Hi Rick,

A negative income doesn't mean you automatically lose money! The costs are simply distributed over the settlements proportional to their population.

I would suggest you read my RTW Guide (see my signature below and click the link). Scroll down to the Economics section. It explains it all right there.

If you have read it already and still confused, here's an example

You have two cities:

City A earns 500 denari (Population = 500 people)
City B earns 2000 denari (Population = 500 people)

The cost is 1200 denari. The computer divides the cost between the two settlements. Each will pay 50% of the cost (-600 denari).

City A will show (500 d - 600 d =) -100 d outside your settlement.
City B will show (2000 d - 600 d =) 1400 d outside your settlement.

It doesn't mean you are losing money. You are actually taking in 1400 d- 100 d = 1300 per turn!!

In your case you have -400 denari instead of -100 d showing.

if you have more questions, ask away.

Squalor is simply a public order penalty based on population. Read the guide first (look up public order), then ask again what you don't understand.