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Net Income
Personal
WHAT IS IT?
Net income is the amount of income left after relevant deductions have been taken from gross income.
IN PLAIN ENGLISH
It is the money that actually reaches you after applicable deductions.
SIMPLE EXAMPLE
If your gross pay is £3,000 a month, your net income will normally be lower after deductions such as tax and National Insurance.
WHY DOES IT MATTER
Using net income can make household budgeting more realistic because it reflects the amount available to meet regular spending.
THE ROCKET TEST
Net income is what is left from your income after relevant deductions.
SEE IT IN ACTION
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