Income is money that comes into your possession and you can rely on this income to continue producing money for you in the future. Examples include weekly or monthly paycheck, rental income and fixed deposit interest.
The following notes are to be read in conjunction with the Cash Flow Example.
Salaries and wages: Use your take-home-pay figure because this is what you actually have at your disposal to plan your budget.
Contract: If you have a contract that expires in 5 months, then you multiply your month contract earnings with 5 months and not 12 months. This applies to all your other income streams if you know they will not last.
Bonus: If you have a contractual bonus stipulated in your contract, then you may add in this amount. If your bonus is based on your performance, or the company’s performance then you should leave this empty.
Rental Income: Even if your tenant is contracted to rent from you for the whole year, it is good practice to assume rental income for less than 12 months. Your tenant might move out early and you might spend 1 or 2 months looking for a new tenant.
In this example, I use 10 months factor. You should use a suitable factor based on your own previous experience in renting out the property.
Dividend: If the dividend has been declared, then fill this field, else leave blank.
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