Thursday, May 7, 2015
April 2015 Income and Expenses
The amounts below are cash amounts and are net of taxes, insurance, 401k contributions, HSA, etc. In other words, the amounts are what get deposited and withdrawn from my accounts.
Day job (take home pay) --- $12238.93
Dividends/Interest --- $885.04
Options income --- $181.10
Total net income --- $13305.07
Expenses --- $8519.89
Savings $4785.18 --- Rate 35.97%
My day job income drifted down once again on a month over month basis. I think some of my income is being impacted with the lower energy prices. While Houston is much more economically diversified now than say in 1980, lower oil prices still make people a little nervous around here.
Once again, dividends were very solid in April and I also received my first ever option income from a GE call that I opened and closed within two weeks. I don't plan on day trading with options going forward. In fact what few options I sell will be out of the money calls. I don't anticipate making more that $400-$600 a year with this strategy. My real intentions are to accumulate income producing assets, not day trade.
Expenses were a bit high this month. I don't like making excuses for large one time items, but in this case I had to write a $6150.00 check to the IRS. Actually "real expenses" would have been only $2369.89. This marks the second month in a row that my living expenses for the month were less than $3000.00. Also this is the first month that my expenses would have been less than $2500.00. Again, the cash that actually flowed out of my account was $8519.89. Still seeing my living expenses below $3000.00 is very encouraging.
May Outlook
It is a good thing that I managed to keep things under check for the last two months because I will be hit with a few higher expenditures this month. Mother's day for two mothers, graduation presents, and a vacation will on my agenda for May. Is there a month that doesn't involve some kind of holiday, birthday, or graduation?? Oh well such is life.
DEFY MEDIOCRITY
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Wow! It's impressive that your spending is less than $3,000/month. I guess it really helps that you have already paid off your mortgage. Would be interesting to see what you expenses are made up of if you ever decide to detail them on the blog.
ReplyDeleteI had to cut a check to the IRS as well, but it was only about 1/3 of what you paid.
Cheers!
GYFG,
DeleteThe paid off house certainly helps. I really don't analyze my expense pattern since it is already pretty low. Most of my expenses are food and dining out related. I do love good steak and seafood!
MDP
Removing the tax item, you are saving close to 80% which is amazing.
ReplyDeleteMy saving rate for the year is around 70% and I expect it to be around 50-60% by year end.
Div4son,
DeleteExactly! The tax item would not be a problem if I were living off dividends alone. A 70% is excellent and even 50% is better than 95% of the population. Keep up the good work!
MDP
Awesome that you track your monthly income and expenses MDP. You're running a tight ship. Holding it down. It's very enlightening to save and invest.
ReplyDeleteBe glad you have Mother's Day and these functions to celebrate with. It's about the journey as well bud :). Enjoy. Take a breather. Relax and have a good time my friend.
Hustler,
DeleteI am looking for to all the events planned for May. I hate spending money, but I enjoy the family time and will bite my tongue if anyone orders an expensive entre! My wife better not though. :-)
MDP
Ugh - Tax expense is one of the worst! You still killed it in April though.
ReplyDeleteFF,
DeleteApril was great in spite of the tax expense. The rest of the year should be less eventful from an expense perspective. Fingers crossed! :-)
MDP
Ugg! Taxes take a big bite, eh? Rather than ignore them, I'd divide by 12 before subtracting o get a real monthly expense to calculate your savings rate. Nonetheless, great job this month keeping expenses low.
ReplyDeleteBGH,
DeleteI reported the tax expense in April since that is when I spent the cash. This year I have withheld more taxes from my paycheck, so hopefully the bill will be lower next year.
MDP
Sucks that you have to write such a big cheque to Uncle Sam. Taking that amount out you had a very impressive month when it comes to expenses. Good stuff.
ReplyDeleteTawcan,
DeleteYeah Uncle Sam hit me pretty hard this year. I should have withheld more taxes. I will try to eliminate the big tax bill next year by increasing my taxes paid throughout the year.
MDP
MDP,
ReplyDeleteSolid month of keeping expenses down sans income tax. We have much work to do to get our expenses where we need them to be to get our snowball rolling faster. Your doing great. Keep up the great work. Enjoy the festivities in May.
All the best.
FD
FD,
DeleteI do love May. The heat wave has yet to hit Texas. When it does though, Ouch!
MDP
MDP,
ReplyDeleteI feel your pain (well my tax bill was essentially 1/3 as well) and that these weddings are blowing holes through my pocket, checkbook and savings haha, one time life events right?
Great job and looks like you'r dividend income covered about 1/3 of your living expense during an "off" month, not too shabby.
-Lanny
MDP,
ReplyDeleteWay to still save a lot despite that monthly IRS check. I agree every month seems to have something, luckily for me 90% of my birthdays and such are from November to March. The summer is excellently lite, except for Mother's and Father's days.
Good luck in May,
-Gremlin
DG,
DeleteOnce I get past May it should be smooth sailing until December. Well at least if everything goes to plan....which rarely happens.
MDP
Great savings amount, however it's not that hard to save so much money when your taking home over 12k/month.
ReplyDeleteJackg,
DeleteThis is certainly true. With that said, I paid off my house when I was only 39 without having ever exceeded $100k in gross income. The high income has only been achieved in the last four years. I just keep my expenses at low levels regardless of how much I make. The day job income can always go away.
MDP
100k/year is still a lot of money. Try paying off a house, and saving what you have saved, on a 45k annual income while living in the San Francisco Bay Area.
Delete$12k take home is from both mr and mrs DP?
ReplyDeleteI also have very high gross, but expenses and taxes withholding eats a lot out of it. There is the job, there is the expenses of having a job, I guess one of the thing I'll be missing is the good health insurance program.
Vivianne,
DeleteActually the income numbers are just mine. Mrs Pipeline actually works as well, although we keep separate accounts The expenses though include the utilities for both of us as well as our groceries and other combined daily expenses.
MDP
It’s good that you are keeping a very close watch on your expenses, considering the external and internal factors you have mentioned and discussed. Especially with the sluggish economy right now, it's best to keep track of everything as much as possible. This has also allowed you to more accurately calculate your tax payments and keep up with them. That kind of detail is easy to miss amidst all the spending and worries. Anyway, thanks for sharing your thoughts on the matter. Good day!
ReplyDeleteMeghan Payne @ Denver Bookkeeping Service