A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- Gross IncomeYour total earnings before any taxes, retirement contributions, or other deductions are taken out of your paycheck.
- Net IncomeWhat is left of your earnings after taxes and deductions, which is the money you actually have available to spend or save.
- Payroll DeductionsAmounts your employer subtracts from your gross pay, including taxes, retirement contributions, and insurance, before you see the rest.
- Spending PlanA forward-looking plan for where each dollar of income will go before you spend it, covering bills, saving, and everyday costs.
- Disposable IncomeThe money left over after paying taxes that you can freely choose to spend, save, or invest as you like.
- BudgetA plan for the money you already earn — deciding where each dollar goes before it disappears.
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Plain-English education — not personalized legal, tax, or investment advice.