PoP Income Statement – March 2017

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.

Kitty PoP decided to try on my new glasses.  I think they're a teeny bit too big for his face.  =)

Kitty PoP decided to try on my new glasses. I think they’re a teeny bit too big for his face. =)

Income was boosted this month with a pretty sizable tax rebate.  I apparently over-corrected on our withholdings after accounting for the fact that in 2016 we would not be repeating our big solar tax credit from 2015 and withheld about $6K more than I should have.  Fellow taxpayers, feel free to thank us for the interest free loan we provided the federal government, but don’t count on it for next year.  After learning this from our tax guy, I tried to adjust our withholdings so our 2017 refund won’t be nearly as big.

Cars were the big expense this month, and for the moment (after nearly 3 years of being a 1 car household), we have 2 of them.  After getting Mr PoP’s NSX, we knew it would need some work to get it to daily driver status.  This month saw ~$1200 in parts and labor on that front, and next month will have a bit more as Mr PoP still needs to get a jack that will allow him to install some of the remaining parts that need to be installed.  Unluckily happening in the same month, our other car decided to have some non-trivial problems (the starter and the A/C).  We briefly considered asking our mechanic who specializes in those cars if he just wanted to buy it from us instead of repairing it, but the repairs ended up being less than we were afraid of <$400 for a new starter and some A/C work.  So for now we’re keeping it since Mr PoP isn’t convinced the NSX is quite at daily driver status.  But it did end up being an incredibly expensive month for car parts and repairs.

Other than that, our spending wasn’t too bad.

Here’s all the numbers…

The Bottom Line

  • Earnings before principal paydowns and savings allocations of $470.  

And the details…

Income

  • Wages and Salaries (after taxes, 401K deposits, HSA allocations, etc.): $7,136
  • Rental Income: $1,600
  • Miscellaneous Income (rebates, reimbursements, etc.): $6,833
  • Total Income: $15,569

Expenditures

  • Groceries: $386
  • Eating Out: $191
  • Total Food: $577
  • Mortgage: $1,123
  • Home Maintenance and Repairs: $75
  • Renovations: $285 – mostly tiling supplies as Mr PoP continues to make progress there.
  • Bills/Utilities for Primary Residence: $155
  • Total Home: $1,638
  • Gas: $216 – high as Mrs PoP ended up needing to drive a bit more towards the end of the month for work
  • Repairs & Maintenance: $418 – this is for our old car
  • Fun Car: $1,183 – work on the new car that needed to be done ASAP plus some parts Mr PoP has ordered that he wants to install himself but also need to be done pretty quickly
  • Total Transportation: $1,817
  • General Shopping: $231 – I may return a pair of shoes for ~$95 to Zappos, so this might have been even lower.
  • Pet Supplies / Care: $43
  • Total Shopping: $274
  • Gym / Fitness: $37 – new monthly gym fees going forward
  • Medical Treatment/Visit: $15
  • Media Subscriptions: $8
  • Total Health/Fitness/Entertainment: $60
  • Travel: $302
  • Total Miscellaneous: $302
  • Total “Personal Expenditures”: $4,668  ($3,200 net Reno and NSX)
  • Investment Properties: $92
  • Total Investment Expenses: $41
Earnings Before Principal Paydowns / Savings Allocations (EBPPS)
  • EBPPS = $15,569 – $4,668 – $92 = $10,909

Principal Paydowns / Savings Allocations

  • Transfer to Holding Acct for 2017 Roth IRAs: $1,000
  • Transfer to Taxable Investment Account: $10,000
  • Total Principal Paydowns / Savings Allocations: $10,000
Net Income = EBPPS – (Principal Paydowns + Savings Allocations)
  • $10,909 – $10,909 = $0 = Net Income

How was your income and spending this month?

 

 

16 comments to PoP Income Statement – March 2017

  • We were almost the exact opposite. We owed about $5,000 in federal and state taxes. That was due to our rental rental income, which was much more than in our first year. It’s quite a bill, but still I’d rather owe money than get a rebate.
    Norm recently posted..CDs Ladders for Emergency Savings… And Beyond!My Profile

    • When you owe that much, don’t you have an underpayment penalty? That’s what I always try to avoid. I like to get just a tiny bit back, but it’s so hard to figure (tho I’m not sure why, since my husband and I both work at the same place!).

      • If your income increases year over year, then no, you don’t have an underpayment penalty. You avoid the penalty by either paying the smaller of “90% of the tax required for the current year” or “100%* of the tax shown on the return for the prior year”.
        *110% if your AGI for 2015 was more than $150,000.

        Once I determined that we would have paid more than 110% of the tax shown on the return for the prior year, I didn’t worry about how much we we were going to underpay by.
        Leigh recently posted..February 2017 updateMy Profile

    • Yeah, maybe I’m weird, but I feel better getting a refund than paying a bill. If I have to pay the bill directly I might start grumbling and moan about paying taxes. But through withholdings I really don’t mind the taxes we pay. They seem pretty reasonable and fair for what we get when we pay them a little at a time (but looking at the amount all at once is a little disheartening).

      • My husband is that way too! I’ve always been extra careful to get him to err on the side of overwithholding rather than underwithholding, to balance out the fact that his bonuses don’t get enough taxes taken out. It results in less complaining from him come April when it’s an extra $N00 per month of taxes taken out than paying that in a lump sum later.
        Leigh recently posted..February 2017 updateMy Profile

        • It’s probably one of the least rational reactions I have. I can multiply by 12 or 24 (or more realistically 48 since we each get paid twice per month). But it just feels so different to see ~$1K getting taken out in various taxes from each paycheck than it is to see ~$50K in various taxes adding up at the end of the year. And having to write a check makes me dwell too much on the total amount paid. The IRS definitely knew what they were doing when they set up automatic withholdings! =P

  • Jacq

    I owed this year. I cashed in some big savings bonds. Apparently there was a deal in 1986 with 7.5% for the first 10 years, so my grandparents got in on that!
    I also never expected to get a steady yoga teaching gig so I made more than I thought, and the studio doesn’t take any taxes out. This year I’m looking into setting up an llc so I can get a Sep IRA or solo 401k and pre-tax my ‘yoga money’.
    Thanks for the Kitty Pop picture! :)

    • Nice job with the steady yoga gig! And sounds like a good plan to stash away the yoga money. (I’m guessing you are a 1099 and not a W-2?) On a non-monetary note – What type of yoga are you teaching? I think I’d be a horrible instructor, but I love taking yoga classes.

      And you are welcome on the Kitty PoP picture! Is it just me, or are cats in glasses as cute (or cuter?) than toddlers in glasses? =)

    • Daniel DArcangelis

      You don’t need an LLC to have a SEP IRA or soloK.

  • This year, we owed about $2000. I’d estimated in the fall when we got married that we wouldn’t have to pay an underpayment penalty, so I just let things fall as they landed since life was pretty busy. This year, my estimates show that we’ll get a $7000 refund if we don’t adjust our withholding at all. We decided to let my husband continue to have his paychecks withheld at the higher Single rate because it wouldn’t take much income from me to eliminate the marriage “bonus”, so we’d rather risk getting a larger refund than end up needing to change the withholding later. We agreed that the difference between the sum of two Single returns we would split 50/50. So this year, we split the marriage “penalty” 50/50 and in 2017, my vote is that the marriage “bonus” either go to a travel fund or to a joint Vanguard account :)
    Leigh recently posted..February 2017 updateMy Profile

    • Sounds like a solid plan on splitting the marriage “bonus”. You could even do both – take a trip (maybe I’m leaning toward this since we’re on vacation this week!) and then put the rest in the Vanguard account. =)

  • My total spending for March, including my rent, was under $2400. Which is only a few hundred less than my income but at least I’m keeping my head above water!

    I was able to massively bolster my savings, though, because I qualified for the Earned Income Tax Credit. With my low income, my strategy is to keep my regular spending below my regular earning and use the occasional windfall (tax refund, three-paycheck month, etc.) to build a cushion.
    Frugal Paragon recently posted..March Spending: Modest ProgressMy Profile

    • All of this is excellent news for you. Sooner or later you’ll end up with a gig that has more hours, but in the meantime your windfall strategy sounds like a great plan to keep everything stable and moving forward.

  • I ended up making more money last year which led to almost a $10k tax bill. I switched my exemptions to avoid owing this much next year. Of well, it’s a good problem to have.
    Investment Hunting recently posted..Stock Buy – Hormel Foods Corp (HRL)My Profile