Money came and went throughout the year. At the end of the year, do you know how much money came in and how they were spent in the year? Sometimes, you scratch your head and wonder how come your bank balance is so low at the end of the year.
You would need two parts to work out the answer: Cash Income and Cash Expenditure.
Cash Income includes (A):
- Salary/Bonuses (if you are working)
- Income from investments
- Fixed deposits/Savings accounts interest income
- Capital gain or loss on sale of investments
Cash expenditure includes (B):
- Overseas trips
- Car expenses
- Computer and related expenses
- Ang Pows (CNY and weddings)
- Medical expenses and check-ups
- House-related items (appliances, repairs, etc)
- Utilities bills
- NTUC Fairprice bills (via credit card statements)
- Property tax
- Management fees & Sinking Funds (or S&CC charges)
Cash Income – Cash Expenditure = (A) – (B) = (C)
(C) can be negative or positive depending on whether (A) is bigger or (B) is bigger.
Net Change in your bank accounts balances and your investments between start and end of the year is computed next.
The Net Change figure can be explained by (C) amount above.
Since we are tracking major items like the above items, (C) is not exactly the same as the Net Change figure. As long the difference is not huge, you are alright in identifying where the money went.
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The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.