personal income and expenditure template

For instance, medicare and social security taxes cannot be deducted from portfolio income. Unlike earned income, portfolio income is subjected to fewer taxes. Income from stocks, dividends, bonds, and capital gains is categorized as portfolio income. Portfolio income is the amount of money that you get from your investment asset.Īs Robert Kiyosaki puts it this is the type of money that works for you. While this type of income is quite consistent, it is subjected to different types of taxes such as state, federal, and social security taxes. This type of income can be earned from a corporate job or a self-employment job. Examples of earned income include tips, salaries, wages, commissions, and bonuses. In most instances, earned income is paid through a paycheck or cash.Īlso Read: How to Prepare for the RecessionĮarned income is paid for the value that you offer or create by providing your services. Here are the different types of income that should be included in this personal income financial statement: Earned IncomeĮarned income is the amount of money that you earn as an employee for offering certain services. Income is the amount of money that you get from offering labor services or from investing a certain amount of money in profitable assets. Components of a Personal Income Statement Income This personal financial statement also contains all the living expenses that you might incur over time such as rent, utility payments, and mortgage payments.

While this personal financial statement can be created monthly or quarterly, a monthly financial statement is more effective in tracking your cash flow than the personal financial statement that’s created quarterly.Ī personal income financial statement lists income from various sources (salaries, dividends, and profits from bonds or stocks). This personal financial statement makes it easier for you to improve your spending habits. With this personal financial statement, you can easily know your financial situation and your net cash flow (either negative cash flow or positive cash flow/ gross profit). You can find the links to the other articles at the bottom of the article.Ī personal income statement is a personal financial statement that outlines your income and expenses over a certain period of time, giving you some insight into your financial position. This article is part of our series about financial literacy.

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Personal income and expenditure template