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Personal Income Statement, May 2007 (Net Income: $8,173)

This article was written by in Monthly Update. 22 comments.


If you haven’t already, please read my May balance sheet for the first part of this story.

After an April in which my expenses outweighed my income (thanks to gifts purchased and tax owed), I was back in the game in May and posted a net income above $8,173, although almost $3,000 is “realized gain” from when I moved around investments in my 401(k). There are no tax consequences for this action, but Quicken still counts the gain as income, so it is here in the report.

For more details regarding my income and expenses, keep reading.

Flexo’s Income Statement, May 2007

Answers to Frequently Asked Questions.
The report is made with Intuit Quicken and Microsoft Excel. Here’s an income and expense report Excel template.

Explanations and Details.
May was another good month for side business income. This income comes mainly from working on several websites, and this month I did perform a bit of web development for a client. I do a small amount of web design and programming, but I don’t actively look for clients.

More travel in May meant a higher toll expense. The bridges between New Jersey and New York seem to get more expensive all the time. Also, while I was paying about $2.70 for a gallon of gas at the end of April, I’m now paying about $2.90 a gallon. As I mentioned last month, I was on vacation for a week in April, which accounted for a dip in fuel expense. In May, I returned to a normal commuter schedule.

I’m surprised to see my Dining Out/In category so high in May. Most of this expense came early in the month. My minor goal for June will to knock this expense down a few notches. I suppose I should be a good goal-setting and make that goal “measurable,” so let’s get that amount down to about $200.

My Rent category is a bit higher because I included $250 for the application holding fees for my new apartment. My application was accepted and I’ll be moving in during the last week of this month. This month, this category will also include my security deposit. That’s not technically an “expense” because the funds are placed into an account for me on which I’ll earn interest, but I’ll take the cash flow approach in this case.

My July Rent category will reflect my new rent which will be significantly higher than what I pay now. My new apartment complex includes cable television and internet in the rental fee, so I’ll probably split the value of each into the appropriate categories.

Looking at my year-to-date Utilities: Power category, while my expenses are higher this year, it’s not due to higher usage. I checked some old statements while going through (and shredding) old papers, and my usage is down, but the prices are higher.

Other than what I mentioned above, the only other expected out-of-the-ordinary expenses this month should be related to moving to my new apartment. In order to move my furniture, I will have to hire some movers. The two options highest on my list are placing an ad on Craigslist and using a moving company that offers a discount for my company’s employees. A co-worker recently hired one such company, and I may ask for their details rather than go through a search. I’m especially concerned about this process thanks to a number of recent articles on The Consumerist about moving company scams.

Published or updated June 4, 2007. 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 .

{ 11 comments… read them below or add one }

avatar ntguru

Very nice! Quick question: how is your Tax only $700ish dollars on realized income of around $8K? That’s under 10% which seems really low assuming you’re including all forms of income tax including both halves of FICA on the self-employment income.

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avatar Luke Landes ♦127,386 (Platinum)

ntguru: Good question. I pay quarterly taxes and then just take the expense then rather than carrying a liability each month. As it is, I probably won’t be paying enough quarterly taxes. On top of that, I’m trying to convert my side business to an LLC which might further complicate my tax payments.

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avatar Tyler

It makes me sick to see that you have all this money and yet nothing is given to charity. “Yet true religion with contentment is great wealth. After all, we didn’t bring anything with us when we came into the world, and we certainly cannot carry anything with us when we die. So if we have enough food and clothing, let us be content. But people who long to be rich fall into temptation and are trapped by many foolish and harmful desires that plunge them into ruin and destruction. For the love of money is at the root of all kinds of evil. And some people, craving money, have wandered from the faith and pierced themselves with many sorrows.” -1 Tim 6:6-10

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avatar Luke Landes ♦127,386 (Platinum)

Tyler: I give money to charity, but not every month. Don’t quote the bible to me as your beliefs have no bearing on what I do with my life. The Book of Tim is not in my belief system. I respect your opinion, but that’s all it is to me: your opinion.

I give more of my *time* to volunteer work for organizations whose missions I admire, and my time has been proven to be more valuable than the money I could give.

I’m sorry it “makes you sick,” whatever that means. Pray for me, maybe through divine intervention I will become the better person you seem to think I am not.

I completely agree with you in that I should support those who need money more than I do, and I will be the best philanthropist I can be, but I don’t need a book to tell me that I should do it, how much, and how often.

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avatar LTD

The title of your article (which included your Net Income of $8173) reeled me in for a read. I thought,”Wow. Did Flexo’s blogging revenues take a big leap? Did he get a nice raise?” :)

You do a very great job of consistently tracking your expenses. Although I see that you do state spending goals, I was wondering whether you maintain a budget as well and compare your expenses to that budget? You noted that you spent more for dining out. But I also noted that you spent less this month on groceries than in the month prior.

In my budget, which is also tied to goals, I cross level actual expenses. For example, if I overspend in one category, I’ll cut back in others to cover the overspent amount. This has worked very well for me to stay within a budget and not feel too constrictive.

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avatar ntguru

I figured it was those good old quarterly payments. I’m in the same boat where I’m brining in substantial secondary income and somehow those quarterly payments seem a lot worse than the biweekly W2 payments.

Are you trying to set up a single member LLC? If so, it shouldn’t change your tax situation at all as that is what I did for my secondary business/income and a single-member LLC is a pass-through entity to the IRS.

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avatar Lazy Man and Money

Yes, you do a tremendous job of tracking your expenses and incomes… I don’t focus on this much at all (Quicken is too big with bells and whistles for my meager needs). It looks like too much work for it’s value (remember I’m Lazy), but that may change in the next couple of months.

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avatar Luke Landes ♦127,386 (Platinum)

LTD: It’s the “realized gain” that gave my income a nice paper boost. I’m not feeling it in the wallet, but I could certainly have worse troubles.

I try to balance groceries with dining out so when one month is high in one category, the other category is low. It tends to work out that way simply because I eat about the same amount of food each month — though dining out is generally more expensive.

I don’t use a budget. I just use my monthly numbers to track my behavior and (try to) make any changes from there. I think budgets can be great tools, and they’re especially useful when income and expenses are too close for comfort.

The bottom line is adding another layer of time-intensive analysis is crossing the line. Like Lazy Man says, it’s a lot of work. I’ve got it down so entering my expenses in Quicken is… quick… and converting my monthly reports to graphics for the site is somewhat quick, but writing the analysis is the big time drain.

Adding a budget analysis on top of that won’t add much value, as I already compare my spending numbers to past months, averages, etc.

ntguru: Good to know regarding the LLC. I’ve been meaning to spend some time with a tax accountant to make sure I’m in good shape for 2007 (and possibly review 2006).

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avatar alex

I’m with you Flexo. Tyler seems like a holier than thou twit.

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avatar Jonathan

Sigh, such baseless judgments by people like Tyler only make it less likely that people will share openly about their finances.

Congratulations on your progress, Flexo, and best of luck in your new apartment.

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avatar EA

When I moved a few years ago, I rented a truck from Budget and did the driving myself but hired two guys to help me load. I found them through a site associated with uHaul, and they had reviews of each “helper” so you could see how they had done before. You could only enter a review after you’d entered the code to pay them, so the reviews were pretty reliable.

Apparently it’s “emove.com” now. I can’t vouch for all of them, but the ones I hired were great and matched their reviews.

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