Step 3
Making Money
Do you know how much you make a year? You'd be surprised that most people haven't sat down and really calculated how much they bring in a year, especially after taxes.
Take a moment to calculate this now. You can even look up - "your state + after tax income calculator," for an easy way to see your income for the entire year.
This is the perfect time to get out your Money Journal and think on the following prompts:
Are you happy with your current income?
Does your current income allow you to enough after your recurring bills to save, invest, or spend the money on fun purchases?
Does your current income allow you to live the life you have always dreamed of? Why or why not?
Do you feel you are being paid fairly?
Are you reaching your full potential with your current income?
If you are satisfied with your current income, congratulations! That is a wonderful feeling and can offer great peace of mind and security to know you're able to save, invest, and have fun money left over to spend on anything you'd like!
If you're like many young professionals though, you may feel under compensated, or discouraged. Starting salaries out of college are not great, and many of us still live with our parents– and don't know when we will be able to move out!
Here are some great prompts if you are not satisfied with your income:
Do you have a budget?
Do you have an emergency fund?
How much money are you able to put into savings every month?
How much money are you able to save for retirement?
How can you make more money?
What resources are available to help you make more money?
What will more money help you accomplish?
Keep these notes in mind as we move to the next step of the journey, budgeting (it'll be fun, I promise)!