Clue On – Income

This will cover all your income, earnings, rebates i.e. incoming money. Things to consider include:

  1. All Earnings
  2. Frequency of Payments
  3. Expected AND confirmed rebates etc

The first part of a Spending Plan is to calculate how much money you have coming in each month or 4-week period. It is much easier for those on fixed and regular incomes to calculate their expected monthly incomes.

With non-fixed or irregular incomes, I would suggest using an average or the lowest amount you have received over the past 3 months. Rather budget with a minimum amount than a maximum or some expected but not confirmed amount.

Do Not Plan Couscous In Your Neighbour’s Pantry.

Miss Wilberforce – Wesley Girls’ High School, Cape Coast

Types of Income

  1. Fixed and Regular Income
    • Salaries from day jobs
    • Rental Income
    • Confirmed consulting work payment
    • Any benefit payment
    • Overtime payment (consider this as regular amount if you can book in advance and it is guaranteed)
  2. Irregular Income
    • Work Bonus
    • Proceeds/sales from side gigs – other consulting work, book sales, ebay sales etc
    • Proceeds from Investments
    • Birthday/Celebratory gifts to include gift cards/vouchers

NOTE – You can only spend money you have or are guaranteed. Use your guaranteed income.


  1. Plan a month ahead using last month’s fixed figures
  2. Find out your total monthly or 4-weekly earnings. I am paid on a 4-weekly basis and consider that as a month’s salary. This means each year, I am paid 13 times.
  3. If you receive benefits, please include this in the total monthly salary.
  4. If you are paid or receive any income on a bi-weekly basis, multiply by 2 and add this to your monthly salary.
  5. Include confirmed overtime payments
  6. For non-regular/fixed amount incomes;
    • You can ignore this and allocate it to savings once it is confirmed and received OR
    • Use last month’s income from these source making allowance for any reduction in sales figures etc
  7. If you earn a fixed income, my recommendation will be to keep non-regular and non-fixed income as a savings target. If an income is not guaranteed, you cannot spend it!
  8. For those income received from side hustles, rental income and most non-fixed income, Remember to Make an Allowance for Taxes. Save this amount in a Sinking Fund.

We will discuss Sinking Funds in subsequent posts.

For today’s exercise add up all your income and earnings. If you have non-regular income, look at your last payslip and use the average amount or the minimum.

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