Money And Income

Money and income.

The money used in a country euros, dollar, yens, etc. Is its currency money in notes (banknotes) and coins is called cash. Most money however, consists of bank deposits, money that people and organizations have in bank accounts. Most of this is on paper- existing in theory only- and only about ten per cent of it exists in the form of cash in the bank.

Personal finance

All the Money a person receives or earns as payment is his or her income. This can include.

• A salary: money paid monthly by an employer or wages money paid by the day or the hour, usually received weekly.

• Overtime: money received for working extra hours.

• Commission: money paid to salespeople and agents a certain percentage of the income the employee generals.

• A bonus: extra money given for meeting a target or for good financial results.

• Fees: money paid to professional people such as lawyers and architects.

• Social security: money paid by the government to unemployed and sick people.

• A pension: money paid by a company or the government to retired person.

• Salaries and wages are often paid after deductions such as social security charges and pension contributions.

Amounts of money that people have to spend regularly are outgoings. These often include.

• Living expenses: money spent on everyday needs such as foods, clothes and public transport.

• Bills: request for the payment or money owed for services such as electricity, gas and telephone connections.

• Rent: the money paid for the use of house or flat.

• A mortgage: repayments of moneys borrowed to buy a house or flat.

• Health insurance: financial protection against medical expenses for sickness or accidental injuries.

• Tax: money paid to finance government spending.

A financial plan, showing how much money a person or organization expects to earn and spend is called a budget.

Planned monthly Budget for the next year

Income Outgoings

Salary (after deductions) 3250 Rent 900

Commission (average) 600 Bills 250

Living expenses 1200

Health insurance 130

Tax 800

Total 3850 Total 3280

...