Net Income
GeneralGlossary term
Definition
Income remaining after all deductions, taxes, and expenses are subtracted from gross income. Also called take-home pay for individuals or net profit for businesses.
Related terms
- Gross IncomeTotal income earned before taxes and deductions. For individuals, it includes wages, tips, investment income, and other earnings.
- BudgetA financial plan that outlines expected income and expenses over a specific period. Creating and following a budget is essential for managing money and achieving financial goals.
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