Thursday, January 10, 2008

2007 Income

Here's how much money I made in 2007:

Salary $91,029
Investment Income (div, cg, etc) $19,001
Bonus $10,500
Other Income $5,496
Tax Refund $2,844
Gift Received $1,645
Interest Income $1,163

  • As I'd previously mentioned, it was very nice to finally hit a six-figure income this year. My total income including investment dividends, etc. was over six figures last year, but that is not the same as seeing a number over $100,000 on your final paystub! I wish my salary alone was over $100k, but that will take another couple of years, I think, and in the meantime, I'm happy to have a bonus that makes up the gap, assuming it's big enough to do so again next year!
  • All the investment income-- dividends and capital gains-- ends up being reinvested in either my 401k or my E*Trade investment account, so I don't think of it as spendable income.
  • Other Income is mostly my employer's matching contributions to my 401k.
  • A tax refund doesn't really feel like "income" to me, but that is how Quicken categorizes it.
  • $1,000 of the Gift Received line is a check given to me by my mother, which I see more as money that I am holding in trust for her, in case she gets into debt again. (backstory here)
  • I am not including the (very modest) ad revenue this site generates, as I have been donating it to various charities.
That's the scoop-- coming soon will be a post on my 2007 expenses.


Single Ma said...

I see we've had the same train of thought this week. Looking at my annual expenses was an eye opener! But congrats on the 6 figz. Welcome to the club!

Anonymous said...

This is what I love about PF blogs...the chance to peer into other people's finances anonymously. Thanks for posting this, and congrats on your six-figure achievement!

It does seem a little odd to me to include a tax refund as income, especially if you're posting your salary before taxes are taken out. Though I suppose the refund you received in 2007 was based on taxes you paid in 2006. Clearly I'm no accountant.

RacerX said...

Hitting that on your salary for the first time really feels good. I also like when you max out Social Security for the year and get a bump on your check. We used 100% for debt relief.

Congratz again!

Money Blue Book said...

Don't you have blog related income? Where do you include that in your breakdown?

SandyVoice said...

I agree it seems odd. The refund is just an overpayment to the government from your salary, and the government doesn't consider it income, or they'd make you pay taxes on it. I wonder why Quicken does that.

Maybe you could adjust your withholding, Madame X, so you have almost $240 more to invest every month! How does this refund compare with past years? I'm sure I could look it up in your previous posts, but I bet you have the info to hand.

Madame X said...

SandyVoice, I did adjust my withholding for 2007, so I don't expect as much of a refund next year.

Raymond, as noted in the last point in the post, my blog income is tiny, and I donate it to charity anyway, so I don't bother to include it in any wrapups.

jr said...

Ms X.

You're one of the few PF blogs I still read, mainly because I feel you write from your heart instead of writing for money.

But I think you could think about trying to generate more ad revenue and still donate that money. And it can benefit you by allowing you to have a decent donation tax write off every year.

VixenOnABudget said...

I think it's great that you donate your blog income to charity. I agree with JR that it seems like some bloggers are writing just to earn an income.

Sherry said...

I have to chime in and agree with the above commentors. I enjoy the personal tone of your pf blog and admire the fact that you donate all proceeds to charity. Keep up the great job!

MattJ said...

I agree with the above comments that suggest that a tax refund is not 'income'. Taken to its logical conclusion, someone with an income of $70,000 who overpays their taxes by $30,000 could claim a six-figure salary.

Your income tax return is a refund on money you paid in the prior year, not income in the current year.

Anonymous said...

I've been following your blog for close to a year now and find it very interesting and informative. I don't recall if you covered this previously but I was wondering if you could post a breakdown of how you have your 401K and E*trade funds invested. i.e. x% in large caps, mid/small, international, bonds, other... I'm curious as to what your allocation mix is like percentage-wise for your investments. Keep up the good work and have a good day.