PoP Income Statement – February 2015

Welcome to our February 2015 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.

IMGP1867

Mr PoP nailing plywood in place for the truss modification. So many nails…

Phew. February is over. I would say TGIM (Thank God It’s March), but the reality is that our cash hemorrhaging situation isn’t likely to fix itself in March, either. It’s kindof crazy, but on Valentine’s Day, I checked our Mint account and we had over $48K in cash, nearly a full year of normal expenses. But two weeks later, I was tallying up numbers not sure if we were going to need to draw on our HELOC to get our Roth IRA money deposited before the deadline on April 15th.  How on earth could we go through a year’s worth of cash in less than two months!?!

It’s mostly good stuff, but there are just a lot of big “one time” items that are pulling at our cash pile at the moment and it’s been a while since we had our cash flows impacted this significantly and I got a little too used to the normalcy of having excess each month so this feels like a little more of shock than I thought it would.

So what’s going on?

  • Our solar panels are going up. Like right now as I write this the contractors are at work installing solar panels on our roof. We’ve paid ~$17.5K so far and have another $12.5K to pay when they complete the project and it passes inspection (hopefully by next week). Then we get to start producing our own energy and saving money on our electric bills!
  • We’re making some headway on the kitchen. It’s been a bit slow going (we still don’t have a ceiling), and one of the delays required calling in an A/C contractor for work that we didn’t feel qualified to DIY, specifically moving the copper pipes that carry freon between the condenser unit and the air handler in the attic. Since the freon needed to be drained to do that, we felt A-OK about deferring that one to the experts, though they weren’t cheap. Supplies for the truss modification, despite reusing as much as we can are also starting to add up. We spent about $600 on that in February ($200 of which was gift cards – we’ll call those two trusses Christmas 2014!) and another $600 on March 1, with much more to come as March bounces on and we (fingers crossed!) get to the point where we’re needing drywall ($) and new insulation ($$$) for the new ceiling.
  • We’re going to need a new roof on the duplex about a year earlier than we thought we were going to need one. I’m annoyed because if we hadn’t accepted the pullout from Citizen’s insurance last year we wouldn’t be in this position, but here we are.  At least we have a little more time than I initially thought – the initial notification we got in mid-February sounded like we had 3 weeks to get a new roof. Thank goodness we have a bit more time than that, we just really need to get it done by this summer. We’re in the quote getting stage on this now, but it’s looking like it’ll be nearly $10K as we don’t have the bandwidth to attack this one with any sort of DIY gusto at this point.

So yeah, big stuff. And that’s not including the $11K that we need to get into our Roth IRAs before April 15th… and I still need to talk to our tax guy about whether we need to backdoor.

Other than the roof (which really isn’t a huge deal, just annoying that it’s a year earlier than we thought), all the cash hemorrhaging is for good things that are going to be great ROIs (solar for our wallet, kitchen for our happiness). It just feels like we’re juggling a few more balls than we’d really like to be if we had a choice. =P

As brutal as they are, here are February’s numbers.

The Bottom Line

  • Earnings before principal paydowns and savings allocations of $1,946.

And here are the details…

Income

  • Wages and Salaries (after taxes, 401K deposits, HSA allocations, etc.): $8,696
  • Rental Income: $3,150 – one set of renters paid ahead a couple of months
  • Miscellaneous Income (rebates, reimbursements, etc.): $143
  • Total Income: $11,989

Expenditures

  • Groceries: $411 – includes $110+ of supplements for Mr PoP, one of which is new and was pricey, as he tries to gain more lean muscle mass.  He’s up 4lbs already!  If he wants to stick with this supplement, we’ll have to find a cheaper source or officially increase the grocery budget since this is the 2nd month I’m massively over here.  
  • Eating Out: $161
  • Total Food: $572 – under the $600 goal!
  • Mortgage: $1,151 – our new lower mortgage payment after the escrow review
  • Home Maintenance and Repairs: $50
  • Kitchen Renovations: $1,373 – March will be even higher…
  • Bills/Utilities for Primary Residence: $204
  • Solar Install: $5,869 – actual cash flow on this was ~$17.5K so far, with another $12.5K to pay when they finish the install, but I’m booking as an expense the amount that’s over and above what we expect to get refunded to us via our FPL rebate and our federal income tax rebate
  • Total Home: $ 8,647
  • Gas: $175
  • Auto Repairs / Maintenance: $43
  • Total Transportation: $218
  • General Shopping: $220 – picked up some spiffy new panniers for my bike!
  • Pet Supplies / Care: $0
  • Total Shopping: $220
  • Gym / Fitness: $160 – registered early bird for two races that I definitely want to run again next year, booking a solid prepayment discount.
  • Medical Treatment/Visit: $0
  • Media Subscriptions: $8
  • Media/Entertainment Non-Subscription: $0
  • Total Health/Fitness/Entertainment: $168
  • Travel: $163 – renewed a passport and covered incidentals (tolls, meals) on a quick weekend trip
  • Total Miscellaneous: $163
  • Total “Personal Expenditures”: $9,988  ($8,615 excluding the kitchen reno items, and $2,746 excluding kitchen reno AND solar install)  
  • Investment Properties: $55
  • Total Investment Expenses: $55
Earnings Before Principal Paydowns / Savings Allocations (EBPPS)
  • EBPPS = $11,989 – $9,988 – $55 = $1,946

Principal Paydowns / Savings Allocations

  • Holding Acct For Roth 2015 IRAs: $0
  • Transfer to Taxable Investment Account: $0
  • Holding for Solar Panels Upfront Cost: $1,946
  • Total Principal Paydowns / Savings Allocations: $1,946
Cash is king in the PoP household at the moment, so we’re pretty much holding everything that we can for the next month or two at least.

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

  • $1,946 – $1,946 = $0 = Net Income

How was your income and spending this month?

 

 

19 comments to PoP Income Statement – February 2015

  • It is amazing how quick a bank account can be drained! Does the solar install look good so far? that’s really exciting!
    Emily @ Simple Cheap Mom recently posted..Grocery Shopping on a Budget of $200: 6 Lessons LearnedMy Profile

  • My thoughts exactly about February, but more for the snow situation we’ve got going on up here :). Glad to hear the kitchen is progressing apace and very exciting that the solar panels are in! I’ll be interested to hear if you go the backdoor Roth IRA route. Keep us posted :)!
    Mrs. Frugalwoods recently posted..February 2015 ExpendituresMy Profile

    • We’ll definitely post if we end up needing to backdoor the Roth or not. I just need to get the papers all together and schedule a drop off with our tax guy. =)

  • Cash is king has been my motto the last several months, though that’ll end soon as I’ll finally get paychecks this month from the new job, woo!

    All that money hemorrhaging, well all the stuff you’re juggling for it, that is a lot going on at once! That would be stressing me out.

    If you don’t have any traditional IRAs, then the backdoor is super easy. I’ve actually just started doing it at the beginning of the year so that it’s done since I would need to not work a few months out of the year in order to qualify for a regular contribution.
    Leigh recently posted..February 2015 net worth update (+0.7%)My Profile

    • I was pretty stressed out when the duplex roof thing came up and I really thought we had 3 weeks to get a new roof on. That’s a tiny timetable even if we weren’t writing giant checks left and right these days. But I talked it over with a friend via gChat and that calmed down a bit, which I’m sure Mr PoP appreciated when I filled him in calmer later that night. =)

      We don’t have any tIRAs, so glad to hear it shouldn’t be bad to backdoor. I suppose I could calculate if we need to myself (I know we were close to the limit in 2013 and we grossed a good bit more in 2014 so that’s why I’m assuming there’s a good chance we need to backdoor this year), but we pay the tax guy to do it, so I may as well leave the work to him. =)

  • I hear you on the cash outlays. For us savers/investors, it’s always weird when the money has to go in the other direction. Like water flowing uphill…weird to see.
    Done by Forty recently posted..The Full CostMy Profile

    • Definitely weird. We were in the RE investing (ie spending) mode really heavily from 2009-2011, but definitely got out of that habit over the past couple of years so this feels like foreign territory even though it’s really not.

  • Supplements? Does he have a medical issue? If not, I’d say a good supplement is FOOD. I’m allowed to say this because Marge also eats some of this nonsense non-food every day.
    Norm recently posted..Savings Bonds or Car Loan?My Profile

    • ha! No medical issues, but Mr PoP is a naturally skinny guy that sometimes has a tough time putting on lean muscle mass. He says this stuff is not only safe (my requirement), but that it’s working for him and he wants to keep trying it for a few months and that’s good enough for me.

  • Those are great numbers that you’re showing. When I was trying to bulk up years ago I was told that after workout I should have a bowl of cereal and drink chocolate milk. That seemed to help. Maybe give that a try? Alternatively Mr. Pop could just have a stick of butter after every meal like Homer Simpson did in this episode (http://en.wikipedia.org/wiki/King-Size_Homer) but that’s probably not a good idea for your overall health.

    • haha, I think we’ll stay away from the butter for now. In previous weight gain efforts, Mr PoP tried to GO-MAD (gallon of milk a day) and he gained, but not as leanly as he liked.

  • The problem with life is that it’s just so… constant. It feels like we’re always putting out/anticipating fires. Luckily, not literally.

    February hurt, but March will be worse thanks to a $3,500-4,000 HVAC unit that needs installing.

    After that, big save up for a huge expense in October (oral surgery) and then maybe, just maybe, we’ll be done with $3,000+ projects for awhile. That would be swell.
    Abigail @ipickuppennies recently posted..How a few clicks got me $298 in 30 daysMy Profile

    • “Luckily, not literally” Definitely this.

      We went through the whole A/C dance in 2010, 2012 and 2013 (3 A/C units in 4 years was enough to last a while!), so know how annoying it is. Fingers crossed things settle down after Tim’s surgery in the fall.

  • Despite the price tag, needing drywall and insulation for the kitchen should be a huge welcome expense. I know I’d be thrilled to get the ceiling back in the kitchen! Want to see more pictures please :)
    Mrs. Maroon recently posted..Don’t Treat Diet Like a Four-Letter Word – Same Goes for BudgetMy Profile

    • Oh totally. I wouldn’t say I’m excited to pay $800 or more for the insulation we’re going to need for the ceiling, but I’m excited that we’re getting closer to the point where we’ll once again have insulation and a ceiling. =)

      We’ve been trying to take more pictures, but the problem is two-fold. 1 – we’re usually both holding the end of a large piece of wood and have no extra hands for a camera. And 2 – when we can grab the camera, so far pointing it up towards the ceiling still just looks like a jumble of wood without clear distinctions in the photographs. We’re hoping after this weekend’s work it’ll be more defined and we can start getting some pics where it’s easier to see what the ceiling will look like vaulted!

  • I definitely use the protein powder to supplement. Hard to get up to the right numbers otherwise.

    What’s the NPV or payback period on the solar cells?
    Adam @ AdamChudy.com recently posted..What I learned from 50th Anniversary Berkshire Hathaway LetterMy Profile

    • Our upfront cost is ~$30K. Then we’ll get ~$15K back from FPL (our utility company) sometime a few months after completion. We’ll also get another ~$9K back on our 2015 taxes. So total out of pocket is just under $6K, which is ~5 years worth of electricity usage for us. We’re thinking of the system as paying upfront for 5 years worth of electricity and getting a system with an expected life of 25-30 years that will provide our total electric usage for that time.

  • Those are great numbers,I’m starting to build my cash pile so when mr. market will turn around I will buy more stocks.