Welcome to our November 2013 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.
So we knew November was going to be an expensive month, and it did not disappoint. The usual reasons that November expenses get crazy happened:
- Paying taxes on our two investment properties (we pay these 4 months early because we get a 1% discount for every month we pay in advance)
- Travel – Mr PoP goes on a trip to see old friends in November, and I prepaid a hotel room for a marathon next year
- Friends in town visiting always drive up restaurant spending this time of year
- Shopping starts to creep up as we buy presents (hopefully not bad presents!)
But this year we also ended up…
- Dropping $1K into the garage renovations we’re still working on. Well worth it in the long run, but didn’t make this month’s expenses look any more reasonable
- Buying 4 new tires for the jeep and paying our car insurance a couple weeks early since we’re switching auto insurance companies added another ~$1.4K to the total
So, yeah. Expenses were high. But none of it was really a surprise. What was a bit last minute was the fact that we shrunk our income by a good bit this month as well. Need an explanation? Here it is.
I’ve talked about finally utilizing the HSA we get access to through Mr PoP’s work HDHP. The original plan was to put the car accident settlement money we finally got in May in there… and then last month I had set aside money to do so. (Sidenote – This year has been a bit messy accounting-wise.)
But then I read Mad Fientist’s post on hacking HSAs and found out that if I could finagle it so the money came out of Mr PoP’s paycheck rather than just depositing it directly to the HSA account, we wouldn’t pay FICA taxes on it. Sweet!
We probably annoyed the folks at Mr PoP’s HR department by requesting that the entirety of his 2013 HSA deposits come out of one of his paychecks this month. For 2014 it’ll be spread out throughout the year, but that means that income this month is ~$2.5K less than it would have been if we had not done this fancy footwork. It’s annoying and makes our November numbers look even worse, but feels well worth it to avoid paying ~$200 in FICA taxes (7.65%!) that we could legally avoid. So thanks, Mad Fientist. We owe you a beer at FinCon next year!
The Bottom Line
- Earnings before principal paydowns and savings allocations of $114.
And here are the details…
- Wages and Salaries (after taxes, 401K deposits, HSA allocations, etc.): $6,137
- Rental Income: $1,525
- Miscellaneous Income (rebates, reimbursements, etc.): $774
- Total Income: $8,436
- Groceries: $353
- Eating Out: $287
- Total Food: $640
- Mortgage: $1,167
- Home Maintenance and Repairs: $1,139 – nice shelving is expensive, yo.
- Total Home: $2,306
- Gas: $279
- Auto Repairs / Maintenance: $787
- Car Insurance (6 mos): $627
- Total Transportation: $1,693
- Bills/Utilities for Primary Residence: $365
- Bills/Utilities for Investment Properties: $2,505 – includes property taxes for both investment properties
- Total Bills / Utilities: $2,870
- General Shopping: $319
- Pet Supplies / Care: $0
- Total Shopping: $319
- Gym / Fitness: $115
- Medical Treatment/Visit: $35
- Media Subscriptions: $8
- Media Non-Subscription: $39
- Total Health/Fitness/Entertainment: $197
- Travel: $297
- Total Miscellaneous: $297
- Total “Everyday Expenditures”: $8,322
- EBPPS = $8,436 – $8,322 = $114
Principal Paydowns / Savings Allocations
- Zilch. Zero. Nada. (A first in the history of the blog…)
- Total Principal Paydowns / Savings Allocations: $0
Net Income = EBPPS – (Principal Paydowns + Savings Allocations)
- $114 – $0 = $114 = Net Income
The after-tax money set aside last month for the HSA will get re-allocated to growing our buffer back to Mr PoP’s comfort level so that we will (hopefully) start funding a taxable investment account in the new year.
How was your income and spending this month?