As I mentioned in my latest net worth report, in March I fared much better than February, thanks to a confluence of a few events. I’ll get to that shortly.
To summarize, my income totaled over $18,000 this past month thanks to a three-paycheck month, a bonus, higher than average income from my side business, and some funds sold in my 401(k).
My expenses were more than $4,800, almost have of which were tax payments.
Keep reading this post for the details.
My raise and bonus took effect in March, so that provided a boost, as the third paycheck did. In order to fit 26 paychecks into 12 months, every month except two have two paychecks, while the remaining two have three. The specific months with the extra paycheck depend on the calendar.
Thanks mainly to some long-term advertising deals, the side business income is up to a nice amount, overtaking my day-job salary this month despite the third paycheck.
My company’s 401(k) managers decided to replace one fund with another, which means my holding in that first fund were sold to buy the new fund. That sale created realized gain according to Quicken, but as the gain is in a tax-advantaged account, I won’t owe any taxes on that income. On the other hand, I won’t be able to touch that income until retirement; it has been reinvested in the new 401(k) fund.
Auto: Service and Registration. I had to pay a traffic ticket which I include in this category, as well as the yearly registration fee to the New Jersey Motor Vehicles Services for my 2004 Honda Civic.
Dining Out/In. I set a goal of $100 per month for this category, and I’m getting closer. When I’m at work, I go out to eat with my co-workers every day — which ironically, is usually less expensive than the in-house cafeteria. Packing a brown bag for lunch is a better option, but I can’t motivate myself to do so. In the end, this doesn’t save a heck of a lot of money, so if I don’t make this goal, and manage to earn more income, I won’t be disappointed.
Tax. No, this isn’t my income tax bill. That will come in April, and will possibly throw that month’s expenses out of whack. The tax expense for March is mainly due to the higher taxes withheld from my bonus.
That’s all for this month’s income and expense report. It would be great if this growth continues, but that wouldn’t be a realistic assumption.
Updated December 26, 2017 and originally published April 5, 2007.