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Consulting income

anonymous

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#1

Got a question regarding how Income is handled in your app.

As I’m semi-retired and doing some consulting, I’m estimating the amount of income I will make this year.  In TM, I’ve entered, as an example, $50,000 / year.  Is this amount just used for calculating taxes, etc. or do you apply the $50,000 towards my expenses?

The reason I’m asking, when I get paid from consulting, it just goes into my savings account and is usually not used for any of my expenses.  So, at the end of the year, let’s say did I made $50,000 from consulting and was also able to save the $50,000 in savings.  Does TM now assume that I have $100,000 that would be used towards my expenses?

admin

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#2
In the TIME MACHINE, your income goes into your Wallet. Expenses come out of your Wallet. Taxes come out of your Wallet. If you set up automatic savings/withdrawals, that also moves money to/from the account specified from/to the Wallet.
If there is money in your Wallet after all that at the end of the year, it gets deposited to accounts or spent, according to your deposit Priorities.
If on the other hand, the Wallet balance is negative, money will be taken from accounts according to your withdrawal Priorities.
This is to zero the Wallet balance for the following year.
 
So if you have other income that covers the expenses, taxes, and automatic savings for the year, and the 50K from consulting is not needed and ends up in your Wallet, the TM will consider your deposit Priorities to determine how much to deposit to each of your accounts. If you want to spend a portion or all of the extra money instead, set Spending as your first deposit Priority with a limit set to the % you want to spend. If that limit is set to 100%, nothing will be saved in your accounts. You’ll see the total spending in the Timetable.