How Much Of Your Income Do You Know?


[dropcap]T[/dropcap]his may be a surprising question but it is so relevant and true. How much do you know about what you are paid? In this case we are assuming you are a salary earner. The truth is that everyone is a salary earner even if you run your own business. That is because best practice in business management means that you must pay yourself a determinable salary on a monthly basis even if you are self employed. So the question is relevant to everyone reading this piece whether self employed or not, how much do you know about your salary?

Let us test your knowledge of your salary with the questions below;

  1. How much do you earn?
  2. How many deductions are made from your salary on a monthly basis and what are the deductions for?
  3. How does your accountant do the calculations that determine how much money will be deducted from your Salary? Are the calculations accurate?
  4. What laws or policies determine what should be deducted from your salary? For example, tax laws, pension laws, health insurance laws and any other laws.
  5. Are the laws accurately applied when it comes to your salary? For example, have you been placed in the right tax bracket? Is the correct percentage being applied to your pension deduction?
  6. Do you know the difference between your basic salary and the allowances you are entitled to?
  7. Are you familiar with the financial benefits you are entitled to apart from your salary and when you are entitled to those benefits?
  8. Are you familiar with the tax and non-tax relieves that you can claim and how much any claim can boost your salary?
  9. Are any deductions from your salary being remitted to appropriated authorities?
  10. How much will be your retirement benefits in cash if you retired today or say in five years time?

How many of these 10 questions did you answer yes to? The lower the number of your YES answers, the more urgent it to sit down and take stock.