PoP Income Statement – October 2013

Welcome to our October 2013 Income Statement!


An insanely low tide had me running about a quarter mile from what’s normally the shore line. So cool!

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.

October was a pricey month, so if you had a problem with September’s expenses, feel free to skip this one. Oh yeah, and you’ll want to skip November’s as well, just FYI. =)

Overall the household expenses were mostly in the range we like, and we especially saw an improvement on groceries from last month (I guess we had plenty of food around the house so we didn’t need to buy as much). But between spending ~$1,000 killing off the remainder of our 2013 travel budget, and topping it off with some of our 501c3 charity funding, and what I hope is the remainder of the medical bills for the year (post on all those soon…), it was a pretty price month. Luckily we had a strong month income wise, so we were still able to put a good chunk towards our savings and investment objectives.


The Bottom Line

  • Earnings before principal paydowns and savings allocations of $6,693

And here are the details…


  • Wages and Salaries (after taxes, 401K deposits, HSA allocations, etc.): $9,784
  • Rental Income: $1,525
  • Miscellaneous Income (rebates, reimbursements, etc.): $133
  • Total Income: $11,442


  • Mortgage: $1,167
  • Home Maintenance and Repairs: $394 – some more garage expenses trickling in…
  • Total Home: $1,561
  • Gas: $320
  • Auto Repairs / Maintenance: $171
  • Yearly Car Registration: $134
  • Total Transportation: $626
  • Bills/Utilities for Primary Residence: $378
  • Bills/Utilities for Investment Properties: $41
  • Total Bills / Utilities: $419
  • General Shopping: $292
  • Pet Supplies / Care: $0
  • Total Shopping: $292
  • Gym / Fitness: $73
  • Medical Treatment/Visit: $138
  • Media Subscriptions: $8
  • Media Non-Subscription: $4
  • Total Health/Fitness/Entertainment: $223
  • Travel: $990 – spending for FinCon, and prepayments for travel for the remainder of 2013 and some of 2014, which kills off the rest of our travel budget for the year!
  • 501c3 Charity: $130
  • Total Miscellaneous: $1,120
  • Total “Everyday Expenditures”: $4,749
Earnings Before Principal Paydowns / Savings Allocations (EBPPS)
  • EBPPS = $11,442 – $4,749 = $6,693

Principal Paydowns / Savings Allocations

  • Allocation for Roth IRAs: $3,500 – which tops up the $11K we need for both of us for the year
  • Allocation for HSA 2013 Funding: $3,250 – as planned for the car accident settlement money
  • Total Principal Paydowns / Savings Allocations: $6,750

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

  • $6,693 – $6,750 = –$57 = Net Income


With money completely set aside for the Roth IRAs, and the HSA allocation for this year taken care of that takes care of the 2013 “minimum” requirements that we had set out for ourselves.


How was your income and spending this month?

42 comments to PoP Income Statement – October 2013

  • October month is simply good to me at least I have a little savings. :) But for sure this month of November will be a rough month, tomorrow is my father’s 6th year anniversary and this coming 20 will be my sister’s debut.
    Clarisse @ Make Money Your Way recently posted..Three ways you can make money with your bikeMy Profile

  • That’s pretty strong that you’ve already got your IRA/HSA contributions taken care of. And your grocery spending looks great! And your “travel” doesn’t look too bad, considering you are budgeting for it and can afford it. Great job!
    FI Pilgrim recently posted..Flipping The Script: How I Learned To Live On Last Month’s IncomeMy Profile

    • Yeah…now that we have paid off all non-mortgage debt we can put aside savings a little more quickly. I think that travel will be a bigger part of 2014; Mrs. PoP is already crunching numbers to figure out what Credit Card gets us the best free airline miles.
      Mr PoP recently posted..PoP Income Statement – October 2013My Profile

  • Great month!
    Our income was fine…Greg started getting regular paychecks in October! I have to admit that I’m pretty excited about that. Our spending was kind’ve strange because of our move and everything but not too bad. I’m ready for things to get back to normal in November =)
    Holly@ClubThrifty recently posted..How I Plan to Save on Overseas TravelMy Profile

  • I hope FinCon was a fun time. Did you both go this month? I’m excited for the three paychecks I’ll be getting in Nov. that should make my income look quite crazy.
    Cash Rebel recently posted..Investing in Law SchoolMy Profile

  • If an almost 7k surplus for savings/investments is a bad month, I don’t ever need to have a good one! 😉 Great job all the way around, still looking forward to if and when you buy a business so I can soak in those posts!
    writing2reality recently posted..Prosper – June 2013 UpdateMy Profile

    • Yup, luckily that bonus check helped offset some of the spendy-ness of the month.
      The business buying is probably a long way down the road for us, but we still find it fascinating and will continue to post thoughts on it.

  • Even though it was a pricy month it’s still amazing to see how much you are putting towards savings! I wish I was in a position to do the same thing!
    Budget and the Beach recently posted..D is for dating…and dreadMy Profile

    • We haven’t always been in this position income-wise, so sometimes we stop and pinch ourselves with how far we’ve been able to come financially.

  • Anne

    What an amazing month you guys! I went about $150 negative cashflow speaking, but what did it was booking excursions for our cruise- worth it! Net worth still went up thanks to 401k contributions and the principal part of the mortgage, gotta love watching the first balance climb and the second fall :)

    • Ooh! What kind of excursions are you going to do? I liked the snorkeling ones when I went on my cruise.

      And yay for the mortgage balance dropping, too! Ours passed into 5 digits this month which felt like a huge accomplishment even though it was only a ~$500 drop. =)
      Mrs PoP recently posted..PoP Income Statement – October 2013My Profile

      • Anne

        We are going on two hikes and a snorkel excursion, and the other port we’re going to snorkel on our own at a nice public beach. Snorkeling is one of our favorite activities for sure!

        On the mortgage no matter what size the drop that is a big milestone! Our mortgage balance is considerably higher than yours, but in the next few months the leading number will drop down one which will be exciting :)

  • Way to max out the IRAs and HSA. I love those accounts. :)

    I have to admit that the EBPPS stuff confuses me, but I oddly don’t have much of a mind for finance or accounting. Either way, I get the general gist that you guys are saving a ton, so kudos!
    Done by Forty recently posted..Net Worth, No Auto October, and No Ad NovemberMy Profile

    • haha, EBPPS is kindof my way of poking fun at high street finance terms like EBITDA… but maybe it’s not working if I’m the only one laughing =)

    • OK, so I’ve always thought Mrs. PoP made up “EBPPS,” so I just googled it to see. Sure enough, the first 5 hits on google ar us, so I think she coined a new term! Just think of it as “What we grossed, minus what we spent, but before what we saved/paid down debt.”
      Mr PoP recently posted..PoP Income Statement – October 2013My Profile

      • The best way to make new terms is to just start using them and act as if it’s totally reasonable. I’ve already got Mr 1500 using opossum as a verb! =)

  • What will you do with your savings for the rest of the year? I’m curious if you dollar cost average your Roths or if you just put it all in as a lump sum? I never know which way is better, but we usually have to wait until our tax returns are final to know how much we can contribute anyway.
    Kim@Eyesonthedollar recently posted..Movember, Time to Grow Your Mustache and a Giveaway!My Profile

  • October was a pretty good month despite a new school quarter kicking off and having to pay for my class. I’m actually excited that our company is implementing HSA accounts in January. It will be a little extra money I can tuck away before taxes kick in.
    Micro recently posted..Why you should shop around before signing to a broadband contractMy Profile

    • Truth be told, I am jealous of Mr PoP’s HSA, but at least it’s looking like flex might not be completely use-it-or-lose-it anymore…

  • Loved the banter above between you two – great job as always, PoP’s! Both of you are role models indeed!
    anna recently posted..The Best Shark Tank Deal EverMy Profile

  • Prob8

    Congrats on your progress PoP’s! It was a nice surprise to meet Mrs. PoP at Fincon. It would have been great to meet Mr. PoP as well. Maybe another time. Until then, good luck in your quest for an NSX. Sadly (or luckily?), I don’t think Mrs. PoP will go for it.

  • You guys are smashing it!! Congrats!
    moneystepper.com recently posted..Bonfire Night – $60 Cash GiveawayMy Profile

  • Great work as usual, PoPs! We did fairly well last month, despite some extra expenditures, so we’re happy. :-)
    Laurie @thefrugalfarmer recently posted..October 2013 RecapMy Profile

  • Debbie M

    I think your net income might have been positive if you have taken (or could have taken) the $138 for medical treatment from the HSA. It looks like you are subtracting the money you put into your HSA from your income (even though you haven’t actually spent it yet) and then subtracting some of it again as expenditures when you do actually spend it.

    To answer your question, my income was terrible this month because I gave up on job hunting and quit collecting unemployment. My spending was good–I was 23% below budget on groceries and technically 26% below budget on short-term fun. (When you add the charges I made that won’t be deducted until this month, I’m 33% over–not bad for a month when I got my sister a totally awesome birthday present.) Utilities have gotten below average with the cooler weather, and I was between getting dental crowns last month, so there were no medical expenses, plus nothing big like property taxes or car insurance was due.

    The exciting thing I did was to look at possible tax breaks and make some changes to increase those. For example, I’ve been contributing only my medical budget to my HSA, but I decided to max out my HSA this year while I still have enough income to have taxes. And even though I’m about to start draining my Roth IRA, I decided to contribute 2K this year so I can get the saver’s credit if I don’t bring home any more income this year.

    I also got a new credit card (with a bonus) and calculated that it gives me more rewards for purchases above $25 than my old one which gives me more rewards for purchases below $25. So I have started using them accordingly.

    I also looked into private health insurance plans and decided to keep the one I have rather than move to one of the ACA plans–it costs about $50 less per month and I’ll probably make too little income to get any subsidies next year anyway. (If your taxable income makes it look like you are below the poverty level, you don’t qualify for any subsidies because you are supposed to be on Medicare instead, at least if you’re in one of the states that extended Medicare.) (My spending will probably be coming mostly from savings, which have already been taxed, so that’s why I’ll look so poor.) Plus I don’t need taxpayers to subsidize me anyway because I’m not actually poor.

    • Re the health spending, you’re right… but we actually treat the accounting on health spending a little funny. We pay out of pocket, count it as spending, and then recognize any reimbursements that we receive from Flex or HSA as Misc income in the month we get it. Plus, we’re trying to treat the HSA as “do not touch” for the most part. I think we need to do a post on this at some point.

      Way to go with the tax planning! – that’s awesome that you’ll be able to take advantage of the saver’s credit and still technically be able to withdraw principal from the Roth just in case.

      I’m worried that a friend of ours is going to fall into the loophole with the Medicaid expansion since he declares very little in the way of taxable income, but like you he’s not poor. He’s never purchased health insurance since he likes to carry the risk himself, but is not nuts about the idea of paying an additional tax/penalty. Roll-out of ACA sure has been messy…

      • Debbie M

        Yes, I was planning to not touch my HSA until a) I quit having a job and b) they quit paying more interest than my regular savings account. Belonging to the credit union I use for that account does get me an “affiliate discount” of $5/month from my homeowner’s insurance, so there’s still an advantage to leaving SOME money in that account.

        The powers that be should do something like I’ve heard they do with car insurance–let you avoid the penalty if you self-insure, which I think they allow if you have a certain huge amount of savings. Or instead of calling it a penalty, call it a self-insurance fee.

        Is your friend in a state that did not expand Medicaid? If not, that would count as insurance and he’d be good. If so, interesting. I haven’t looked into this because I do want insurance to protect me from super-expensive stuff.

        • Debbie M

          P.S. According to Consumer Reports, your friend would not have to pay the fine if they are in a state that did not expand Medicaid if they are below the poverty level. (See the end of the first bullet here: .) Woo hoo!

  • […] 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 […]