One of the first milestones that you should consider when it comes to personal finances is making money. You can’t come up with a good budget if you do not bring in money in the first place. Some people are wired to be frugal, no matter how much they make. In fact, you may have some millionaires next door and not even realize it because they don’t make that much, they just do a good job of managing the money. This is where the saying, it’s not what you make, it’s what you keep, can come into play.

First, we need to look at our net income. This is going to be the amount of money that you bring home with you in your check, after all of the deductions. It is also the amount that you get to spend. It is going to be the building block of your budgeting so you need to know the exact amount that you are bringing in when you do this. Take a look at the amount that you bring home after the benefits, taxes, and insurance are taking out so that you will only spend the exact amount that you have in the bank at the time.

While most people will just work on a net income, there is also the possibility of a side income if you choose to do that. Want to make some money, but you are not certain where to start? Then you need to take a look at some of the different options for earing on the side. Whether you start investing, look into writing, provide customer service, or something else, this side income is additional money that you bring in during the month, whether it is steady or not, so that you can put it to your budget. It is by combining the net income and the side income together that you are going to be able to come up with the right amount to budget for everything.

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