income
Money received, especially on a regular basis, for work or through investments.
Example
“Her income from freelancing supplemented her full-time salary.”
Memory Tip
IN-come — money that COMES IN to you.
Why It Matters
Understanding your total income is fundamental to budgeting, setting financial goals, and making decisions about spending and saving. Income forms the foundation of your financial plan because it determines how much money you have available to cover expenses, build emergency funds, and invest for the future.
Common Misconception
Many people think income only means their salary from a job, but it actually includes all money coming in regularly such as freelance earnings, rental payments, dividend payments, and interest from savings accounts. This broader view of income helps you get an accurate picture of your total financial resources.
In Practice
A person might earn a base salary of 50,000 dollars per year from their job while also earning 200 dollars monthly from a side freelancing project and 150 dollars quarterly from stock dividends. Their total annual income would be 51,200 dollars, which is the actual amount available for budgeting and financial planning rather than just the 50,000 dollar salary figure.
Etymology
From 'come in' — money that comes in to you.
Common Misspellings
Build a budget and track your spending
Related Terms
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See Also
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