Expense/Income Tracking

Here is a breakdown of my income for January.

January was a pretty good month for income. Starting my seasonal tax job always results in a nice bump in income. I only had one payday in January so February should be even better.  My online income was surprisingly high. That was a result of hitting the minimum for payout on both Adsense and an affiliate account and also a slight increase in ad revenue. In January I finally kept complete records of my Amazon FBA sales and expenses so I am able to provide an accurate income number for the month. This was my best FBA month, but it still didn’t add up to much. For now, I will continue to dabble with FBA.  The return I get from the time I put into it is less than what I would get from my job. I mostly enjoy doing it though so I’ll continue with it whenever I find good deals. I just won’t put any special effort into finding the deals. I also made $105 in bonuses and I should make more money from referral and bank bonuses this month.

This will be the last month I have any dividend income to report for a while. I sold my last dividend paying stocks at the beginning of the month.  That money is now invested in an index fund in my IRA. Unless, I buy more dividend stocks -which I don’t plan to do- I won’t have any more dividend income to report.

My cashback income went down a little since the Christmas rush ended. Considering it is completely passive income at this point, whatever I make from it is good. If you haven’t joined Mr. Rebates yet you can get a $5 bonus for signing up through my referral link and I’ll make a little money for referring you as well.

February should be at least a little bit better. My job income will definitely be up. My other sources of income will likely be down a little.  I’m sure it will be a good income month.

Here is a breakdown of my expenses for January.

My January expenses were nice and low. I managed to make my stretch goal of keeping my expenses under $1000 a month for the second month in a row. Not having a car does help keep my monthly expenses down. Entertainment expenses were also low since we were able to use gift cards we received for Christmas to go to the movies a couple of times and we didn’t do much else. The travel expenses are for airfare for two different trips. My GF and I are flying round trip KC to Vegas in March. In April we will both fly from KC to Buffalo and she will return to KC while I will take a bus to the Appalachian Trail.  Paying $39.20 for three round trip flights and a one-way flight is a pretty good deal. The flights did put a big dent in my Southwest point balance. I’ll need to build them back up if we are going to have free flights for later this year.  I intend to write a post about these trips in the next few weeks.

My health insurance is about $30 higher this year, other than that my expenses are about the same as last month. February should also be a low expense month. Until I get my dental implants or buy a car every month should be a low expense month. It looks like this will be a low expense year and I’m happy about that.

My expenses in 2014 were a little higher than in 2013. I spent a total of $15,775.66 in 2014 compared to $13977.72 in 2013. The increase in expenses was mostly due to a little over $1000 of dental work and increased travel expenses. Dental expenses will be even higher this year since I’m getting dental implants. It will be well worth the expense to finally have a full mouth of teeth again. I’ll probably travel more this year so I doubt that will go down. Using credit card bonuses and other tricks I think I’ll get a lot of value for the money I do spend on travel.

Here is a breakdown of my main expense categories for 2014. I spent $4800 on housing. This goes to my GF to help with her mortgage payment on the house we both live in. I should probably start paying here more since I’m paying less than half. I spent $321.72 for phone bills. I spent $675.72 on health insurance. I did receive a subsidy on that so that expense could go up or down once I file my tax return. I spent $954 on my student loan. I’m planning on paying a lot more towards my student loan this year.

I spent $1630.53 on car maintenance, registration, and licensing. I spent $222.25 on car insurance and $1074.28 on gas. That is a lot, especially when you consider that I sold my car in September and had hardly any car expenses the last three months of the year. I probably will buy a car later this year. I’m hoping it won’t require much maintenance.

I spent just over $1600 on dental work and medicine. I’ll probably spend more than that this year. I have $2200 set aside in my HSA to cover these expenses. I’m hoping that will be enough and that my medical/dental expense will be much lower after this year.

I spent $807.34 on groceries and $892.81 on meals out. This year I want to reduce the total overall and groceries should make up more of the total than meals out.

I spent $508.24 on movies and $617.92 on other entertainment. I’m guessing that total will stay about the same.

I would like to reduce my expenses down to about $12,000 for this year which will be a stretch. Not having a car should save me some money and I think I should be able to cut down the travel total a little. I might have to make my goal $12,000 for the year not counting my dental expenses and buying a car.

My 2014 expenses of $15,775.66 allowed me to take two trips to Las Vegas, a 5 day trip to an all-inclusive resort in Cancun, a two-week hiking trip in PA/NJ, and some shorter in state trips. There were also almost weekly movie theater excursions and lots of restaurant meals. Even with a relatively low expense total like this it is possible to have a lot of fun.

December’s SWR was 37.67 compared to 38.87% in November. That was a slight improvement. My goal is to get the SWR down to 4% so the lower my SWR is the better. That goal is probably many years from being met. The 4% SWR translates into having 25x your annual expenses in savings or 300 months of expenses in savings. Once I reach that point I will consider myself financially independent.

I have 31.85 months of living expenses saved which is a slight improvement compared to 30.86 months of living expenses saved in November. I calculate my months of living expenses saved by dividing the average of my trailing twelve months of expenses by my total money saved.

Considering I didn’t make much money in December any improvement is good. I think I’m going to stop calculating these numbers for the next few months while I’m working full-time and do a post on the percentage of my income saved/paid towards student loans instead. Would you rather see that post? or both? or neither?

Here is a breakdown of my income for December.

My income for November wasn’t that great. Since my expenses for the month were also very low I still basically broke even for the month so I can’t complain.

My cashback income was a bright spot since I made over $50.  I guess that was from people doing their Christmas shopping. If you haven’t joined Mr. Rebates yet you can get a $5 bonus for signing up through my referral link and I’ll make a little money for referring you as well.

January should  be a better month for income. My full-time tax job starts this month which will likely provide the bulk of my income for the year. I’m not sure how the paydays fall so I might get only one paycheck this month. Even if I only get one paycheck it will be enough to make this month’s income larger than in December.