This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

When One Partner Won't Budget

Jake's Regular Expenses
Like the irregular expenses, the amounts listed below reflect only his share for things, even if they are a joint expense. Accordingly, the pet, grocery, Netflix, internet, rent, satellite cable, renters' insurance, and electricity categories should be doubled if you want to get an idea of our joint/mutual costs. Please also note I solicited more information about his credit cards and have updated the information. For his payments, however, I am going by what he has paid historically, not what the minimum payment actually is. These are monthly numbers.

  • Gas, auto: $55
  • Pet expenses: $50
  • Grocery/household: $300
  • Cell phone: $135 (Note: Jake uses his cell phone for the business, too, though I'm not sure if or how he separates it from his personal use.)
  • Drycleaner: $40
  • Netflix: $8
  • Internet: $32.50
  • Satellite cable: $37
  • Renters' insurance: $9
  • Electricity: fluctuates throughout the year, in summer $100
  • Withdrawal/cash: unknown, I suspect it varies widely
  • Charity: $10 (Humane Society)
  • Haircuts: $18
  • Rent: $488
  • Student loan 1: $180
  • Student loan 2: $70
  • Student loan 3: $176
  • Student loan 4: $112
  • Auto loan: $300
  • Credit Card 1 ($12,697.64 @ 4.99% for life): $400
  • Credit Card 2 ($2,202.87 @ 7.5% variable): $200. This is the one in my name.
  • Credit Card 3 ($2,648.33 @ 3.99% for life): $200
  • Credit Card 4 ($1,875 @ 0% until 3/6/13): $175. His share of the wedding expenses not covered in advance.
  • Credit Card 5 ($8,175.51 @ 0% until 9/1/12): $125. A loan to the business to sign up for a year's subscription to a client-referral service.
  • Credit Card 6 ($1,350 @ 9.99%): $150. A loan to the business to cover his partner's expenses when he was short.
  • Total: $3,370.50

Jake's Income
Here's where it gets tricky. Since January he's paid himself twice per month in amounts varying from $400 to $5,963.98. Based on his disbursements year-to-date, he can expect his gross salary for the year to be $47,577.42. On average, he's grossing $3,659.80 per month.

On the surface, then, he's making enough to pay his bills plus a little extra. However, I'm sure he's spending it all (that is, I expect that eating out and miscellaneous purchases would take us to the limit of his gross salary). I guess this is what he means when he says “it's worked well so far.” However, he hasn't been paying quarterly estimated taxes. There are some structural changes to the business that took effect August 1st, and he's been waiting for that to start his quarterly payments.

3 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,024.06 +183.54 1.03%
S&P 500 2,108.29 +22.78 1.09%
NASDAQ 5,005.3910 +63.9670 1.29%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs