How to Make your Own Income Statement

Making your own income statement is very important, it is a business called "life" if you don't know how to monitor, you'll be in trouble and there is a tendency you  would file a bankruptcy. Whether I like it or not, monitoring your income statement is big plus so you know if you're making a profit or loss in your life. Remember income statement  is  your  actual  cash inflows and cash outflows.

Income statement Formula:

Monthly income (after taxes) - monthly expenses = Profit

Personal Monthly Income Statement:

At the End of January, XXXX

Income:

      Salary/Wages :xxxx

      Other Income :xxxx

Total Income Available for living Expenses:                        xxxx

Expenses:

     House Mortgage      xxxx

     Car Payment            xxxx

     Food                        xxxx

     Gas                          xxxx

     Clothing/shopping   xxxx

     Utilities                    xxxx

     Cable                       xxxx

     Telephone                xxxx

     Insurance                 xxxx

     Others                      xxxx 

Total Expenses                                                                      xxxx

Net Income/ Loss income                                                   xxxx

Your net income is simply the result of subtracting your total income from your total expenses. A positive  net income would tells that you earned more than you spent and you have some money leftover from that month.However, Loss/ negative income tells you spend more money  than you brought in.

Related Posts:

• Why is Basic Accounting so Important
• How to make or create your own Personal Balance sheet

   

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How to save money on Grocery by spending less than $100 a week

As a wife, I do my best to help my husband to find  good deals  and save money on grocery by  spending less than $100 a week for a family of three.I do my best to control all my shopping habit by buying the necessity. With all the things I've done so far my husband never complain paying my credit card bill.  

I am stay at home mom and helping my husband by controlling my spending habit is the best way I can help our budget in control without sacrificing our needs. 

Coupon:

I don't really use coupon, they're not available on the items I needed on a regular basis. I usually use the coupon if I like to try new things so I can save it.New items out  on the market  has usually coupon so I take advantage this kind of stuffs.

Stock up:

Whenever is Sale, buy it and stock up if you know you can use it. Just be careful and watch out the expiry date so you're not wasting  your money. 

Weekly ads:

Most of the store has weekly ads available online. You can visit it and compare the price at the same time you have an idea about their deals and price. If you been shopping most of the time you know your store well.

Cook from the scratch:

If you're cooking and like to experiment you'll surely save in your grocery cost. I cook from the scratch and I don't really follow some recipe because some of it my husband won't eat nor am I. If you cook with recipe you can eliminate some of the item with your own taste and  you'll have a healthy meal and you save money from then.  I usually buy, spinach for $1.99, broccoli asparagus for $2.99. 

Seasonal Food:

This is very important, just buy what is cheaper on the market like for example your veggies and fruits. Don't buy those expensive fruits and veggies when you know you can buy it for $99.

Know your store:

Some of the store has specialty deals. I know where I have to buy my fruits for cheaper price and my veggies. I like fruits and I buy a lot of them as it is my daughter's snacks. Every wednesday I have to go on grocery and I know they have a great deals.

Grocery is a big expenses of every family. Cooking from the scratch is the best way to go if you want to save money. Like me, I don't plan my menu of the week. I cook and use whatever is on my fridge. Every morning I just look my fridge and put out the meat to thawed and ready to chop. 

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How to Make Your Own Personal Balance Sheet

There are simple ways to make or create your own Personal Balance sheet even if you're not an accountant. If you just want to monitor  your Balance sheet,it is a smart idea so you know how much you own and how much you owe. Basically all you need is to write down all your assets and liabilities. It is important you know all of them and have some receipt and proof for proper documentation.                                                         

To get your net worth you have only to subtract your total assets from your total liabilities. Remember your net worth go up as your assets increases and your liabilities decreases and this would be a good sign you are in a good hands. Once your net worth go down- it means your assets decreases and your liabilities increases and your personal finance is in danger.

Monitoring your personal finances is very important nowadays. The most important we can do, spend what you can afford and try to save during rainy days if possible.

                                                                Personal Balance Sheet

As  of January 1,XXXX

Assets:                                                                                    

Cash on hand:   XXX

Savings account: XXX

Checking Account: XXX

Prepaid Deposit: XXX

Cars: XXX

Home: XXX

Retirement: XXX

Investments: XXX

Other: XXX

Total Assets                                 XXX

Liabilities:

Home Mortgage: XXX

Car Payment: XXX

Credit Card

Other Debt: XXX

Total Liabilities                           XXX

Net Worth:                                   XXX 


Related Posts:

• Why is Basic Accounting so Important

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Why is Basic Accounting so Important for Personal finance

I graduated in Business school and I know Basic Accounting so important in our daily life. We just don't know but we use accounting everyday- the money comes in and money that  goes out. Basically you don't need to graduate in Business school to understand all of the accounting cycle. Of course it is well worth once you are there and have a better understanding about the subject. It's all different stories once you study the accounting or wants to be an accountant.

There are only 3 words you should understand and how  to manage your finances. Most of us screw up with these words.

• Asset-  is an economic resources or  whatever you own like a private property, one of the standard examples are cash, furnitures, homes, clothes,car and land. Remember all these assets my depreciate the value if you think a long term.
• Liability-is responsible for something. This is your debt and you have responsibility to pay in a short term or long term. One of the example is your house mortgage, car mortgage and your credit card. 
• Income-is your monthly wages or salary. 

Most people screw up with these 3 words and sometime they think liability is there asset and they forget about their income and that's we called a compulsive buyer. Some people forget that asset would depreciate and never think the long term. 

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How to Prevent Getting Major Bills on Credit Cards

Credit Cards has pros and cons and it  all depends on  you. Sometime, credit cards is  a big help if you used it wisely but being a human  we tend  to be an  impulsive buyer and this is true in any ways

It is hard to control once we don’t understand and learned our lesson from our  mistakes or from other people who are in debt and can’t get out of it.

Buy what you can afford: 

Don’t compete with other Jones and Joneses buy what you can afford even if you charge it in your credit card, just think of it you can afford to pay when you arrived at home that day.

Pay the full amount on time-Swiping is so easy and sometime you forget how much you owe at the end of the day. Once you received your statement, pay the full amount on time to avoid interest .

Make use Credit Card Intended for convenience:

Credit card is for convenience and easy to travel with without anything to worry. Make use of  this as your protection and not to get debt and worried your days how to pay it. Your credit score will tell  you “how responsible people you are”.

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