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How to record income for a spending savings plan
Estimated time: 30 minutes
Level of difficulty: easy
Why is this important?
Successful money or debt management begins with households identifying income sources. For family farms, often income and expenses are commingled, clouding the decision making process for both the farm and the family. Here you will identify income available to the household.
Consider that if you’re planning to spend dollars they have to come from somewhere. Families with unpredictable income sources need to project or average what they expect will come into the household as income this year. Look back and decide on an amount that you think is reasonable based on your current plans. Play it safe and be conservative in your estimate.
Steps to take
1. Download Developing a Spending Savings Plan
- file available here
2. List sources of cash.
Using information you have on hand, i.e. your tax return, your checkbook or bank statement, pay stubs for non-farm income, list sources of cash coming into the household including gifts, community resources, public assistance, etc.
3. Subtract farm-related expenses.
For income from farm related activities, first subtract the farm related expenses and use the net income to the household.
4. Record income
Using a monthly figure, record income on the Monthly Income Chart found on page 3 of Developing A Spending Savings Plan.
