TRACKING YOUR INCOME

Welcome to the second post of Blueprint to Financial Success. Last time we talked about Why You need a budget.  Click here if you missed that post.

Welcome to the second post of Blueprint to Financial Success.  Last week we talked about reasons you need reasons you need a budget. Today we are going to continue our discussion of ways to get your finances on track.

Before you calculate and track your expenses, you should track your income. It is very important that you know what’s coming in order to know how much should go out.  Tracking your income helps you pay for immediate needs, future expenses, vacation, home purchase, etc.

MUCH MORE THAN REGULAR CHECK

The most common form of income Is weekly or bi-weekly paychecks from seasonal, part-time, and full-time jobs.  There are also other forms of income that people tend to forget.  That’s why it’s important to track your income.  I declutter my closet twice a year but I haven’t been able to let go of my shoes.  So instead of just dropping them off to the Salvation Army, I decided to open a Posh Mark shop next week to see if I can make any extra money.  I bet once you start going through your bank statements you will find extra income that you may not typically think of as extra income that needs to be tracked to increase your monthly net income.

Other income source examples:

  • Garage sales
  • Monetary gifts (birthday, graduation, Christmas, etc)
  • Side business {what you pay yourself}
  • Interest from your bank
  • Amazon (I used to sell my old books and textbooks here)
  • eBay, Craigslist, Offer Up, etc
  • Tax refunds
  • Cash back awards (Ebates, credit cards, Swagbucks. etc)
  • Cash back and online rewards
  • Rent from income properties

These aren’t everyday sources of income, created a filing system for this specifically.  Begin saving your paycheck stubs; cash back receipts, garage sales receipts, etc. After you’ve gathered your receipts, enter those amounts onto your printable income tracker which you will find below.

HOW TO USE MY INCOME TRACKER

I’m a paper girl so I’ve created a printable for you to use yearly.  I write down all of our income no matter the amounts.  When I say I count every penny, I just calculated the $3.17 interest we just got deposited in our savings account. After that is completed, I enter our income on our monthly budget sheet which I will introduce later in the series. .  I like to track our net and gross income because we tithe off the gross amount.

How to use the income tracker:

  • Pull out all your income slips from your folder.
  • Add up the numbers in each column to come up with your final total. The total amount is the number you will work with monthly.
  • Do this monthly and you’ll have your monthly and yearly gross and net income. This will give you a snapshot of what to expect for the next year.  It will also help you determine if you should increase your income (I mean who couldn’t use more money).

Download Your Income Tracker now!

And there you have it! Just a few simple steps to help you get your money on the right track.

Most people only track their paycheck and thinks that tracking any thing else isn’t necessary.  But tracking every incoming penny is important.  You cannot budget successfully unless you know exactly how much is coming in.  But once you begin learning every step of a budgeting system, it will change your financial life.

Next week we will get down to the nitty gritty and learn how to track your expenses.

 

 

 

 

Rho'Nesha