Many of you rightfully pointed out that income statement is a noticeable missing component of this 3-year-old personal finance blog. Being a corporate finance professional, I do agree that financial disclosure, no matter a personal one or corporate one, is always incomplete without income statement data. In the case of PFBlog, the lack of such revelation, of course, is an intentional miss.
So why do I want to keep this to myself while I'm revealing literally anything but my social security number at this blog? There are two main reasons:
First, both my wife and I have signed confidentiality agreement with our employers to keep compensation package as a secret, and we do want to honor what we promised. It is really unfair to the company, as well as to our managers and colleagues, to openly discuss our compensation.
More importantly, revelation of income does no more than satisfying some peeking eyes. To me, personal finance improvement mostly involves rational spending ("finding the best deal"), transactional efficiency (credit card rewards, best savings rates, etc.), and wise investment decisions. Simply talking about our household income will help no one in achieving better financial results.
With that said, the best I can do is probably to provide some combined numbers -- hopefully this will provide some context to understand our net worth growth pattern.
Below is the combined results for 2003 to 2005. In each year, combined results include my job income, my wife's job income and our sideline "hobby" income. This does not include investment income, interests/dividends, and gains from our home sale.
The leap between 2004 and 2005 includes one-time benefit from my relocation, increased earning power of my wife, and income streams from our sideline business.
What's up for next year? We are looking at north of $250,000. The increase over 2005 includes more expatriate benefits, offsetting by my wife's lower job income and lower sideline income. If we add back investment income, we do expect our 2006 income will be 20-30% stronger than 2005's.
Is this disclosure good enough?