WordGarden.ioincome
B1Pronunciation
UK
- /ˈɪnkʌm/
US
- /ˈɪnˌkəm/
Meanings
Noun
money received by a person or household, especially from work, investments, or benefits
money or profit recorded in business, tax, or economic accounting
Beyond the definition
It is not just about your paycheck. It is all the money you receive, not only money from work, though that is a big part of it. Think of Old Man Tiberius in the story; he did not have a job, but his money came from renting out his seaside cottages and selling seashells to tourists.
It can be wages from your job, dividends from investments, rent payments you receive, or even regular gifts. It is the money that flows in. Understanding your income is important for budgeting, saving, and planning for the future. A steady income provides security, while changing income needs careful planning.
Income refers to the total amount of money received by a person or organization over a specific period of time. It's more than just a salary; it encompasses all forms of financial inflow. For example, a freelance artist might have an irregular income based on commissions, while a salaried employee has a predictable monthly income from their job.
There are different types of income. Earned income comes from work – wages, salaries, tips, and profits from self-employment. Passive income, however, is earned with minimal ongoing effort, like rental income or royalties from a book you wrote. Investment income includes dividends, interest, and capital gains from selling assets like stocks or bonds.
Understanding your income is fundamental to financial literacy. It's the foundation for creating a budget, tracking expenses, saving for goals (like a down payment on a house), and paying taxes. Governments also rely on income – through income tax – as a major source of revenue to fund public services.
So, whether you're talking about a steady paycheck, rental properties, or investment returns, income represents the financial resources flowing into your life—the fuel that powers your economic activity and allows you to pursue your goals.
Examples
- 1
Work hours
Her income fell after she cut her hours at work.
- 2
Job earnings
He earns a good income as a software engineer.
- 3
Retirement
Many retired people rely on income from pensions and savings.
- 4
Extra earnings
She started selling cakes online to supplement her income.
- Phrasesupplement your income
earn extra money in addition to your main income
More examplesFewer examples
- 5
Financial aid
The scholarship is only open to students from low-income families.
- Phraselow-income
having relatively little money
- 6
Household budget
After their second child was born, they had to live on a single income.
- Phraselive on a single income
support yourself or your family with money from only one job or one person
- 7
Rental property
Rental income helped him pay off the mortgage.
- 8
Social policy
The policy is meant to reduce income inequality.
See also
Forms and spellings
2 forms open this card.
Main spelling
- incomenoun
Forms
- incomespluralnoun