Looking at Your Spending and Debt
- Is Your Spending out of Control?
- Your Consumer Debt Ratio
- Calculating Your Total Debt Ratio
- Why Have I Gotten Into Debt?
- Income and Expenses
- Figuring Out Your Paycheck
- Expenses Line by Line
- Constructing a Spending Plan
- Case Study: Jennifer–Things Gone Wrong and How to Fix Them
- Forecasting Income and Expenses by Age
- When You Have Too Much Debt
- Allowances
- Saving Money on Company Benefits
Income and Expenses
To be successful in managing your cash flow and debts, you need to have an accurate picture of both your income and your expenses.
Income
Income is any money you receive. Taxable income includes wages, alimony, certain interest dividends, rental income, commission and tips, unemployment compensation, capital gains, pension, annuities, Social Security and royalties. Non-taxable income includes child support, gifts, and inheritances.
Expenses
Expenses are more varied, ranging from obvious items such as mortgage (or rent) and food, to items that you might not normally keep track of, such as home repair, grooming and entertainment. The Cash Flow worksheet is a tool you can use to start keeping track of your monthly expenses.
To get the necessary clear picture, you will need to figure out your paycheck and track your expenses line by line.
