Net Income is the amount of money a person or business has left after all expenses, taxes, and costs have been deducted from total revenue. For individuals, this means the money they take home after taxes are taken out of their paycheck. For businesses, it reflects the profit earned after all operating expenses, interest, and taxes are subtracted from total sales. Understanding Net Income is crucial because it indicates financial health. A positive Net Income means that a person or business is earning more than they spend, while a negative Net Income suggests financial trouble. This figure helps in making informed decisions about budgeting and investments.