Ever since September of 2013, I’ve been sharing every detail of our family’s finances with the world. Each month I detail all of our spending, share how much we pay in debt, and divulge our income.
It has been a great way to hold ourselves accountable and motivate us to continue on this journey to pay off our debt!
When I started making our personal finances public, our income was a fraction of what it is now. I actually feel a little weird putting our income numbers out there this month, lest someone make their way here for the first time and be put off.
We have come a long way on this journey. There’s no denying that we’ve truly been blessed every step of the way. Though we have worked really hard (Mr. SixFiguresUnder puts in 60-70 hours most weeks between his two jobs, not counting the commute) and have made sacrifices, we are quick to realize that we haven’t done this on our own.
In case you couldn’t tell by that introduction, June was a good month. A really good month. Here are all the details!
In June we paid off $9,458 in debt! Crazy, I know! The money for this debt payment came from last month’s income. It represents 67% of that income.
As you probably already noticed in the graphic above, it puts us under $10,000 of debt remaining.
Please don’t be discouraged if your debt repayment doesn’t look like this. We are in the homestretch of our repayment now, so we have minimized our expenses and increased our income and some months we look like a well-oiled debt repayment machine.
It wasn’t always this way though. We were going slow and steady for a long time before we built up this kind of momentum. If you want to see what I mean, you can check out some of our old repayment reports.
If you’re just getting started paying off your debt, my free Smash Debt email course will go through the 7-step method we used to get to where we are.
Our total net income for June was $18,147. I know that is ridiculous. Seriously. Since we live on last month’s income, this is income that we haven’t used yet. We will be budgeting and spending it in July.
Attorney Income (Day Job)– $5,141 Mr. SixFiguresUnder has been working full-time as an attorney for the state of California since last fall. His actual take-home pay is $3,778, but I add back in the cost of the benefits (insurance, dental, vision, parking, union dues and retirement) that are automatically taken out of his check so that I can show them to you in our budget below.
Attorney Income (Private Practice)– $10,519 On top of working full-time (with a three-hour round-trip commute), my husband has his own private law practice on the side. The days are long and won’t be sustainable for the long haul, but right now the extra income is really helping us tackle our debt.
This month’s private practice income was much higher than normal because (1) he was finally paid for some overdue bills (some were from last fall!) and (2) he finished up a matter that he had been working on for over a year, but which he doesn’t get paid for until the very end.
My Income (Blog)– $2,487 The income that I report is the income that I received this month minus all of my blogging expenses.
If you’re interested in the details of my blogging income as well as other blogging tips and resources, you can sign up for my Behind-the-Scenes Blogging emails to get the scoop. If you want to start your own money-making blog, check out my complete step-by-step instructions for setting up a self-hosted blog and the resources I recommend for starting a blog on a budget.
Each month we budget down to zero using last month’s income. Our spending in June came from the income we earned in May (another of our highest earning months). In addition to the debt payment above, here’s how we spent money in June:
Other Giving– $80 Other charitable donations this month.
Mortgage/Rent– $0 Living in my in-laws’ unfinished basement is a huge blessing. I don’t expect everyone to do what we do, but for us, it’s worth sacrificing some comforts and privacy to pay off our debt faster. If you are considering living with family, here are some things to consider.
Internet– $0 Thanks to some legal work that my husband did for our service provider, we will have free internet for a while. It’s nice to stretch our budget by bartering, though we will still pay income tax on the fair market value of Internet service come tax time next year.
Republic Wireless Cell Phones– $27 We switched our Republic Wireless phones to the new Republic Refund plans. With our refund for the data we didn’t use the month before, I ended up paying under $12 and my husband paid under $15 for our plan. That includes taxes too! You can read about getting refunded for cell data you don’t use here.
Health Insurance– $708 We have our insurance through my husband’s employer. This is the portion of the insurance premium that his employer does not cover. It includes dental and vision insurance premiums too. The portion that comes out of his paycheck will go down after he has worked at the state for a year.
Car Insurance– $105 We insure two older vehicles (both 1997). Our auto insurance is great. In addition to the wonderful coverage, they also give us dividends at the end of the year, which is always a nice treat.
Food– $298 We stayed under our $300, but just barely. We don’t have a separate category for eating our because it’s such a rarity, so if we ever eat out it comes from our food or entertainment budget (if it exists that month). We got In-n-Out once and pizza twice this month. We were in town every day for two weeks for swimming lessons and several times we stuck around town because of something happening in the evening. I usually pack a lunch to take with us on long days in town, but when we were in town for two meals, I made sure we could fit pizza or burgers into the budget.
Gas– $423 Remember how I said we went into town every day for two weeks? Well, looking at the gas budget, there’s no denying that’s true! That’s the hidden cost of swimming lessons right there. Next month should just be the normal commuting gas expense (around $300 or so).
Parking– $155– Working downtown means paying for parking. It is set up to come straight out of my husband’s paycheck, which means it is paid for with pre-tax dollars, a small consolation I suppose.
Clothing– $115 It has been ages since my husband had dry cleaned his suits, so he finally got that done. Working for the state, he wears a shirt and tie every day, but not a suit, so we don’t have to dry clean as often as when he wore a full suit every single day. Also, I ordered a new swimsuit for the baby and for me. Most of it was paid for with a gift card (from credit card points).
Household– $21 Toothpaste and tomato plants. In the past we’ve started our tomatoes from seed, but that definitely didn’t happen this year! We also got a few random small things from the thrift store.
Baby– $8 This category only pops up only occasionally, since our fourth little one hasn’t cost us much at all. I bought a pack of disposable diapers. We use cloth diapers most of the time, but I use disposable at night sometimes.
Entertainment– $1 We watched a movie on VidAngel. If you haven’t tried streaming with VidAngel, I definitely recommend it. It’s super convenient because you don’t have to leave home, plus they have newer movies than other video streaming companies. You can also choose to filter out any content you don’t want.
Car Repair– $0 Usually I don’t list random categories when we spend zero, but I was just excited about this! Every month that our older cars have no problems is a huge blessing! 🙂
Medical– $60 Dental work for hubby (and more to come next month!).
Gifts– $43 This includes a wedding gift and a father’s day gift plus postage.
Kids’ Summer Activities– $242 The majority of this is for swimming lessons. That was one of the three activities we planned to pay for this summer. The kids paid for the county fair tickets and rides with money they earned by recycling cans and bottles that we collected on family walks and hikes. My husband and I had to pay for our tickets though, so I included those here.
Retirement– $484 With my husband’s state job, this amount comes directly out of his paycheck and into his state retirement. While we have some retirement savings from our before law school, it’s nice to finally be contributing again.
College Savings– $100 We contribute $25 per month per child to 529 accounts. More on our decision to start saving for college in this post.
Quarterly Estimated Taxes– $500 We paid our second quarter estimated taxes based on the safe harbor amount. This is for both my husband’s and my self-employment earnings, so for simplicity’s sake we just take it out of the family budget right now. We will definitely have a tax bill in April because we’re making much more than last year (since he didn’t open his own firm until the fall). The safe harbor payments satisfy the requirement though, so it works for us!
And there you have it! All the details of our personal finances in June.
I know some of you who have been following for a while like to guess what the next month will look like based on the income we report in these updates. I think that’s kind of fun!
Considering the income reported above and the amount of debt remaining, next month’s payoff shouldn’t be too hard to guess. In fact, with our method of making two debt payments each month (one at the beginning and one at the end), you can expect an exciting announcement really soon.
How About You?
- I’d love to hear about how your budget and/or debt repayment went in June!
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