I have a confession to make. I hate working on our finances. Well, “hate” might be too strong of a word, but I reeeeeeally don’t like doing the monthly process I’ve built.
I especially don’t like balancing our actual expenses to what is on our bank statements. I use Quicken, so 90% of the time it’s really easy. But there is 10% of the time where it doesn’t reconcile and I have to spend 2-3 hours figuring it out.
Well, I procrastinated about it for the past few months and finally did it. And here are the results.
Income Statement (as of Oct 31, 2016 YTD)
- I’m about 0.86% off from the W2 income I budgeted. So, that’s good validation of my budgeting assumptions.
- But total income is about 3% less than budget. Mostly because my bonus came in way less (~40%) than expected. Fingers crossed that it goes the other way next year. But that also resulted in a lower tax and tithing expense.
- YTD we’re about 0.70% less than budgeted but I’m projecting that we’ll be a about 2.3% less than budget by year end. Mostly due to an error I found by which we have been tithing more than 10%. Closer to 15%.
- The lower expenses are due to
- I budgeted for $100/mo for home repair and we’ve been fine with $50/mo.
- Our mortgage payment dropped because the servicing company had been over funding the escrow account. Sounds like a monopoly card.
- On the other end of the spectrum groceries have come in a fair amount higher due to more children and one being a baby. Baby food is expensive.
- Recreation expense is coming in slightly higher than expected. But that’s due to swimming lessons.
- All in all, our budgeting has been pretty dead on so far this year other than those categories I mentioned.
- Operating Income
- YTD operating margin has been 49.99% versus budget of 51.66%. Our goal is to be at about 50%, so we’re doing a little worse than expected but in-line with our overall objective. I’m projecting that for the full year this will come in at a little less than 51%.
- Note that this is better than last year where we finished at 48.6%. As our income goes up and we control expenses, this percentage should increase. Unfortunately, with kids in school, it’s been hard to control expenses.
- Total Assets are flat from the last month, but up 19.2% over last year.
- Cash balance is pretty flat. We have our long-term emergency fund, short term emergency fund and our “buckets account”. And that makes up the bulk of it.
- Investments are down 1.2% for the month, but 25% over last year. Note that includes contributes and returns.
- House and cars stay flat because I don’t adjust them except for once per year.
- Total liabilities are down 15% over this time last year.
- Student loan is down 50% from this time last year.
- Mortgage is down 2.6% from last year. Argh.
- Net Assets
- Up 37.3% YoY
- Another measure, which I call True Net Assets (which excludes house and college accounts) is up 34.6%.
- Asset allocation
- 19% – Investments
- 6% – Cash
- 54.4% – House Equity
- 17.8% – Rental Equity
- 2.7% – Cars