Income vs Expenses
Money arriving against money leaving, and the gap between them.
Income covers salary, contract work, dividends, interest and refunds. Expenses cover everything moving the other way, including the recurring charges that are easiest to forget precisely because they never require a decision.
Income minus expenses is cash flow. A positive figure adds to savings. A negative one is being funded from reserves or from credit, and the distinction between those two matters more than the size of the shortfall.
The ratio between the two turns out to carry more information than either figure alone. Someone earning $200,000 and keeping 5% accumulates more slowly than someone earning $60,000 and keeping 30%, because what compounds is the amount set aside rather than the amount earned.
Worked through
Income
- Salary
- Freelance
- Dividends
- Interest
Expenses
- Rent
- Food
- Transport
- Subscriptions
Net Cash Flow = Income − Expenses
Where this lives in Promi
Transactions page. Income against expenses, with net cash flow.
Related in Transactions & Spending
See your own income vs expenses
Promi computes this from your linked accounts, with the definition one click from the number.
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