2torial #0564:
Learn2 Establish a Personal Budget (continued)

Assess your income

How much money do you have to work with? Figuring this out could be as simple as checking your pay stubs, or it may be as complicated as tallying your salary, any extra income you receive, and the returns on any investments you may hold. Don't forget to deduct your income taxes to establish the actual money (or net income) from which your spending will come.

For budgeting purposes, it's best to tally income on a yearly basis, which you can easily divide (by 12) into a monthly basis. While a budget forecast usually takes a full year into consideration, it's formulated and handled on a monthly and weekly basis.