**This article is for members of the Million Dollar Year and Wealth Building Accelerator.
First remember this doesn't have to be perfect. If you want to, you can just include the amount of your paycheck in your Income and call it a day. That would be totally fine for the purpose of this exercise.
If you are someone who wants to have the most information possible, and the most accurate healthcare and retirement percentages in your summaries, follow this process:
Add back in the amount deducted: Take the amount you were paid (Net Pay), plus your 401(k) contribution, plus your health insurance expenses, and that's your total Income. Then, on the Use of Money tab, you would track the health insurance cost as Health Care, and your 401(k) contribution as Retirement Savings. For Example:
- Gross Paycheck (Total Pay): $2000
- Automatic Health Insurance/HSA Deduction: $150
- Automatic 401(k) Deduction: $200
- Net Paycheck (Your Take-Home Pay): $1500
- What you would track as Income: ($150 + $200 + $1500) = $1850
- What you would track as Expenses: Health Care, $150; Retirement Savings, $200
Again, this doesn't have to be perfect. You don't need to do this if you don't want to, and you can always revisit it again in Step 6: Design if you'd like.