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Personal Income Statement, August 2006 (Net Income: $3,542)

This article was written by in Monthly Update. 17 comments.


Thank Tim Berners-Lee for the invention of the World Wide Web. Without him I wouldn’t be increasing my net worth as quickly as I am. Although, one could argue, without the web, I’d be spending less money, too. Nevertheless, here’s how money came to me and left me during the month of August, 2006.

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Salary? Well, the one positive thing I can say is I will see three paychecks during the month of September. I’d much rather focus on the larger number posted for August’s, “business income.” Thanks to a few long-term advertising deals and a surprising AdSense boost, my income was stronger in September. I have no reason to expect this to continue; in fact, AdSense in September has returned to depressing levels already. Perhaps it’s just a result of the holiday weekend.

My entertainment expenses seem a little low in August. I thought I was having more fun.

You may notice my “business income” — the side income from website advertising, donations, subscriptions, and development services (but mostly advertising) — is only slightly lower than my net income for the month. This means that without this extra income, I’d be spending almost as much as I’m making, meaning bad news for long term growth. There is not much else I can cut back on, but here are a few suggestions:

* Get rid of Netflix: $15/mo
* Brown-bag my lunch instead of spending about $7 a day in the company cafeteria (or Wendy’s, or the mall food court, etc.): $150/mo
* Eliminate my phone and force people to communicate with me through email: $50/mo
* Grow my hair long or do my own trims: $15/mo
* Bring a sleeping bag to the office and camp out: $250/mo
* Bring a sleeping bag to the office, camp out, and drop the lease on my apartment, assuming no penalties: $1,500/mo

On the other hand, having “banked” $14,000 so far this year blows away anything I’ve done financially in my life so far. And I think it’s a pretty good accomplishment considering I’m not an investment banker at “the firm” like my dad’s girlfriend’s son will be when he finishes up at Harvard.

Published or updated September 2, 2006. 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, also known as Flexo, 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 him and follow Luke Landes on Twitter. View all articles by .

{ 8 comments… read them below or add one }

avatar 2million

Congrats on another good month. FYI – be careful of getting hooked on adsense – I got booted a couple months ago and have been paying for it ever since – there is no easy way to get in their good graces again.

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avatar Golbguru

Your “Business Income” is 44.86% of your “Total Income”! Is that healthy or what ! Let the good times roll.

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avatar Luke Landes ♦127,485 (Platinum)

2million,

I am concerned that there are many things that will change AdSense, whether it’s a change in the search algorithms or Google deciding it doesn’t like me. That’s why I don’t want to have to rely on any of this side income.

Golbguru,

It’s not bad! I don’t expect it to stay that high, though. I figured the income on a cash basis, so the full income from some long-term contracts were included.

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avatar PFBlog

Our advertisers are in good mood during the summer … I also have the highest billing in August.

Congrats on a strong month!

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avatar frugal

That’s an amazing chunk of income relatively speaking compared to your Day job.

Just a suggestion on your expenses. If I’m single, I would consider renting a house with 2 other good friends. Usually, the per-room cost will be lower. There are a lot of hassles associated with it, but it could worth the effort.

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avatar Luke Landes ♦127,485 (Platinum)

That’s a good idea, frugal. Back when I lived with three roommates a few years ago, my rent was less than $350 a month. For the location, there was no way I could beat that. It was a little too close for comfort, though.

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avatar Tom

BTW, there’s an error on this webpage somewhere on line 4. Check it out.

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avatar Tom Chuong

Recently, I’d just canceled my membership to Netflix and have been asking my brother to cut my hair with my newly purchased buzzer from Walmart. Going forward, I think I will saving about $30/month. And with the rising gas prices, I could use another $30 a month extra. Overall, you presented a great analysis because it inspired me to take action. Thanks!

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