"Income is the consumption and saving opportunity gained by an entity within a specified timeframe, which is generally expressed in monetary terms."
Understanding the different sources of income, how to calculate it and how to increase your income.
Income sources: Understanding different sources of income such as salaries, wages, bonuses, commissions, interest, and investments.
Budgeting: Creating a budget to plan and track expenses, savings, and debt payments.
Expense categories: Identifying and categorizing expenses such as housing, transportation, food, utilities, entertainment, and healthcare.
Fixed and variable expenses: Differentiating between fixed expenses (rent, mortgage payments) that remain constant and variable expenses (subscriptions, utilities) that fluctuate.
Needs versus wants: Distinguishing between necessary expenses such as rent, and discretionary expenses such as eating out and shopping.
Cost-cutting measures: Implementing measures to reduce expenses where possible, such as cutting out unnecessary subscriptions and shopping around for cheaper rates.
Emergency funds: Learning the importance of setting aside funds for unexpected expenses or income loss.
Debt management: Understanding debt and managing it through debt repayment plans, debt consolidation, and negotiation with creditors.
Credit scores: Understanding how credit scores work and how they influence financial decisions such as obtaining loans and mortgages.
Financial goal setting: Creating financial goals and developing a plan of action to achieve them, such as saving for retirement or a down payment on a house.
Investing: Understanding the basic concepts of investing and determining the best investment options based on personal financial goals and risk tolerance.
Passive income: Exploring ways to generate passive income streams such as rental properties or investments in stocks and bonds.
Taxes: Understanding tax brackets and deductions, and filing taxes properly to minimize tax liability.
Insurance: Understanding different types of insurance, such as life, health, and auto insurance, and the benefits of having adequate coverage.
Financial planning for the future: Creating a long-term financial plan that includes retirement savings, estate planning, and insurance coverage.
Earned Income: Income earned from a job or self-employment.
Investment Income: Income earned from investments in stocks, bonds, mutual funds, real estate, etc.
Rental Income: Income earned from renting out property or assets.
Passive Income: Income earned from sources that require little or no effort on the part of the recipient, such as royalty payments or dividend income from investments.
Capital Gains: Income earned from selling an asset for more than its original purchase price.
Pension Income: Income earned from a pension plan, such as a retirement savings account or annuity.
Social Security Income: Income received from the government as a social security benefit.
Alimony or Child Support: Income received as support payments from a former spouse or partner.
Government Benefits: Income received from the government as welfare benefits or disability payments.
Gifts or Inheritances: Income received as a gift or inheritance from a family member or friend.
"Income is difficult to define conceptually and the definition may be different across fields."
"An extremely important definition of income is Haig-Simons income, which defines income as Consumption + Change in net worth and is widely used in economics."
"For households and individuals in the United States, income is defined by tax law as a sum that includes any wage, salary, profit, interest payment, rent, or other form of earnings received in a calendar year."
"Discretionary income is often defined as gross income minus taxes and other deductions (e.g., mandatory pension contributions), and is widely used as a basis to compare the welfare of taxpayers."
"In the field of public economics, the concept may comprise the accumulation of both monetary and non-monetary consumption ability, with the former (monetary) being used as a proxy for total income."
"For a firm, gross income can be defined as the sum of all revenue minus the cost of goods sold."
"Net income nets out expenses: net income equals revenue minus cost of goods sold, expenses, depreciation, interest, and taxes."
"A person's income in an economic sense may be different from their income as defined by law."
"Income is defined by tax law as a sum that includes any wage, salary, profit, interest payment, rent, or other form of earnings received in a calendar year."
"Haig-Simons income defines income as Consumption + Change in net worth."
"Discretionary income is widely used as a basis to compare the welfare of taxpayers."
"Gross income can be defined as the sum of all revenue minus the cost of goods sold."
"Net income equals revenue minus cost of goods sold, expenses, depreciation, interest, and taxes."
"Income is difficult to define conceptually and the definition may be different across fields."
"Discretionary income is widely used as a basis to compare the welfare of taxpayers."
"The concept of income in public economics may comprise the accumulation of both monetary and non-monetary consumption ability, with the former (monetary) being used as a proxy for total income."
"For households and individuals in the United States, income is defined by tax law as a sum that includes any wage, salary, profit, interest payment, rent, or other form of earnings received in a calendar year."
"Net income represents revenue minus cost of goods sold, expenses, depreciation, interest, and taxes."
"A person's income in an economic sense may be different from their income as defined by law."