How to Record Your Salary / Earning

It is a good to record your income and expenses in an excel file. It is a first step to enable you to plan your financial. By having a clear record of your money earning and expenses, you will able to understand which items in the expenses need to be reduce if you need to save extra money for future investment.

Cash Inflow :

1. Work Income
a) Income I
b) Income II
c) Income III
d) Performance Bonuses
e) Others

2. Investment / Business Income
a) Bonuses
b) Dividends
c) Director Fees
d) Interests
e) Rentals
f) Others

Cash Outflow with suggested percentage :

1. Housing/Living Expenses ( 30%-50%)
a) House Payment / Rental
b) Water, Electricity & Phone
c) Meal / Eating Out
d) Groceries
e) Maintenance / Household / Furniture
f) Medical / Nutrition
g) Clothing / Hair / Facial
h) Children / Dependents Maintenance
i) Maid / Assistant
j) Quit Rent / Assessment
k) Property Insurance
l) Loan Repayment
m) Others

2. Transportation (10%-15%)
a) Car Payment
b) Petrol
c) Toll & Parking
d) Maintenance
e) Road Tax & Insurance
f) Others

3. Entertainment & Recreation (3%-5%)
a) Entertainment / Social Function
b) Vacation / Travel
c) Wedding / Gifts
d) Sport/Recreation
e) Club Fee & Expenses
f) Others

4. Miscellaneous ( 3% - 7%)
a) Income Tax
b) Books & Periodical
c) Donation / Contribution
d) Seminar / Continuous Education
e) Others

5. Insurance (3% - 5%)
a) Life, Critical Illness, Accident, Medical
b) Others

6. Children Education Funding (8% - 15%)
a) Education Insurance
b) Unit Trust
c) Bond
d) Others

7. Financial Independence (15% - 25%)
a) Endowment Insurance
b) EPF / Retirement Fund
c) Bank Saving
d) Unit Trust
e) Equity
f) Property
g) Others