What is the first section of a spending plan typically focused on?

The first section of a spending plan typically focuses on income because understanding what money is coming in is fundamental to effective budgeting and financial planning. By starting with income, a person can establish a clear picture of their financial situation and determine how much they have available to allocate toward expenses, savings, and investments. This approach allows individuals to identify gaps between income and expenses, set realistic financial goals, and make informed decisions about their spending and saving habits.

Starting with income sets the foundation for a well-organized spending plan, enabling the subsequent sections—such as expenses, savings, and investments—to be structured around the available resources. This method ensures that individuals do not plan for expenses, savings, or investments without first knowing their income level, leading to a more sustainable and realistic financial strategy.