Income Meaning
Income Definition & Usage
Money received, especially on a regular basis, for work or through investments.
Examples
- "Her monthly income from the new job has significantly increased."
- "He invested in stocks and bonds to generate passive income."
- "The average household income in the city is rising steadily."
- "They were concerned that their income would not be enough to cover living expenses."
- "His primary source of income is his freelance graphic design business."
The total amount of money available to an individual or household after taxes and other deductions.
Examples
- "After deductions, his take-home income is much lower than expected."
- "The government's tax policies can heavily affect the disposable income of middle-class families."
- "Income taxes are deducted directly from your paycheck before you receive the net income."
- "A rise in income taxes can reduce the amount of disposable income available for spending."
- "Social security contributions are taken out of your income before you see the final paycheck."
The total revenue generated by a company, community, or economy over a specific period, which may not be directly related to an individual’s personal earnings.
Examples
- "The national income of the country has been steadily increasing for the past decade."
- "A strong economy leads to higher national income, which can improve public services."
- "National income per capita is an important indicator of a country’s wealth."
- "The government has announced initiatives to increase the national income through investments in technology."
- "In times of recession, the national income tends to decrease as businesses slow down."
Cultural Context
The word 'income' has been a central concept in economics and finance for centuries. It refers to the monetary gain that an individual or entity receives, typically from labor, investments, or government transfers. Understanding income is crucial for assessing an individual's financial well-being, the overall health of economies, and the effectiveness of fiscal policies. Income is not only a personal financial measure but also a major determinant of tax policies and social welfare programs in many societies.
The Road to Financial Independence
Story
The Road to Financial Independence
After years of struggling with her finances, Lily finally had a breakthrough. She had been working long hours as a graphic designer, earning a decent monthly income, but it always felt like she was just getting by. A few months ago, she began researching passive income streams, intrigued by the possibility of making money while she slept. Lily’s first step was to invest in stocks, and soon, her small investments began to generate some income. She still had her primary source of income from her design work, but now her passive income was adding an extra cushion to her finances. She was no longer depending entirely on her wages to cover bills and expenses. One afternoon, while reviewing her finances, Lily noticed how much her total income had increased, not just from her regular job, but from the investments she had made. Her gross income was good, but after taxes and deductions, her net income was what really mattered. What used to be a tight budget was now expanding. In a meeting with a financial advisor, she realized the importance of diversifying her income sources. The advisor explained how increasing her national income potential, by investing in real estate, could further boost her overall wealth. Lily understood that increasing her income wasn’t just about earning more from her job—it was about building wealth through different channels. As she moved forward in her journey to financial independence, Lily found herself thinking more about the future. She realized that income isn’t just a number—it’s the key to freedom and security, and it can come in many forms. Her income, once solely dependent on her job, now included dividends, rental income, and even royalties from a book she had written. The road to financial independence was clear, and it was paved with a diversified and growing income portfolio.
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