Determine Your Monthly Net Income
This is easy!
If you work 20 hours per month at $8 an hour, your monthly
income is $160 per month. Or is it? Remember, you have to pay taxes
or for your portion of any company-sponsored benefits, like health
insurance or a 401(k). Those costs come out of your paycheck before
you ever see it. So, take this into consideration to determine what
money you can count on actually coming in every paycheck - also
known as your net income.
It's important to avoid counting overtime or other potential
income of which you are not certain. If these funds come in, you
can adjust. However, for the sake of realistic planning, it's smart
to only count income you know you will receive.
It's important to double-check this calculation of your monthly
net income regularly to ensure it is always up to date.
At this point, it's a good idea to get all of your paperwork
organized. Find a folder, a drawer or even a digital file to make
your Money Management file. You will always have what you need to
easily review your resources and your goals. Begin this simple
Check out this sample pay stub to learn more about earnings,
withholdings and deductions you may see on your pay stub.
Visit OklahomaMoneyMatters.org to
learn more about financial fitness.