Totaling Spending and Earnings

Add up the numbers in each of the three spending categories to get a subtotal for each category. Then add up the subtotals. The final number represents the amount you are currently spending each year.

Next, add up all the income you received during the same 12-month period. Take into account not just your net household income (your take-home pay, which is gross income minus all deductions including taxes), but also any other income you or your spouse or partner may receive: government benefits, investments, royalties, child support or spousal support, income from a family business, and so on. Record that total on your worksheet.

If you are entitled to child support and / or spousal support but the payments rarely come, don’t include those amounts when you calculate total annual income for your household. If it’s unreliable income, you can’t count on it to help cover your spending.