Posts Tagged ‘real income’

Real Income is…

Thursday, August 20th, 2009

Real income is how much an individual, organization, or country can actually purchase or do with its earnings after taking inflation into account; that is, its purchasing power. In an environment where prices are increasing, even if you made the same amount of money, say $100, this year as you did last year, your real income was greater last year because you could buy more with that $100 last year than you can this year.