PoP Income Statement – January 2015

Welcome to our January 2015 Income Statement!

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Entering week 4 without a ceiling in the kitchen. It gets pretty cold in there some nights without a ceiling! =)

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.

A quick update on our 2014 Spending Summary.   As of that writing, we were $495 over our spending goal for the year.  Well, as it turns out an escrow review on our mortgage found that we overfunded our escrow account by $483 in 2014, so the bank sent us a refund check for that amount and our mortgage payments will drop in February.  Yay!  So unofficially we were actually only over our spending goal by $12 in 2014.  Sweet!

And on to 2015.  If the year 2015 were compressed down to a single day*, it’d be about 2am right now.  Mr PoP and I aren’t at our sharpest in the wee hours of the morning, and the same can be said about our food spending (normally an easy win) this month, which hasn’t been this high in over a year.  Call them “reasons” or “excuses”, but there were a few factors at play here.

1 – Not having a ceiling in your kitchen (see the pic for the current status of our renovations!) makes for a not-so-ideal cooking environment.  And while my awesome Instant Pot has been allowing me some limited “cooking in the living room” adventures (today was Brazilian corn chowder, yum!), we’re turning to convenience food more and that’s expensive even at the grocery store.  Mr PoP got two Rotisserie chickens in what I have deemed the Publix PMS Sale**, and there were multiple trips to the sub counter for some lovely Publix subs to refuel energy that is being used demolishing and rebuilding our ceiling.

2 – We took a fair number of people out to eat this month.  Which included thank you’s to family members like Mama PoP for giving Mr PoP a ride, and Mr PoP’s younger brother for helping us out in the kitchen renovations, and just trying to be good ambassadors for FL and the PF blogging community as the nice folks from Ridinkulous came down south to defrost for a weekend.  No regrets for taking anyone out and we will totally plan around a budget to continue to do just this in our FI plans.  =)

3 – Mr PoP joined a new team at work and is focusing on networking within his new group, which meant more lunches out for him.  He doesn’t think this is going to be a permanent fixture of his new gig, but if it is, we’ll re-evaluate our planned food spending and adjust appropriately.

So yeah. Food spending was high.  Hopefully an anomaly, but we’ve got a year to make up for this excess and hopefully we will.

Also high this month was spending on the car.  It was totally expected as we spent a little over $1K getting a new soft-top for our convertible.  The old one had developed a hole right over the driver’s left shoulder and the duct tape solution Mr PoP had fashioned was no longer effective and it just plain sucks to be rained on INSIDE your car.  (Not to mention the moisture being bad for the upholstery and carpeting…  Normally this might be something Mr PoP would think about DIY-ing to save a couple hundred bucks, but between the kitchen reno taking up time (YouTube made the install seem like a tricky possibly all-day affair) and the 5-year warranty that we would lose if we didn’t install the top using a certified installer, we went with the installer and are pretty pleased with that decision.  We know the car will have higher than normal expenses this year as we get some more maintenance issues done after hitting 100K miles in December and have tried to plan for that.

Other than food and the car, though, our spending was actually pretty good for all the fun we’ve been having!

The Bottom Line

  • Earnings before principal paydowns and savings allocations of $14,221.

And here are the details…

Income

  • Wages and Salaries (after taxes, 401K deposits, HSA allocations, etc.): $15,959
  • Rental Income: $1,550
  • Miscellaneous Income (rebates, reimbursements, etc.): $900
  • Total Income: $18,409

Expenditures

  • Groceries: $398
  • Eating Out: $333
  • Total Food: $731 – way over the $600 goal and this doesn’t even include the $50 in gift cards from Christmas we also spent on food/beverages!  
  • Mortgage: $1,213 – should be lower next month after escrow review, yay!
  • Home Maintenance and Repairs: $65
  • Kitchen Renovations: $123 – still low for now, though this will climb in February…
  • Bills/Utilities for Primary Residence: $254 – solar panel install won’t be for another month or so, after which this number will drop
  • Total Home: $ 1,655
  • Gas: $187
  • Auto Repairs / Maintenance: $1,055 – new soft top for the convertible!
  • Total Transportation: $1,242
  • General Shopping: $155 – a gift and a new iPhone battery mostly
  • Pet Supplies / Care: $0
  • Total Shopping: $155
  • Gym / Fitness: $53
  • Medical Treatment/Visit: $257
  • Media Subscriptions: $8
  • Media/Entertainment Non-Subscription: $32 – rented Grand Budapest Hotel on Redbox and also paid $30 to go to a Bluegrass house concert!  Live music + a nice relaxed setting we can walk to = right up our alley.
  • Total Health/Fitness/Entertainment: $350
  • Travel: $0
  • Total Miscellaneous: $0
  • Total “Personal Expenditures”: $4,133  ($4,010 excluding the kitchen reno items)  
  • Investment Properties: $55
  • Total Investment Expenses: $55
Earnings Before Principal Paydowns / Savings Allocations (EBPPS)
  • EBPPS = $18,409 – $4,133 – $55 = $14,221

Principal Paydowns / Savings Allocations

  • Holding Acct For Roth 2014 IRAs: $0
  • Transfer to Taxable Investment Account: $0
  • Holding for Solar Panels Upfront Cost: $14,221
  • Total Principal Paydowns / Savings Allocations: $14,221
Within the next 6-8 weeks, we expect to pay about $30K to get our solar panels up on the roof.  We also need to move $11K into our Roth IRAs for 2014 funding in the next few months, so we’re hoarding the cash that’s coming in for the time being until we see where we are after those two items are taken care of.

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

  • $14,221 – $14,221 = $0 = Net Income

How was your income and spending this month?

 

* A colleague made a comment along these lines that we were 1 hour in on the first payday of the year and the idea has stuck with me.

** Every once in a while Publix runs a sale where you get a free Rotisserie chicken if you stock up on various household items, like tampons.  Hence the PMS sale since nobody wants to cook when they’re PMS-ing.

38 comments to PoP Income Statement – January 2015

  • Great job as always. And yeah- I don’t think I would want to cook in a kitchen without a ceiling either! Good thing that is only a temporary problem.
    Holly@ClubThrifty recently posted..My Kids Are Getting ExpensiveMy Profile

  • Spending this last month has been depressing. My car had 1K worth of problems, and since they’ve “fixed” it it has been squeaking when it starts and when it turns or backs up the first time when it’s out so it’s going to have to go back. We also just said yes to about $4500 of housepainting and fixing (knowing that the deck will need to be fixed and repainted after that).

    We haven’t been eating out, but that kind of pales in comparison to the extra spending.
    nicoleandmaggie recently posted..Employee initiative or employee management?My Profile

    • Deepest sympathies on the car issues. It’s bad enough when you go into the month knowing you’re going to drop $1K on the car, but less fun when you do and it *still* doesn’t solve the problem!

  • That PMS sale is the funniest joke of the week so far. :)

    Good luck with the renos. May the home stretch go smoothly!
    Done by Forty recently posted..Shifting the SpendMy Profile

    • Haha, at first I called them the tampon chickens (since the first free one was when I stocked up on tampons) and Mr PoP said I was never allowed to say I was buying tampon chicken for him ever again. =)

  • Good luck on the renovations! It’s never good when it is raining inside your car, so I understand that car expense completely. No tops down in the Northeast right now though, very jealous.
    Fervent Finance recently posted..Rich Uncle PennybagsMy Profile

  • Great month for income! I love those good commission months. It can be hard to keep up the constant motivation required for a sales job but Mr. Pop is doing a great job. Sometimes I feel that PF bloggers are so focused on keeping expenses low that they lose sight of trying to make more money.

    Those solar panels are expensive. How will they affect your property value in the future? Geothermal heat is on the rise here but doesn’t seem to have that much affect on the sales price.

    • Commission checks can definitely be fun, but they are a total roller coaster, too!

      The solar is expensive, but we’re actually getting credits amounting to ~$24K back for it, so the total cost to us will be lower. We just have to front the money in the meantime and that’s throwing our normal cash buffer off a bit. (But that’s the whole purpose of the buffer, so… hard to complain!)

      In terms of the effect a full PV system has on the market value of a home, it’s tough to say, but the best research I’ve seen has it pegged at ~$20 for every $1 in yearly energy cost savings. So going by that rule of thumb, and our $100/mo average electric bill, the system will theoretically increase our house’s value by $24K. I say theoretically because there aren’t many comps for home sales in our area with full PV systems to really have a good basis for comparison.

    • Ha! We haven’t written about it, but I transitioned to a training role as of 1/1. In a nutshell they matched my highest commission year and my stress went WAY down.
      Mr PoP @ Planting Our Pennies recently posted..PoP Income Statement – January 2015My Profile

  • I like the way you make a living. Awesome numbers. Keep on posting such income to make us motivated to earn more. I don’t understand why your IRA holding account was still zero. BTW, i read your post “can I get rich by sharing my stuff?”, it’s a great post. Thank you for sharing such kind of content.
    Grace | Total Investment recently posted..Money Book for the Young, Fabulous & Broke by Suze OrmanMy Profile

    • Ooops, you found a typo! Our 2014 Roth already has $11K set aside for it (we do $1000/mo most months), we’re just waiting on the tax guy to make sure we’re okay to drop it straight in.

      Typically we would have set aside $1000 for our 2015 Roth this month (that’s what the zero is!), but we’ll wait until the solar money and everything is taken care of before going back and specifically setting the 2015 money aside since we technically have more than a year before it needs to be deposited into our Roths and money for the solar panels is taking precedence in the meantime.

  • Just curious where your internet/tv budget fits and what approx that runs?
    Even Steven recently posted..Uber Rides Uber Savings Uber Convenient $30 Free Ride #MoneySavingWeekMy Profile

    • Internet is in the “bills and utilities” and it’s been creeping up again (from $34 to $37 in the last few months!), so we need to call them about it. Thanks for the reminder.

      The only TV expense we have is Hulu, which at $8 is what you see down below in the Entertainment section – Media/Subscription.

  • We were over on our grocery budget this month too. I think the 2am excuse is a good one!
    Emily @ Simple Cheap Mom recently posted..Update: January No Eating Out ChallengeMy Profile

  • Wow you’re killing it. We were way over our grocery budget in Jan as well but we did buy a lot of meats from Costco and they will be consumed in Feb. I guess once we average out Jan and Feb grocery costs we will be OK.
    Tawcan recently posted..How we got started with dividend investingMy Profile

  • EL

    Pretty impressive numbers for living in South Florida where income levels are usually way less than 18K monthly. Your half way to getting the solar panels, which is always a good thing when avoiding debt for big purchases.
    EL recently posted..Why I want to be Free of Debt ForeverMy Profile

    • haha, we probably should have said this was an above average month income-wise. Mr PoP’s commission income can be pretty bumpy, so we take the ups with the downs when it comes to that. =)

  • Excellent result and I love how organized you are. I never made detailed budget like that as I don’t spend money on ‘wants’ but needs’. However I can see the benefits of keeping detailed income statement to keep everything clear.

    Cheers,

    BeSmartRich
    BeSmartRich recently posted..Net Worth Update- January 2015 +7.1%My Profile

    • We fully recognize that a huge percentage of our spending is on satisfying wants. We feel like our life is full of a ton of luxuries and as long as we continue to recognize that and not take them for granted, we’re valuing the spending there.

  • No ceiling! Looks like the kitchen is progressing nicely–can’t wait to see more photos! Also, a Bluegrass concert sounds divine, we’re big fans.

    Our January was quite uneventful budget-wise, which I suppose is a good thing :).
    Mrs. Frugalwoods recently posted..January 2015 ExpendituresMy Profile

    • Thanks, Mrs Frugalwoods! It’s tough to really see the progress Mr PoP and his brother have made on the trusses since the old wood and new wood blend together in the pictures, but they’ve done quite a bit! It’ll start to look even more impressive over the next couple of weeks, I think!

  • I love the term PMS sale — chickens for tampons otherwise would be completely random. (still a little random LOL!)

    Good work on your 2014 spending goal!
    Rebecca @ Stapler Confessions recently posted..February Financial Update: Results from our Spending FreezeMy Profile

    • It’s random but the sales can end up being pretty good when they stack up with the right coupons! For one of the chickens I got 3 bottles (the bigger 25oz ones) of Pantene, for ~$5 each. And I had two different buy 3 get $5 off coupons that I used. So for $5 it was 3 big bottles of shampoo/conditioner and a fully cooked chicken. An odd combo, but not bad!

  • The most famous last words are when somebody is finally driving away from a car repair shop: “Well, I’m glad that’s over”

    …it never is.
    Eric recently posted..January 2015 Financial ReportMy Profile

    • *knocking on wood* our current car has actually been pretty well behaved for the first 100K. We’re hoping if we keep an eye on it and don’t abuse her too much we can get another 100K out of her without too much damage to the wallet. =)

  • I don’t blame you for wanting a ceiling, haha. I am shocked at how high your income is though, wow!
    Kayla @ Everything Finance recently posted..Worthwhile Financial Goals: Create a BudgetMy Profile

    • This month had a big check from Mr PoP’s year end commissions, so maybe I’ve gotten a little too used to our income bouncing around so much that it didn’t phase me a whole lot this time around and I forgot to even comment on it! But we need to appreciate it since it’ll be the last one for a while with him changing to a new position at work.

  • That’s a great month on the income and good luck with the renovations. I wish we could get 24k back on a solar system in Houston!
    Adam @ AdamChudy.com recently posted..The Fourth Turning by William Strauss and Neil Howe – Book Review and NotesMy Profile

  • Great post. We’re planning on renovating our kitchen this year and one of the things I’m NOT looking forward to is the inability to cook food/keep our food budget under wraps. I’m hoping that we’ll figure something out, but I’m sure we’ll have a month like yours during the whole process. Any timeline on how long the reno is going to take or are you guys just working on it when you can with no tentative end date?
    Mrs FI recently posted..January FunMy Profile

    • 2015 is “the year of the kitchen”, which gives you some idea of how long we expect it to take. Optimistically we’d love to be done this summer, but fall is more likely.

  • Amy K

    When we remodeled our kitchen we lived out of our rice cooker and microwave – and washing dishes in the bathroom sink suuuuuuuuuuuucked.

    I’m on the Hip Pressure Cooker mailing list and any reference to Instant Pot makes me think of you. So here you go: Instant Pot Ricotta.

    • I saw that recipe! I’m trying to reduce dairy these days, but that might be worth the dairy splurge to turn into some excellent lasagne or something. =)