Monthly Net Income
For the most part, net income is used to help us understand the cash flow available for spending, saving, debt repayment etc.
Tip: Remember that if you would rather not enter in this level of detail, you can always select 'Simple Mode' by clicking the button in the top left corner of the Income section.
Amounts Only Used for Cash Flow:
These amounts will not be used in your projections, but instead will be used in the Cash Flow chart to understand the amount available for spending,
- Net Employment Income: Enter the amount you receive on your paystub after all deductions are taken off. You can see an example later in this article
- Net Self-Employment Income: Enter the amount received after all business expenses, tax and CPP are paid.
- Net Bonus Income: Enter the amount you receive after tax/CPP/EI deductions
- Government Benefits: Non-taxable government benefits like the Canada Child Benefit, Trillum Benefit, GIS Benefit etc can be entered here. The platform will not use these amounts for your projections but instead re-calculate them automatically based on your household information, ages of children, future income assumptions etc.
- Other Net Taxable Income: Any other taxable income received after deductions and tax is paid
Amount Used in Your Plan:
The one exception in Net Income is the 'Other Net-Taxable Income' field. If you have a source of non-taxable income that is paid regularly (eg: non-taxable disability payment), make sure to include it here.
This value will be used in your planning projections.
Frequency Drop Downs:
All fields can be set to a specific frequency. This helps capture income/deduction sources with different frequencies.
- /A = Per Annum
- /SM = Per Semi-Annum (2x per year)
- /Q = Per Quarter
- /M = Per Month
- /SM = Per Semi-Month (2x per month)
- /BW = Per Bi-Weekly
- /W = Per Weekly
Use Your Paystub
Complete the Monthly Net Income section using your most recent paystub. The paystub you use should represent your typical earnings. In this example below we would use $1,951.67 as net income if this overtime represents the average overtime received.
