Income Audit
Document current income sources, amounts, reliability, growth potential, and what activities or assets produce each source.
What Income Audit gets you.
By the end of this upgrade you will have a complete written inventory of every income source, its reliability, and its growth potential.
- Pay stubs or income statements for the past 12 months
- Records of any side income, investment income, or rental income
- Tax return from the most recent year
- A spreadsheet or document to compile the inventory
Run the upgrade.
- 01
List every income source
Write down every source of money received in the past 12 months: primary job, side work, investment income, rental income, benefits, or gifts.
- 02
Record the amount and frequency for each
For each source, document the gross amount, how often it's received, and the net amount after taxes or direct costs.
- 03
Rate reliability of each source
Classify each source as guaranteed, variable-but-consistent, or one-time/unpredictable, based on its actual history over the past year.
- 04
Identify what produces each source
For each source, note the specific activity or asset generating it (job role, specific client, specific investment) so you know what to protect or replicate.
- 05
Assess growth potential
For each source, note whether it's likely to grow, stay flat, or decline over the next 1-2 years, and what would need to happen for it to grow.
- 06
Calculate total and concentration
Sum total income and calculate what percentage comes from your single largest source to see how concentrated your income risk is.
Concentration % = largest income source / total income
- Every income source from the past 12 months is listed with amount and frequency
- Each source has a reliability rating
- Income concentration percentage is calculated
- Growth potential is noted for each source
Annually
- Update the inventory after any job or income change
- Recheck concentration risk if one source grows disproportionately
- Revisit growth potential notes against actual results