Realized income refers to the amount of money or financial gain that an individual or business has actually received or earned during a specific period. It is the income that has been converted into cash or its equivalent, and can be readily used for consumption or investment purposes.

Realized income can come from various sources such as employment wages, rental income, dividends from investments, capital gains from the sale of assets, and profits from business operations. It represents the actual inflow of funds into one's possession, as opposed to potential or unrealized income which may exist on paper but has not yet been received.

The concept of realized income is important for individuals and businesses alike, as it determines the actual financial resources available for spending, saving, or reinvesting. It serves as a measure of economic well-being and can impact one's ability to meet financial obligations, make purchases, or achieve financial goals.

However, it is essential to note that realized income does not necessarily reflect an individual's overall financial health or wealth. Other factors such as expenses, debts, and financial obligations must also be considered to get a comprehensive picture of one's financial situation.

In summary, realized income represents the actual monetary gain or earnings that have been received or converted into cash during a specific period. It is a crucial aspect of personal and business finance, providing the means to meet financial needs and pursue financial objectives.