Damn – not the month I was hoping for. Of course, I was expecting most of this, and I actually thought we’d have a negative net income for the month – so this is good…in a way! We had that bad combination of a lot of expenses hitting (most that we were expecting, but a couple that came up) all at once and an income that is down from previous months. I’m VERY happy that we managed to keep the net income positive – keep reading for all the details!
Job 1 – +$0 – No change here, thanks to the massive amount (in my opinion) of taxes I’m having withheld from my paycheck twice a month. My company just completed our annual performance evaluation process, so if I did well during that (I won’t find out the result until the end of June) then I’ll be getting a raise effective July 1! Last year my raise was a little less than 6%, so I’m hoping for at least that much this year. Of course, I’ll let you know once I know something!
Job 2 – -$1,318 – During March we had the benefit of three pay periods, but April we were back to normal with two, so this brings Mrs AB’s income back to normal. If all goes to plan, then Mrs AB will be quitting at the end of July, so we only have three months left of her income – we definitely need to maximize it while we still have it coming in!
Interest – -$0 – We’re actually down $.27 this month due to the 30 day month (vs 31 in March) and balances that aren’t increasing as much as they should. You’ll see why later, but it’s definitely something to keep an eye on. Of course, the majority of this interest income is made from the money we’ll be using as a down payment on our new house, which will be spent in a few weeks. It’ll be interesting to see how drastically that impacts this number.
Extra Income – -$131 – Mrs AB brought in more teaching money and more money from her athletic coaching gig during April. Both of these incomes streams are due to end during May – at least temporarily. I also received a small ($19) state tax refund from another state where I worked for a couple of days last year. As my company paid the taxes and I’m getting the refund, I consider this income…so just go with it! 🙂
Rent – (just the rent) +$0 – We’re nearing the end of the road for this category. Soon it will shift to the “mortgage” or “house payment stuff” category, or something similar. We’ve agreed with our landlord on a move out date, which gives us a couple of weeks of overlap with our new house, so we’ll have plenty of time to clean, move in, etc. I just setup our final rent payment in my online bill payer – and I can’t tell you what an awesome feeling that was. It’s definitely time for us to move!
Home – (Utilities – Electric, Gas, Water, Internet, Home Furnishings, Insurance) +$84 – I thought it was strange that I hadn’t seen a bill for our renter’s insurance (we moved into our rental in March 2012), so I emailed my agent and apparently it had been sent and we hadn’t received it. The bad news is that we had to pay it during April and it was higher than last year. Other than that, we just had normal bills in here.
Car – (Insurance, Maintenance) -$23 – We didn’t spend anything on the cars this month, so this category was $0 – great job to us!!!
Gas – (gas & tolls) -$201 – This is a strange one in my opinion. We were out of town for about 1/3 of the month, so of course we drove a lot less than normal. On top of that, I received $434 in expense reimbursement from previous months. When you add all that together, it works out to negative $65 in spending for the month…crazy!!! It won’t always look like this, but I’ll enjoy it whenever I can.
Groceries – (Anything we spend at Wal-Mart/Sam’s Club/Kroger/etc) -$242 – After really going crazy during March, we scaled back our spending in April. Combined with our trip, we were able to cut a big chunk out of our grocery expenses for the month. Unfortunately, a lot of this decrease shows back up in our vacation budget a little later.
Eating Out – (pretty self explanatory) -$87– In a similar story to our grocery and gas budget, our vacation had a big impact on this category as well. We ate out a lot while on vacation, but those expenses are captured as vacation expenses and not eating out expenses. As we pack up more of our house and prepare to move I expect eating out expenses to increase.
Personal – (Dry Cleaning, Haircuts, Clothing, Medical, Vet, Other Pet Expenses) +$13 – Just a new pair of jeans in here for Mrs AB in here.
Vacation – (any Vacation spending) -$123 – Ok, so this category looks wrong – and it is. I went on vacation expecting to use an ATM to pull out local currency to pay for things while were there. Instead, my dad had a lot of local currency and he acted as the ATM. All that’s accounted for in here are a couple of airport expenses and a few nights in a hotel that I put on my credit card. I think there’s somewhere close to $1k (maybe a little less) still to be added to this total, but that will appear in May’s income and expense report.
Misc – (Allowance, Gifts, Entertainment, Other) +$4,932 – Uhhh…yeah… not good. So let me try and explain. The main item in here is the $3,988 we sent to the IRS at the beginning of the month. On top of that, we bought some appliances (front loading washer, dryer, pedestals, and a refrigerator) from the sellers of our new house and paid $1,000 for all of them, which we think is an AWESOME deal! We are probably going to get a new fridge and use this one as an extra/drinks fridge, but this will give us more time to find a good deal on one. On top of that, a $200 check cleared to the seller of the previous house we were under contract on (he had been sitting on it for a while). This was our “option fee” and the seller was able to keep it as we exercised our option not to buy the house. I have no regrets, and the $667 or so we ended up spending on that house to not end up buying is probably a fraction of what we would have sunk into it. If you’ve ever seen the movie “The Money Pit” with Tom Hanks – you can get a pretty good idea of what our house would have been like!
I feel good knowing that we are officially out of the crosshairs of the IRS. While this month was painful from a net income perspective, it definitely gave us a good bang for our buck. With the purchase of our new house scheduled for the end of May there will definitely be a lot more expenses coming up. Having said that, if we can survive the IRS, appliances, and other random expenses in a month – I feel pretty good about our outlook
I’m a little scared to look at our net worth for this month – we definitely didn’t add much cash to the pile during April, so we’ll see if it struggled like our net income. Stay tuned, I should have that for you in a few days!
Did your April spending work out as you expected? Are you on track for your 2013 income and expense goals? Let me know in the comments!