Income vs Expenditure

Income and Expenditure

Income

An income is any way in which people earn money, and there are many different types of income to consider. Here are some of the ways in which people earn money.

  • Some people have jobs and receive wages or salaries.

Salary

Wages

Fixed

Variable

Occasional

Expenditure 

  • living expenses (e.g. food, clothing, entertainment)
  • accounts (e.g. water, electricity, telephone)
  • fees (e.g. school fees), insurance (e.g. for a car or house)
  • taxes and loan repayments (e.g. to pay off your store account)

It is important to monitor your income and expenses each month, in order to manage your money carefully and plan your activities in such a way that you do not spend more money than you have, and get into debt. It is also important to try to save money so that you can pay for unexpected expenses (like a visit to the doctor). You can also decide which of your expenses are high and low priority. For example, if you are running low on money at the end of a month, buying food is more important, or of higher priority, than buying music CDs or going to the movies.