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 made after subtracting operating expenses, interest, and taxes from total sales. Understanding net income is crucial for budgeting and financial planning. It helps individuals manage their spending and savings, while businesses use it to assess profitability and make informed decisions. A higher net income indicates better financial health for both individuals and companies, like small businesses or corporations.