When setting up your budget in EveryDollar, you have the flexibility to use either gross income (your total pay before deductions) or net income (your take-home pay after taxes and other deductions).
We Recommend Using Net Income
We recommend budgeting based on your net income the money you actually take home because we want budgeting to be easy and fun. Budgeting based on gross income adds a lot of steps and hassle to your budget, which can make the process feel more complicated than it needs to be.
Why Net Income Works Best for Most People
While you can budget using your gross income, most EveryDollar users choose net income, and here’s why:
You don’t have to manually track or enter payroll deductions like taxes, insurance, or retirement contributions. Using net income means you can skip reviewing your pay stub each time you're paid.
Can I Use Gross Income Instead?
Yes, if you prefer to budget from your gross income and manually account for every deduction, you absolutely can. Just be aware that it may take more time and add complexity to your budgeting process.
Next Steps
To keep things simple and stress-free, we recommend budgeting based on your net income. It gives you a clear view of your actual cash flow and makes it easier to stay consistent and motivated.