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Personal Balance Sheet, Net Worth, Income, and Expenses, August 2009

This article was written by in Monthly Update. 38 comments.


You may have noticed that over the past few days, Consumerism Commentary has been featuring a number of guest authors. A few weeks ago, I wrote about the cost of funerals, inspired by the passing of my paternal grandmother. My maternal grandmother entered hospice care around that same time, and a few days ago, she passed away. I decided to travel to California on short notice to be with my family on the west coast for a short time. I appreciate the assistance with Consumerism Commentary provided by our writers Smithee and Jeff as well as the guest authors.

Every month, I publish personal finance reports to keep myself accountable for my financial decisions, and the travel I mentioned above is the reason August’s report is a little later than it would be otherwise.

2009 continues to be a successful year, but I have some room for improvement. My “modified net worth” includes the balance of all my bank accounts, investment accounts, invoices I have sent out to those I do business with that have not been paid yet, invoices I have received that I have yet to pay, and credit card expenses which I pay off every month. This “modified net worth” is reflected on the bottom line of the first report.

While August’s net worth is up, I expect September’s to be down due mainly to the quarterly tax payment that I will be sending to the IRS. September’s expenses will also reflect the airfare for the flight to California, which was purchased only one day in advance. Most airlines do not offer bereavement rates, or if they do, they are inconsequential discounts off a full fare. I’ll write about this in a future article.

In terms of income, August was a healthy month for my side business, but there is a lot of unexplored opportunity yet to be tapped. With all the projects I am involved in, it’s increasingly difficult to keep track of and manage everything. Additionally, I seem to be getting headaches more often, possibly due to spending too much time in front of computer monitors. At the end of last year, I decided to let the recession play out before deciding whether to leave my full-time job and pursue my side projects full-time. We’ll see how much longer I can continue both aspects of my life.

I’ve also noticed that the automated charitable payments I had been making seem to have stopped, and I’m wondering if that is a result of a change in my credit card number. Once I have a chance, this is something I’ll need to look into.

Continue reading to see my balance sheet and income statement without any further commentary. You can click on the reports to zoom in to full size. If you have reasonable questions, feel free to post them and I will answer.

Personal balance sheet and net worth statement

Net Worth Balance Sheet, August 2009

Income and expense report

Income and Expense Report, August 2009

If you have any questions, feel free to post them below.

Published or updated September 3, 2009. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.

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About the author

Luke Landes is the founder of Consumerism Commentary. He has been blogging and writing for the internet since 1995 and has been building online communities since 1991. Find out more about Luke Landes and follow him on Twitter. View all articles by .

{ 13 comments… read them below or add one }

avatar MoneyEnergy

My condolences to you and your family. Life is precious. It also shows the importance of having an emergency fund which can enable you to stay close to family in times of need. Also, congrats on the success of this site and your others, especially MoneyQuantum, which is very well organized – I will be back again more often in the future!

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avatar Writer's Coin

Wait a minute…you made over 14k last month in “additional income”? Is that blogging only or another side business?

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avatar Luke Landes ♦127,500 (Platinum)

Over 12k, mostly from a variety of sources of advertising revenue.

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avatar Financial Samurai

Great stuff Flexo. Nice work on such a great month from blog advertisement! I’m writing a post regarding Net Worth, entitled “Your Net Worth is An Illusion” sometime in a week or so, and have given you a shout out. It’s great you are so transparent with your finances.

Oh yeah, I think you need to depreciate that Honda Civic more there… perhaps -$100/month! :)

Best

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avatar Luke Landes ♦127,500 (Platinum)

Samurai: Thanks! I only bother to update the value of the Civic a few times a year, and I’ve done so after posting August’s finances. Next month, you’ll see the depreciation take effect for the past several months.

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avatar York

Flexo – just curious why you are still renting? Do you have any plans to purchase a home in the future?

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avatar Luke Landes ♦127,500 (Platinum)

Yes, when I decide I want to settle down, I’ll buy a house, and I’m saving money now to ensure I’ll be ready for the purchase.

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avatar SavingEverything

Wait a minute– over $12,000 is from sources of advertising revenue from this website only???
Can you please explain to us in more detail about the various sources of your “other income”, and what kind of “business expenses” are you considering? What do you sell, how many employees? What happened in August 2009 compared to the prior months in respect to your business expenses? Do you have health insurance? When you’re considering taxes, is that amount from both your salaried job and “other income”, and “other income”‘s self-employment (and the 7.65×2% tax for fica for self-employed? Why does your utilities bill vary so signficantly, and why was it cheap in June and July 2009? Why was rent cheap in June 2009? Did you move recently, and that’s why? Have you started to seriously look with a realtor for homes or condos near your area? Do you work in a big city or suburb? Finally, is your wife’s income included in this monthly report? Does she blog also on her favorite topics? -thanks, savingeverything

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avatar Luke Landes ♦127,500 (Platinum)

No, the income is not from this website alone, though Consumerism Commentary provides the bulk of it. Long-term advertising deals often spike income on monthly reports. If I’d want to be more accurate, I’d spread that income over the future months that are covered in the deal.

Business expenses cover the cost of hosting websites, other writers, services for the Consumerism Commentary Podcast.

I have health insurance provided by my full-time employer. Utilities vary mostly because some months I am charged for heating and electricity at the end of the month, and sometimes I am charged at the beginning of the following month. If I wanted to be more accurate, I’d accrue for the expense every month where necessary, but the extra time this would take doesn’t add that much value.

I plan to buy a house after I decide where and when to settle down, and possibly not until after I am married. There’s no rush for me, I like the flexibility of renting. Rent was cheap in June because the landlord gave me a discount for renewing the lease.

Hope that answers some of your questions.

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avatar Luke Landes ♦127,500 (Platinum)

One other thing to note about income: I record it as income when I send an invoice not when I receive the cash. Sometimes there can be quite a delay between the two. One major advertiser didn’t pay out until four months after the advertising ran, but most pay within 30 days when I don’t require payment up front.

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avatar Financial Samurai

Flexo – at what point does your Consumerism Commentary ad revenue get large enough so you no longer want to, or have to do your day job?

I guess the big key is healthcare.

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avatar Luke Landes ♦127,500 (Platinum)

Samurai: Health care is absolutely a concern. My plan right now is to work on this and all the other preparations needed to turn my “side full-time job” into my only full-time job.

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avatar suomi

Hi, You have a clean and nice reporting template. I looked at your template creation process. I also use Quicken, and export the sheets, but I dont have the auto linking mechanism. Do you have a template (cleaned up) that you can send. cheers!

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