Start here · Module 2 of 2
Where it actually goes
See what comes in, what goes out on autopilot, and what slips out on impulse, using your own numbers.
Key terms in Where it actually goes
- Net income
Net income is the money a person actually receives in a paycheck after taxes and other deductions are taken out. It is often called take-home pay. The gap between net income and the larger pre-deduction figure reflects items such as income tax, payroll taxes, and employer-arranged contributions like health premiums or retirement plan deposits.
Source: Consumer Financial Protection Bureau, Financial terms glossary
- Gross income
Gross income is the total pay a person earns before taxes and other deductions are subtracted. It is the figure usually quoted in a job offer or on a pay stub’s top line. Lenders and tax agencies often work from gross income, while day-to-day spending is paid out of the smaller net amount.
Source: Consumer Financial Protection Bureau, Financial terms glossary
- Spending plan
A spending plan is a written outline of the earnings a person expects and how those funds will be allocated or spent during a set period. The term is used in financial education as a friendlier name for a budget. Plans are usually built around a week, a pay period or a month, and compared afterward with what actually happened.
Source: Consumer Financial Protection Bureau, Financial terms glossary
Every term on Lever is in the money glossary.
About this module
Where it actually goes is part of Start here, one of 15 subjects in Lever. It’s a short run of 7 lessons, about 18 minutes in all, so you can finish it in one sitting.
Every lesson takes one idea at a time. You read it with the math worked out step by step, answer a question that puts it to use, then see why the right answer is right and why the others aren’t.
It’s for anyone who was never taught this, and you don’t need to know anything first. Every lesson is free. Lever works out what you already know, so you can start here or let your path bring you to it.
More in Start here
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It’s part of Start here. Lever will bring it to you when you’re ready, or you can go straight there.