WHAT IS INCOME?
It is the money we receive on a regular basis from work or through investments.
What is a Income in more detail?
When you hear the word income, what comes directly into your mind? Is it about the money you earn from your job? I think most people do, they are working to earn an income. It is an important tool for us to live comfortably and buy necessary things to survive. Income includes anything that benefits you financially.
Income is a money that we receive in exchange for the goods or services provided. It is used to fund our day to day expenditures. Without our income how can we achieve our dreams and goals in life. Those who are 65 years old and below receive most of their income from their salary or wages that is earned from a job. But for those who are above 65 years old, their income are from investments, pensions and social security. In business, income can come from the revenue or sales of their business after they paid all taxes and expenses. Take note that income are subject to taxation, you cannot run from it.
An example of income is a taxable income. There are two kinds of taxable income: earned income and unearned income. Earned Income are salary, wages, bonuses, commissions, tips,etc. Unearned Income are dividends, rents, interests, alimony, royalties, winnings etc. We have to remember that income does not earned solely on the wages you earned at your job but any compensation that you receive in any form is qualified as a taxable income.
Income is also a consumption and savings gained by someone at a specified time frame. Income can be expressed generally in monetary terms. For individuals it is the sum total of wages, profits, salaries, rents, interest payments and other forms of earnings.
Our income is the sole tool for us so that we may be able to do things we wanted. Like buying necessary things or even our wants. But if your income is not that good, you have to prioritize always your needs over wants. And most important thing is, we have to save money from our income. Don’t spend what’s left of your income but save first and spend the rest. This way you will have money in case of emergencies, we do not know what will happen in the future so we must be prepared at all times.