What is disposable income?

[OddBeMe]

I’ve heard this phrase and never really understood.

[exitseven]

It is money the government takes from you and flushes it down the toilet.

[OddBeMe]

Uhg you’re right. I’m owed so much from Iraq.

[exitseven]

Wait until you get the bill for Ukraine.

[exitseven]

Thanks for the MHO😎

[msc545]

Money you can afford to spend or lose at will.

[exitseven]

I will let you know if I ever see some.

[msc545]

@exitseven Me too.

[msmissydc]

Disposable income is income after taxes that you need to spend and is bassically 'disposed' before you actually can decide what you spend your money on.
It includes rent, food, water, etc. Things you can't life without.
As far as I know it has more than one specific definition but some also include everything you need to spend to get to work e. g. bus tickets, monthly costs for a car.

[msmissydc]

I need to correct myself a but here. Disposable income includes these cost its not made from these costs.
Disposable income is the opposite of discretionary income. The later doesn't include the costs you need to spend and neither taxes, while disposable income still includes these.

[OddBeMe]

Yeah I guess I consider all income non disposable. Lol

[BoopBoopBeep]

Actually the opposite of what you just said.

[msmissydc]

@BoopBoopBeep Ok if I am wrong there wouldn't be a difference between disposable and discretionary income. These two are not the same and its always told how these two are often interchanged.
Discretionary income is, "money that someone has left to spend after they have paid tax and paid for all the things they need such as living costs and food."

Disposable income is, "money that someone has left to spend after paying taxes"
Qutes: Cambridge Dictionary, The census uses the same definition.

[BoopBoopBeep]

@msmissydc perhaps I was unclear how you were using "include" then, as these definitions are correct. It seemed like you were saying discretionary income included taxes, as in, the money i pay taxes with is discretionary income, which obviously it isn't

[msmissydc]

@BoopBoopBeep You are right I made an error or at least made it super unclear. didn't see it. After rereading them they not well articulated and easy to missunderstood. Readers please refer to the definitions I posted not my weird try to explain it myself.
Disposable income: money you can and have to spend, tax pay is already done.
Discretionary income: money you can spend however you want, tax pay as well as living costs are already paid.

[Drumlin2001]

Add up all the bills you are committed to each month, mortgage, utilities, taxes, transport etc. Maybe food bill. Whatever is left of your pay packet is your disposable income, that you can use for discretionary spend.

[Astarlessnightsky]

As i understand it, its whats left after you paid for everything, Income you would have in your bankaccount when the next months income gets transfered.

[Snakeyes7]

Money that you have to spend on things that aren't savings, bills or other required payments. Money that you spend on fun things like going out to eat, vacations or new gadgets.

Money that you can afford to "dispose" of.

[Stoner710]

It’s income that allows you to by more then the basic necessities of life, Example if you want to by and Xbox which you don’t need to survive that would be disposable income

[purplepoppy]

It's the money you've got to actually enjoy yourself rather than pay for essentials.

[slatyb]

After taxes, rent, utilities, food, etc. Money that one can spend as desired

[whirled_up_girl]

I’ve understood it to be the income that’s available after taxes and all the bills that are due have been paid.

[Agape93]

It's income you can afford to spend without worrying about obligations.

[Sevenpointfive]

to me it's money to play with.

but i usually spend it on money as an investment

[Anonymous]

Money you don't need for rent, mortgage, bills etc and freely spend without having to worry about saving it

[Ben487]

the money you have to spend on yourself. Like new cars, vacations, hot girls etc etc.

[Anonymous]

Anything left after the required expenses are covered