Hey all, we’re baaaaaaaaaaaack with our monthly income report for April of 2016. Even after taking a week off to enjoy spring break in paradise, we still managed to pull in a tidy sum of money for the month.
As a reminder, we share our income to provide inspiration for all the other internet entrepreneurs and aspring stay-at-home couples out there. By explaining how we earn money and how much time we put into it, we hope to show how others can do the same.
As I have always said, if I can do it, anyone can. I absolutely hate computers and technology, yet still rock it online somehow. Even if you’re technology-averse, starting a blog isn’t that hard at all.
Aaaaaaannnnd let me tell you a little secret about starting a blog. Save yourself the trouble and get started with a self-hosted WordPress account. Click here for our step-by-step tutorial on how to start a blog yourself!
April 2016 Online Income
As mentioned above, we had a pretty decent month! We didn’t make as much as last month’s income, but I’m not one to complain. One of the best decisions we make every month is to keep our expenses crazy low and never give into lifestyle inflation. Since our monthly expenses still sit well below $4,000 including our mortgage, utilities, childcare, groceries, and all of our regular bills, wide swings in our income don’t freak us out too much.
With all that being said, behold the amount of money this here website (and the person typing) made online in April of 2016:
In total, my husband and I made around $22,150 for our efforts, which makes me more happy than anyone could know. Of course, it has taken us quite a while to get there! Here are a few of our previous income updates if you want to compare and see our progress:
- April 2014 Income: $6,650
- November 2014 Income: $11,660
- October 2015 Income: $17,070
- December 2015 Income: $23,620
- March 2016 Income: $28,117
Now that we’re fairly established online, we have money coming in from several key sources. To provide a glimpse into our bank account, I crunched some numbers for your viewing pleasure. Remember, these numbers are approximate:
- Affiliate Marketing and Blog Income: $4,156
- Other: $1,560
- Advertising and Sponsorships: $575
- Content Creation and Freelance Writing: The rest
Our expenses were pretty weak sauce again last month, which happens to be just the way I like it. However, we did hire a virtual assistant and that costs us around $150 per week. (Before you accuse me of hiring cheap labor, please know that she works ten hours per week for $15 per hour) Here’s what we paid to run our online businesses last month:
- Internet: $51
- Virtual Assistant: $600
- Blog Hosting: $15
- Misc. Advertising: $100
In addition to those expenses, it’s important to remember that being self-employed means paying a boatload of taxes. And since we have no benefits, we have to pay for our health insurance ourselves.
How Much Do I Pay Myself?
Recently, I participated in a webinar for a friend who is creating an online freelancing course. One of the questions they asked me was how much I pay myself, and I admit I struggled to answer. As a result, I wanted to elaborate here.
Since my husband and I changed our business, we are now an LLC taxed as an S-corp. As a result, we are able to pay ourselves fairly modest salaries on par with normal salaries for our jobs. The biggest benefit of this option is that we are able to avoid paying self-employment taxes on around half of our income.
But, here’s the kicker. Even though I earn quite a bit, the majority of my paycheck goes to retirement savings. That fact is also exacerbated this year because we switched from a SEP IRA to a Solo 401(k) and I didn’t contribute to retirement from January – March while we made the switch. To make up for those three months, both Greg and I need to contribute $2,250 per month to retirement for the rest of the year. That will get us to our $18,000 max via payroll deduction. Then, at the end of the year, we can contribute up to another 25% of our earned income out of our profits, per IRS rules.
With all that craziness being said, this is what my monthly paycheck looked like for April. Yes, I paid myself a whopping $1,069.92 for the entire month. Don’t worry; I won’t spend it all in one place.
Basically, I pay myself in retirement savings, wear clothes with holes, and drive a car that is almost falling apart. But one day I’ll be rich…as long as the stock market doesn’t completely crash!
Exciting News – We Wrote a Book
Although learning how much I actually pay myself surely has you on the edge of your seat, I have even more exciting news. As of this week, Greg and I finished the first copy of our book – all 34,000 words. Better yet, we signed on with a publisher who is going to assist with our efforts and help us market said book.
Writing a book is a goal I never really knew I had until we got started. But once that baby is up on the shelves, I’ll be more than a writer; I’ll be an author. It sounds so much more prestigious for some reason, doesn’t it?
Anyway, feel free to buy dozens of copies and give them as birthday gifts all year long. That’s what I would do.
Our book won’t be released until late this year or early next year, but we’ll make sure to share plenty of news along the way.
Thanks for reading – you mean more to us than you know!
How did your income goals work out in April? What are your goals for May?