You may have heard different terminology regarding the income that you receive. One of the common questions that derives from this is, “What is Gross Income?”
Personal Finances
Gross Income is actually very simple. If you are an employee, your gross income is simply the amount of money you receive before taxes.
Corporation
If you are a corporation or business, then your gross income is the revenue produced minus the cost of good sold. This is also referred to as gross margin or gross profit.
How do I Increase my Gross Income?
There are a few ways you could increase your gross income:
- Work more hours at your current job
- Earn a raise
- Work a 2nd job
- Start a side business
- If you already have a business, increase your sales
Have you successfully improved your gross income? What effect did this have on your life?
I work a second job. I recently got a raise at that job. It’s not much because I only work there about 9 hours a week.
That’s ok, because my goal was to make myself ask for the raise and I did.
Nice work Sharon! Asking for a raise is often tough to do. That must have been a proud moment!
This school year I was able to increase my gross income, but not so sure for next year. Next year is questionable because of the state budget problems.
krantcents recently posted..Cash or Credit
Good job increasing your income! I am attempting to increase our income as well (somewhat with this site), but it sure is tough!
I always love a good challenge though.
I’m trying my hand at blogging as a side income, almost at the $100 adsense thresh-hold woo hoo! Alongside that, my next goal is to get a big pay raise. It may mean putting in the extra hours (I’m salary
but it will be worth it. Nice, clear and concise explanation brotha!
Nice job with the Adsense earnings! I think I’m sitting at $47, but I haven’t put much effort towards it, and I actually took it off my homepage because it looks to “ad focused”. Keep it up with the blog!
Another way to think of it: if you are an employee, gross income is the amount you make before taxes AND before deducting the “cost” of going to work (the cost of commuting, and buying a work wardrobe, and dropping the kids off at daycare). Net income comes after both taxes and your “cost of working” expenses.
Paula @ AffordAnything.org recently posted..The Biggest Accounting Mistake Small Biz Owners Make
Well said Paula!
I need to work on increasing my gross income, but the past couple of years have been good: I graduated university and then got a full-time job, so I’ve had some healthy gains. Going forward, that’s why I’m interested in side income. The thing is our taxation rate really sucks so I put in $1 of effort and I’m lucky to get 50-60 cents out of it.
Yeah, that tax will get you! Keep it up though – your site is doing great!
I really really liked the simple and clear cut way you described “gross” income. I sometimes forget that everyone doesn’t know what it is. Very useful information. I’m sticking it in my next round up.
Barb Friedberg recently posted..LEARN ECONOMICS FROM SOUTHPARK
Thanks Barb! Yeah, gross income is a very simple thing, but many still get confused between “net” and “gross” (even me!)
A company’s revenue minus cost of goods sold. Also called “gross margin” and “gross profit”.