52. What’s the difference between gross and net income?

Quick Answer:
Gross income is total earnings before deductions; net income is what you keep after taxes and expenses.

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Learn More:
Gross shows capacity; net shows reality. Understanding both clarifies affordability and savings potential. Many overestimate disposable income by ignoring hidden costs such as insurance or social fees. Accurate budgeting requires tracking net figures, ensuring decisions align with actual liquidity.

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