Share on Facebook Share on Twitter Email
Answers.com

disposable income

 

Portion of an individual's income over which the recipient has complete discretion. To assess disposable income, it is necessary to determine total income, including not only wages and salaries, interest and dividend payments, and business profits, but also transfer income such as social-security benefits, pensions, and alimony. Obligatory payments, including personal income taxes and compulsory social-insurance contributions, must be subtracted. Disposable income may be used for consumption or saving.

For more information on disposable income, visit Britannica.com.

Search unanswered questions...
Enter a question here...
Search: All sources Community Q&A Reference topics
Investment Dictionary: Disposable Income
Top

The amount of after-tax income that is available to divide between spending and personal savings.

Investopedia Says:
This is also known as your take-home pay.

Related Links:
Here are four quick and easy ways to up your spending money. Increase Your Disposable Income
Find out how to balance living well today and retiring well tomorrow. Enjoy Life Now And Still Save For Later
Follow this sound advice and plan for a comfortable future. Ten Tips For Achieving Financial Security
Don't know where your paycheck goes? Find out how a spending plan can help you save your money. The Beauty Of Budgeting
Follow Indy's advice and conquer the obstacles blocking your path to financial well-being. The Indiana Jones Guide to Getting Ahead
Not having enough money isn't necessarily the result of not earning enough money - learn to choose fortune over disaster. Seven Common Financial Mistakes
Thinking about having children? Consider the financial aspect of this decision. Kids Or Cash: The Modern Marriage Dilemma
Before you bring a furry friend into your household, make sure you can handle the hefty financial commitment. The Economics Of Pet Ownership
From a tentative spring to a comfortable winter, learn how to weather the phases of your investing journey. The Seasons Of An Investor's Life


Banking Dictionary: Disposable Income
Top

Net income remaining after state, federal, and local taxes are paid, and available for consumption or saving. Distinguish from discretionary income, which is income remaining after meeting essential household expenses, such as food and housing costs.

 
 

 

Copyrights:

Britannica Concise Encyclopedia. Britannica Concise Encyclopedia. © 2006 Encyclopædia Britannica, Inc. All rights reserved.  Read more
Investment Dictionary. Copyright ©2000, Investopedia.com - Owned and Operated by Investopedia Inc. All rights reserved.  Read more
Banking Dictionary. Dictionary of Banking Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved.  Read more