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Calculate Your Income


Income is more than a paycheck.  Sure, much of what you earn month to month is likely through your employer, but if you were smart about your assets, you can also calculate how much value you’re getting from your savings accounts, bonds you invested in, or even stocks. It’s important to account for all forms of income when we think about your earnings for the month or year. You can even consider gift money, side jobs, and hobbies as a form of income as well, if you need to squeeze a little more into your budget. That said, be conservative in your calculations— you shouldn’t add unguaranteed money that you may or may not make that year, like possible bonuses you don’t have a record of obtaining in the past. Being conservative gives you more wiggle-room if something goes wrong!


  1. Earnings are paycheck and investment dividends.
  2. Account for ALL earnings, not just the obvious ones.
  3. Gifts, side jobs, hobbies, anything can earn you extra money.
  4. Avoid overestimating, better to underestimate earnings.