Why is the Income and Expenditure Important
Income and expenditure (I&E) are important for any individual for a variety of reasons. It is important to track income and expenses in order to create and maintain a budget. This allows individuals to plan for future expenses and income, and to make sure that their spending is within their means. By tracking your I&E, you are able to save money, pay bills on time and make wise investments. Furthermore, tracking income and expenses can help to identify areas of improvement and areas in which money can be saved.
How to Complete an I&E for Personal Use
I&E refers to the tracking of money coming in (income) and money going out (expenses). To complete this process, one should first identify all sources of income and then make a list of all expenses. Having access to you all your bank details will help with completing your I&E. All bank account transactions should be tracked and categorized as either income or expense. It is important to use an Excel or other spreadsheet (link to an I&E below) to keep accurate records of all transactions. Once all income and expenses have been entered, the spreadsheet will calculate net income or loss. This can be used to determine budgeting strategies or to identify potential areas of cost savings. It is important to review transactions regularly and make any necessary adjustments to ensure accuracy of the information.
Use a Notebook to Track Your Daily Spend
A notebook is a great way to keep track of your daily spending and help you to stay on top of your finances. Keeping a record of your daily purchases, bills, and other expenses can help you to identify areas where you are overspending. Tracking your daily spending in a notebook can help you to understand where your money is going and make better financial decisions. It can also help you to save money by alerting you to areas where you could be cutting back. Keeping a notebook to track your daily spending is a great way to get a better handle on your finances and ensure that you are staying within your budget. Your notebook records can then be put into your I&E on a regular basis, giving you a clear overview of your finances.
Using an Income and Expenditure for Creditors
An income and expenditure form is a great tool to help not only you manage your personal debt, but also provide evidence to your creditors. It will help you to budget your income and costs, so that you can pay off your creditors. It can also help you to work out how much you can afford to pay each creditor.
The form should include all of your income, including wages, benefits, investments or any other sources. It should also include all of your necessary expenses such as rent, utilities, food, and transport. Once you have filled out the form, you will be able to identify any surplus income that can be used to pay off your creditors.
By using an income and expenditure form, you can also identify any areas where you can make savings, and use that money to pay off your creditors. This will help you to manage your debt more efficiently and get back on track with your creditors.
A Word of Warning: Towards the end of the I&E you will see Birthday Presents, Christmas Presents and Holidays. Any creditor will question why your are setting money aside for those things, when that money could be used to pay off your debts!
Income and Expenditure Spreadsheet
This link will allow you to Download a copy of I&E Spreadsheet. Once you have downloaded the spreadsheet, you will then be able to fill out all the relevant sections. As input the data, you will see that the spreadsheet will do all the calculations for you. If you are completing this for a Debt Management Plan, you will see that it will tell you how much you should be paying each creditor.