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Q & A
Gross vs Net I have been budgeting with the magic jar system
for about 8 months now and am loving it. I am now consistently getting
to the end of the month before getting to the end of the money even with
paying much more on my debts and saving money!! I do have one question.
Why are the percentages in your budget worksheet based on gross income
as opposed to net? Won't that set people up for failure as we only pocket
as much money as we net, not what we gross? Maybe I am confused?? Cheers!
Kristina
Yah, you’re confused. The numbers for the budget are based on your net income. I often find that people think of their income in gross dollars, and their expenses in terms of net dollars, which leaves a gap – the amount they’re often overspending by, which is why I only use net figures for the budget. |
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