Adding and Managing Income

The IncomeModal is used to add and edit income sources for a household. This allows for a detailed breakdown of where a client's money is coming from, which is essential for accurate financial planning.

Accessing the Income Modal

From the Household Overview page, you can find the "Income & Expenses" section. Clicking the "Add Income" button will open the modal. You can also edit an existing income entry by clicking the pencil icon next to it.

Inputs

• Member: Assign the income to a specific household member or to the household in general. This is important for tax calculations.
• Source: A descriptive name for the income source (e.g., "Salary", "Bonus", "Rental Income").
• Amount: The monetary value of the income.
• Frequency: How often the income is received (Weekly, Fortnightly, Monthly, Quarterly, Annually). The system will automatically annualize the amount for calculations.
• Income Type:
  • Gross: The income amount before tax.
  • Net: The income amount after tax.
• Details: Any additional notes or details about the income source.

How It Works

When you add an income source, it is recorded and linked to the specific household. This data is then used in the "Create Scenario Automatically" feature to pre-populate the income fields in a new financial plan.

Annualization of Income

The system automatically converts all income frequencies to an annual amount to ensure consistency in the financial models.

Formula:

• Weekly: Amount * 52
• Fortnightly: Amount * 26
• Monthly: Amount * 12
• Quarterly: Amount * 4
• Annually: Amount

This annualized figure provides the baseline for the annual_income and partner_annual_income fields in the financial scenarios.