Friday, October 28, 2016

Tracking your income can be easier then you think

We all have an income. Some of us are paid each week, some people are paid twice a month and there are even those who get paid just once a month.  No matter when you get paid, it is your job to manage that money so you can make ends meet and still have something left over to put into a saving account.  Besides that steady income, some people also have money coming in from their investments. These people did their homework and then chose one or maybe a few investments to enter into.  To track this income, some people will have accountants and others might use a computer program and enter their earnings so they always know how much money they have and were it is coming from.

savings

They might also have an inheritance that is paid quarterly and that too will be tracked and added to their net worth.  Being the victim of an accident that was not their fault can have them collecting compensation for their injuries. This is not an ideal way to collect money but it happens everyday and that is unfortunate.

Other forms of income can be alimony, dividends, interest, pension benefits, estate and trust income, rents, royalties and also benefits from your Social Security.  All this must be tracked as a form of income but doing it correctly is the trick.  You might hire an accountant to do this for you or you can learn to do it yourself and that way save yourself some money.

If you are a US citizen, it is your job to report all your income, no matter what its source from any country. This is required unless it is exempt under US law. Even gambling winnings, whether it be from a raffle, lottery or other gambling activity, must tracked and reported in your annual taxes.  With a little help, tracking your income is not as hard as you might think.

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