PoP Income Statement – March 2016

Welcome to our March 2016 Income Statement!

Grainy picture of the Kilauea volcano at sunset. iPhone not the best at night... =(

Grainy picture of the Kilauea volcano at sunset. iPhone not the best at night… =(

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.

We’re still in Hawaii for another week, but I took a few minutes this morning to compile our monthly financial statements.  (Once you get a system it really doesn’t take much time at  all to summarize every month, I swear!)  And it’s good for us to check in on our monthly totals, even on vacation.  =P

March was an expensive month, and the overwhelming theme of much of it is “travel”.  That’s pretty okay for us since we knew we wanted this year to be a year when we traveled more after not getting to travel much while working on the kitchen last year.

Shopping was high as I spent nearly $350 in the two days before departing on our trip trying to replace my old hiking boots with ones that wouldn’t aggravate my foot injury.  The good news is that I found some Keens that fit the bill – and they have gotten a TON of use on our trip so far!  But I still have a good $200+ in other shoes that need to be returned when we get home since I had just started buying the “best shoe” I found at every store we went to.  Yay for return policies.  =)

We also paid Mr PoP’s traffic ticket and online traffic school. Ugh… a solid $217 for a U-turn.  Violating the law is expensive, yo.

Travel was the big one, though.  $2,874 in non-reimbursable travel expenses.  About $1K of this went to tickets for Mr PoP and his best friend to attend Burning Man later this year.  At $390/ticket + a vehicle pass, it’s not cheap.  But this is a trip Mr PoP has been wanting to take since before we even started dating and it’s finally happening.  He and his friend are having a blast planning for it so far, too!  The remainder of the travel spending this month was for our Hawaii trip.  12 nights with AirBnB hosts at ~$110/night.  12 days of rental cars at ~$30/day, and ~6 days of incidentals, which we try and keep at $100/day or less when we’re traveling.

April travel will also be on the high end as we will have the remainder of our Hawaii spending, spending for our trip to Omaha for the BRK meeting, and we’ll have another payment for my trip to Ecuador later this year.  That won’t be the end of the travel spending for the year, but these two months will definitely have the bulk of it.

The shining bright spot on this income statement is the negative $402 in kitchen renovation expenses (ie $402 in income in this category).  We’re still not done with the kitchen, but we’re starting to sell some of the tools we bought that we are done with and won’t be using again and are counting these sales against our previous (and future) kitchen expenses.

The Bottom Line

  • Earnings before principal paydowns and savings allocations of $3,707.  

And the details…

Income

  • Wages and Salaries (after taxes, 401K deposits, HSA allocations, etc.): $7,638
  • Rental Income: $1,400 – a renter finally cashed a deposit reimbursement we sent couple months ago
  • Miscellaneous Income (rebates, reimbursements, etc.): $289 – includes our small 2015 tax refund
  • Total Income: $9,327

Expenditures

  • Groceries: $358
  • Eating Out: $153
  • Total Food: $511
  • Mortgage: $1,150
  • Home Maintenance and Repairs: $75
  • Kitchen Renovations: –$402
  • Bills/Utilities for Primary Residence: $149
  • Total Home: $ 972
  • Gas: $135
  • Ticket & Traffic School: $217 – from Mr PoP’s u-turn
  • Total Transportation: $352
  • General Shopping: $635 – a couple hundred of this is waiting to be returned…
  • Pet Supplies / Care: $20
  • Total Shopping: $655
  • Gym / Fitness: $119 – gym + registration for 2 races
  • Medical Treatment/Visit: $88
  • Media Subscriptions: $8
  • Media/Entertainment Non-Subscription: $0
  • Total Health/Fitness/Entertainment: $215
  • Travel: $2,874 – Burning Man tickets + lots  of spending for Hawaii
  • Total Miscellaneous: $2,874
  • Total “Personal Expenditures”: $5,579   
  • Investment Properties: $41
  • Total Investment Expenses: $41
Earnings Before Principal Paydowns / Savings Allocations (EBPPS)
  • EBPPS = $9,327 – $5,579 – $41 = $3,707

Principal Paydowns / Savings Allocations

  • Transfer to Holding Account for Sunny Restoration: $1,500
  • Transfer to Holding Account for 2016 Roth IRAs: $1,000
  • Transfer to Taxable Investment Account: $1,000
  • Total Principal Paydowns / Savings Allocations: $3,500
Net Income = EBPPS – (Principal Paydowns + Savings Allocations)
  • $3,707 – $3,500 = $207 = Net Income

How was your income and spending this month?

7 comments to PoP Income Statement – March 2016

  • Another great month guys. Travel is one thing I’m always willing to spend some money on. Hawaii, Omaha and Ecudor will combine to be a nice bit of travel this year. Look forward to hearing the stories from all three.

    Safe travels!
    -Bryan
    Income Surfer recently posted..Struggles on the RoadMy Profile

  • Michelle

    Would love it if you would share your savings rate and how you calculate it each month (whether you include principle paydown as savings, etc.)

    • I know a lot of people really focus on savings rates, but there are so many different ways to game those calculations that we don’t find them useful for our planning purposes. That said, once a year (after our taxes get done) I calculate what percent of our gross went to income based taxes, what percent went to our personal spending (which includes mortgage principal and property taxes), and the rest is loosely considered our gross savings rate. Mostly it’s a curiosity thing since we don’t really use it for planning.

    • Having a high savings rate is incredibly important if you want to achieve FI. It’s just not important to put a precise number on it every month-especially after 4 years of tracking our expenses and earnings. You can get a sense of our gross income/spend in our shareholder letters here-

      http://www.plantingourpennies.com/2012-shareholder-letter/
      http://www.plantingourpennies.com/2013-shareholder-letter/
      http://www.plantingourpennies.com/2014-shareholder-letter/
      http://www.plantingourpennies.com/pop-2015-spending-summary-now-with-kitchen-pics/

      Stay tuned for tomorrow’s balance sheet post-we do track spending/net worth on a monthly basis just to see where we could retire if we had to pull the plug right now.
      Mr PoP @ Planting Our Pennies recently posted..PoP Income Statement – March 2016My Profile

      • Michelle

        Thanks for that info and for the links. I’ll check them out. Yes, I have recently started really getting into the concept of savings rate and found that there are definitely a lot of varying ways to track it… for example, seems like income taxes should be left out of the equation altogether, but when you include 401K savings, that’s on pre-tax money so not really apples to apples, right?

        Also, just curious – does that misc. income category includes blog income? If you don’t mind sharing, how much does the blog bring in monthly?

        • You hit the nail on the head with all the complicated ways to make adjustments to savings rate calculations and why we don’t like to use them all that much, and especially not for comparison purposes.

          Misc income does include blog income, though it’s a small portion. Our blog income is ~$1/day, so every few months Google sends us a check for $100. Basically it pays for blog expenses and a tiny bit more, which we then get to pay taxes on. So… Not a big money maker. =P

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