PoP Income Statement – September 2014

Welcome to our September 2014 Income Statement!

Kitty PoP looks kindof old man-ish with his shaved chin!

Kitty PoP looks kindof old man-ish with his shaved chin!

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 been a crazy month here in the PoP household.  I managed to maim myself not once, but twice.  (My klutziness knows no bounds!)  And Mr PoP had some work travel that is driving him a little nuts these days, too.  Not even Kitty PoP escaped the crazy as he did his first ever interview – check out his interview with Frugal Hound at Frugalwoods.

The income statement looks a little more flush than usual this month, but it comes with a caveat.  I am now officially maxed out on my 401K for the year, which means funds (to the tune of ~$2K/month) that were bypassing our income statement and going straight to the balance sheet (how we always treat pre-tax savings), have to come through our income statement (and get taxed along the way… sad face!) before we can allocate them as savings to our taxable account.  Mr PoP is also on track to max out his 401K, but we’re trying to get that to happen as close to the end of the year as we can (this will maximize his employer match) while dealing with his unpredictable income from his commission sales job.

Also boosting the income this month was the fact that one of our renters decided they wanted to pay us in advance every 2 months.  So the amount recorded for rental income there is ~1.5 months of rent from our 2 units, and next month will reflect ~0.5 months.  Makes income slightly lumpier, but we don’t mind the lumps.

On the expenses side, we’ve also added a new category under “Home” for our kitchen renovations.  Though the bulk of these expenses will come in 2015, there are a few (probably totaling $3K or less) that we are trying to get done in 2014 in preparation for the big event.  It’ll be a bit of a squeeze to get these expenses in under the $50K mark that we are aiming for in total 2014 spending, but if we end up going over by the “Kitchen” amount or less we won’t stress it since it’s more a matter of bringing these expenses forward from the 2015 year.

The Bottom Line

  • Earnings before principal paydowns and savings allocations of $7,436.

And here are the details…

Income

  • Wages and Salaries (after taxes, 401K deposits, HSA allocations, etc.): $8,877
  • Rental Income: $2,350 – one of our renters wants to try paying us every 2 months in advance… a-ok by us!
  • Miscellaneous Income (rebates, reimbursements, etc.): $545
  • Total Income: $11,772

Expenditures

  • Groceries: $380, a little high, but not too bad considering it includes stocking up on protein powder (~$60)
  • Eating Out: $201
  • Total Food: $581 – under the $600 goal, so yay!
  • Mortgage: $1,213
  • Home Maintenance and Repairs: $8
  • Kitchen Renovations: $1,488 – plans for the remodel, plus a 50% deposit for the big part of the work that we’ll be outsourcing
  • Bills/Utilities for Primary Residence: $231 – $0 bill for 2 iPhones on Ting this month due to credit from phone swap!
  • Total Home: $ 2,940
  • Gas: $186
  • Auto Repairs / Maintenance: $0
  • Total Transportation: $186
  • General Shopping: $455 – most of this was spent on doing things with (or for) other people, so hard to complain about
  • Pet Supplies / Care: $33 – litter stock up!
  • Total Shopping: $488
  • Gym / Fitness: $53
  • Medical Treatment/Visit: $32
  • Media Subscriptions: $8
  • Media/Entertainment Non-Subscription: $7 – we rented The Zero Theorem (trailer below) when it came out on iTunes
  • Total Health/Fitness/Entertainment: $100
  • Total “Personal Expenditures”: $4,295  ($2,774 excluding the kitchen reno items)  
  • Investment Properties: $41
  • Total Investment Expenses: $41
Earnings Before Principal Paydowns / Savings Allocations (EBPPS)
  • EBPPS = $11,772 – $4,295 – $41 = $7,436

Principal Paydowns / Savings Allocations

  • Holding Acct For Roth 2014 IRAs: $1,000
  • Transfer to Taxable Investment Account: $6,000
  • Total Principal Paydowns / Savings Allocations: $7,000

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

  • $7,436 – $7,000 = $436 = Net Income

How was your income and spending this month?

Trailer for The Zero Theorem:

20 comments to PoP Income Statement – September 2014

  • Great month! I wish one of our renters would pay us months in advance =/ That has never happened!
    Holly@ClubThrifty recently posted..Cash Money: $9,438 in September Income…and a Business Card GiveawayMy Profile

    • We had another set of renters that just gave us a stack of post-dated checks, one for each month. That was pretty convenient, too!
      I think this set thinks paying us 2 months at a time is easier than getting a checking account (which we’ve been telling them to do).

      Either way, it’s not a big deal to us…. now if the payment was late, it would be. But early, no problem!

  • Wow, great savings amount this month! I hope one day we can do the same one day :) are you going to always let them pay for two months at a time? Is that better for you? :)
    Nicola recently posted..October AimsMy Profile

    • As long as they are paying in advance, it doesn’t matter to us if they are paying 2 months at a time. They want to try it out since they think it’ll be easier for them since they’ve been getting money orders each month to pay us. (Really it’d be easier for them to just get a checking account…)

  • Hey, a renter that wants to pay in advance? That’s not a bad problem to have!
    Becky @ RunFunDone recently posted..Free Floors!My Profile

  • Looks like a good month. That’s awesome that the renter is paying you for two months at a time. Makes it easier to deal with and there’s probably less stress as well!
    Michelle recently posted..How Your Credit Score Affects Your Life + Credit Sesame ReviewMy Profile

    • Well, Mr PoP still needs to go and get the other renters’ check every month, so it doesn’t save us too much hassle. But it’s really not a big deal for us either way.

  • Congrats on a good month! Aside from the maiming of course. Frugal Hound was so happy to sniff KittyPoP! Thank you again for being interviewed :)
    Mrs. Frugalwoods recently posted..Frugal Hound Sniffs: Planting Our PenniesMy Profile

  • Gah- renters and money orders, I feel your pain 😉

    • haha, yeah. The money orders annoy our tellers at the bank a little because they never scan correctly and need to be manually entered every time. But it’s not a big deal – I’d rather have money orders than a renter who doesn’t pay on time!

  • Looks like a great month of income especially from your rental. Do you plan to diversify your income stream into dividend paying stocks as well?
    DivHut recently posted..October Stock ConsiderationsMy Profile

    • We’re not particularly interested in getting into the “dividend” stock game as researching individual stocks is not something we particularly enjoy and if we’re not going to put the time into it, we feel we’re much better off with broad based index funds.

  • Awesome month! I was trying to keep groceries under $500 for the four of us and failed, but I’m not a very experienced grocery shopper (long story). At least I won’t have to buy Pull-Ups this month as Little Brother won’t wear them anyway!

    I’m embarrassed to admit that I’ve never put together one of these reports, partly because I am embarrassed about how much we spend. When you add up your income, do you do the money that you EARN that month, or the money that actually comes in? And is the spending what actually goes out, or what you charge to your credit card?
    Frugal Paragon recently posted..Zero to FixedMy Profile

    • Yay for no more pull-ups! We’ve never had to buy diapers, but I’ve heard just how much they cost and it’s gag-worthy. (Much like the smell of used diapers, come to think of it…)

      As for the “Income” and “Expenses”, we link EVERYTHING through our mint account and create these statements from the summary data there.
      – Income from wages is basically the dollar amount of our paycheck that hits the bank – so it’s after taxes and health insurance premiums, and other pre-tax savings like 401K and Flex account and HSA account.
      – Income from rent is just the checks our renters give us every month.
      – Miscellaneous income is random things like reimbursements from our flex account, random rebates, the occasional small check from google for the ads from the couple of websites we own, gift money, and anything else random like selling something on Craigslist.
      – Expenses counts everything that goes out – spending on credit cards, and spending that comes straight from our checking accounts (we have some companies that don’t accept credit cards, like our electric provider and mortgage company). Mint is nice because it doesn’t double-count spending from our checking account to pay off our cc’s every month as it counts those as transfers.

  • Do you buy vegetarian protein powder? Is it because you exercise too much to get enough protein from meals only?
    Pauline recently posted..Unlimited holidays for Virgin employees?My Profile

    • We buy whey protein powder, which is from cow milk, so vegetarian, but not vegan. Mr PoP likes it for quick breakfasts and post workouts since he would like to bulk up more.

  • Mrs. PoP,

    Looks like another really solid month for you guys. Combine a fairly high income base with a lack of lifestyle inflation and that’s what you get. Keep up the great work!!

    Best wishes.
    Dividend Mantra recently posted..Freedom Fund Update – October 2014My Profile

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