Personal income refers to the total earnings received by an individual from various sources during a specific period. It includes all forms of income, such as wages, salaries, tips, commissions, bonuses, rental income, dividends, interest, and any other money received by an individual.

Personal income is a crucial economic indicator as it provides insight into the financial well-being of individuals and households. It serves as a measure of the income available to individuals for spending, saving, and investing.

Personal income is usually reported on a pre-tax basis, meaning it does not account for taxes and other deductions. After-tax income, also known as disposable income, is the amount of money an individual has left after deducting taxes from their personal income.

Government agencies, economists, and researchers analyze personal income data to assess trends, evaluate economic growth, measure income inequality, and formulate policies. It is also used to determine individuals' eligibility for certain programs, benefits, and taxation purposes.

Understanding personal income is essential for individuals to manage their finances effectively and make informed decisions regarding their spending, saving, and investment strategies.