Welcome to August’s Income and Expense report. Income was up during August to over $9k – which is awesome. Unfortunately, expenses crept up as well, so our net income only increased marginally. The frugal living I talked about last month still isn’t happening in most areas. We’re trying, but as we’re still in “startup” mode with the house and some other things (you’ll see below) it’s pretty tough. As always, thanks for stopping by to read – I appreciate it whether you comment or not! Enjoy reading about August.
Job 1 +$8 – August probably represents the highest my normal income will be for a while. Starting in September I will have health insurance premiums and HSA contributions coming out of my paycheck. This will come to about $245-250 a month, so my income will decrease by a little less than that starting next month.
Job 2 +$153 – Well, this is it – the end of Mrs AB’s income for now. This increase represents her final 2 weeks plus payout of vacation time. In the future I’ll be adding in her teaching job and any other regular income she earns into this category. Unfortunately, I think it’ll be a while before we see it up at this level again. Oh well, we knew what we were signing up for when Mrs AB started back at school!
Interest +$13 – I know this increase looks crazy, but I think I have an explanation. Last month I went through and closed several accounts, and it transferred all the interest with it – without separating it. So last month’s interest was artificially low, which is why this month looks so strange. Things will go back to normal next month, but I wanted you all to know that there was a reasonable explanation for this!
Extra Income +$600 – This was definitely a nice surprise for the month. Mrs AB’s parents told her that if she read a certain investing book and gave a “book report” of sorts, they’d give us some money to invest. Well, here it is – $600 – NICE!!! Not a bad way to make extra money.
Mortgage +$0 – Last month’s income and expense report I laid out how I was going to report the mortgage and the associated expenses, so there shouldn’t be much change here for a while.
Utilities -$184 – This decrease is great – but it’s not 100% accurate. I setup an auto draft with my city to take care of my water/sewer/trash payment and it didn’t work for some reason. They’ve assured me it’s going to work in September – but of course they didn’t take anything out during August, so I’ll just get hit twice in September. It’s about $95/month, so most of this decrease will be reversed in September. Another piece of this puzzle is a repair bill. We had some A/C issues that warranted a $75 service call to our home warranty company. It was just a blocked pipe luckily, but that $75 fee is included here.
Household -$1,383 – For the second month in a row this category has decreased by over $1k…which is just shocking! Our budget for this category is $600, so we’re still about $150 over – but we’re getting much closer. We’re still purchasing more things than usual as we get the finishing touches put on our house, but the good news is that we’re decreasing our overspending each month.
Cars -$50 – The good news – we spent less. The bad news – we spent over $600 on car repairs! Mrs AB has been having some bad luck recently with her car and unfortunately during August that meant completely new brakes for her car. While we were there the mechanic also informed us that we were looking at almost $1,100 to replace her timing belt in the next few months…AHHHHH!!!!
Gas -$53 – Our driving hasn’t decreased as much as we were expecting it to. Mrs AB has to drive back and forth between school and her teaching gig, which adds a few miles. Also, we went on a nice weekend getaway, and we definitely burned some gas getting there and back. We’re not far off our budget – but we’re still higher than I’d like – but there’s nothing I can do about it so we’ll just keep watching and see where it goes.
Eating Out +$82 – We ate out a couple of times on our mini vacation, and paid for a couple of friends who ate with us to say thanks as they let us stay with them one night. The rest of the month was pretty routine though, and we weren’t that far over budget.
Personal -$330 – We’re way down in this category due to some refunds from last month. The dentist overcharged for some of our procedures so we got some money back. We also didn’t have any pet expenses this month. This category would have decreased even further, but on our weekend getaway we stopped at a few outlet stores…and Mrs AB bought some new clothes – so that brought this total back up!
Vacation +$163 – This is the cost for the mini getaway – just the hotel/parking, as the rest of the costs have been included elsewhere.
Misc +$2,178 – Yes – this is a huge expense – but I can explain! The total in this category is $2,527 and $2,127 of that is school expenses for Mrs AB. When I say “school expenses” – that includes a parking pass, copying fees, lots of textbooks, and a new MacBook Air…yeah – that totally qualifies, right???? Well, she needed a new computer and after looking for a long time we decided that the MBA would be the best option to last her through school. On the upside – she does have $2k in scholarship money coming that we’ll use to offset the majority of this – so it’s not all doom and gloom!
Another month of heavy spending. We seem to be getting pretty good at it! The good news is that even after spending almost $3k more than our budget, we still managed a net income of just under $2,600. We are definitely lucky to have a lot of money coming in – it’s really the only thing saving us at this point. Unfortunately, starting in September Mrs AB’s income will be greatly reduced, so we need to tighten our belts significantly to make sure we don’t spend more than we make. Even more than that – we need to be saving a large portion of our income so we can meet our goals of becoming financially independent and retiring early. Just having these goals and not saving for them isn’t enough – so we really need to kick things into gear. Hopefully September and the last 1/3 of the year will help us do exactly that. Thanks for reading, and let me know in the comments if you have any thoughts!
AB Around the Web
I can’t believe all the places I’ve been featured recently – it’s overwhelming! I hope you’ll take some time to check some of these great sites out!