At this stage of financial planning, you are trying to list out your income and expenses so that you can see whether you make enough money to cover all your bills. Please remember that this is a FORECAST of expenses and income that you THINK you will be paying IF YOU ARE A WOKING INDIVIDUAL. This income-expense statement is for the year of 2021.

This statement details the various sources of income of an individual and the expenses normally incurred. The expenses are classified into fixed expenses which remain the same month after month and variable expenses which differ from month to month. The excess of income over expenditure is called SURPLUS. The surplus gets reflected as part of Net Worth in the Balance Sheet.