PoP Income Statement – June 2017

Piano! If you look closely, you can see where it sat in the corner of Mama and Papa PoP's living room at their old house in this picture...

Piano!

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.

It’s like Christmas in July right now in the PoP household, in more ways than one. First, our spending was definitely high this month – a problem most people have right around Christmas. But secondly, and more importantly, it sounding a lot like Christmas because I have gotten as far as Jingle Bells in the Alfred’s Self Teaching Adult Piano Course book I took out from the library after the piano that we inherited as part of Mama and Papa PoP’s downsizing arrived at our house a couple of weeks ago!  Have a listen for yourself… or don’t and save your ears.  =)

Please don’t mock my beginner piano skills too badly. I’ve had nowhere near 10,000 hours with this thing yet!   =P

The piano was actually our biggest expense, too (well, second to the mortgage). It hadn’t been played in quite some time, so we paid for an overhaul to be done on it and that cost came in to the tune (haha, get it?) of ~$960. But now we have a lovely piano that’s a century+ old for me to learn on. (No pressure, right?) That cost, plus a wedding gift for a family member (another $200) had the shopping budget significantly higher than we typically like to see, but these kinds of things are the reason we try and be frugal – so we can do stuff like this when we want to.

Another sizable expense this month was prepaying for a year of car insurance, to which we also added umbrella coverage for the first time. This was another ~$870 for the two of them together.

The pool also cost us a little over $300 this month as we had a leak specialist out to check and see if our little repairs had caught what we thought was a big leak. As it turned out, the leak was small and our repairs did catch it, but we had so little rain this winter (less than half the usual winter rainfall) that we thought the problem was worse than it was. Between the fix and the serious rains since then, the pool’s water level is high and holding.

We also had some non-trivial NSX expenses as Mr PoP continues to make sure the NSX is a solid, dependable, supercar for our 1-car family. This month, it was mostly in A/C parts. The A/C in the car works, but hasn’t been the strongest, so Mr PoP is planning on some preventative repairs to the system before it has any sort of catastrophic failure. He’ll be fiddling with that over some time off in the next couple of weeks – wish him luck!

Putting it all together, it was definitely not a cheap month, but hopefully we’re spending in ways that will continue to improve our lives for years to come.

Here’s all the rest of the numbers…

The Bottom Line

  • Earnings before principal paydowns and savings allocations of $3,902.  

And the details…

Income

  • Wages and Salaries (after taxes, 401K deposits, HSA allocations, etc.): $7,138
  • Rental Income: $1,600
  • Miscellaneous Income (rebates, reimbursements, etc.): $1,584 – we sold the Benz!
  • Total Income: $10,322

Expenditures

  • Groceries: $410
  • Eating Out: $226 – approximately half of this was an excellent restaurant we eat at once per year.  Definitely a treat and we savor every bite!
  • Total Food: $636
  • Mortgage: $1,123
  • Home Maintenance and Repairs: $318 – most of this was on the pool, actually.  We thought we might have a leak, and weren’t sure if our attempts to fix it had gotten the whole thing.
  • Renovations: $156 – about half of this was hinges!  Some of the specialty ones are pricey.  
  • Bills/Utilities for Primary Residence: $168 – hopefully this will drop next month as we aren’t filling the pool anymore (leak fixed!)
  • Total Home: $1,765
  • Gas: $221
  • Repairs & Maintenance: $734 –still working on getting the NSX to “daily driver” status here, which it pretty much needs to be now that the Miata is sold!  This month the items mostly relate to the A/C system, which Mr PoP wants in tip/top shape for our Florida summers.
  • NSX Payment: $727 – while we paid cash for the car, we opted shortly thereafter to take advantage of the stupid low rate our credit union was offering on car loans to take a loan on the car and have more money liquid in the market
  • Car Insurance: $734 – a year of car insurance
  • Total Transportation: $2,435
  • General Shopping: $1,278 – The piano and a wedding gift were most of this…
  • Pet Supplies / Care: $0
  • Total Shopping: $1,278
  • Gym / Fitness: $37
  • Medical Treatment/Visit: $0
  • Media Subscriptions: $9!
  • Total Health/Fitness/Entertainment: $46
  • Travel: $0 – Mr PoP’s parents reimbursed us for all of his travel expenses incurred driving their truck to Florida from up north as part of their downsizing adventure
  • Total Miscellaneous: $0
  • Total “Personal Expenditures”: $6,160  ($4,543 net Reno and NSX)
  • Investment Properties: $260
  • Total Investment Expenses: $260
Earnings Before Principal Paydowns / Savings Allocations (EBPPS)
  • EBPPS = $10,322 – $6,160 – $260 = $3,902

Principal Paydowns / Savings Allocations

  • Transfer to Holding Acct for 2017 Roth IRAs: $1,000
  • Transfer to Taxable Investment Account: $3,000
  • Total Principal Paydowns / Savings Allocations: $4,000
Net Income = EBPPS – (Principal Paydowns + Savings Allocations)
  • $3,902 – $4,000 = –$98 = Net Income

How was your income and spending this month?

 

 

6 comments to PoP Income Statement – June 2017

  • Kent

    Can you talk some more about your umbrella policy? We recently added one too and I was wondering about your thought process.

    • It wasn’t a really scientific thought process – more of a – we finally sat down and realized that we’re really starting to accumulate some assets that wouldn’t be protected in a potential lawsuit and that were perhaps going to be a little more “noticeable” if that makes sense.

      For example: The person in the 11-year-old miata rear-ends you? You probably don’t sue and just let it go through insurance. But the person in the $40K (and honestly some people think it looks like more than that) sports car? Maybe you look up their name and realize they own three properties too… All of the sudden you look like a much more worthwhile target.

      We considered putting some of the properties in an LLC, but this was a more cost effective way to protect them and other assets at the same time.
      Mrs PoP recently posted..PoP Income Statement – June 2017My Profile

  • After we added my husband to the car insurance, we increased our umbrella policy to the next million. We figured that married, we are probably liable for our household income and assets and so it’s worthwhile to get a little more insurance. He’s been getting a crash course in wealth building and protecting in the last few years between his income increases and getting married and combining our wealth a bit.

    I’m surprised you count wedding gifts in “Shopping” – we have a separate “Gifts” category. We actually used the remnants of our Donor Advised Fund for the most recent wedding gift as they had requested no presents and only donations to their favorite charities.

    • Ha, I bet your husband is definitely learning a lot from you!

      Shopping is a catch-all kind of category for us. I know many people would delineate more clearly things like “clothing” or “personal care” or “household goods” or “furniture” or “gifts”, but given how often most of those individual categories are $0 and that I don’t want to have to waste time digging into the details like that. With the exception of when we have large items like the piano, shopping is usually a fairly stable category, despite the zeros bouncing all around various subcategories that, so I don’t worry about it too much.

  • Overall looks like a great month even with the extra expenses. I look forward to hearing you after you get 10,000 hours into playing it. Shouldn’t take too long at all to rattle that off!