Personal income refers to the total earnings received by an individual or household from various sources. This includes wages from employment, salaries, bonuses, rental income, dividends from investments, and any government benefits such as Social Security or unemployment insurance. It is a key indicator of financial health and can influence spending and saving behaviors. Understanding personal income is essential for budgeting and financial planning. It helps individuals assess their ability to meet expenses, save for the future, and invest in opportunities. Tracking changes in personal income can also provide insights into economic trends and the overall well-being of a community or region.