Gross income refers to the total earnings an individual or business receives before any deductions or taxes are applied. For individuals, this includes wages, salaries, bonuses, and any other income sources such as rental income or investment returns. For businesses, gross income encompasses all revenue generated from sales and services. Understanding gross income is essential for budgeting and financial planning. It serves as the starting point for calculating net income, which is the amount left after expenses and taxes. Knowing your gross income helps in assessing financial health and making informed decisions about spending and saving.