October 2010 Income Report and Finance Update

4 Nov

Inspired by Baker over at the Man Vs Debt blog, I want to get in on this idea of radical financial transparency.

And so what better way to start than sharing all the intimate details of my monthly business income, monthly job income, and my savings and financial data?

BOOM. <– that was the sound of a Financial Transparency Bomb going off!

Here we go!

Business Income
PPC Advertising: $360
Affiliate 1: $143
Affiliate 2: $8
Affiliate 3: $33
Affiliate 4: $76
Business Income Totals :  $620

Contract J-O-B Income
Job income: $2,000

Income Totals
Business + Job Total Income:  $2620

Amount Added to Savings: $1,345.25
Interest Generated and Added to Savings: $5.12
Savings to Income Ratio: 51.4%
Savings Balance: $6,756.12

None of this income is taxed yet. I know, I know! Farfegnugen! “I’ll deal with this later,” says the man scared to deal with taxes.

Finally Making Some Money Online Again
I am really happy to see my internet marketing business income go over $500 this month. Really, really, really fucking happy. $500 seems like actual money – and in this case, it was actually $620 bucks! –  and while I will never shed a tear when getting a check in the mail with my name on it, I don’t exactly jump for joy at earning $300/month after doing Internet Marketing for 18 months. It was making me want to crawl in a hole and die when my earnings got that low.

Going over $500 in IM income is also symbolic of how close I am to almost, sort of being in an equilibrium to my expenses/income.  In other words, almost to a poor mans state of financial independence!

Why? How? Huh?

Because if I just give plasma twice a week, that’d bring in an extra $200, and then I’m just $300 dollars shy of having $1,000 a month income without a job. And I swear I could survive on $1,000 a month if I needed to.

You see how my brain works now, eh?

Donating plasma: It’s Not Just For Poor People Anymore. It’s for Financial Independence!

My Savings to Income Ratio

Inspired by the most bad-ass blog I’ve ever seen in my entire 30 years of living on this planet – Early Retirement Extreme – I ran the numbers to figure out my savings to income ratio. (I used this calculator.) I must admit – I am surprised that I am only saving 51.4% of my income! I thought I was saving more than this!

It seems somewhat half assed (in terms of hardcore minimalist terms, that is) to only save half my income.

The author of the aforementioned blog talks about saving 70-80% of income in order to retire early, and I think that’s a kickass target to shoot for.

Assuming I make the same amount next month – $2615 – I’d have to save $1830 – $2092 to meet the goal of saving 70- 80% of my income.

Damn, that is a lot!

With my current expenses, I don’t think that amount is realistic to shoot for. But I do think sticking at 50% is absolutely doable and going up to 60% is possible.

Better yet, if I can increase my income by $1,000 a month and just pocket that into my Money Market fund I’d be a happy camper.

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