Page 324 - Keys to College Success

Step 2: Gross Income. Calculate your average monthly income. As with expenses, if any source of income arrives only
once a year, enter it in the annual column and divide by 12 to get the monthly figure. For example, if you have a $6,000
scholarship for the year, your monthly income would be $500 ($6,000 divided by 12).

INCOME/RESOURCES MONTHLY INCOME ANNUAL

Employment (after federal/state taxes)

Family contribution
Financial assistance: grants, federal and other loans

Scholarships

Interest and dividends

Other gifts, income, and contributions

TOTAL EXPECTED INCOME

Step 3: Net Income (Cash Flow). Subtract the grand total of your monthly expenses from the grand total of your
monthly income.

INCOME PER MONTH
Total expected expenses

Total expected income

NET INCOME
(INCOME MINUS EXPENSES)
Source: Adapted from Julie Stein, California State University, East Bay.

Step 4: Adjustments. If you have a negative cash flow, what would you change? Examine your budget and spending
log to look for problem areas. Remember, you can increase income, decrease spending, or do both. Describe two ideas
about how to get your cash flow back in the black.

learners may want to dump receipts into a jar and tally them at the end of the month.
Personal finance software can accommodate different types of learners with features
such as written reports (verbal-linguistic) and graphical reports (visual). Consider
using online tools such as Mint.com or PocketGuard.com. See the Multiple Intelli-
gence Strategies for Financial Management (p. 283) for more MI-based ideas on how
to manage your money.

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