A Plan for Your Budgeting and Taxes
Determining your net worth
How much do you have right now financially? Do u have any liabilities? Money in the bank? A job, or income? The formula for finding your net worth is your Assets minus your Liabilities.
Establishing your Income
Income is money coming through wages earned, allowance, or any other money you earn. Your income helps you fulfill wants and needs by saving money, building wealth and acquiring assets in your life. The job and education you have will effect your income. Usually the more education you have, the more income you bring in.
Identifying your Expenses
When your budget is created, you need to determine what your expenses are per month. You might need to pay for groceries, car payments, retirements, and sometimes rainy day or emergency expenses. When you plan out your expenses, make sure its all in your budget, you balance it all out, and you have money to save in the end.
Considering the Impacts of Taxes
Income taxes is money owed to the government on your earned income. The more money you make, the more taxes you will have to pay for that higher income. You may want to save your money in ways to avoid taxes. Examples are certain retirement or college savings plans.