AAEC 2104 Lecture Notes - Lecture 4: Toothpaste, Income Statement, G.I. Bill
29 Jan 2018
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Document Summary
Tracks your money over a period of time. Cash accounting: record when the cash changes hands. Easier to do on a monthly basis (usually: then do it on an annual basis. Helps: identify ways to reduce spending, project a budget for the future, determine how much you can save/invest per month. Investment income: interest earned, dividends (cash or stock) Any other income: yard sales, selling blood, gambling, bank robberies. Total all income-based taxes: local, state, and federal income taxes, fica, social security (6. 3%, medicare taxes (1. 45%, money available to pay your expenses, futa unemployment taxes. Gross income (cid:498)inc taxes(cid:499) = take-home pay. Income statement savings and investments: for first job, estimate take-home pay: gross income x (1-25%) List the amount that you have added to your savings account throughout the period: automatic deduction, electronic banking. List the amount that you invested that period: retirement accounts.
