What is Disposable Income?

By glblguy

Disposable Income is defined as the amount of income you have after taxes (i.e. federal income tax, state income tax, city income tax, social security and Medicare).

Disposable income is frequently confused with Discretionary income, which is your Disposable income minus any fixed expenditures such as housing, food, car payments, insurance, etc.

Be aware, these two terms are often used interchangeably, and you’ll really need to read the article to determine the true definition.

Related posts:

  1. Get Your Finances Under Control – One Small Step at a Time
  2. What are Life Basics?
  3. What is RSS and How Do I Read It?

Did you enjoy this article? How would you like to receive all the latest Gather Little by Little articles delivered straight to your email inbox each and every morning? Signing up is easy, just enter your email below. You can unsubscribe at anytime!

Enter your email address:

Both comments and pings are currently closed.

One Response (including trackbacks) to “What is Disposable Income?”

  1. Make Friends, Earn Money Says:
    May 23rd, 2008 at 6:43 am

    Good concise explanation. You also find that it is often those on lower incomes that have a higher disposable income. It is beleived that this is because some people on lower incomes are likely to save less and spend more and hence why advertisers try to target them more.

css.php