Before you use your income planner to plot how much money you're going to make this year, you need to figure out how much money you actually need.
Did you know that people tend to underestimate the monthly amount of money they need by over $1000? That's a lot of cash!
When it comes to money- YOUR money- it's waaaay better to be safe than sorry. You need to earn enough money to put food on the table and keep clothes on your back, not to mention afford luxuries like vacations, high heels and wine! Figuring out how much money you need per month should be something you do once a year (because your expenses are always changing), so if you haven’t done it this year then I encourage you to do it today! Here's how you can:
Step one: add up your bills
First, get your bank records out. Then thoroughly and honestly add up your expenses in this expense tracking template I've made for you. There's no room for guessing! Guessing = underestimating.
Don't forget to add in your yearly bills. It's easy to find your recurring monthly bills, but yearly bills like car tax and web hosting tend to slip from people's minds.
Step two: plan your income with your expenses and overheads in mind
It's time to whip your income planner out because I'm going to show you how to use it!
Now that you know how much money you spend on bills, think about how much money you'd like to spend on luxuries for you and your family. For example, how many holidays a year do you want to take? Do you want to be able to get a bigger house? Do you love going on shopping sprees? Or are you content with a simpler life?
If you want more luxuries you will need to set a higher income goal.
In your income planner, fill out the sections I've highlighted below.