Understanding your income sources is one of the starting points towards creating a budget. Your annual gross income represents your total income before any taxes or other deductions. "Take-home pay" represents your net income, specifically your income minus taxes, credits, and deductions. Some common income sources include:
Wages, salaries, and tips
Wages, salaries, and This is money you earn at your job. For some people, this may be roughly the same amount on a regular basis. Others may have income varying from paycheck to paycheck. If your income varies often, consider what is your average paycheck, along with the lowest and highest paycheck received over the past year.
Interest and dividends
Interest income can be earned from your bank accounts, such as savings accounts and certificates of deposit (CDs). Dividends may be received if you hold stock in a company.
Social Security and other benefits
Social Security benefits include the amount paid to retirees who contributed during their working years, as well as amounts paid to surviving spouses and disabled workers.
Miscellaneous income
Other income may include unemployment compensation, gifts received, or money taken from an IRA, 401(k), or pension.
Understanding your different income sources is a great step toward understanding your budget. Additionally, understanding income changes - and how widely it varies - can help towards planning ahead for the dips and increases.
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Products to Consider
Investment and Insurance Products are:
- Not Insured by the FDIC or Any Federal Government Agency
- Not a Deposit or Other Obligation of, or Guaranteed by, the Bank or Any Bank Affiliate
- Subject to Investment Risks, Including Possible Loss of the Principal Amount Invested
Investment products and services are offered through Wells Fargo Advisors. Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services, LLC (WFCS) and Wells Fargo Advisors Financial Network, LLC, Members SIPC, separate registered broker-dealers and non-bank affiliates of Wells Fargo & Company.
Deposit products offered by Wells Fargo Bank, N.A. Member FDIC.
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