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.
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…
- 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
- 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
- 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
Net Income = EBPPS – (Principal Paydowns + Savings Allocations)
- $1,946 – $1,946 = $0 = Net Income
How was your income and spending this month?