October 2011 Income Statement

October was a reasonable expense month and an above average income month (click on spreadsheet below).

Our total income for October was $8,252.44. In addition to our regular paychecks, we received $1,050 for our new baby. We also sold some items on craigslist for $30, a $50 Chase credit card cash back reward, and earned $26.40 in interest income from our online savings account.

We spent a total of $7,346.87 in October. We actually spent close to budget, if you subtract out $1,845 for cord blood banking and a final $400 payment to our doula. After deducting these one-time expenses, our total expenses were only $5,101.87. This makes me feel a little better about keeping our regular expenses down in October.

November should be another good income month since I receive a 3rd “extra” paycheck. We’ll try to get most of our Christmas shopping done in November, which will inflate our expenses somewhat, but no other large expenses are planned in November.

October 2011 Net Worth Update (+$9,000.12)

I’m posting this a few days early because I will be away on business. After a $6K+ drop in our net worth last month, I was happy to see it recover nicely this month. Our net worth increased $9,000.12 from last month, to a total of $148,403.51 (click on spreadsheet below).

What Worked
My wife’s 10% 401(k) contributions began this month. We contributed a total of $1,428.38 to our retirement accounts and saw them increase a massive $8,477.30. We also opened a Vanguard 529 Plan for our baby, funding it with $3,000 from our savings.

What Didn’t Work
Our savings balance dropped, but only to fund our son’s new 529 Plan.

Next Month
November looks to be shaping up as another strong month. I receive a 3rd “extra” paycheck that we should be able to bank 100% of.

Upromise.com

My wife and I spent a few minutes this morning registering our credit cards, debit card, and grocery story loyalty cards with Upromise.com. Upromise.com allows us to earn cash back on these cards to use towards our baby boy's education expenses. Upromise works with companies to provide this benefit (FREE cash) to parents at no cost. If you have kids, check it out!

September 2011 Income Statement

The excitement of our first child’s birth in September overshadowed our pretty normal income and expense month (click on spreadsheet below).

In addition to our regular paychecks, my wife received a $25 reimbursement from her company for internet. We also sold some items on craigslist for $25 and earned $26.82 in interest income from our online savings account.

We ended up spending a total of $5,819.22 in September, including $500 for an insurance co-pay for the hospital and $156.69 for a tux rental. The $1,850 cord blood banking bill and $400 balance due to the doula were not paid this month, but will be paid in October.

I’m not sure what to expect in October. Our net income from my wife’s company will drop because her 10% 401(k) contribution begins in October; at same time we are adding our baby to her insurance, increasing the cost from $75/month to $325/month. My wife will be taking 1 week PTO and then 4 weeks short term disability (full pay). After that, she will need to take 1 week unpaid and then begin Paid Family Leave (55% of your highest gross quarter).

September 2011 Net Worth Update (-$6,074.95)

It’s a BOY!!! Our son was born at the end of September, making this our best month EVER. Being new parents is a lot of work, but there is nothing that comes close to the amazing feeling. We the excitement of our new baby, I haven’t had a second thought about our net worth getting pummeled again this month. Our net worth decreased $6,074.95 from last month, to a total of $139,403.39 (click on spreadsheet below).

What Worked
Our beautiful baby boy was born!

What Didn’t Work
We contributed $1,013.00 to our retirement accounts, but saw them decrease $7,716.19 to $81,483.75.

Next Month
Going forward, my wife’s net income will be reduced because of her new 401(k) contribution and we will be adding our baby to her insurance. We have elected to begin contributing 10% of my wife’s pay to her 401(k) plan during her first open enrollment in October (the company matches 6% with a 3 year vesting period). We will also be adding the baby to my wife’s insurance, increasing the cost from $75/month to $325/month.

August 2011 Income Statement

August was another very good net income month (3rd in a row over $9K), but also a wild and crazy spending month (click on spreadsheet below).

In addition to our regular paychecks, my wife earned a Q2 2011 bonus $1,006.83 gross ($937.87 net)! These funds will go into savings for now, but are earmarked for a 529 plan for our son. She also received a $25 reimbursement from her company for internet. We earned $170 in credit card cash back rewards and sold a portable A/C unit for $175. My wife scored us a $50 target gift card for giving blood. We also earned $25.09 in interest income from our online savings account.

We gave in to some serious communism this month - $9,022.40 worth to be exact. Some of the bigger ticket items include a $2,715.30 watch for my wife (retails for $4,200), a $532.50 gun for me, a $250 shooting range membership for me, $147.72 for a friend’s wedding shower, $106.46 for a new safe, and much, much more. Hopefully, we got it out of our systems.

September will announce the arrival of our baby boy - we are so excited. With the birth comes a few costs: $400 balance due to doula and $1,850 for cord blood banking. We also need to add the baby to my wife’s insurance so that will increase from $75/month to $325/month. Once the baby is born, my wife will take 3 months off of work using a combination of PTO, short term disability (full pay), Paid Family Leave (55% of your highest gross quarter). As a result, our income will be a bit less until December.

August 2011 Net Worth Update (-$5,075.62)

A market correction was bound to happen :). As a result, our net worth decreased $5,075.62 from last month, to a total of $145,478.34 (click on spreadsheet below).

What Worked
With the huge drop in the stock market, everything went on “sale”. William Bernstein, author of The Four Pillars of Investing, has said that young savers should be praying for a bear market so they can accumulate shares cheaply before they retire. So, we contributed $1,513.00 to our retirement accounts, but saw them decrease $6,500.62 to $89,199.94. We were blessed with my wife earning a Q2 2011 bonus of $1,006.83 gross ($937.87 net).

What Didn’t Work
Our retirement accounts were down $15,000+ earlier in the month, but rebounded considerably, cutting out paper loss in half. Our spending was completely out of control this month. I will provide details in my income statement post in a couple of days.

Next Month
September it is going to be a great month because our first baby will be born. We have a couple of large bills in September: $1,845 for cord blood banking and $400 for balance due to doula. We will also be adding the baby to my wife’s insurance increasing the cost from $75/month to $325/month. Depending on the timing of the baby’s birth, my wife and I are also scheduled to be in our friend’s wedding, which will be roughly $200 for tux (my wife already bought a dress). With these bills hitting next month, we do not plan to save anything beyond my 401k contribution in September.