Monday, November 28, 2016

Challenge Myself: Day #127 Make A P&L Chart

Today is Day #127 of the Nar Anon Group Just For Today Challenge. I am also integrating the Live Happy into my Challenge. The Live Happy Challenge for today says, learn to create a profit and loss chart for your household finances.

The book says,

If you've never produced a personal profit and loss chart, don't sweat it. It's easy to create and useful for preparing your income tax filings.

Really, it's about pulling together two columns of numbers, income and expenses. List all your income sources, such as wages, investment dividends, lottery winnings, social security benefits, income tax refunds, or others, and their respective amounts in one column.

A second column lists all your expenses with those amounts also allocated. That means money spent for orthodontic braces, medical insurance premiums, and regular medications go under a "medical" heading. Also include headings such as, Auto, Charity, Child Care, Education, Household (mortgage, moving expenses, for example) and others.

Knowing the amount of money coming in exceeds the amount being spent for your needs means that you most likely will have money left over. Maybe a lot! Now, doesn't that make you happy?

Just For Today: I am thankful for jobs and the few dollars left over after the bills are all paid.

From the book: Live Happy

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