Calculate Your Income:

List all sources of income, such as your salary, freelance work, rental income, or any other sources. Be sure to use your net income (after taxes) for accuracy.

Determine the Frequency:

Note whether your income sources are received on a monthly, bi-weekly, weekly, or irregular basis. This information will be crucial for creating a monthly budget.

Gather Pay Stubs and Statements:

Collect your recent pay stubs, bank statements, and any other documents that provide details of your income. This will help ensure you have an accurate record of your earnings.

Calculate Monthly and Annual Income:

If your income varies from month to month, calculate your average monthly income by adding up your income for the past 12 months and dividing by 12. For consistent income, simply use your current monthly income.

Include All Sources:

Ensure that you’ve included all sources of income, even irregular or infrequent ones. This will provide a complete picture of your overall financial situation.

Consider Windfalls and Bonuses:

If you receive occasional windfalls, like year-end bonuses, factor them into your annual income but be mindful not to rely on them for regular expenses.