Personal Income
Definition of 'Personal Income'Total compensation received by an individual. Personal income includes compensation from a number of sources - salaries, wages and bonuses received from employment or self-employment; dividends and distributions received from investments; rental receipts from real estate investments; profit-sharing from a business and so on. In most jurisdictions, personal income above a certain exemption threshold is subject to taxation. Personal income is generally computed on a pre-tax basis.Also referred to as "gross income." |
|
Investopedia explains 'Personal Income'Personal income determines consumer consumption, and since consumer spending drives much of the economy, trends in personal income on a quarterly and annual basis are closely tracked by national statistical organizations, economists and analysts.Personal income tends to display a rising trend during periods of economic expansion, and show a stagnant or slightly declining trend during recessionary times. Since the 1980s, rapid economic growth in economies such as China, India and Brazil has spurred substantial increases in personal incomes for millions of their citizens. |
Related Definitions
Articles Of Interest
-
Budget Without Blowing Off Your Friends
With a little planning, you can maintain your social life without breaking the bank. -
Tax Tips For The Individual Investor
We give you seven guidelines to help you keep more of your money in your pocket. -
Selling Losing Securities For A Tax Advantage
Tax-loss harvesting can help you to reduce taxes on your portfolio gains, but make sure you know the rules! -
Capital Gains Tax 101
Find out how taxes are applied to your investment returns and how you can reduce your tax burden. -
The History Of The T-Bill Auction
Learn how the U.S. found the perfect solution to its debt problems, and ended up creating one of the largest markets in the world. -
The Gini Index: Measuring Income Distribution
A country with $100 billion in assets and four residents sounds good - unless three of them have $0. -
The 5% Solution To Financial Freedom
How can you save the recommended 10% of your income? We'll show you how to get there. -
10 Great Summer Jobs For Teens
There are a lot of summer jobs out there, find out what's available, how much it costs and what skills you need. -
Stop Keeping Up With The Joneses - They're Broke
Conspicuous consumption could be robbing you of future wealth. -
Quants: The Rocket Scientists Of Wall Street
Blend math, finance and computer skills to command a high - and well deserved - salary.
Free Annual Reports