Determining Your Income

Many people may only have one job and one source of income each month making this process simple. But with the turn of the century, it seems like more and more people have their “day job” but also have a side job making them a little extra money as well. To be precise you really need to determine an exact amount that you are making each month and using for expenses. Depending on how often you receive a paycheck you can calculate an exact amount. The chart below can assist you in doing this.

Calculating Your Monthly Salary:

Every week: multiply your paycheck by 52 than divide by 12 = monthly income

Every 2 weeks: multiply your paycheck by 26 than divide by 12 = monthly income

2 times a month: multiply your paycheck by 24 than divide by 12 = monthly income


Use this chart to calculate your monthly income for each household paycheck coming in. Then add all monthly incomes together to get your grand total monthly income. Remember to include other sources of income, like child support, alimony, monthly inheritance, etc. when you are calculating your monthly income.

Once you have totaled your monthly income amount, you are ready to figure out your monthly expenses.