Glad you are still following along. This is the last step for the foundational phase of Finance 4 U. This step will wrap up the start of the process. Once you know where your money goes and how much you can bring in, it will help you focus on THE NUMBER.
I call this your LIVING NUMBER. To live the life you have carved out for yourself at the moment, these fundamental numbers give you a guide or starting point to move to the next levels of your money management. You are the CEO of YOU ... always remember that!
Let's do this!
4. Money you EARN
This week we will note down all the income that comes into your home.
What do you get paid? Review a recent payslip and jot down the critical information.
Each person's details should be listed separately (an example of mine last month is below).
Frequency of pay: monthly
Gross pay: $8000
Nett pay: $5212
Employer superannuation contribution: $760
Your salary sacrifice contributions to super: $1250
HECS/ Student payments: nil
In my payslip examples below, I have highlighted the information that we need to take note of. At the moment the 'net' payment is the most important number however the amount of tax we pay, the superannuation transferred to our retirement fund and any other deductions will become important as we move through the higher steps.
If you are self-employed or own a business, note down what you pay yourself each week/month OR typical incoming revenue you pay yourself. Go back a few months and see what you gave yourself, from the business. Doesn't matter what it is. It's a starting point that we can use to do some calculations later on.
'Mind' work for this week
This week I would encourage you to think about what you may own that you could sell. Or if you are able to do paid overtime to boost your take-home pay (nett pay).
There is a saying that 'thoughts become things' so we want your thoughts to be in overdrive to help you along this journey. You never know what can pop into your head when you least expect it! 🙂
With regards to earning more money, we will expand on this later. However, I would like to 'plant the seed' of any opportunities you may have to get some extra cash for a period of time.
To close off the first 4 steps and recap what needs to be complete by the end of this session, you should have a filled notebook with the below pages. No need to tally anything yet. We just need to get these numbers and items down on paper.
Debt # 3 ... so on
Looking forward to sharing with you the next group of steps, in the next phase I like to call 'Controlling Your Numbers'.