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.
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