance and property taxes for our primary residence are escrowed, so included in the “mortgage” line item. Currently they are about $400 of that total each month until we have our next escrow review. We pay these as they come in on the rental since that doesn’t have a mortgage. HTH!

      • Do you own a TV for watching movies, or are you completely no TV?

        I used to be no TV, but my husband loves it (mostly for sports), so we have one now. Thankfully, we get free cable right now since we live in the dorm. When we didn’t live in the dorm, we only used our TV for broadcast stuff and netflix.
        Leah recently posted..Summer ReadingMy Profile

        • We have a projector that we set up for movies, projecting them across the room onto a big wall so they end up with quite a big viewing area. We like it a LOT better than a TV – I hate the aesthetics of having a tv in a room.

  • What amazes me about your spending is that you are still able to keep your discretionary spending down while making more money. It seems like we have had to spend on some items that we put off when we were aggressively saving.

    • We’ll definitely be spending a chunk more next year when we redo the kitchen, so that’ll be a pretty big “discretionary” expense in the name of long delayed upgrades. But for the most part we’ve just tried to keep our habits pretty similar to the way they were when we were first married and living pretty much on one income. Our savings rate was okay then, but then skyrocketed once we had two good-sized paychecks coming in regularly.

  • Great income statement as your spending is far below your income. I think it would be cool to see the breakdown between principal paydown and savings. Also how much the paydown is saving you in future interest.
    EL @ Moneywatch101 recently posted..Withdrawing from the 401KMy Profile

    • Hmmm… well, since paying off everything except for our mortgage about a year ago (LINK), there’s not much principal paydown the way there was when we were throwing thousands every month at paying off the loans we took out to buy our investment properties.
      Plus, since our mortgage is at such a low rate (3.25%), we’re just paying it off according to the schedule rather than accelerating payment. With a rate that low, we think we’re better off investing the funds. But, a small amount does still go to principal every month. This month it was about $525. Next month it’ll be a few dollars more. =) But that mortgage principal on our primary residence just gets counted as expense in our book, not an element of savings the way some people count it.

  • We’ve been thinking about pest control for our yard, seeing as we live in Missouri and the humidity means there are, like, thousands of mosquitoes. I was shocked at how expensive it was! Plus, all the chemicals kind of freak me out. I don’t a have a good DIY solution yet, but if you come up with some I would love to hear about them! Looks like you had a great month!
    Retired by 40 recently posted..August & September Budget UpdateMy Profile

    • Well, I don’t think Truly Nolen does anything for mosquitos, though we have a special taxation district on our property taxes that is for county-wide mosquito control. I think the best thing you can do for them is eliminate any sitting water anywhere around your home since that’s where they breed. I know we started to get more mosquitos in our garage when our water heater was slowly leaking and leaving a tiny bit of water in the drip pan before we got a new one last year. Adding a little bleach to the pan killed them and decreased the number of mosquitos in the garage.

  • Scuba certified, buying old dream cars, what’s next bug service? Oh My God it has happened.
    Even Steven recently posted..August Recap and Even Earlier Financial IndependenceMy Profile

  • Out of curiosity how did the Mint.com blog post come about?
    Even Steven recently posted..August Recap and Even Earlier Financial IndependenceMy Profile

  • Java Jax

    We live in Jacksonville and do our own pest control which keeps away the palmetto bugs and other creepy crawlies. Once a month we spray the exterior of the house near the foundation, and also along the baseboards inside the main living areas. Sometimes during (the hot) summer we might come across an extra palmetto bug inside and we’ll do an extra spray. We use spray from Home Depot which works fine.

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