If you cannot afford that vacation or engagement ring with your regular salary, you cannot afford it, period. Do not put your bonus toward any expenses. Your bonuses do not appear on the budget worksheet because you should automatically deposit it into an investment account. If part of your income is automatically deducted for 401K, it is still part of your income and also counts toward savings on the right side of the equation. If your income is unpredictable, estimate what you will receive on average each month and use a conservative number on your budget worksheet. This way, you will always have the expected income to cover your expenses.Ĭalculating this income is straightforward for people with a steady, salaried job. You want to exclude any money that is never going to be yours (taxes and society), and not guaranteed (bonuses). The income for your monthly budget worksheet should only include your take home pay for that month. This income excludes taxes, social security deduction, and bonuses. Your budget worksheet balances income, expenses, and savings How to Calculate Income in a Budget Worksheet If you are frugal but struggle to save 50% of your income, it’s time to think about making more money! And when you make more money, avoid spending creep by keeping your lifestyle the same. Another way to maximizing savings is to increase the income on your budget worksheet.
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