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Personal Income Statement, August 2008 (Net Income: $11,582)

This article was written by in Monthly Update. 26 comments.


I mentioned in my August net worth report that there were three main reasons for my 7.7% increase. One reason was the stock market, which slightly lifted some of my investments. The other two reasons should be apparent from the income and expense report that is included in this post.

My net income for the month was $11,582. That’s the highest monthly amount on the bottom line I’ve ever had when not including realized gains. In fact, my August total beats my 2004 full year total. Continue reading for the full report and details. Click on the image for a larger version of the report.

Income and Expense Report, August 2008

Answers to Frequently Asked Questions.

The report is made with Intuit Quicken and Microsoft Excel. Here’s an income and expense report Excel template.

Explanation and Details.

My salary line is larger than usual this month. Thanks to the biweekly payment schedule, I received three paychecks in August. When you budget on a monthly basis, three-paycheck months are big boosts to cash flow. Business income was also larger this month, thanks to a multi-month advertising deal. I’ve sent out the invoice, but haven’t received the payment yet. I consider the income recorded even though I the money is not yet in my hands. If for some reason the deal falls through, I will have to cancel the invoice and adjust my income for August after the fact.

I’m thankful of what I’ve been able to accomplish so far with my “side business.” Consumerism Commentary itself is the main driver of this income, but there are a few extra endeavors that contribute. I’m not convinced that this level of income is sustainable forever, so I’m trying to make the most of it now. I’ve considered many times leaving my day job and devoting an additional 8 hours a day to writing and managing websites, but I’ve delayed that decision for a while.

Then again, right now I have few responsibilities to people other than myself. This might be the perfect time to take a risk. On the other hand, I have a lot of flexibility and “social capital” at my day job right now. There are many factors to weigh before making this decision, but it is frustrating that I have to do all my writing and webmastering between 6:00 pm and around 2:00 am, at the same time I also need to be cooking dinner, doing chores, and spending time with my girlfriend. Those precious 8 hours “lost” to a moderately-paying but relatively-secure corporate job might be better spent working for myself.

I’ve spent about $500 so far replacing items stolen from my car last weekend. I think I’m going to pass on replacing my GPS navigation system. Another notable purchase this month is a pair of running shoes. I’ve started walking during my lunch hour at work, trying to maintain four miles per hour for about thirty minutes. My sneakers don’t provide the right kind of support, so I went to an expert who analyzed my gait and recommended shoes that will provide support where I need it.

I expect September to be a slower month. While my regular income will remain constant — I will receive only two paychecks this month — I expect a decrease in overall income. My goal for now is to keep income from my websites equal to or greater than income from my day job, and that might take some extra work, and some luck, through the end of the year.

Published or updated September 3, 2008. 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 .

{ 7 comments… read them below or add one }

avatar Adam

Flexo, the fact that you’re doing what you do on the side while also maintaining a full-time job is laudible. I gave up on the full-time job a long time ago! :)

The big question is whether your extra 8 hours per day could replace your salary (not including intangible benefits such as an unbelievable amount of flexibility). If you’re in a position to take the risk…why not?

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avatar Lance

I do not see any expenses related to debt payments. I see them on the balance sheet but not on the income statement, where do you include those monthly expenditures?

I’ve been tracking similar information for almost 2 years now and I like the general format that you are using. I use a zero based budget so my “income statement” or income – expenses always nets to roughly zero, at least until I’m debt free.

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avatar Luke Landes ♦127,505 (Platinum)

Lance: I don’t consider a debt payment an expense. It’s a transfer of funds. The expense occurred when I incurred the debt. The interest paid when a debt payment is made is considered an expense. I’ve paid $341 in interest charges this year so far, all for the student loan.

A debt payment would show as an outflow on a cash flow statement. I’ve considered putting one of those together but it would be too much of a hassle considering I sometimes “save” and “spend” in the same bank accounts — and would provide not much added value.

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avatar Lance

Now that makes perfect logical sense. Guess I just need to hear it.

I do the same thing; “save” and “spend” in the same accounts. I also agree that as far your audience goes, it would not provide much added value.

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avatar Orange

It is tough to have a full time job and maintain side business, but obviously you are doing it very successfully. I think I may start using your excel template to put together my own net worth chart.

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avatar CalGal

Hi Flexo

If for some reason the side business does not pan out long term, would you be able to get back into a day job fairly easily? Can you sustain the pace of your day and side job much longer? If your answers are yes and no respectively, then I say “go for it”!

CalGal

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avatar Luke Landes ♦127,505 (Platinum)

CalGal: I don’t think I can keep up the pace that I *want* to have for another year. I’m struggling as it is right now to balance the two, to find time when my brain is at its peak to write as well as I want to write.

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