OK, first off, voltage itself doesn’t really matter, just voltage difference. Usually, you pick some point in your circuit and call that “zero volts”, but that’s just a convenience. It’s a lot like elevation that way: If you ask me how high up I am, I could tell you that I’m on a chair about two feet above the floor (and consider something on the floor to be at “zero height”), or I could tell you that I’m about 20 feet above ground level (and consider something sitting on the ground outside to be “zero height”), or I could tell you that I’m nine tenths of a mile above sea level (and consider something at sea level to be “zero height”). Any of those are valid, and I could think of plenty of other ways to measure height, too. But no matter where I set my zero, if you ask me how much higher up I am than where I parked my bike (which is relevant when I’m going up the stairs), the answer to that one is the same.
OK, now, for a circuit in your walls: The wires end up ultimately going to two points on a transformer, and the potential difference (voltage) between those two points is (typically, in the US) 110 volts. If you follow the circuit all the way through, over the course of the entire circuit, that’s how much the voltage changes. Now, voltage hardly changes much at all from one point in a conductor to another, so essentially all of that voltage drop is in the light bulb or whatever. In the water analogy, this would be like a river that flows almost completely horizontally for a while, then going over a waterfall, then flowing horizontally again. There’s the same number of gallons per second going past at any point in the river (translation: same current at every point in the circuit), but there’s a much bigger drop at some parts than others. And on the mostly level parts, you can say that one part is at one height, and another part is at another height.
Now, whenever there’s a net drop from one point to another, and a path between them, electricity/water will flow. There are a lot of things in a house we don’t want electricity flowing through (like, say, you), so you want to make sure everything in the house that you can touch is at the same voltage. You do this by connecting everything to ground wires, and connecting the ground wires to the Earth. The ground wire is then like a canal, or a calm lake: Every point on it is at the same height, and there isn’t really any water flowing anywhere, it’s just sitting there. And to make sure that no water ends up flowing from your canal system to the ocean, you put the height of your canals at sea level.
OK, back to those wires that are powering your light bulb: All that really matters is that there be a voltage difference between them, and your light bulb would work just fine if one wire were 1,000,000 volts above ground, and the other was 1,000,110 volts above. In practice, though, it’s easiest to have one wire at 0 volts (that is, at the same voltage as ground) and the other one at 110 volts above ground. The wire that’s at the same voltage as ground is the neutral wire, and the other one is the hot wire. But even though both the neutral and the ground are at the same voltage, they are not the same, because the ground wire is a canal with essentially no flow at all in it, while the neutral is a river with a large flow.