Earlier today, I posted my monthly net worth report, including an increase of more than 8% over the month of February. This post contains my income statement, outlining my income and expenses as I recorded throughout the month in Quicken.
When I don’t take realized gains into account, February 2008 has seen the largest amount of income I’ve received in one month. I also managed to keep enough of that income to set a personal record for the bottom line (net income) as well. Keep reading to see why this was possible.
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.
Last month I mentioned that February would be a standard month in terms of income and expenses other than an extra pay check due to the timing of biweekly pay periods and an expected drop of income from websites due to an advertising policy change. I neglected to mention that I would also receive my annual bonus in February. These factors contributed to a strong showing of income from my day job.
In a “non-exempt” position at my company, the bonus I receive is limited to a range of 0% to 9% of my salary. The bonus I’ve received every year has been around 7% of my annual salary.
My business income is slightly lower than the past few months, but I expected it to be significantly lower thanks to the removal of most of the text link ads I’ve been running on this and other websites. Other income avenues picked up to make the difference. I did receive some final payments in February, so I expect my March business income to be lower.
The big question continues to be whether I will be able to sustain myself solely through my business. I’d like to have the flexibility of working for myself full-time.
If you notice, you’ll see that my interest income is decreasing even while my savings account balances are increasing. That is the result when banks continue to low interest rates on their savings accounts.
I can’t explain why my fuel expense is lower this month. I did take a week off from work, which might have contributed to the decrease, but I drove to Washington, D.C., which should have made up the difference. My expenses for dining out increased this month, but that might just be a result of increased diligence about recording my lunch and dinners as expenses.
My power expenses was zero for the month. I record the expense on the day that PSE&G withdraws the funds from my bank account to post to the bill, and they did not do that during the month of February. My latest bill will be deducted from my account today thanks to the short month. My next bill will likely be deducted before the end of March, so like January, my bill will appear twice as high as it should.
As I mentioned above, I visited Washington, D.C. in February, and I recorded all the related expenses under the vacation category. That includes food and lodging. We stayed in a hotel outside of the city, three Metro stops from downtown. That saved us a considerable amount of money compared to staying downtown. One great thing about the museums in D.C. is that they are all free to visit.
The bulk of my entertainment expense in February is due to my purchase of a new Canon EOS Digital Rebel XTi digital SLR camera. I’m very happy with the purchase so far. I like the quality of the images, but I haven’t had a chance to take a lot of photographs yet. I’m looking forward to better weather in the area.
I expect March to be a tighter month with less money coming in from my day job (despite my raise taking effect) and a prediction of lower business income.
Published or updated March 3, 2008.