Before I get started I want to ask everyone for a favor. I’ve been included in a March Madness contest over at FreeMoneyFinance and all I need you to do is visit the site and vote for my article (about tracking your net worth)! Once you get to the website just scroll to the comments section and type in “Option” and submit. Thanks in advance!!
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Something I just noticed – yesterday was my 6 month blogiversary – So after 6 months and 54 posts I’m proud of where I am. Thanks to everyone who has helped me along the way – I’m looking forward to the next 6 months (and the next, etc, etc)!!! Ok, down to business, here’s my income and expense report:
With the first two months of our 2013 budget complete I think that it’s time to say that I’m pretty pleased with it. As you can see from our expenses this month and in January, we’re not having issues sticking to the budget and living within our means so far in 2013. Of course, this budget does represent increased spending from last year – but I still think it’s reasonable. While you’ll have to read below for the details – I have to point out the CRAZY amount of extra income we brought in this month. I mean…wow! Every time I look at this number I’m more and more amazed by it!
Job 1 – -$484 – This is definitely a nice one-two punch. In January my income decreased due to the expiration of the payroll tax cut. Now it has gone down again because I’m having more taxes withheld to hopefully avoid facing the same tax issues next year! Combined, my monthly income has decreased by $660 as a result of these changes, or just under $8k a year!!! While that’s a LOT of money, Mrs AB and I will still find a way to prosper and get ahead.
Job 2 – -$1 – Mrs AB’s paycheck still hasn’t settled down, but now that her raise is in place (effective 2/15) things are going to start looking really good here. As March is a 3 pay period month, watch this category for some awesome numbers pretty soon!
Interest – -$5 – With only 28 days in February, interest didn’t accrue fast enough to make a dent here and for the first time in a while this category was down. It’ll be back up in March, but still annoying to see it drop.
Extra Income - +$10,785 – Holy crap…that’s all I can say here! Well, I guess I could tell you where this extra income came from too – that’d probably be helpful! Every penny of this can be attributed to one source – Mrs AB!
- $10,000 – As a sort of congratulations / encouragement / etc for getting into the PhD program, my wife’s grandparents wrote her a check for $10k…yowza!
- $600 – This is Mrs AB’s first paycheck from her teaching gig
- $240 – Another paycheck from Mrs AB’s athletic coaching – dang she’s good!
Rent – (just the rent) +$0 – Still just the regular rent here. We did put in an offer to buy a house over the weekend, so this could change pretty soon, so watch for it here.
Home - (Electric, Gas, Water, Internet, Home Furnishings, Insurance) -$39 – Nothing exciting here – just gas and electric that were less than last month.
Car – (Insurance, Maintenance, Tolls) -$579 – After we paid for 6 months of car insurance in January, this category has gone right back down (as expected). As I’m working locally, I expect this category to be higher than it was last year, but it should remain relatively low.
Gas - (Gas & Tolls) +$363 – While I’m getting reimbursed for gas/tolls/parking (at the airport) sometimes there’s a lag and you have some pretty crappy looking numbers! With my wife driving a lot for her teaching job and both of us driving to look at houses pretty frequently the miles are definitely piling up.
Groceries - (Anything we spend at Wal-Mart/Sam’s Club/Kroger/etc) -$107 – We stocked up on a lot of items in December / January, so our spending decreased in February. I can definitely see this going up in March, but hopefully not.
Eating Out - (pretty self explanatory) -$20 – Dang, another down month – we’re doing pretty well here. We did have a gift card for a $30 meal and my wife’s parents paid for pizza one night. But even so, we’re doing well here.
Personal – (Dry Cleaning, Haircuts, Clothing, Medical, Vet, Other Pet Expenses) -$138 – On the one hand, we didn’t spend much (or really anything) on clothing during February. On the other hand, we spent $76.65 on dog poop bags…not even kidding here! We did manage to get 2000 of them (16 pounds – yeah, that’s a lot of poo bags!), so it will take us years to run out, but it’s still a lot to spend on bags. Oh well, that’s part of the fun of owning dogs!
Vacation – (any Vacation spending) +$9 – No spending here, but we do have some “accrued expenses” that we will pay in March. We’ve booked hotels and a rental car for our upcoming trip to Europe and spent right around the $500 mark so far. Combine that with our airfare (we used points, so it was $400 in taxes) and we’re at $900 for the trip before we’ve even left. Vacations are definitely not cheap!
Misc – (Allowance, Gifts, Entertainment, Other) +$56 – Nothing exciting here, we bought a couple of gifts for my parents’ birthdays but that’s about it.
February kicked the crap out of every other month we’ve had before. Of course, a $10k check will do that most months! Even without the $10k, we were still on track to have an excellent month, even including the reduction in my income. As I tell Mrs AB frequently – things work out for the best – and in this case they definitely did. We don’t have a specific net income goal for 2013, but this will definitely factor into our net worth goal that I laid out in January.
If things work out with the house we’ve made an offer on you can expect to see some C-R-A-Z-Y changes to this page over the next few months. The house needs some work (a LOT…), so we will be spending money like it’s going out of style. I’ll keep you all updated here!
Did your February spending work out as you expected? Have you had to modify your 2013 budget already or are you on track? Let me know in the comments!
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