Gross income = earned wages before deductions ($51,000,000 contract)
Deductions can be: federal taxes, state taxes, SS and Medicare, health insurance, 401k, mandatory withholding (child support and alimony)
Net income = actual take home pay
Same theory applies to net worth…
Gross Worth = total lifetime earned wages before deductions and debts
Net Worth = total lifetime earned wages minus deductions AND minus outstanding debts (mortgage, car loans, credit card debt, etc)
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