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Finance > Personal Finance > Income Management

Income management

Maximising ones income obviously is the objective of all individuals (except sages and such others). People work to earn to their optimum capacity. However, if you are in a position to manage your income stream in such a manner that it is not prone to charges on it, you enhance your disposable income. For example, income received from company deposits is prone to income deduction at source whereas dividend income is not or income earned away from place of stay is prone to charges like commutation expenses, eating out etc. whereas income earned closer to home is free from such expenses.

Similarly, if your employer pays for the cost of your residence against a nominal deduction from your salary rather than house rent allowance, the former option will result in maximising the disposable income.

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