Economics 101: Defining Income & Expenses

Economics 101: Net Income = Gross Income - Expenses ;
Gross Income is the full amount on your pay check before anything is deducted.
Expenses are;

1. paycheck deductibles;
2. Housing (Rent, mortgage)
3. Food
4. Transportation
5. primary utilities (heat and lights)
6. secondary utilities (phone, cable/satellite, internet)
7. taxes
8. discretionary spending

We can split expenses into two types; Core Expenses (1-7) & Discretionary Expenses (8)

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