Back to Basics – Income

Over the last few weeks we’ve talked about Net Worth, what it’s made up of (Assets and Liabilities), and the best tool for understanding what you own and what you owe: the Balance Sheet. Now we’re moving on to how your money moves, both in and out of your accounts.

Income is simply money you’ve received. Some income is steady (paychecks often are the same every two week or every month) and some is irregular and varies, like interest and investment income. Knowing your income is important because it’s the starting point for the decisions you make on what to do with your money. Over the next few weeks we’ll talk about the different types of income and when to pay attention to which type. For now, you can learn more about the basics of income here.