Thursday, September 25, 2014

AirBnB- Financial Breakdown

I've mentioned our successful summer with AirBnB enough times now that I think it is worth sharing with you the overall financial impact of our experience.

Nick and I moved out of our apartment on July 3rd and didn't move back-in until August 17th. In that time, Nick and I have hosted 11 groups through AirBnB.

We divided our income into four categories:
  • Set-Up/Management Expenses
  • Taxes
  • Summer Vacation
  • Student Loans 
Set-Up and Management of the AirBnB had various small expenses that I am glad we used income to help offset,; otherwise we would have been dipping into grocery money. These expenses ended up equalling 12% of our overall earnings. They included things like new bed sheets, cleaning supplies, and breakfast treats for our guests. We also set a little money aside for gas, as our commute to and from the apartment became a business expense.

We decided that it would be best to save 30% of our earnings for Taxes. Come March, I think we will both be happy to have this money on hand rather then be surprised by an impending amount owed. If we don't owe it all then we can put it toward a student loan payment, but we'd rather be safe and have it sit in our savings account until we complete our taxes.

One of the reasons we originally decided to put our apartment up on AirBnB was to earn money to stay a few nights in Vermont on our Vacation. We made that money, and then Nick and I did not stay on budget for our vacation at all :( It was a very Bad frugal vacation. So we used 28% of our income to offset the money we had saved to cover our expenses. We came back from vacation without anything on our credit cards- first time I can say that in like 7 years!!

We were also able to put 30% of our income toward our Student Loans. This allowed us to pay down our highest interest rate loan (12.5%) down in 5 months, versus the 8 months we thought it was going to take us. This was a huge accomplishment :)

Nick and I will be hosting our 12th group this upcoming weekend, who are helping us pay for our weekend in Delaware for the Dogfish Head Dash. AirBnB has been a great way for us to make money while we aren't at home and keep us off our credit cards.

This post would not be complete without a HUGE thank you to Rob and Sally for their over the top generosity. Over the summer, they allowed Nick and I to stay in the guest room, while making money on our own place. We truly appreciate the support :) 

1 comment:

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