Recording Your Income — The First Step in Budgeting

When it comes to managing your money wisely, budgeting is your roadmap—and every good map needs a starting point. That starting point is knowing your income.

Before you can plan where your money should go, you need to know what’s coming in. It’s surprising how many people skip this crucial step and wonder why their budget doesn’t work. Let’s fix that.

Step 1: Record Your Income

Recording your income is the foundation of any successful budget. Whether you’re paid regularly or sporadically, you need to list every source of income so you can make informed financial decisions.

Types of Income to Include

You might think income only includes your paycheck, but there’s more to it than that. Income comes in many forms. Below are common types of income to include:

1. Earned Income (Employment)

• Salary
• Hourly wages
• Overtime pay
• Commissions
• Bonuses
• Tips

2. Business Income

• Self-employment or freelance work
• Small business profits

3. Passive Income

• Rental income
• Royalties
• Dividends

4. Government Benefits

• Social Security
• Disability
• Unemployment
• SNAP or other assistance

5. Retirement Income

• Pension
• 401(k) or IRA withdrawals
• Annuities

6. Irregular or Nontraditional Income

• Child support or alimony
• Gifts
• Side hustles or gig work (Uber, DoorDash, etc.)
• Refunds or rebates

Use the Virtuous Living Planner to Track It All

To help you stay consistent and faithful with your finances, the Virtuous Living Planner by Lisa Michele includes a Monthly Budget page designed to help you track your income and expenses with intention.

Take Action:

• Gather your pay stubs or bank statements
• Make a list of all your income sources and recipient
• Record the amount and date received
• Add it all up—this is your total monthly income
• Track this information consistently each month

This makes it easy to see all your income in one place and helps you align your financial decisions with your values, goals, and Kingdom purpose.

Whether you’re managing one income stream or several, the Virtuous Living Planner helps you stay organized, prayerful, and on track.

Why This Step Matters

If you skip recording your income, the rest of your budget will always be off. You might overspend, underestimate your ability to save, or neglect areas like tithing, giving, or debt payoff. But once you clearly see what’s coming in, you can begin to confidently tell every dollar where to go—on purpose.

Final Thought:

Proverbs 27:23 reminds us to “Be diligent to know the state of your flocks, and attend to your herds.” In today’s terms, that means be aware of your income, know what you have, and steward it wisely.

Budgeting begins with clarity—and clarity begins with knowing what you bring in.

Your Sister in Christ

 

Lisa Michele

Creator, Virtuous Living Planner

www.virtuouslivingplanner.com