Finance

Why We Use A Net Pay Income Tracker (Free Budget Binder Printable)

Free Printable Net Pay Income Tracker For Budget Binder

Why do you need a net pay income tracker?

For anyone who wants to start budgeting it’s a great idea to know exactly how much money you gross and net each month.

Whether you get paid daily, weekly, bi-weekly, or monthly to create a budget that works for you you’ll need to know your net pay.

Using a Budget Binder to track your finances is for those of you who don’t want to rely on technology.

The paper and pencil method with a visual binder helps lots of people overcome their fear of budgeting.

Consider the cash envelope system or the budget jars and how these two systems motivate users to stop spending.

There’s something about doing the work by hand rather than typing it into an app that encourages people to continue.

If you’re not into the paper method of budgeting this post is still very important as you’ll still need to track your net pay.

income tracker

Your Net Pay Numbers Are Important

Often when someone emails me for budgeting help and I ask them how much their net pay is each month, and they can’t tell me.

To be fair, there was a time when I didn’t even know what my net pay was because my hours were all over the place.

That was when we started to track our net pay which gave us the confidence we needed to;

In my opinion, without tracking your net pay and income from other sources you’re not financially prepared.

The game of finance also known as the game of life relies on numbers to get us from A to Z in our budget.

You cannot accurately save, pay off debt, invest for retirement needs unless you track your net pay.

There was a point in our budget that we had to stop all retirement investments because my wife lost her job.

It was at this time we needed to evaluate our budget so we could revamp it to fit our financial needs at the time.

The last thing you want to do is go back through pay stubs or scan through your online bank account to add it all up.

A few minutes of your day or week to flip through the pages in your budget binder to fill out the data will make a world of difference.

Debt repayment and savings require some homework if you want to pay a debt off fast and increase your net worth.

Net Pay May Fluctuate

Consider these situations and how your pay could fluctuate.

Your employer might send you home early and if you’re not on a salary then odds are you’re not getting paid.

You may miss work for various reasons that could take a slice out of your net pay which needs to be documented.

Although it may seem simple if you do have a salary, not every paycheque will be the same due to circumstances beyond your control.

Perhaps you pay into an employer RRSP or pension program and your net pay is different each month based on the percentage taken off.

These final numbers are critical to the success of your monthly budget because without them you could come up short.

The last thing anyone needs when they are budgeting to pay off debt is a deficit in money to pay the bills.

A simple budget binder printable we created not too long ago has been helping us track our net pay.

Let’s have a quick recap of what gross income is and how to calculate your net pay.

What Is Gross Income?

Your gross income is how much money your employer is paying you without taking income tax or deductions off.

If you are paid a yearly salary or hourly wage your gross income is what you get paid minus your income tax and deductions.

Using an online income tax calculator can help you find the numbers you want but the accuracy comes with your pay stubs.

You will want to know this number and in fact, you can track this number as well on the net pay tracker.

I use it for reference only, and when I fill out my income tax return at the end of the year.

Other than that the number I’m most interested in is my net pay so I can plan our financial journey correctly.\

Understanding Net Pay

Your net pay or net income is your salary after tax and deductions so what you get deposited into your bank account from your employer.

Knowing what your pay after tax is will help you to build a budget that works for you.

Without knowing how much net income is coming into the house you can’t accurately create a realistic budget.

If your net pay is irregular this income tracker will allow you to average your take-home pay.

From there you’ll be able to build a budget that fits your needs rather than guessing.

You can find all of the below Net Pay Trackers on my Free Budget Binder Printables Page.

  1. Daily IncomeTracker
  2. Weekly Income Tracker
  3. Bi-Weekly Income Tracker
  4. Monthly Income Tracker

Daily Income Tracker

Daily Net Pay Income Tracker

Some of you may get paid cash daily or perhaps your employer pays you daily.

For this reason, I’ve created a daily income tracker where you can document each payment.

It’s important to remember that if you are paid cash and don’t have any paperwork to go along with it that it may be hard to remember back.

This is why printing this net pay income tracker for your budget binder will come in handy as it takes the guesswork out of the equation.

Another reason you may get paid daily if you are a business owner or contract worker.

Whatever the case take a moment each night to jot down how much money you net.

Keep in mind that if you do report any cash payments come income tax time you’ll have to deduct appropriate taxes.

Note: You can download the pdf versions for print by going to the Free Budget Binder Printables Page.

Weekly Income Tracker

The weekly income tracker is for those of you who get paid weekly and want to track it.

At the top of the form fill in the month that you are tracking and if you need two sheets, print two.

The idea is to fill each section in as you get paid so you can add it up quickly.

If you get any extra pay throughout the week you can also track this here but take caution that it’s not a normal occurrence.

When you are looking at your numbers at the end of the week only add up income from your employer or business.

Anything extra is a bonus and the same goes for if you track your net pay bi-weekly, monthly, or daily.

Weekly Net Pay Income Tracker

Bi-Weekly Income Tracker

The bi-weekly income tracker is for the person who gets paid twice a week.

What I love about this one is that you can plan your budget far better than someone who gets paid monthly.

Even people with an irregular income struggle to figure out how to create a budget although it is possible.

Bi-Weekly Net Pay Income Tracker

Monthly Income Tracker

The monthly income tracker is for those of you who get paid once a month as I do.

I get paid a monthly salary however it can fluctuate if I work extra days or pick up a shift due to illness of a colleague.

I also get monthly income from this blog which is the small business that I need to document.

However, not all of it comes in monthly blocks as it could be daily or weekly as well.

For this reason, I label each payment that I receive for the blog so I know the frequency although many are one-off payments.

Monthly Net Pay Income Tracker

Create A Budget With Net Pay

By tracking your net pay it allows you to have more freedom with your budget with accuracy.

Using your take-home pay you can properly distribute the money to each budget category.

Evaluate A Budget With Net Pay

Typically we evaluate our budget twice a year with the main evaluation being at the end of the year.

We use our net income for the year to create our budget for the following year.

This is where your net pay tracking will come in very handy.

Update A Budget With Net Pay

Once you’ve made changes to your budget as needed it’s time to look at the figures.

Based on your current net pay and at least 3-6 months back of tracking you can update your budget accordingly.

For example: If your income goes up at the end of the year you can allocate more money to debt or savings.

Perhaps you want to increase your grocery budget with the extra income that has been added to your salary.

On the other hand, maybe you’ve lost your job or taken a pay cut where the tracking will be a finance tool you’ll rely on.

Final Thoughts

Your money isn’t going to go to work by itself as it needs transportation and that’s you.

Taking charge of your financial numbers whether using an app or budget binder it creates a mindset.

Once you see how beneficial tracking can be to your overall financial health you’re in it for life.

Even though we have zero debt there’s no chance you’ll see us ditching our budget anytime soon, if ever.

On the realistic side, we know that eventually our finances may not be run by us.

If we are both ill or if one of us passes and cannot take care of the money our son will be power of attorney.

Knowing that we have everything for him makes us feel better.

The last thing we want is to leave a financial disaster for our son to try and clean up.

Track your take-home pay and get on board with your money.

Print the pdf versions of any of the trackers by visiting my Free Downloads Page.

Discussion: Do you track your gross and net pay? Leave me your comments below and let me know how tracking has helped you with your journey.

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