#FinancialFitness2018 continues!

Week One is Budget, and today we’re on to Step Two. We have several clients following along and creating their budgets along with me. If you’re interested in participating, email me at Katelyn@HansensAdvisory.com, and I’ll send you the spreadsheet.

Step Two: Figuring Out Your Income

This seems like it should be pretty obvious for most people, right? Let’s assume you’re someone that gets a paycheck. Wouldn’t your income be whatever your check says every week? Not necessarily! This is because when you’re creating a budget you have to think about everything you spend your money on, including the taxes and retirement contributions that are deducted from your paycheck every week. For your budget spreadsheet, you will want to start with your gross income, rather than your net income.

Now, if you’re someone like me, it gets even more complicated. In the past year I will have received income from several different sources. Between my role as a FInancial Advisor, various speaking engagements, my employment with Solarize CNY and hosting trivia with Syracuse Trivia Company, my income is a tax accountant’s nightmare. Some of this income has already been taxed, and some of it hasn’t. It is also highly variable.

Ever the more reason to create a budget!

When your income is variable like mine, there are some months that you might not generate very much income, but you still have to pay your bills! So, for my budget, I have to figure out the average. I looked at my current sources of income, added up what I have received over the last year, and then divided by 12. That is the number that I have to work with every month, and that is the amount that appears at the top of my spreadsheet.

If you have income from other sources like rental property, stock dividends, side hustles, or whatever else it might be, make sure you include this income in your budget.

If you have any questions, feel free to reach out!

#FinancialFitness2018 #KatelynisGettingFit #NewYearsResolution#Budget

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